Purpose: This research aims to examine the impact of ownership structure consisting of managerial ownership, institutional ownership and audit quality which is proxied using size of public accountant firms on earnings management using three control variables, namely company size, leverage and market value.Design/Methodology/Approach: The population used in this research is banking companies listed on the Indonesian Stock Exchange for the 2020-2022 period. The data used in this research is secondary data and the sampling technique selection used is purposive sampling. There were 35 companies in the sample with a total of 105 data points at the beginning, after the outlier elimination process the final data amounted to 87 data points. The analytical method used to test the hypothesis in this research uses multiple linear regression analysis.Findings: The results of this research show that managerial ownership and audit quality have a significant negative effect on earnings management, while institutional ownership has a significant positive effect on earnings management.Originality: This study uses a sample of banking companies in Indonesia. Control variables were added by researchers when testing the influence of research variables. Agency theory is used to explain the relationship between managerial ownership, institutional ownership and audit quality with earnings management.
{"title":"Analysis of Earnings Management: Using Ownership Structure and Audit Quality Among Banking Industries in Indonesia","authors":"A. Susbiyani, D. T. Fauzan, R. M. Aspirandi","doi":"10.4038/sajf.v3i2.69","DOIUrl":"https://doi.org/10.4038/sajf.v3i2.69","url":null,"abstract":"Purpose: This research aims to examine the impact of ownership structure consisting of managerial ownership, institutional ownership and audit quality which is proxied using size of public accountant firms on earnings management using three control variables, namely company size, leverage and market value.Design/Methodology/Approach: The population used in this research is banking companies listed on the Indonesian Stock Exchange for the 2020-2022 period. The data used in this research is secondary data and the sampling technique selection used is purposive sampling. There were 35 companies in the sample with a total of 105 data points at the beginning, after the outlier elimination process the final data amounted to 87 data points. The analytical method used to test the hypothesis in this research uses multiple linear regression analysis.Findings: The results of this research show that managerial ownership and audit quality have a significant negative effect on earnings management, while institutional ownership has a significant positive effect on earnings management.Originality: This study uses a sample of banking companies in Indonesia. Control variables were added by researchers when testing the influence of research variables. Agency theory is used to explain the relationship between managerial ownership, institutional ownership and audit quality with earnings management.","PeriodicalId":510853,"journal":{"name":"South Asian Journal of Finance","volume":"97 1‐2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139165963","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}
N. T. Wickramasinghe, N. Deyshappriya, Y. M. C. Gunarathne
Purpose: The main purpose of this study is to examine the relationship between stock market development and economic growth in Asian countries focusing on causality direction.Methodology: The study based top 10 stock exchanges in the Asian region and the secondary data mainly collected from World Development Indicators of the World Bank over the period of 1990-2020. Generalized Method of Moment (GMM) Dynamic Panel analysis along with panel unit root and cointegration tests were employed to accomplish the objectives of the study.Findings: The cointegration test emphasizes the existence of long-term relationship between stock market development and economic growth while the GMM dynamic panel analysis confirms the positive relationship between stock market development and economic growth of top 10 stock exchanges in the Asian Region. Moreover, reverse causality which runs from economic growth to stock market development has also been confirmed by the GMM dynamic panel analysis. Consequently, bi-directional causality between stock market development and economic growth exists in the top 10 Asian stock exchanges confirming both Finance-Led Growth Hypothesis and Growth-Led Finance Hypothesis. Hence, stock market and growth-oriented policies are recommended to be implemented to optimize the mutual benefits.Originality: One of the key significances of the study is that the study has constructed a composite index to measure stock market development rather than rely on conventional measures.
{"title":"Stock Market - Economic Growth Nexuses: Evidence from Asian Stock Markets","authors":"N. T. Wickramasinghe, N. Deyshappriya, Y. M. C. Gunarathne","doi":"10.4038/sajf.v3i2.56","DOIUrl":"https://doi.org/10.4038/sajf.v3i2.56","url":null,"abstract":"Purpose: The main purpose of this study is to examine the relationship between stock market development and economic growth in Asian countries focusing on causality direction.Methodology: The study based top 10 stock exchanges in the Asian region and the secondary data mainly collected from World Development Indicators of the World Bank over the period of 1990-2020. Generalized Method of Moment (GMM) Dynamic Panel analysis along with panel unit root and cointegration tests were employed to accomplish the objectives of the study.Findings: The cointegration test emphasizes the existence of long-term relationship between stock market development and economic growth while the GMM dynamic panel analysis confirms the positive relationship between stock market development and economic growth of top 10 stock exchanges in the Asian Region. Moreover, reverse causality which runs from economic growth to stock market development has also been confirmed by the GMM dynamic panel analysis. Consequently, bi-directional causality between stock market development and economic growth exists in the top 10 Asian stock exchanges confirming both Finance-Led Growth Hypothesis and Growth-Led Finance Hypothesis. Hence, stock market and growth-oriented policies are recommended to be implemented to optimize the mutual benefits.Originality: One of the key significances of the study is that the study has constructed a composite index to measure stock market development rather than rely on conventional measures.","PeriodicalId":510853,"journal":{"name":"South Asian Journal of Finance","volume":"5 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139163258","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}
Purpose: This study investigated taxes’ effect on household consumption expenditure in Nigeria. Taxation was examined through Petroleum Profit Tax, Company income Tax, Value Added Tax, and Customs and excise duties while household consumption expenditure was proxied with the aggregation of households’ expenditure expended on daily needs and procurement of others useful products.Design/Methodology/Approach: The established data are sourced through Central Bank of Nigeria statistical bulletin and annual reports of federal Inland Revenue for a period of 31 years, spanning from 1990-2021, in order to examine the effect of taxation on household consumption expenditure in Nigeria. To achieve the motive behind this study, Autoregressive distributed lag Model, unit root test, Cointegration Test, correlation analysis, lag selection test, and regression, as well as normality test and stability test, were also involved as post-analysis confirmatory tests.Findings: It was discovered that Petroleum Profit Tax has significant, strong, and positive influence on household consumption, but Company income Tax, Value Added Tax, and Customs and Excise duties have negative significant influence on household consumption. Conclusively, taxes have a negative effect on household consumption expenditure in Nigeria.Originality: Having critically reviewed the existing studies, it was invariably realized that none of the extant studies examined how taxes influence household consumptions in Nigeria, their studies were confined to taxation effect on economic growth, investment, inflation, and government expenditure. Hence, this study incorporated Autoregressive distributed lag (ARDL) Model to analyze the effect of taxes on household consumption in Nigeria which made the study unique among the existing studies.
{"title":"Do the Consequence of Taxation Impact Household Consumptions in Nigeria? Absolute Outcome from Autoregressive Distributed Lag (ARDL)","authors":"T. A. Adegbite","doi":"10.4038/sajf.v3i2.65","DOIUrl":"https://doi.org/10.4038/sajf.v3i2.65","url":null,"abstract":"Purpose: This study investigated taxes’ effect on household consumption expenditure in Nigeria. Taxation was examined through Petroleum Profit Tax, Company income Tax, Value Added Tax, and Customs and excise duties while household consumption expenditure was proxied with the aggregation of households’ expenditure expended on daily needs and procurement of others useful products.Design/Methodology/Approach: The established data are sourced through Central Bank of Nigeria statistical bulletin and annual reports of federal Inland Revenue for a period of 31 years, spanning from 1990-2021, in order to examine the effect of taxation on household consumption expenditure in Nigeria. To achieve the motive behind this study, Autoregressive distributed lag Model, unit root test, Cointegration Test, correlation analysis, lag selection test, and regression, as well as normality test and stability test, were also involved as post-analysis confirmatory tests.Findings: It was discovered that Petroleum Profit Tax has significant, strong, and positive influence on household consumption, but Company income Tax, Value Added Tax, and Customs and Excise duties have negative significant influence on household consumption. Conclusively, taxes have a negative effect on household consumption expenditure in Nigeria.Originality: Having critically reviewed the existing studies, it was invariably realized that none of the extant studies examined how taxes influence household consumptions in Nigeria, their studies were confined to taxation effect on economic growth, investment, inflation, and government expenditure. Hence, this study incorporated Autoregressive distributed lag (ARDL) Model to analyze the effect of taxes on household consumption in Nigeria which made the study unique among the existing studies.","PeriodicalId":510853,"journal":{"name":"South Asian Journal of Finance","volume":"51 22","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139165875","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}
Purpose: The purpose of the study is to determine the effectiveness of microfinance services on household income to alleviate poverty in both rural and urban areas of Sri Lanka, and which area has successfully used microfinance services to alleviate poverty.Design/Methodology/Approach: The researcher chose Anuradhapura as the rural area and Colombo as the urban area to conduct the study. In this regard, data was collected from 280 microfinance beneficiaries in the Anuradhapura and Colombo districts using a survey questionnaire. Microfinance services such as micro-credit and micro-entrepreneurship training were employed as the independent variables in this study, with poverty alleviation as the dependent variable. Simple random sampling was used to collect the data then were analyzed using SPSS software.Findings: According to the study's findings, both entrepreneurship training and micro-credit have a statistically significant positive relationship with poverty alleviation in both districts. According to the regression results, entrepreneurship training is more effective in reducing poverty in the Colombo district, but microcredit is more beneficial in the Anuradhapura area.Conclusion: The findings highlighted that microfinance services are more effective in alleviating poverty in urban and rural areas of Sri Lanka. Further, micro-credit services were more effective in urban (Colombo) areas than in rural (Anuradhapura) areas in Sri Lanka. However, the micro-entrepreneurship trainings were more effective in rural areas than in urban areas in Sri Lanka. Therefore, the researcher suggests that microfinance services should be promoted to alleviate poverty in Sri Lanka while more micro-credit services to urban areas and more micro-entrepreneurship training to rural areas.
{"title":"The Effectiveness of Microfinance Services on Poverty Alleviation: Comparative Analysis of Anuradhapura District and Colombo District in Sri Lanka","authors":"N. Kannangara, C. Liyanage","doi":"10.4038/sajf.v3i2.60","DOIUrl":"https://doi.org/10.4038/sajf.v3i2.60","url":null,"abstract":"Purpose: The purpose of the study is to determine the effectiveness of microfinance services on household income to alleviate poverty in both rural and urban areas of Sri Lanka, and which area has successfully used microfinance services to alleviate poverty.Design/Methodology/Approach: The researcher chose Anuradhapura as the rural area and Colombo as the urban area to conduct the study. In this regard, data was collected from 280 microfinance beneficiaries in the Anuradhapura and Colombo districts using a survey questionnaire. Microfinance services such as micro-credit and micro-entrepreneurship training were employed as the independent variables in this study, with poverty alleviation as the dependent variable. Simple random sampling was used to collect the data then were analyzed using SPSS software.Findings: According to the study's findings, both entrepreneurship training and micro-credit have a statistically significant positive relationship with poverty alleviation in both districts. According to the regression results, entrepreneurship training is more effective in reducing poverty in the Colombo district, but microcredit is more beneficial in the Anuradhapura area.Conclusion: The findings highlighted that microfinance services are more effective in alleviating poverty in urban and rural areas of Sri Lanka. Further, micro-credit services were more effective in urban (Colombo) areas than in rural (Anuradhapura) areas in Sri Lanka. However, the micro-entrepreneurship trainings were more effective in rural areas than in urban areas in Sri Lanka. Therefore, the researcher suggests that microfinance services should be promoted to alleviate poverty in Sri Lanka while more micro-credit services to urban areas and more micro-entrepreneurship training to rural areas.","PeriodicalId":510853,"journal":{"name":"South Asian Journal of Finance","volume":"47 3","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139163429","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}
Purpose: The purpose of this research is to establish whether, the Uncovered Interest Parity (UIP) condition exists in Bangladesh, Pakistan, and Sri Lanka, categorized as the South Asian frontier financial markets.Design/Methodology/Approach: The research uses the deductive approach. The data was collected from International Monetary Fund Statistics. The data set used consists of monthly data from March 2010 to April 2020. Interest rate differential was employed as the independent variable in this study, with the foreign currency exchange rate differential as the dependent variable. The researcher used the Cointegration model and the Vector Error Correction Model to analyze the data to measure the long-term and short-term impact respectively.Findings: It was found that, interest rate differential had a statistically insignificant negative relationship with the exchange rate differential in all three countries both in the short and long run. The overall test results show that the rejection of UIP hypothesis within the given time frame in South Asian frontier financial markets confirming the previous findings relating to practical situation of UIP condition.Originality: This article reviews the rejection of UIP condition in Bangladesh, Pakistan and Sri Lanka, categorized as the South Asian frontier financial markets. In a single paper it provides both short-term and long-term rejection of UIP. The rejection of the UIP condition implies that there is a possibility for an arbitrage opportunity.Future Direction: The future research can assess the applicability of UIP for a larger sample and different data analysis techniques such as Generalized Method of Moment.
{"title":"Assessing the Applicability of Uncovered Interest Parity in the South Asian Frontier Financial Markets","authors":"W. A. M. De Silva, W. D. J. D. Weerasinghe","doi":"10.4038/sajf.v3i2.58","DOIUrl":"https://doi.org/10.4038/sajf.v3i2.58","url":null,"abstract":"Purpose: The purpose of this research is to establish whether, the Uncovered Interest Parity (UIP) condition exists in Bangladesh, Pakistan, and Sri Lanka, categorized as the South Asian frontier financial markets.Design/Methodology/Approach: The research uses the deductive approach. The data was collected from International Monetary Fund Statistics. The data set used consists of monthly data from March 2010 to April 2020. Interest rate differential was employed as the independent variable in this study, with the foreign currency exchange rate differential as the dependent variable. The researcher used the Cointegration model and the Vector Error Correction Model to analyze the data to measure the long-term and short-term impact respectively.Findings: It was found that, interest rate differential had a statistically insignificant negative relationship with the exchange rate differential in all three countries both in the short and long run. The overall test results show that the rejection of UIP hypothesis within the given time frame in South Asian frontier financial markets confirming the previous findings relating to practical situation of UIP condition.Originality: This article reviews the rejection of UIP condition in Bangladesh, Pakistan and Sri Lanka, categorized as the South Asian frontier financial markets. In a single paper it provides both short-term and long-term rejection of UIP. The rejection of the UIP condition implies that there is a possibility for an arbitrage opportunity.Future Direction: The future research can assess the applicability of UIP for a larger sample and different data analysis techniques such as Generalized Method of Moment.","PeriodicalId":510853,"journal":{"name":"South Asian Journal of Finance","volume":"11 12","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139163898","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}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：