Pub Date : 2021-01-01DOI: 10.21511/afc.03(1).2020.04
Ferina Marimuthu
Using debt to finance investments is a common feature in the balance sheets of state-owned entities (SOEs). The greater the degree of financial leverage, the higher the proportion of debt resulting in greater interest payments that negatively affect the earnings attributable to shareholders. This paper considers the determinants of debt financing in light of the debt crisis that the South African economy faces and, more so, the public sector and its validity under capital structure theories. The data set was analyzed for the financial period from 1995 to 2020 of thirty-three commercial SOEs in South Africa. Multiple regression models were tested using the Generalized Method of Moments estimator. The results highlighted that significant variables affecting state-owned entities’ debt levels are profitability, age, growth opportunities, liquidity, probability of bankruptcy, and non-debt tax shield. The policy recommendations are that the government prioritizes reducing debt levels for South Africa to develop and achieve sustainable development. The changes in firm-specific factors that affect the optimal capital structure and the entity’s value must be considered.
{"title":"Determinants of debt financing in South African state-owned entities","authors":"Ferina Marimuthu","doi":"10.21511/afc.03(1).2020.04","DOIUrl":"https://doi.org/10.21511/afc.03(1).2020.04","url":null,"abstract":"Using debt to finance investments is a common feature in the balance sheets of state-owned entities (SOEs). The greater the degree of financial leverage, the higher the proportion of debt resulting in greater interest payments that negatively affect the earnings attributable to shareholders. This paper considers the determinants of debt financing in light of the debt crisis that the South African economy faces and, more so, the public sector and its validity under capital structure theories. The data set was analyzed for the financial period from 1995 to 2020 of thirty-three commercial SOEs in South Africa. Multiple regression models were tested using the Generalized Method of Moments estimator. The results highlighted that significant variables affecting state-owned entities’ debt levels are profitability, age, growth opportunities, liquidity, probability of bankruptcy, and non-debt tax shield. The policy recommendations are that the government prioritizes reducing debt levels for South Africa to develop and achieve sustainable development. The changes in firm-specific factors that affect the optimal capital structure and the entity’s value must be considered.","PeriodicalId":52967,"journal":{"name":"Accounting and Financial Control","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68554708","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 : 2020-06-17DOI: 10.21511/afc.03(1).2020.02
S. Lehenchuk, I. Zhyhlei, O. Syvak
This article highlights the transformation of views on the understanding of accounting as a science in the new conditions for the functioning of enterprises operating in globalized markets in a dynamic competitive environment. The necessity of considering external factors (corporate scandals, financial crisis, etc.) in the development of accounting as a science is emphasized. The reasons for the need to confirm the scientific status of accounting are considered, the hypotheses concerning the gradual crowding out and replacement of accounting by information systems with artificial intelligence are refuted. Accordingly, the study aims to confirm the scientific significance of accounting and justify the need for its further development as a social science aimed at solving social issues and having a deeper social context. Various accounting models and identification of factors affecting their construction, as a result of which the goals of accounting are transformed, make the theoretical basis of this study. It is concluded that accounting is a social science that studies the features of the functioning of the accounting system as a social and institutional practice. Such an understanding of accounting science is considered one of the ways out of the existing crisis. The reasons for the lack of understanding among Ukrainian researchers of accounting as a social science are highlighted, and the ways to overcome them are suggested. It is proved that accounting, on the one hand, is a product of the social environment, an instrument for reflecting the economic reality of an enterprise. On the other hand, it influences the formation of social reality, being an instrument for shaping social processes and relations arising from the functioning of accounting as a separate socio-economic institute.
{"title":"Understanding accounting as a social and institutional practice: possible exit of accounting science from crisis","authors":"S. Lehenchuk, I. Zhyhlei, O. Syvak","doi":"10.21511/afc.03(1).2020.02","DOIUrl":"https://doi.org/10.21511/afc.03(1).2020.02","url":null,"abstract":"This article highlights the transformation of views on the understanding of accounting as a science in the new conditions for the functioning of enterprises operating in globalized markets in a dynamic competitive environment. The necessity of considering external factors (corporate scandals, financial crisis, etc.) in the development of accounting as a science is emphasized. The reasons for the need to confirm the scientific status of accounting are considered, the hypotheses concerning the gradual crowding out and replacement of accounting by information systems with artificial intelligence are refuted. Accordingly, the study aims to confirm the scientific significance of accounting and justify the need for its further development as a social science aimed at solving social issues and having a deeper social context. Various accounting models and identification of factors affecting their construction, as a result of which the goals of accounting are transformed, make the theoretical basis of this study. It is concluded that accounting is a social science that studies the features of the functioning of the accounting system as a social and institutional practice. Such an understanding of accounting science is considered one of the ways out of the existing crisis. The reasons for the lack of understanding among Ukrainian researchers of accounting as a social science are highlighted, and the ways to overcome them are suggested. It is proved that accounting, on the one hand, is a product of the social environment, an instrument for reflecting the economic reality of an enterprise. On the other hand, it influences the formation of social reality, being an instrument for shaping social processes and relations arising from the functioning of accounting as a separate socio-economic institute.","PeriodicalId":52967,"journal":{"name":"Accounting and Financial Control","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-06-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48938557","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 : 2019-05-24DOI: 10.21511/AFC.02(1).2018.05
Y. Serpeninova, I. Makarenko, A. Linska
Development of an effective logistics infrastructure for companies contributes to ensuring their effective work, directly affects financial performance and requires the establishment of a management and accounting system for logistics costs. Classifying and registering logistics costs becomes more important in this regard. At this stage of Ukrainian accounting practice, there are challenges for logistics costs accounting such as their identification and registration. Methodological basis of study among different logistics concepts (concept of general logistics costs, concept of reengineering business processes in logistics, concept of an integrated logistics strategy, concept of supply chain management) was total logistics costs concept or the concept of full value as well as process-oriented approach. In the work, the generalization and formalization of existing approaches to the logistics costs accounting was made. Feasibility of using a process-oriented approach among other approaches (absorption costing, direct costing target costing, kaizen costing, etc.) were substantiated. The algorithm of identification and registration of logistics costs for Ukrainian enterprises was proposed. It is based on such inclusion in the relevant economic process (supply, production, sales and administration of logistics processes) and the use of a new consolidated account 29 “Logistics costs”. This authors’ approach to solving the problem of identification and registration of logistics costs for accounting purposes allows to optimize and increase the informativeness of accounting logistics costs reflection in Ukrainian accounting practice.
{"title":"Logistics costs accounting: challenges for identification in Ukrainian accounting practice","authors":"Y. Serpeninova, I. Makarenko, A. Linska","doi":"10.21511/AFC.02(1).2018.05","DOIUrl":"https://doi.org/10.21511/AFC.02(1).2018.05","url":null,"abstract":"Development of an effective logistics infrastructure for companies contributes to ensuring their effective work, directly affects financial performance and requires the establishment of a management and accounting system for logistics costs. Classifying and registering logistics costs becomes more important in this regard. At this stage of Ukrainian accounting practice, there are challenges for logistics costs accounting such as their identification and registration. Methodological basis of study among different logistics concepts (concept of general logistics costs, concept of reengineering business processes in logistics, concept of an integrated logistics strategy, concept of supply chain management) was total logistics costs concept or the concept of full value as well as process-oriented approach. In the work, the generalization and formalization of existing approaches to the logistics costs accounting was made. Feasibility of using a process-oriented approach among other approaches (absorption costing, direct costing target costing, kaizen costing, etc.) were substantiated. The algorithm of identification and registration of logistics costs for Ukrainian enterprises was proposed. It is based on such inclusion in the relevant economic process (supply, production, sales and administration of logistics processes) and the use of a new consolidated account 29 “Logistics costs”. This authors’ approach to solving the problem of identification and registration of logistics costs for accounting purposes allows to optimize and increase the informativeness of accounting logistics costs reflection in Ukrainian accounting practice.","PeriodicalId":52967,"journal":{"name":"Accounting and Financial Control","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-05-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49494387","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 : 2018-12-28DOI: 10.21511/AFC.02(1).2018.04
I. Makarenko, S. Adu
The dissemination of sustainability reporting and integrated reporting is a key trend in the development of accounting systems under the influence of the concept of sustainable development. This statement is fair not only for developed countries, but also for developing countries. On the example of Ghana and Ukraine, a comparative study of regulatory requirements and conceptual frameworks for the compilation of sustainability reporting and integrated reporting has been conducted; the dynamics, size of reporting companies, their sectoral affiliation and the standards used are researched. It was proved that the basis for the promotion sustainability reporting and integrated reporting in these countries are regulatory requirements, as well as increasing the perception of CSR, the transparency and accountability of business, the practices of stakeholder participation and assurance the reliability of reporting for stakeholders.
{"title":"Accounting systems in developing countries under sustainability: first glance from Ukraine and Ghana","authors":"I. Makarenko, S. Adu","doi":"10.21511/AFC.02(1).2018.04","DOIUrl":"https://doi.org/10.21511/AFC.02(1).2018.04","url":null,"abstract":"The dissemination of sustainability reporting and integrated reporting is a key trend in the development of accounting systems under the influence of the concept of sustainable development. This statement is fair not only for developed countries, but also for developing countries. On the example of Ghana and Ukraine, a comparative study of regulatory requirements and conceptual frameworks for the compilation of sustainability reporting and integrated reporting has been conducted; the dynamics, size of reporting companies, their sectoral affiliation and the standards used are researched. It was proved that the basis for the promotion sustainability reporting and integrated reporting in these countries are regulatory requirements, as well as increasing the perception of CSR, the transparency and accountability of business, the practices of stakeholder participation and assurance the reliability of reporting for stakeholders.","PeriodicalId":52967,"journal":{"name":"Accounting and Financial Control","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49010518","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 : 2018-11-12DOI: 10.21511/AFC.02(1).2018.03
Zarah Puspitaningtyas, Akhmad Toha, Aryo Prakoso
Accounting information presented in financial statements is likened to a set of symbols. These symbols are expected to represent certain realities, which are called semantic meanings. One of the symbols presented in the financial statements is profit. As a communication medium, the presentation of profits must be interpreted exactly the same as the intended meaning, so that accounting information becomes unbiased. The purpose of this study is to reveal the understanding of the concept of profit based on semantic meaning from the point of view of the accounting accountant. This study uses an interpretive qualitative approach. Data were obtained from structured interviews with informants, namely educator accountants in Indonesia with “mainstream and anti-mainstream” schools of thought. The results of the study reveal that the tendency has been a shift in thinking from educator accountants that originated from idealism to being pragmatic. The meaning of profit at the semantic level is not only materially interpreted. Although profit is used as an indicator of the success of the company, profit is interpreted as a representation of changes in the company’s economic reality. That, the meaning of profit reflects the company’s efforts to improve its economic capacity and its usefulness to the wider community. In other words, that profit is an economic information instrument that is expected to provide value-added to its users.
{"title":"Understanding the concept of profit as an economic information instrument: disclosure of semantic meanings","authors":"Zarah Puspitaningtyas, Akhmad Toha, Aryo Prakoso","doi":"10.21511/AFC.02(1).2018.03","DOIUrl":"https://doi.org/10.21511/AFC.02(1).2018.03","url":null,"abstract":"Accounting information presented in financial statements is likened to a set of symbols. These symbols are expected to represent certain realities, which are called semantic meanings. One of the symbols presented in the financial statements is profit. As a communication medium, the presentation of profits must be interpreted exactly the same as the intended meaning, so that accounting information becomes unbiased. The purpose of this study is to reveal the understanding of the concept of profit based on semantic meaning from the point of view of the accounting accountant. This study uses an interpretive qualitative approach. Data were obtained from structured interviews with informants, namely educator accountants in Indonesia with “mainstream and anti-mainstream” schools of thought. The results of the study reveal that the tendency has been a shift in thinking from educator accountants that originated from idealism to being pragmatic. The meaning of profit at the semantic level is not only materially interpreted. Although profit is used as an indicator of the success of the company, profit is interpreted as a representation of changes in the company’s economic reality. That, the meaning of profit reflects the company’s efforts to improve its economic capacity and its usefulness to the wider community. In other words, that profit is an economic information instrument that is expected to provide value-added to its users.","PeriodicalId":52967,"journal":{"name":"Accounting and Financial Control","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-11-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48509496","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 : 2018-11-12DOI: 10.21511/AFC.02(1).2018.02
A. Rai, Craig A. Sisneros
An upper-level intermediate accounting course taught at two large mid-west universities in the United States provides a natural experimental setting to examine whether teaching debits/credits in the introductory financial accounting course matters. Students in the upper-level course fall into two groups: those who learned debits/credits in the introductory course and those who weren’t. The performance of both groups is evaluated during the semester while they take the upper level accounting course. Regression results show that the prior knowledge of debits/credits offers only a mild advantage in the first mid-term exam, but not thereafter. Results also indicate that grade point average (standardized tests like ACT scores) are a good (not a good) predictor of the performance in the upper-level accounting class. These results suggest that teaching debits and credits in the introductory accounting course does not provide any advantage in learning the material of upper-level accounting course.
{"title":"Evaluating pedagogy in educating business majors: an empirical analysis of teaching accounting without debits and credits","authors":"A. Rai, Craig A. Sisneros","doi":"10.21511/AFC.02(1).2018.02","DOIUrl":"https://doi.org/10.21511/AFC.02(1).2018.02","url":null,"abstract":"An upper-level intermediate accounting course taught at two large mid-west universities in the United States provides a natural experimental setting to examine whether teaching debits/credits in the introductory financial accounting course matters. Students in the upper-level course fall into two groups: those who learned debits/credits in the introductory course and those who weren’t. The performance of both groups is evaluated during the semester while they take the upper level accounting course. Regression results show that the prior knowledge of debits/credits offers only a mild advantage in the first mid-term exam, but not thereafter. Results also indicate that grade point average (standardized tests like ACT scores) are a good (not a good) predictor of the performance in the upper-level accounting class. These results suggest that teaching debits and credits in the introductory accounting course does not provide any advantage in learning the material of upper-level accounting course.","PeriodicalId":52967,"journal":{"name":"Accounting and Financial Control","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-11-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43698925","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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