International Journal of Academic Research in Accounting, Finance and Management Sciences

Volumn 5, Issue 1 (January, 2015)

The Dilemma of Toyota Production System Implementation: A Case Study of Taiwan Machine Tool Industries
Author(s): Shi-Yuan LAI, Chih-Hung TSAI, Liang-Ying WEI, Rong-Kwei LI, Min-Jer LUGENDO      Pages: [1-12]
Abstract

Recently, many enterprises have implemented the Toyota production system (TPS) in order to improve their production performance and competitiveness. However, some of those enterprises which implemented TPS couldn’t improve performance, even led to worse production performance. Dr. Goldratt thought the reason enterprises adopted TPS finally failed was due to their basic production environments was different of Toyota. Toyota Production System is built up in a stable environment, but most companies weren’t stable as Toyota. Besides, enterprises implemented TPS did not follow the Ohno’s four steps may also lead to poor performance. This study discusses whether Taiwan Machine Tool Industries is in three different dimensions of the instability of the production environment. Also, we study that in the unstable environment, the companies follow Ohno’s four steps could have better improvement than which not follow.

Keywords

Toyota Production System, Ohno’s Four Steps, Unstable Environment

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1401
Environmental Costs and Environmental Information Disclosure in the Accounting Systems
Author(s): Hamid Ravanpak NOODEZH, Salehe MOGHIMI      Pages: [13-18]
Abstract

Nowadays, the effects of human societies have increased on environment due to technological and industrial development. So environment variations could affect human beings like other animal species. Given the importance of environmental costs, one can consider them as a parts of final cost of products or services in business units , so failure to report these costs in financial statements cause to firstly that environmental costs remain hidden and unknown to the management and necessary actions to control them fail to do , and secondly that failure to report environmental costs as a parts of final cost would undermine the most important qualitative characteristic of accounting information namely their reliability. This environmental accounting facilitates environmental costs management and reducing costs through making the relationships between costs and their underlying activities. Researches in recent years led to the criticism about the framework of traditional financial reporting and its ability to provide a complete list of company activities and its accountability. Social and environmental reporting is a tool to account companies against their performance. The reports should provide impartial information which allows beneficiaries to provide a reliable estimation of their social and environmental performance.

Keywords

Social and environmental information disclosure, political economy theory, the beneficiaries theory, legitimacy theory, organizational theory

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1412
The Effect of Motivational Values on Professionalism in Accounting
Author(s): Masoumeh Sadat RASOULI, Bahman BANIMAHD, Ramezan Ali ROYAEE      Pages: [19-26]
Abstract

This study attempts to find out various cultural aspects that have influenced on professionalism of accountants. The aim at this study is to explore a different approach to examine the influence of culture on accountant’s professionalism by using Schwartz’s (1992) model (universal structure of individual-level human motivational values) in domain of accounting. We use Gray model for detecting of professionalism. The findings of this study show that professionalism of accountants is affected by motivational values. Results show that security from motivational values can be influence on professionalism.

Keywords

Motivational value, culture, professionalism

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1413
Is Traditional Banking Declining? An Empirical Analysis of Banks in Ghana
Author(s): Basil Senyo DAMANKAH, Olivia Anku- TSEDE, Albert AMANKWAA      Pages: [27-32]
Abstract

Banks are traditionally into the business of mobilizing deposits and making loans. This generates interest income and has been a substantial proportion of bank’s total earnings. Studies have shown that income from the traditional banking business has declined substantially in recent times. This paper examines the state of traditional banking in Ghana by relating interest and noninterest income from the year 2003 - 2012. We found that traditional banking remains strong in Ghana and interest income constitutes a higher proportion of total bank earnings. In recent times however, noninterest income has gained prominence as margin income deposits continue to squeeze.

Keywords

Traditional Banking, Interest Income, Noninterest income, Banks, Ghana

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1414
Mechanisms for the Creation of Innovation in Contemporary Business and Economy
Author(s): Slawomir CZARNIEWSKI      Pages: [33-38]
Abstract

Innovation differentiates the company from the competition, attracts new customers and generates revenue. The struggle for customers requires constant innovation, the result of which must be the creation of new value for customers. Innovation which provides new value for customers manifests itself in the form of new products, technologies, ideas and systems, reflected in satisfaction and customer loyalty. Innovation is considered a basis of business development, competition and growth. As a result of innovation, significant changes take place in the scope and manner of commissioning and using resources, leading to changes in the strategic position of the enterprise. The purpose of this article is to show the economic mechanisms for creating innovation in the field of the economy and business.

Keywords

Innovations, competition, new products, development, management

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1415
The Effect of Abnormal Operating Cash Flows on Unconditional Conservatism
Author(s): M. ALIAKBARI, B. BANIMAHD, Gh. TALEBNIA, F. Rahnamay ROODPOSHTI      Pages: [39-45]
Abstract

This study attempts to find out the relationship between unconditional accounting conservatism and abnormal operating cash flows in Iranian firms. In this paper, unconditional conservatism is measured by Givoly and Hayen (2002), and abnormal operating cash flows is measured by Dechew and Tang model (2008). The statistical population studied at this research includes firms accepted in Tehran Stock Exchange, and the period of research is the years since 2006 to 2011. The systematic omission method has been used in this research in order to achieve the sample and 858 observations were chosen as the sample for research. Results show a negative relationship between unconditional accounting conservatism and abnormal operating cash flows. The results suggest that firms with upper levels of unconditional accounting conservatism appear to have lower abnormal operating cash flows.

Keywords

Operating cash flows, Abnormal operating cash flows, Accounting conservatism, Unconditional accounting conservatism

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1445
Abstract

Resource Consumption Accounting (RCA), which combines the systems of activity based costing and German cost accounting was developed as a result of the fact that traditional accounting systems remain insufficient especially in the dimension of managerial accounting and the managers cannot provide the necessary information for the period of making decisions. RCA was defined as a system of managerial accounting, which categorises costs as fixed and variable and supports managerial decision making with real cost data by determining the idle capacity. The definition of the costs of the operating business using the resource consumption accounting as fixed and variable is to determine the idle capacity, provide the real cost data without distributing the idle capacity and the fixed parts analysing the variable costs to the goods or products, and back up the period of making decision. In this study, the idle capacity was calculated by using the costs for the products and with the application of resource consumption accounting.

Keywords

Managerial Accounting, Cost Accounting, Resource Consumption Accounting, Activity Based Costing

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1458
Property, Plant and Equipment disclosure requirements and firm characteristics: the Portuguese Accounting Standardization System
Author(s): Rafaela BOTELHO, Graca AZEVEDO, Alberto COSTA, Jonas OLIVEIRA      Pages: [58-71]
Abstract

In the new Portuguese accounting frame of reference (Portuguese Accounting Standardization System – Sistema de Normalização Contabilística), the issues related to Property, Plant and Equipment assets are dealt with in the Accounting and Financial Reporting Standard (Norma Contabilística de Relato Financeiro – NCRF) 7 (Property, Plant & Equipment). The present study intends to assess the degree of compliance with the disclosure requirements of this accounting standard by Portuguese unlisted companies. Moreover, it tries to identify the factors that influence their level of disclosure. The financial statements for 2010 and 2011 were content analyzed and a multiple linear regression model was used to assess the motivations for companies to comply with disclosure requirements. Results indicate that older companies with lower levels of foreign activity present higher levels of disclosures. The type of auditing firm is also a factor that influences the level of compliance with NCRF 7.

Keywords

Reporting, Disclosure, Mandatory, Property, Plant, Equipment

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1459
The Effect of the Global Financial Crisis and the Sovereign Debt Crisis on Public Sector Accounting: A Contextual Analysis
Author(s): Emmanuel Igbawase ABANYAM, Paul Aondona ANGAHAR      Pages: [72-79]
Abstract

This paper examines the effect of global financial crisis and the sovereign debt crisis on public sector accounting. The global financial crisis and sovereign debt crisis were contextually analysed bringing out clearly its effect on public sector accounting which include accounting issues related to public sector intervention, accounting for recapitalization of investment, accounting for fiscal support, accounting for financial guarantees. The paper found out that, the unresolved fiscal and debt problems in some European countries and elsewhere could threaten the global economy. The implication of this is that, there is need for transparent financial reporting by government and improvement in the management of public sector resources. That, third world countries should avoid sub optimal debts structure.

Keywords

Financial Crisis, Sovereign Debt, Public sector Accounting, government interventions, Accounting Standards

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1460
Abstract

This study aimed to analyze the influence of Debt Default, audit quality and audit opinion on the acceptance of Going Concern Opinion either simultaneously or partially on Manufacturing companies listed in Indonesia Stock Exchange. The data used in this research is secondary data of 68 samples by purposive sampling technique. The method used to analyze the relationship between independent variables and the dependent variable is the logistic regression method. These findings indicate that simultaneous variables Debt Default, audit quality and audit opinion by the F test, jointly affect the acceptance of Going Concern Opinion with a significance of 0.000. While the partial results of the t test, the variable Debt Default, audit quality and audit opinions positive influence on the acceptance of Going Concern Opinion, with a significance level respectively 0.006, 0.022 and 0.004.

Keywords

Debt Default, quality audit, the audit opinion and acceptance of Going Concern Opinion

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1461
Abstract

Quality Environment (5S) Practice is a concept which has been widely adopted by organizations as one way to achieve Total Quality Management (TQM) and business excellence. 5S refers to 5 principles to maintain quality which emanate from Japanese word Seiri (sorting), Seiton (straightening), Seiso (shining), Seiketsu (standardize) and Shitsuke (sustain). 5s concept aims to create a conducive, clean and tidy workplace which in turn can improve work quality and performance. Internal audit of 5S Quality (IAQ) has been introduced to ensure the organization can assess its strength and areas for improvement. This study attempt to measure the organizational factors that influence the effectiveness of internal audit of 5S Quality such as number of resources, auditor competencies and audit report, as well as looking at how these factors give impact towards company operational performance. The questionnaire were administered to head of audit and internal auditor in Malaysian private companies. Our hypotheses on the impact of organizational factors (resources adequacy, staff competency and report quality) to the effectiveness of internal audit of 5S quality are all positive. In addition, the results also show significant perception by internal auditors that an effective internal audit of 5S quality can help influencing company operational performance.

Keywords

5S Practices, Internal Audit of 5S Quality, Organisation performance

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1471
Impact of Foreign Direct Investment on Nigerian Capital Market Development
Author(s): Adaramola Anthony OLUGBENGA, Obisesan Oluwaseun GRACE      Pages: [103-108]
Abstract

The fundamental objective of this research work is to assess the impact of foreign direct investment on Nigerian capital market development given the role of the later in stimulating the development of the nation’s economy. The study employed ADF unit root test and Johansen co-integration test to analyze the secondary data obtained from Central Bank of Nigeria statistical bulletin from 1970-2010. The absence of co-integration between foreign direct investment and market capitalization informed the resort to OLS regression result which shows that foreign direct investment impact positively and significantly on market capitalization. Since foreign direct investment is a significant determinant. Efforts should be made by government and monetary authority to encourage foreign direct investment into Nigeria. However given the lack of co-integration and low beta weight suggest that emphasis on foreign direct investment as a way of stimulating long run growth in the developing country like Nigeria does not worth the while.

Keywords

Market capitalization, investment, capital market

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1503
Investigating Effect of Oil Prices on Firm Value with Emphasis on Industry Type
Author(s): Ali DADASHI, Asgar PAKMARAM, Mahmoud MOEIN al-DIN      Pages: [109-129]
Abstract

The most important decision criterion for the investors and creditors to select the most appropriate investment option are stock price and firm value. Given the high dependence of Iran's economy to the oil industry and oil export, which constitute large portion of Iran’s GDP, the purpose of this research is to study the impact of oil prices on the value of listed firms in Tehran Stock Exchange. In order to achieve this goal, a major hypothesis and three sub-hypotheses were formulated. To test the hypotheses, the Spearman’s correlation test was used. In this study, to measure the value of the firm, three indicators are used: Tobin’s Q, normalized price per share and the created value for shareholders. Target population of this study includes all listed companied in Tehran Stock Exchange. Using the systematic elimination sampling, 62 firms were included in the sample for this study. The research’s period is from 2003 to 2013. About the impact of oil prices on the value of the firm, results of Spearman’s correlation test does not confirm significant effect of oil prices on firm value. Based on Tobin’s Q, oil prices was not influential on 12 industries of 16 industries and 34 firms of 62 firms. Based on normalized price per share, oil prices was not influential on 1 industry of 16 industries and 8 firms of 62 firms. Based on the created value for shareholders, oil prices was not influential on 2 industries of 16 industries and 8 firms of 62 firms.

Keywords

Oil prices, firm value, Tobin’s Q, created shareholder value, normalized price per share

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1549
Abstract

According to the signaling theory, dividend announcements are usually considered as a signal to the investors, about firm’s future performance, that results in stock prices changes. This study attempts to investigate the stock prices response to dividend announcement in the Damascus Securities Exchange. The purpose of the study is to identify whether there are any significant abnormal returns around the public announcement of dividend. An event study methodology is used for an event window of forty days surrounding the announcement day. Research results indicate that most average abnormal returns are statistically insignificant, whereas the cumulative average abnormal returns are statistically significant for the whole event window. The downward drift of the cumulative average abnormal returns six days after the announcement suggests that prices don’t adjust immediately to dividend information. The stock reactions appear within post-event window gradually in response to the dividends announcement.

Keywords

Dividend Announcement, Abnormal Return, Price Reaction, Event Study, Damascus Securities Exchange

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1550
Abstract

In this study, financial performances of the companies were analyzed by TOPSIS method via using financial tables of the sixteen pension and life-pension companies. Firstly, financial ratios which are one of the important indicators for the financial power of companies were determined and calculated for each company separately. Calculated ratios converted to demonstrate of company performance unique point by using TOPSIS method. Companies have sorted according to their calculated performance scores. Financial performance assessment was performed for five terms included in 2008-2012 period and obtained results were compared. Consequently found that, performance scores of the pension companies generally weren't changed during analyze period.

Keywords

Financial performance analysis, TOPSIS method, Pension companies, Decision making, Ration analysis

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1551
Abstract

Study addresses the impact of fair value accounting on the quality of accounting information. The study's main problem in the following question: What is the effect of the application of fair value accounting on the characteristics of accounting information? In order to clarify the effect of the use of fair value on the quality of accounting information. To achieve the objectives of the study were followed inductive and deductive and descriptive approach, where it was in the theoretical side; the study of literature review of relevant fair value accounting And use the inductive approach to the analysis of the problem and identify its components, while a researcher at the deductive approach adopted in the formulation of hypotheses The descriptive approach has been reliable in the field side. Researcher use statistical package for social studies in the questionnaire data analysis. The most important results that have been reached: the fair value contribute to provide useful information to users of financial statements and help them in decision-making There is a positive relationship between the application of fair value and the appropriateness of accounting information in decision-making. And also there is a positive relationship between the application of fair value and reliability of accounting information. Which means reliability of users, in addition to the fair value was able to make a fair comparison, both at the enterprise level for a number of periods or with similar enterprises for the same period.

Keywords

Historical cost accounting disclosure, financial market, financial instruments, supply price, the market value

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1552
Abstract

Though the relationship between users’s IT characteristics and behavioral intention of users to adoption information system continues to be important, conclusive evidence on user’s attitude contributing to enhance behavioral intention to adopt is rare. This study tests the influence of intrinsic and extrinsic motivation towards behavioral intention to adopt accounting information system in Libyan SMEs. Questionnaire was designed using closed interval measurement scale with proper care of designing the survey instruments. Results found support for the effect of user's attitude as mediator between IT characteristics and behavioral intention. Intrinsic motivation and extrinsic motivation factors of motivation model were found to have high impact in the form of attitude on owner's behavior to adopt AIS. Selecting the AIS adoption SMEs will follow have an effect on AIS implementation, along with organizational context, affecting the level of AIS implementation directly and indirectly through AIS adoption.

Keywords

User’s attitude, motivation model, behavioral intention, AIS adoption, Libyan SMEs

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1553
Strategies for Empowering Women and Gender Equality through Micro Finance in Pakistan
Author(s): Zahoor Ahmed WATTOO, Sunia AYUUB, Muhammad Salman SHABBIR, Uzma BALOCH, Humara NASAR      Pages: [171-178]
Abstract

This paper is a critical assessment of role of Micro Financing in providing empowerment and equality to women in Pakistan. Secondary data was used for getting information from documented materials for the paper. It was founded that the loans accessible by MFIs have major effect on the empowerment of women. All over the world women labour force are contributing in economic development and sustainable source of revenue of their household and social community. This study found that after receiving loans, women experienced increased in their household income level so their economic, political, social and household wellbeing has also improved. There is great need of those programs which specifically intended for financial sustainability of women. So Microfinance organizations should increase their support to provide resource to poor women.

Keywords

Micro Finance, Empowerment, Gender Equality, Women

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1554
Capital Adequacy of the Jordanian Banking Sector for the Period 2000-2013
Author(s): Torki M. AL- FAWWAZ, Ghazi A. ALRGAIBAT      Pages: [179-189]
Abstract

The study seeks to identify the capital adequacy of the Jordanian banking system for the period 2000-2013. The researcher adopted the descriptive and the analytical approaches to identify the capital adequacy of the Jordanian banking system depending on data obtained from the Amman Stock Exchange Market, the Central Bank of Jordan and the Jordanian Ministry of Finance for the period 2000 - 2013. The study showed that there is a statistically significant relationship between the capital adequacy and liquidity. There is a statistically significant relationship between capital adequacy and credit risk. There is a statistically significant relationship between capital adequacy and the capital risk. There is a statistically significant relationship between capital adequacy and investments in the securities portfolio. The researcher recommends the commercial banks to increase their strategic planning and management capacity to utilize any rise in capital to increase profits. They should develop market and operational risk assessment methods to be included in the calculation of capital adequacy ratio of the commercial banks. Further studies should be conducted on the capital the adequacy of the Jordanian commercial banks.

Keywords

Capital, capital adequacy, liquidity, Jordanian Banking Sector

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1555
The Impact of Exchange Rate on Nigeria Non-Oil Exports
Author(s): Lawrence Ehikioya IMOUGHELE, Mohammed ISMAILA      Pages: [190-198]
Abstract

The study examines the impact of exchange rate on non-oil export. We used time series data obtained from CBN for a period of 27 years that is 1986 to 2013. Augmented Dickey-Fuller (ADF) test was used for the unit root test and Johansen’s co-integration test was also conducted to establish short and long run relationships between non-oil exports and independent variables. The result shows three co-integrating equations which establish the existence of long run relationship among the variables. Ordinary Least Square statistical technique was used to assess the determinants of non-oil export in Nigeria. The results show that effective exchange rate, money supply, credit to the private sector and economic performance have a significant impact on the growth of non-oil export in the Nigerian economy and appreciation of exchange rate has negative effect on non-oil export which is consistent with the economic theory. Following this, the study recommended among others that monetary authority should ensure exchange rate stability in order to stem inflationary tendencies in Nigeria which have adverse effect on the growth of non-oil export.

Keywords

Non-oil, Export, Economic Growth, Trade, Monetary Policy and Exchange Rate

Full Text :PDF DOI: 10.6007/IJARAFMS/v5-i1/1556