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

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Volume 7 Issue 1 (January, 2017)

Abstract

This study is on financial reporting in Small and Medium Enterprises (SMEs) in Nigeria: challenges and options. The study was carried out to determine the challenges facing Small and Medium Enterprises (SMEs) in adopting effective financial accounting reporting in Nigeria and to ascertain the contribution of poor credit facilities to inadequate accounting records in SMEs in Nigeria. Survey method and time series data were used and data were collected through the use of questionnaire and CBN statistical bulletin. Data generated were analyzed with simple percentage table. The study found that the challenges facing SMEs in preparation and presentation of financial reports are: inadequate accounting books and records, manpower, accounting system and non-running their transactions through the banking system. The study recommends among others that since keeping proper books of account and preparation of financial records can only be done by professional accountants, the two main bodies in Nigeria: ICAN and ANAN should encourage their members to offer free professional service to SMEs in Nigeria.

Keywords

Financial reporting, small and medium enterprises, challenges and options

Full Text :PDF DOI: 10.6007/IJARAFMS/v7-i1/2534
Working Capital Determinants for the UK Pharmaceutical Companies Listed on FTSE 350 Index
Author(s): Mubashir QURASHI, Muhammad ZAHOOR      Pages: [11-17]
Abstract

The study is conducted to investigate working capital determinants for the UK Pharmaceutical companies that are the constituents of FTSE 350 index. Secondary data is collected through annual reports and DataStream database for the UK Pharmaceutical firms since 2009 to 2014. Panel data method is used and OLS is employed as an estimation tool. Working capital is the dependent variable while firm size, profitability, leverage, operating cycle, growth and level of economic activity are independent variable. The result of multiple regression show highly significant results. Working capital is negatively linked with firm size while positively linked with growth and level of economic activity for UK Pharmaceutical firms. Furthermore, insignificant results of working capital with operating cycle, profitability and leverage are observed.

Keywords

Working capital, liquidity, profitability, operating cycle and economic activity

Full Text :PDF DOI: 10.6007/IJARAFMS/v7-i1/2535
Roles of Foreign Investment of the Banks in Jordan on Local Assets
Author(s): Ghazi Abdulmajeed ALRGAIBAT      Pages: [18-25]
Abstract

Jordan was Successful bringing for foreign investment (banks) that gave the facilities to play in economical development, particularly financial performance in lending and savings, so that the local banks (Jordan) has benefited from the presence of these windows in her community, so contrary the establishing of these banks in growing countries like Jordan and involving its with the local banks has a positive impact in taking advantages of the experiences banks (foreign branches in Jordan) in the areas of competition, lending mechanisms, utilize, how these banks (foreign) able to be characterized by financial and administrative performance within a short period to enter the market and the open local and international windows for our local banks. Here comes the importance of talking about the financial performance of foreign banks in Jordan and what are the rules that worked on those banks that got what it got from advanced centers in the world as a whole in the field of economic banking.

Keywords

Number, foreign banks, Jordan, local assets

Full Text :PDF DOI: 10.6007/IJARAFMS/v7-i1/2536
The Compatibility of (GFMIS) with the Internal Control System
Author(s): Mohammad Naser Musa HAMDAN      Pages: [26-40]
Abstract

This study aimed at showing the compatibility of (GFMIS) with requirements of the Internal Control System (ICS). The study problem is searching in the compatibility of (GFMIS) to achieve requirements of (ICS) (control environment, risk assessment, control activities, information and communication and monitoring). The community of the study is from the Jordanian governmental sector. (160) questionnaires are distributed to the internal auditor working in such organizations. (147) questionnaires are valid to be analyzed. The study revealed that (GFMIS) is moderately consistent with the requirements of (ICS), in general. The study recommends to develop (GFMIS) in accordance with the (ICS) international standards. From other hand, the study recommends that not only the traditional control is interested in, but also increasing interest in risk control and adopting a system that provides financial and accounting information required checking and assessing the optimal use of available resources.

Keywords

Government Financial Management Information System (GFMIS), Internal Control System (ICS

Full Text :PDF DOI: 10.6007/IJARAFMS/v7-i1/2537
Abstract

Social Enterprise is a fast emerging discipline that generates social impact through an entrepreneurial approach. This study examined social enterprise and its contribution on economic growth. The theoretical analysis provides that social enterprises are essential for economic growth and play a significant contribution in local economies through job creation, improving quality of life for the local people and provision of valuable social services. The potential of social enterprises to contribute to economic growth depends on broader system of different layers in the society to influence and increase impact as change agent. Therefore, social enterprises should be included into economic processes such as in doing business, in economic policy making and in financial policy. However, a number of basic policy and legal measures are necessary to create an appropriate environment for social entserprise development that can improve the impact of social entrepreneurship in the society. The principle requirement is to create a favorable legal context which treats social enterprises similar to business organizations.

Keywords

Entrepreneurship, social enterprise, economic growth, policy recommendations

Full Text :PDF DOI: 10.6007/IJARAFMS/v7-i1/2538
The Impact of Electronic Banking Services on the Customers Loyalty of Commercial Banks in Jordan
Author(s): Sulieman Ibraheem Shelash AL- HAWARY, Ahlam Jebreen Ahmad HUSSIEN      Pages: [50-63]
Abstract

The study aimed to examine the impact of Electronic banking services on the customers’ loyalty of commercial banks in Jordan. The Electronic banking services represented by (ease of use, usefulness, cost of use, web site design, Privacy and accessibility). The population of the study consisted of customers of commercial banks in the North region of Jordan which are (Cairo Amman Bank, The Housing Bank for Trade and Finance, Ahli Bank, Bank Al-Etihad, Bank of Jordan, Arab Bank), a random sample was taken amounted (400) participants, SPSS version17, was used to examine the study hypotheses and achieve its objectives. The study found that there is statistical significant impact of the Electronic banking services (Ease of use, usefulness, Web Site Design, privacy) on Customers loyalty of commercial Banks in Jordan. Regarding the dimension of Accessibility, the study indicates that it had insignificant impact on Customers loyalty. The researchers recommend the use of specialists in the field of electronic sites design in particular, because the site attractiveness needs experience sufficient experience in this area to support its attractiveness for customers, and to benefit from the experiences of the developed countries in the field of software technology control and protection of customer information, in order to strengthen current Software applied to those banks.

Keywords

Electronic banking service, customers’ loyalty, commercial banks, Jordan

Full Text :PDF DOI: 10.6007/IJARAFMS/v7-i1/2539
Abstract

Knowledge sharing and Innovation important topics at this century because all organizations lead employee to create new ideas also, transfer knowledge to increase performance interaction. This research paper examine the critical academic work in each streams of inquiry, the significance of knowledge management and its tie-in to innovation activities is broadly mentioned through focusing on knowledge sharing dimension IT support, organizational culture, empowerment leaders, rewards and its link with organizational innovation activities is widely acknowledged about new Tec, new market share, new stockholder and administrative innovation. This research paper work to propose theoretical model based factors derived from taxonomies by data collection from the second information collection via using literature review to make critical review. This paper recommends the organizations to adoption factors of knowledge sharing as a positive way to achieve innovation and competitive advantage.

Keywords

Knowledge, knowledge sharing, process of innovation, technology

Full Text :PDF DOI: 10.6007/IJARAFMS/v7-i1/2540
The Role of Financial Analysis Tools in Granting Loans. Field Study on Banks Operating within Aqaba Special Economic Zone)
Author(s): Mousa Mohammad Abdullah SALEH, Laith Ahmad Mohammad ALKASASBEH, Ahmad Ahed BADER      Pages: [75-85]
Abstract

This study aimed to demonstrate the role of financial analysis tools in making decisions of granting loans to the clients in Jordanian commercial and Islamic banks operating in Aqaba Special Economic Zone. The study concluded that the bank credit departments at these banks rely on the tools and techniques of financial analysis when receiving customer requests and sorting it for the granting of credit. However, the role of the bank credit departments at these banks is not enabled as required and is dominated by marketing nature more than credit standing, where its role is limited to promoting banking services through receiving client requests, sorting and sending them to main centers concerned with making granting loans decision. The study has recommended the necessity of activating the role of these sections as well as developing the staff skills of those sections to use financial analysis tools and giving credit departments at banks operating within Aqaba Special Economic Zone the necessary authorities to make decisions to grant customers credit through the application of financial analysis methods. Moreover it is necessary to stimulate and encourage the credit department's staff in these banks by giving them bonuses and rewarding their dedication and their honesty, which will enhance the mutual trust between departments' staff and the managers in these banks.

Keywords

Credit decision, Financial Analysis Methods, Financial Ratios, Granting Loans

Full Text :PDF DOI: 10.6007/IJARAFMS/v7-i1/2541
Monetary Policy Tools and Inflation in Kenya
Author(s): Nathan M. MUTWIRI      Pages: [86-97]
Abstract

Inflation is a critical aspect of every economy and presents a balancing act to most governments through regulatory framework. Inflation can break or break the economy of a nation. Hence policy makers in the government regulating bodies spend considerable time in developing policies aimed at achieving set targets of inflation which are geared to supporting the broader economic objectives of an economy. The Central Bank of Kenya (CBK) has responsibility of formulating and implementing monetary policy to achieve and maintain low inflation. This study set to establish the relationship of monetary policy tools and inflation in Kenya.. The study used time series empirical data on the variables to describe and examine the relationships between monetary policy tools and inflation. The study obtained secondary data on Price Index for inflation, 91-day Treasury bill rate, exchange rate, money supply (M3)and repo rate for a period of five year (2008- 2012). Analysis on the various variables obtained coefficients of correlation denoted as ‘?’ which shows the strength of relationship between monetary policy tools and inflation in Kenya. The study established that inflation and the money supply were positively correlated with each other. The study established that the general level of prices increase with the increase of money supply. The study found that the 91 treasury bill rates have an impact on the level of inflation. The findings of study show that the policy makers need critically evaluate and monitor the levels of money supply in Kenya so as to ensure a stable retail price levels. The findings also support the use 91-day Treasury bills rate in monitoring the level of prices because it has a significant effect on the level of Inflation in Kenya.

Keywords

CBK, CBR, CRR, CPI, GDP, KNBS, MPC, OMO

Full Text :PDF DOI: 10.6007/IJARAFMS/v7-i1/2542
Specifying the Determinants of Brand Value by Using AHP Method
Author(s): Ilkut Elif Kandil GOKER, Tayfun ARAR      Pages: [98-106]
Abstract

Recently, the most successful companies in the world display the importance of knowledge based economy. The transformation from industrial economy to knowledge based economy highlights value added of intangible assets to the companies. Brand as a worthwhile intangible asset constitutes a substantial part of firm value. However lots of studies conducted to measure brand’s value solely. There hasn’t been generally accepted brand valuation model yet. In this paper it is aimed to present the most important factors in measuring brand value based on the Analytic Hierarchy Process. According to the expert team’s responses to our questionnaire the financial and behavioral factors which can affect brand value were found and prioritized. As a result it is determined that the most important factor in brand valuation in the frame of main criteria is Investment in Brand with 0,47 while in general; it is RandD Costs with 0,1893 and Takeover Costs with 0,1852 as the second. On the other hand, Rise in Ratio of Price/Sale and Rise in Net Sales are not considerably important with weights less than 1% on brand valuation.

Keywords

Brand value, brand valuation, Analytic Hierarchy Process (AHP), Consumer Based Brand Valuation, Financial Based Brand Valuation

Full Text :PDF DOI: 10.6007/IJARAFMS/v7-i1/2574
A Theoretical Discussion of Internal Audit Effectiveness in Kuwaiti Industrial SMEs
Author(s): Awn Metlib AL- SHBAIL, Turki A. A. TURKI      Pages: [107-116]
Abstract

This paper aims to scrutinise the association between the internal audit effectiveness and the four factors associated with International Standards for Professional Practice of Internal Auditing (ISPPIA): independence of internal auditors, scope of internal auditors, management support, and audited cooperation. The relationship between these factors and Satisfaction of internal auditors is also examined. Further, the moderating effect on the relationship between these factors (if present) and the effectiveness of IA among industrial SMEs in Kuwait are investigated through satisfaction of internal auditors. By ascertaining the effectiveness of IA at the industrial firms via theories as well as variables, this paper broadens the available literature on the effectiveness of IA.

Keywords

Internal audit effectiveness, satisfaction of internal auditors, Kuwaiti Industrial SMEs

Full Text :PDF DOI: 10.6007/IJARAFMS/v7-i1/2577