Journal of accounting, finance and auditing studies

1-18

Authors: Arum Kusumaningdyah Adiati, Rahmawati Rahmawati, Bandi Bandi

This study examines the effect of deferred tax and accruals on the persistence of earnings. Firms with either large (small) deferred tax and large (small) accruals are predicted to exhibit low (high) earnings persistence. Using a sample of 1,609 firm-year observations from 2007 to 2014 from the Indonesia Stock Exchange (IDX), results of this study were consistent with the predictions, deferred tax and accruals had negative effects on earnings persistence. These results remained qualitatively unchanged after controlling for industry sector dummy variables and year dummy variables. When the sample was split into two groups, positive and negative accruals subsamples, the findings showed consistent results of the negative effect of accruals on earnings persistent. However, when the sample was split into two groups, positive and negative deferred tax subsamples, the results showed the negative effect of the deferred tax on earnings persistence but only for positive deferred tax subsample.

45-66

Authors: Shivaji Borhade, Munadhil Abd Aljabar Alsalim, Ali Omer Mohammed

The International Financial Reporting Standards (IFRS) has become universal financial reporting language as it is currently used by 166 (85%) (out of 195) countries in the Africa, Americas, Europe, Middle East and Asia and Oceana. Similarly, all eight country members of the South Asian Association for Regional Cooperation (SAARC) include Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka have accepted IFRS for presentation of financial statements of their public companies. In the era of globalistaion and liberalistion, IFRS are performing mounting significant role in the global accounting system. Therefore, this paper was intended to portray the process of convergence of IFRS in global accounting system and to identify the status of SAARC countries in convergence of IFRS. For this reason, secondary sources and review of literature were taken into consideration. The study demonstrated that IFRS set by International Accounting Standards Board (IASB) adopted by all countries have been altered slightly before accepting. The SAARC countries have also made minor modifications in IFRS and accepted in phased manner. The study concluded that the SAARC countries are facing number of problems that should be resolved for better convergence of IFRS.

87-104

Authors: Norhina Kurniawaty, Mokhamad Anwar, Layyinaturrobaniyah

This study aims to determine the effect of administration of State Property, which consists of bookkeeping, inventory, and reporting on the optimization of fixed assets in the Secretariat of the General Election Commission of West Java Province, Indonesia. Questionnaires are distributed to 38 officers whom using and responsible for the use of fixed assets in a room or work location at the Secretariat of the General Election Commission of West Java Province, Indonesia. The finding shows that administration of State Property (bookkeeping, inventory, and reporting of fixed assets) affect the optimization of fixed assets in the Secretariat of the General Election Commission by 55% while the remaining 45% influenced by other factors that are not examined in this study.

123-148

Authors: Ohiani Danjuma Lawal, Eniola Samuel Agbi, Lateef O. Mustapha

The study examines the effect of ownership structure on financial performance of listed insurance firms in Nigeria. Data was collected from the annual reports of 28 insurance firms listed in the Nigerian Stock Exchange for the periods of 2011 to 2016. The ex-post facto was employed by the study to examine the effect of ownership structure on financial performance of listed insurance firms in Nigeria. In addition to the descriptive statistics and correlation, multiple regression technique through panel data methodology was applied for model estimation. Data were subjected to pooled General Least Square, Fixed Effects, and Random Effects regression model to test the hypotheses of the study. Ownership structure proxied by managerial ownership, institutional ownership, and ownership concentration were adopted as independent variables. Firm financial performance as the dependent variables was proxied by Book value per Share. This study found ownership structure having significant positive effect on financial performance of the listed insurance firms except concentrated ownership with negative effect. However, in respect of size and growth of the firms, which form the control variables of the study, there were mixed evidence of their effects on financial performance. The study recommends that in order to enhance the financial performance, insurance firms in Nigeria should increase management equityholding in the firms as this can stimulate the managers to maximize their efficiency and create more wealth for stakeholders.

170-197

Authors: Taibat Adebukola Atoyebi, Adikwu Joseph Simon

The adoption of International Financial Reporting Standards (IFRSs) in different countries of the world has become a contemporary issue especially with respect to the reliability of financial statements. The study examined the impact of valuation of Loan Loss Provisions (LLPs) on earnings management and capital management during the pre and post-adoption of IFRS for listed deposit money banks (DMBs) in Nigeria. Using an Ex-post facto research design approach, this study utilised secondary data extracted from annual reports and accounts of fifteen (15) DMBs for the period of ten (10) years from 2006 – 2016. The results from the use of multiple regression analysis revealed a significant positive relationship between LLPs and earnings management for both pre and post-IFRS adoption. Furthermore, the study also found a positive insignificant relationship between LLPs and capital management for both pre and post IFRS adoption.

223-240

Authors: Irom Marvis Irom, Okpanachi Joshua, M. Nma Ahmed, A. Tope Emmanuel

The profitability of manufacturing companies does not only play the role of improving the market value of that specific company but also leads to the overall growth of the whole sector which translate to improvement on profit level that could be attributable to characteristics possessed by firms. It is on this the study examines the effect of firm attributes on the return on assets of listed companies in Nigeria for a period of five years. The population and sample size of this study comprises of all the 41 listed manufacturing companies in the Nigerian Stock Exchange as at 31 December, 2016. The result of random effect regression provides evidence that all firm attributes apart from operating expenses and firm size had a negative and significant effect on return on asset. Based on this result, the study recommends that listed manufacturing firms should reduce firm size and operating expenses so as to increase the return on assets of their firms and short term cash should not be channeled to fund capital asset.

258-273

Authors: Servet Önal, İsmail Soner Gürbüz

In society, moral rules are all about society. The concept of ethics is also expressed as a Professional phenomenon at the same time as a social phenomen on. This research is designed to express the perception of accounting profession ethics and to set an example for the studies conducted on this field. The results of a survey , which was conducted to accounting profesionals working in Mersin province are given place in the direction in accordance with the purpose of this study. The obtained data were analyzed in the SPSS program and the findings were revealed. Factor analysis, Mann-Whitney and Kruskal Wallis tests are used to analyze the obtained data. The findings showed that participants has a positive perception related to professional accountants to behave in accordance with ethical principles and professional ethics. Moreover, it is seen that perception of participants vary with professional experience, gender, age and state of education.

284-334

Authors: John Taskinsoy

The main results of the macro stress testing exercise in this paper reveal that Malaysia’s banking sector is resilient, well diversified, and highly interconnected. Further, Malaysia has a thriving equity market, large bond market and growing private debt securities. Main results of the baseline scenario suggest a modest change in capital ratios; the post-stress test CAR and Tier 1 capital ratio are -1.64% and -1.38% respectively. The impact of all fundamental shocks on capital ratios under both adverse and severely adverse scenarios is significant. The aggregate capital shortfall in the form of needed capital injection (i.e. cost to the government from failed banks) under adverse scenario is 1.55% of the GDP (or $4.59 billion based on 2015 GDP of $296.22 billion). The capitalization needs became more severe in the severely adverse scenario, $10.52 billion (or 3.55% of 2015 GDP). The important conclusion of the macro stress testing is that no bank failed, faced a liquidation or suspension of license.