Journal of accounting, finance and auditing studies

14-31

Authors: Dioha Charles, Mohammed Nma Ahmed, Okpanachi Joshua

The aim of this research is to examine the effect of firm characteristics on profitability of listed consumer goods companies in Nigeria. Profitability is the dependent variable proxied by Return on sales (ROS), while firm characteristics is the independent variable proxied by firm age, firm size, sales growth, liquidity and leverage. The population of the study consists of twenty two (22) listed consumer goods companies as at 31st December, 2016. Eighteen of the listed consumer goods companies are selected to form the sample of the study for the period of six years (2011-2016). The study employed multiple regressions as tool for analysis. A hypothesis was formulated and tested for the study; which states that: Firm characteristics have no significant effect on profitability of listed consumer goods companies in Nigeria. Secondary data obtained from the financial statements of the companies were analyzed. Panel data techniques (fixed and random effects models) were utilized to examine the effect of firm characteristics on profitability and Hausman specification test confirmed that random effects model was more appropriate for the study. The results show that firm size, sales growth and leverage have significant effects on profitability. In contrast, firm age and liquidity are not significantly affecting profitability of listed consumer goods companies in Nigeria. The study therefore recommended that, consumer goods companies in Nigeria should conduct careful evaluation and take into consideration the firm characteristics (firm size, sales growth, and leverage) that affect the profits of the company before making major business decisions as this will help in improving their profitability.

49-66

Authors: Daniya A. Abdulazeez, N. Alhaji Baba, K. Ruth Fatima, Y. Abdulrahaman

This study examines the impact of working capital management on the financial performance of listed conglomerate companies in Nigeria for a period of ten (10) years (2005-2014). Data for the study were quantitatively retrieved from the annual reports and accounts of the studied companies. The study employed descriptive statistics to describe the variable while the relationships among the variables were established via correlation. Variable Inflation Factor (VIF) was used to determine the existence or otherwise of multi-collinearity while Ordinary Least Square (OLS) Regression was used to analyze the data. It was found that debtors collection period, creditors payment period and firm size were negatively related to return on investment while cash conversion cycle has positive but insignificant relationship with the financial performance of the studied companies. The study however, recommends among others that listed conglomerate companies should maintain the current debtors’ collection period or further reduce it in order to continue to enhance financial performance.

92-105

Authors: Ahmet Selçuk Dizkırıcı, Ahmet Gökgöz

Transaction volume of crypto currencies, which is generally known by Bitcoin, has reached a significant size worldwide, today. Though they are not recognized by law in common, yet; the crypto currencies attract firms due to their higher revenue rates, transferable skills and lower transaction costs. Today the firms can pay and collect their receivables by the crypto currencies also they invest in crypto currencies to benefit from exchange rates. The aim of the study is evaluating the accounting of Bitcoin in Turkey by presenting the process and features of crypto currencies, especially Bitcoin.

126-138

Authors: Ahmet Gökgöz

It is necessary to clarify “the key audit matters within the auditor’s report” due to the publishing of International Standard on Auditing (ISA) 701: Reporting Key Audit Matters within the Independent Auditor’s Report, in 2017. The mentioned key audit matters are the most important ones for the auditing of current term’s financial tables according to the auditor’s professional reasoning. The aim of the study is explaining the basis relating the detecting of key audit matters and their presentation in the framework of ISA 701; to perform a content analysis about which key audit matters are detected within the independent auditor’s reports for 2017 financial term belonged to the companies listed in Istanbul Stock Exchange. Hence; audit reports of 140 companies are analyzed through the aim of the study also quantitative and qualitative methods are employed about the key audit matters. The most common matters detected within the mentioned reports herein are as the following: Sales, Accounts Receivables, Inventories, Tangible Assets and Investment Properties.