International Journal of Commerce and Finance

1-7

Authors: Nurul Hidayah, Ahmad Badawi, Lucky Nugroho

This study aims to determine the implementation of Good University Governance (GUG) and Intellectual Capital (IC) at the University with the unit of analysis at Mercu Buana University. The data used are primary data using questionnaires. The population in this study is all structural officials in the University environment. Using stratified random sampling in which only the structural officials who became the study sample, from all questionnaires distributed, only 60 were able to be processed. This research uses a descriptive qualitative approach. The data analysis method used is Partial Least Square. Results outer test research models meet the criteria of validity and reliability, while from the inner test models indicate that the implementation of Good University Governance at the University of Mercu Buana related to Intellectual Capital. GUG as the main factor IC appeal. IC implemented, will improve the ability of an institution, but there are some areas that need improvement.

22-30

Authors: Kulondwa Safari, Lukogo Chanceline

Financial inclusion has been proved as a strategy to fight poverty. Africa is a continent where the poverty rate is high and the financial sector is not developed. The continent needs more financial innovation and an increase of financial access to fight these problems. Mobile money, a mobile based financial service has been including more and more people in the financial system and the sector is growing. A lot of studies grew interest in this new financial service but none studied the system strategically. This study uses the strategic approach SWOT, completed by TOWs matrix to ascertain the current status and the future of Mobile money services. The results revealed several strengths and significant opportunities for the system as well as its weaknesses and threats. Several strategies are proposed afterward.

45-62

Authors: Tesfaye Melaku Merra, Leta Sera, Endeg Tekalegn

This research was designed to assess willingness, ability, motive, preference and determinants of smallholder major grain farmer’s transition dilemma to light manufacturing industry in Jimma Zone, Oromia Region, Ethiopia. The participants of the study were selected using two stage non probabilistic, purposive sampling. Then, we prepared sample frame from each Kebeles fall in our selection pool. Finally, 399 household heads (farmers) were selected for this study, using stratified sampling. Then, primary data collected via structured questionnaire was analyzed descriptively and in binary logistic regression. Accordingly, majority of smallholder major grain farmers need to stay on their current crop farming. Increasing these products productivity and price is one possible means of intervention to improve the areas smallholder farmer’s livelihood. The descriptive statistics depicts that, small holder farmers’ transitional dilemma to light manufacturing sector and the fate of industrialization plan in Jimma zone is at its infant stage and those small holder farmers have almost no any awareness, no know how about technologies, not trained and they have no entrepreneurial skill. The result revels that the major determinants of smallholder grain farmers sectorial transition plan in the study area was significantly affected by age, sex, marital status, skilled labour access, access to credit, price product expectation, place,Awareness, Education level, Entrepreneur skill, Training, Transport and Energy.Hence, effort should be geared in manner that build farmers capacity through adult literacy program, formal education and with short term training. This research was designed to assess willingness, ability, motive, preference and determinants of smallholder major grain farmer’s transition dilemma to light manufacturing industry in Jimma Zone, Oromia Region, Ethiopia. The participants of the study were selected using two stage non probabilistic, purposive sampling. Then, we prepared sample frame from each Kebeles fall in our selection pool. Finally, 399 household heads (farmers) were selected for this study, using stratified sampling. Then, primary data collected via structured questionnaire was analyzed descriptively and in binary logistic regression. Accordingly, majority of smallholder major grain farmers need to stay on their current crop farming. Increasing these products productivity and price is one possible means of intervention to improve the areas smallholder farmer’s livelihood. The descriptive statistics depicts that, small holder farmers’ transitional dilemma to light manufacturing sector and the fate of industrialization plan in Jimma zone is at its infant stage and those small holder farmers have almost no any awareness, no know how about technologies, not trained and they have no entrepreneurial skill. The result revels that the major determinants of smallholder grain farmers sectorial transition plan in the study area was significantly affected by age, sex, marital status, skilled labour access, access to credit, price product expectation, place,Awareness, Education level, Entrepreneur skill, Training, Transport and Energy.Hence, effort should be geared in manner that build farmers capacity through adult literacy program, formal education and with short term training.

76-86

Authors: Kibru Kefay, Chalchissa Amentie Kero

The purpose of this study was to investigate the effect of non-financial incentive scheme on employees’ motivation. Therefore, the study was descriptive as well as explanatory which used primary source of data. By that 162 questionnaires were distribute and all of them were returned and used for the study and stratified and simple random sampling methods were applied to determine respondent for the study. However, the study try to examine the perception of employees’ about the incentives scheme of the bank, motivation level of employees’ in the bank and the effect of promotion, recognition, training on employees’ motivation. Among the major findings, the overall perception of respondents about current non-financial incentive practices were shown as they are happy and satisfied with promotion and training but they are neutral on recognition. The result of regression analysis shows that; promotion, recognition, training were a significant predictors of employees’ motivation. Also of that, a significant portion of employees was at good motivation level to perform their job. It is recommended to review the bank's recognition practice to increase the current motivation level of employees.

97-105

Authors: Haimanot Seifu, Mekuanint Abera Timbula, Emnet Negash

Knowledge management and knowledge resources have gained much importance in recent years and are said to improve organizational performance. However, the effects of knowledge management practices on organizational performance are not well known especially in the case of public organizations. This research had examined the effects of knowledge management practices on organizational performance at Ethiopian Agricultural Transformation Agency. The study adopted explanatory research. Questionnaires were adopted on the basis of literature review. The questionnaires were also used to collect data from members of staff; respondents were selected through a random sampling method with sample size of 140 respondents. The completed questionnaires were edited for completeness and consistency, checked for errors and analyzed using statistical package for social science (SPPS 20) frequencies, percentages and multiple correlations for quantitative analysis. The study recommends Ethiopian Agricultural Transformation Agency should ensure a formalized way of acquiring knowledge from its employee and implement knowledge sharing practices that enable the employees to learn from each other. Ethiopian Agricultural Transformation Agency should also revise Organizational structure in accordance with the knowledge management element to enhance the effect of organizational performance and use advanced technologies to enhance its knowledge management practice.

120-127

Authors: Yenny Dwi Handayani, Ewing Yuvisa Ibrani

This study aims to examine the effect of Corporate Governance and Share Ownership Structure on Tax Avoidance. The share ownership structure uses controlling shareholders who have the largest shareholding in the company with ownership of between 20-50%. This study used manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2015-2017, with 99 observation data and the analytical used multiple linear regression. The results of the study show that both corporate governance and the share ownership structure proxied using controlling shareholders have an effect on tax avoidance

140-146

Authors: Shafiq Abass

This study analyses how the widely use of telephone and similar electronic gadgets has reshaped transactions and the payment system in Ghana. The not very long ago introduced mobile money system widely known in the country as MoMo, tends to have astounding effects on the banking sector that has been in existence since time immemorial. This research focuses on the impact the mobile money industry has had on the lives of the average citizen and also on communities where banks are inaccessible in relation to banking and financial inclusion in general. Data from the Bank of Ghana, World Remit, survey on social media platforms and other sources show that the mobile money sub industry of the FinTech industry has made and achieved significant performancesand milestones within the past decade or so. The numbers infer that patrons tend to rely more upon the newly born mobile money system and continue to show reluctance in patronising the orthodox system of banking. We look at the changes in the amount of banking transactions as well as mobile money transactions within specific periods. From statistical data and individual opinions accumulated it is clearly a wake up call for banks. Based on data evidence the possible reasons which might have been the causes of the situation at hand are as well discussed and recommend possible solutions are arrived at.

158-166

Authors: Dinh Tran Ngoc Huy, Du Quoc Dao

Over past few years, the global financial crisis shows certain influence on emerging financial markets including Viet nam. Therefore, this study chooses an analytical approach to give some systematic opinions on how much some certain determinants such as income tax and leverage, affect the level of market risk in listed tourism companies. First, it calculates equity and asset beta values in three (3) different scenarios of changing tax rates and changing the level of financial leverage. Second, under 3 different scenarios of changing tax rates (20%, 25% and 28%), we recognized that there is not large disperse in equity beta values, estimated at 0,753 for current leverage situation. Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized both equity and asset beta mean values have positive relationship with the increasing level of tax rate. Last but not least, this paper covers some ideas and policy suggestions.

187-194

Authors: Ahu Tuğba Karabulut

The purpose of this study is to shed light to antecedents and consequences of green innovation. Antecedents and consequences are important to understand why companies decide to proceed green innovation and what are their benefits to the companies and their stakeholders. Antecedents are motivations of companies to conduct green innovation whereas consequences are contributions of them to the World.

206-210

Authors: Mustafa Özyeşil

The main purpose of this study is to contribute to the literature by performing an original study. The main subject of the study is to investigate the future position of cryptocurrencies included in the sample. In this study, we tried to predict the future expected the popularity of 6 cryptocurrencies. For this purpose, we collect internet search data of each cryptocurrency included in the sample. Popularity variable is determined by the frequency of searched numbers of crypto coins on the internet. We created graphs in the form of scatter plots by using MS Excel 2016. In order to determine the ideal curve that provides the highest specificity coefficients (R2) of related to equations was preferred. According to the results of the analysis, it was determined that RIPPLE-XRP may be taken out of the circulation in the market by November 2020.

219-229

Authors: Nurul Hidayah, Ahmad Badawi, Lucky Nugroho

This study examines the factors that influence the sustainability of the company's disclosure has registered at Indonesia Sustainability Award (ISRA). Data were taken from 2012 to 2017 and became a sample of 9 companies featured in the ISRA. Regression analysis was used to examine the effect of factors (Current Ratio, Size, Type Industry, Social Responsibility Committee and meetings of the audit committee) on the disclosure of sustainability reporting. Result of regression explains that the variable Current Ratio (CR), Size and Audit Committee Meetings significant effect, while the governance committee and the type of industry effect are not significant. Therefore, Companies are growing fast in asset and have a large debt must disclose the information in a sustainability report.

1-12

Authors: Hooshang Asheghi-Oskooee

Financing with reasonable cost, correct usage of capital and preventing the creation of unused resources are the financial management’s most important tasks. Appropriate financing and correct investment in assets leads to sustainable growth in shareholders’ wealth. This study was carried out to investigate the relationship between the capital expenditures structure (CES) and the cost of capital with shareholders’ wealth. Using systematic sampling in a five years period, 186 companies, including the listed companies in Tehran Stock Exchange were selected. To analyze data, Partial Least Squares method of Structural Equation Modeling was used. The findings indicated that there is a significant positive relationship between the CES and shareholders’ wealth in total, but some components of the CES are not related to shareholders’ wealth and it is necessary to be studied carefully. Because, understanding the relationship between the CES and shareholders’ wealth is very important to maximize shareholders’ wealth and will be most effective in capital expenditures’ budgeting. Also, there is a significant inverse relationship between the cost of capital and shareholders’ wealth.

25-33

Authors: Saira Sundas

This paper intends to study the effect of firm size on financial leverage choice while controlling for determinats like profitability and performance.Fixed effect regression model has been employed over an unbalanced panel data of non-financial firms of Pakistan from 2005-2014.Results report negative relation between firm size and leverage ratios; implying less dependence of firms on debt.Profitability shows negative significant association with short term debt and total debt while performance reports insignificant relation.The study reveals that in case of emerging country like Pakistan which is politically and economically instable; results tend to affirm a high influence of pecking order theory in firms financing patterns.

51-59

Authors: Amir Ben Mekki

Facebook is the preferred social networking service (SNS) platform among Tunisian users for social commerce (SC) and consumer-to-consumer (C2C) commercial activities. This article aims to increase the understanding of the influencing factors of C2C SC activities and provide a new interpretation of the evolution of C2C SC models in Tunisia's fastest growing trend. In order to fulfill this goal, we performed a literature review to update existing multi-facet framework that combines four important dimensions with new fundamental components: incentive systems, information and communication technologies (ICT), participative web, and e-business rules and regulations. This study has shown that these influencing factors are the key ingredients driving the evolution of C2C SC business models in Tunisia and the consideration of the four dimensions founded in our study will aid ECOM professionals to enable the widespread occurrence of C2C SC activities and can drive the success of these business models in Tunisia.

70-78

Authors: Ardita Bylo, Serkan Çankaya

Most of the empirical studies about capital structure tend to focus either on overall developed markets or on emerging countries. This paper aims to analyze the determinants of the capital structure of the companies in the Western Balkans (WBs) using a panel of 30 non-financial firms listed in Zagreb Stock Exchange, Belgrade Stock Exchange, and Macedonian Stock Exchange over the period of 2012–2017. The leverage ratio is modeled as a function of firm-specific characteristics. The results that firms in WBs tend to rely more heavily on short-term than long-term debt. There is a significant negative impact of liquidity, profitability and tax on both leverage level and short-term debt ratio. The long-term debt ratio is significantly positively affected by the growth opportunities of these companies and by its past level. Our results are consistent with the findings of previous empirical studies about emerging and transition economies, indicating that companies in WBs follow the pecking order theory.

92-101

Authors: Ece Arıkoğlu, Necla Öykü İyigün, Mehmet Sağlam

This study aims to examine the relationship between job satisfaction, organizational identification and organizational citizenship behavior of the employees in the finance industry. Also, it is aimed to reveal the mediating role of organizational identification on the relationship between job satisfaction and organizational citizenship behavior. The convenience sampling method was used in the study. The questionnaires were distributed to 355 personnel working in the finance industry and the responses obtained from these participants were analyzed. The correlations between the variables were found statistically significant and hierarchical regression analysis was used.

121-132

Authors: Samson Ogege

This article seeks to empirically analyze the influence of inflation, interest and exchange rate on economic development. The sustainability of high economic development in most industrialized and developing countries has been the primary objective of macroeconomic policies. Notwithstanding, there exist considerable contention on the innate feature of the inflation, interest rate, exchange rate and development association. The major purpose of this work is to assess the inflation, interest and exchange rate effect on some economic development indicators in Nigeria which includes the life expectancy index, human development index, consumption per capita, physical quality of life, and health and education index. The secondary data employed were collected from the CBN statistical bulletins from 1981-2017 and were analyzed adopting descriptive, correlation as well as regression analysis. The empirical analysis revealed the existent relative effect of macroeconomic variables on Nigeria economic development indicators. The impacts of the economic attributes mechanisms on performance indicators are distinct. The work infers that the diverse economic characteristics’ components influence diverse indicators of performance in various ways. It is however recommended that inflation, interest rate and exchange rate should be used to create a favorable investment climate on economic development variables, the apex bank needs to consider inflation threshold for the country in the process of targeting single digit inflation as one of its major objectives. Also, government should adopt tight monetary policy measures to control inflation from time to time.