International Journal of Commerce and Finance

18-32

Authors: http://ijcf.ticaret.edu.tr/index.php/ijcf/article/view/183

Saving is an engine for the growth and prosperity of a nation by creating capital accumulation and financial investments through resource mobilization. Turkey appears in the set of countries that have relatively low domestic saving rates and relatively high current account deficits. This study examined the determinants of Gross Domestic Saving and its trend in Turkey, using time series data (annual) ranging from 1980-2018. Data were collected from the World Development Indicators (WDI) 2019 database, World Bank, and Central Bank of Turkey annual reports. The macroeconomic variables used in the model were Gross Domestic Saving rate to GDP ratio (GDS), Inflation Rate (INF), Deposit Interest Rate (DIR), Broad Money Supply to GDP ratio (M2R), Age-Dependency Ratio (ADR), and Growth of Gross National Income Per Capita (GNIPCG). The study has used the Auto-Regressive Distributed Lag (ARDL) model and appropriate diagnostic tests for model specification. The results of the study have shown that the first lag of Gross Domestic Saving, Inflation Rate, Age-Dependency Ratio, and Broad Money Supply to GDP ratio have positive effects, whereas Gross National Income Per Capita Growth and Deposit Interest Rate have negative effects on Gross Domestic Saving rate in Turkey. Only the first Lag of Gross Domestic Saving rate and Deposit Interest rate have statistically significant effects on Gross Domestic Saving in Turkey at a 5 percent level of significance. The rest of all variables have statistically insignificant effects. The overall findings of the study underlined the importance of adopting strict fiscal and monetary policies to regulate inflation and money supply with manageable levels to improve the Gross Domestic Saving rate in Turkey.

40-49

Authors: Endashaw Sisay, Yilkal Wassie, Minyahil Alemu

Unemployment has long been there for (especially) developing economies being the major development challenge. The cost of unemployment transmits in a couple of channels; of which the opportunity costs arising from lost production and the resultant social disorders are of immediate ledges. While appreciating them all, the government of Ethiopia (GoE) conveyed various schemes towards reducing unemployment to (at least the recommended) minimum rate. Despite developments in various efforts to that end, unemployment remained pronounceable policy challenge in Ethiopia. It, therefore, calls for enhanced intervention towards supporting the process of controlling unemployment in the country. The present study is principally aimed to identify those macroeconomic policy variables that are important in explaining the dynamics of unemployment in Ethiopia. We employed the annual time series data set for the period serially running from 1984 to 2018. The individual variables were all subjected to the augmented Dickey Fuller unit root tests and the mixed order of integration has been confirmed. As a result, the auto-regressive Distributed Lag model approach was employed for cointegration issues; and various possible cointegrating roots among the variables entered the unemployment model were suggested too. Our regression results reveal that, the population growth rate, economic growth rate, inflation rate, foreign direct investment, and the external debt variables are all important predictors of unemployment both in long and the short run periods. A positive impulse moves from inflation to (cyclical) unemployment in Ethiopia, whereby contrasting the Phillips hypothesis. Economic and social development policies need not be treated in isolation. Any successful monetary policy action in targeting the threshold inflation rate is supposed to be a crucial approach. Besides, enhancing productive and more labor-oriented investments serve the best long run solution to that end, too.

62-71

Authors: Minyahil Alemu Haile

Ethiopian macroeconomy has been characterized by enormous disequilibria explained by galloping inflation, increasing unemployment, inadequate balance of payments, mounting burden of debt and fluctuating output. Only recently the country’sincome growth is reported to register relatively stable rate, leaving other indicators unsteady. This study establishes long-run relation between budget deficits and inflation while controlling for money supply, owing to the justified links between deficits and money supply especially across developing countries. The study employed time series data with temporal coverage of 1980-2018. Augmented Dickey Fuller has tested nonstationary for all series, but with all stationary at first difference.Engle-Granger (1981) approach tested long-run relation between budget deficits, money supply and inflation. Due to Laney and Willet (1983) the conventional least squares method was adopted to establish long-run relation among the three variables. The long-run results evidencedthat fiscal deficits and money supply have been at the root of galloping inflation in Ethiopia. There is also evidence that, budget deficits have been the root cause of money supply growth in Ethiopia; while giving support to a view that, governments of less developing countries resort to monetize large portion of their deficits.There is need to reform the fiscal aspect of the government, if the mounting rate of deficitshas to be lessened. Budgetary imbalances can be rectified throughenhancementof domestic capital market and setting limits on central bank borrowing. Besides, it could be vital to expandthe tax baseas well asintensify efficiency ofthe existing tax system in the country.

81-91

Authors: Dwi Asih Surjandari, Lela Nurlaelawati, A M Soma

The aim of this study is to analyze the effect of Asset and Capital Structure, Liquidity and Firm Size on Stock Return of companies grouped as LQ-45 index listed in Indonesia Stock Exchange (IDX) during 2015 up to 2019 period. The research involves the secondary data in the form of financial annual report collected from IDX website, sample used is purposive sampling and research object is Asset and Capital Structure, Liquidity and Firm Size as independent variables and Stock Return as dependent variable while analyzing used SPSS 2.0, E-views 9.0 version. The result shown that when Stork Return measured by market price, Firm Size affects significantly on Stock Return, meanwhile Asset Structure, Capital Structure, Liquidity does not and Firm Size does not moderate the relation between Asset Structure, Capital Structure, Liquidity and Stock Return. But when Stock Return measured by Return on Equity (ROE) it is found that Capital Structure, Liquidity and Firm Size affect Return on Equity, meanwhile Asset Structure and Firm Size also moderates the relation between Asset Structure, Capital Structure, Liquidity and ROE. This finding implies that firm management must pay attention on market measurement performance in their strategy to achieve company goals. The originality of this study is that about the period as the last 5 years and the research object of companies grouped as LQ-45 index and measurement comparation between book value and market value of stock return.

104-116

Authors: Yenny Dwi Handayani, Ewing Yuvisa Ibrani

This study aims to examine the effect of audit committee characteristics on earning management and its impact on Firm Value. The characteristics of the audit committee consist of an audit committee that has expertise in industry and accounting, has expertise in industry and financial supervisors, the number of meetings of the audit committee members, and an independent audit committee. Earning management research is very important to research to provide input regarding the factors that cause companies to mark up earnings and their impact on firm value. This study uses a quantitative method with a sample of manufacturing companies listed on the Indonesia Stock Exchange for the period 2016-2018. The results show that the expertise of the audit committee in industry and accounting has no effect on earnings management, the expertise of the audit committee in the industry and the financial supervisors has no effect on earnings management. The number of meetings of the audit committee members has no effect on earnings management. The independent audit committee has no effect on earnings management. Earning Management has a significant negative effect on firm value.

125-138

Authors: Mengistu Deyassa Dadi, Sintayehu Tulu Wondimu, Mathewos Woldemariam Birru

The study was attempted to assess problems associated with taxpayers and the revenue authority of Ethiopia case of Jimma Zone, Oromiya regional state. To address research objectives, the researchers were used survey data collected through questionnaires, and the collected data were analyzed with the aid of statistical software, ordered logistic regression model. The study used tax collection as dependent variable, and those taxpayers delay declaration, tax fairness and equity, corruption and political instability, organizational strength of the tax authority, tax payer’s awareness, mode of tax collection, and starting a business without a license as independent variables. The findings of the study revealed that independent variables corruption, political instability, organizational strength of the tax authority, tax fairness, and modes of tax collection has a significant relationship with tax collection. It indicates that these variables have an impact on the collection of taxes. On the other hand, other variables, taxpayers' delay on the declaration, taxpayers' awareness, and starting a business without license shows no significant relationship. Researchers recommended that to improve tax collection the tax authority should develop strategies to aware tax payers in the community.

145-158

Authors: Faustine Juma Masunga, Harun J. Mapesa, Mwakibete Andwilile Nyalle

Globally, countries endeavor toward improving tax compliance behavior with the ultimate goal of increasing tax revenue collection. This study examined the quality of the e-tax system and its effect on the tax compliance behavior of large taxpayers in Tanzania. The data were gathered from 313 large taxpayers from three regions in Tanzania, namely Dar es Salaam, Mwanza, and Arusha. The study employed Information System Success Model (The IS model) with constructs service quality, system quality, information quality, user satisfaction, behavioral intention, and tax compliance behavior (actual behavior). A Partial Least Square Structural Equation Modeling (PLS-SEM) with SmartPLS3 was used to evaluate the latent variables and their indicators. The results showed that behavioral intention to use the e-tax system has the strongest effect on tax compliance behavior. Thus, service and information quality had an incredible effect on creating eagerness to accept and utilize the e-tax system which improves tax compliance behavior. However system quality has not shown a significant effect on tax compliance behavior

170-178

Authors: Eyerusalem Kebede Refera

This study develops comprehensive performance measurement for microfinance institutions which incorporate both financial and nonfinancial metrics using balanced score card approach (BSC). The BSC framework of the study developed using a total of 20 performance indicators categorized under the 4 BSC perspectives (financial, customer, internal business process and learning and growth). The performance measurement model is developed based on reviewed literatures and after the comprehensive performance measurement descriptive model developed, 10 microfinance experts of national bank of Ethiopia (NBE) and association of Ethiopian microfinance institutions (AEMFI) gives weight for each BSC perspective and for each twenty performance indicators. Furthermore since financial performance are commonly measured using ratios and numbers to measure a comprehensive performance and to make financial and non-financial performance parameters comparable the experts asked to develop a bench mark to convert financial performance parameters in to 5 point Likert scales. Finally the study provide a BSC based performance measurement framework that will give a comprehensive view on the financial and non-financial performance.

187-197

Authors: Musa Sawaneh

Since time immemorial, economic growth has been a chief concern for macroeconomic policymakers in every country. The significance of human capital in achieving these concerns is making waves in the space of contemporary development economics. Much theoretical and empirical evidence has shown that human capital accumulation (education and health) and their collective capabilities are a vital variable for economic development. This paper investigates the existing literature on the importance of human capital on the economic growth of the Gambia from 1990- 2019. Using annual time series economic data, we applied the econometric techniques of the ADF test to prove stationarity, rejection, and acceptance of the hypothesis of Granger causality and rejection of the null hypothesis of Johansen’s cointegration test. The Vector Error Correction Model (VECM) model was conducted, and the findings indicated a positive relationship between education and GDP in the long-run and a bidirectional relationship in the short-run. Thus, we recommended the policymakers to create strategic and prudent policies that would promote accessible and quality education with modern technologies to improve the economic growth of The Gambia. We concluded on the premise that investment in people translates to a country's economic growth.

207-217

Authors: Merve Çelik, Pınar Büyükbalcı

This study centers around the following research questions: Which partnership strategies do new ventures prefer in their internationalization processes? On which resources do they reduce their dependency through these strategies? With an attempt to answer these questions, face-to-face interviews are conducted with the founding partners of five international new ventures headquartered in Istanbul, Turkey. It was concluded that new ventures reduce their dependencies on critical resources by means of sales partnership agreements and R&D agreements they make in global markets. Through sales partnerships, they reduce their dependencies on human resources, financial resources and network. Through R&D partnerships, they reduce their dependencies on technological knowledge, financial resources and network.

226-240

Authors: Lucky Nugroho, Erik Nugraha, Ahmad Badawi

The purpose of this study is to analyze the distribution of financing at Bank Syariah Mandiri (BSM) based on the segments included in the sustainable finance category in 2019. The method used is quantitative, which is to analyze based on secondary data published in 2019 with research questions: (i) How much is the distribution of retail segment financing to BSM, and how much is included in the sustainable finance category in 2019?; (ii) How big is the distribution of corporate segment financing in BSM, and how much is included in the sustainable finance category in 2019?; (iii) What is the ratio of the distribution of financing included in the category of sustainable financing in the retail segment to the corporate segment in 2019?. The findings of this study are (i) the distribution of financing to the wholesale segment contributed 63% to the sustainable finance; (ii) the distribution of the funding to the retail segment contributed 37% to the sustainable finance; (iii) The portion of BSM financing distribution included in the sustainable finance category in 2019 was 47%.

15-30

Authors: Moti Tafa Negero

Ethiopia has immense tourism potential owing to its natural, historical and cultural, but the country has poorly performing and getting lower economic from the sector and Ethiopian tourism sectorperformances have not yet been studied in details by scholars. However this paper, will identify tourism supporting facilities that determines tourist inflow to the country. Ethiopia has diversified tourism potential, on the contrary poorly performing country in terms of tourist inflows compare to African nations that have relatively less tourism factor resources. To develop the tourism industry, the most important question which is researchable is what supporting tourism facilities arethey the determines inflow of tourists.The study finding identified that the five most important determinants are: peace and stability, regional airports, international advocacy and marketing, access to tourist attractions, and hospitality service werefoster inflow of tourists in Ethiopia. Therefore, to develop the tourism potential and maximizing economic benefits and in the effort to reduce poverty and underdevelopment in Ethiopia giving attention to above aforementioned factor is highly important.

41-49

Authors: Kibru Kefay, Chalchissa Amentie Kero, Lalise Kumera

The purpose of this study was to investigate the effect of financial incentive scheme practice on employees’ motivation in the case of CBE Jimma district. The study was descriptive as well as explanatory which used primary source of data. Non-probability and probability sampling method were applied (cluster & purposive). Accordingly, the major findings are, the overall perception of respondents about current financial incentive practice was shown as they are dissatisfied with salary and they are neither satisfied nor dissatisfied with fringe benefits pay. The result of regression analysis shows that; financial incentive variables (salary and fringe benefits pay) were not significant predictors of employees’ motivation. Also of that, a significant portion of employees was at good motivation level to perform their job. Also, it is advisable to the bank to reviews its salary scale & fringe benefits pay practice even so it had not significantly affect employee motivation it may be a cause for employees’ dissatisfaction.

61-69

Authors: Chalchissa Amentie Kero, Tomas Tadesse

The main objective of the study was to assess factors affecting employee’s work ethics. To achieve objective of the study, 346 respondents were selected by simple random sampling method, and data were gathered through questionnaire. The major findings of the study show that leadership, organization structure, control, recruitment selection and training were factors affecting employee work ethics. Also the study found there was a statistically significant and positive relationship between the leadership, organization structure and control and recruitment selection and training and employee work ethics. Therefore, the study recommends organization administrator be supposed to involve employees in key decision making and create a relationship where employees can be open and free, management should support the employees and work together with employees in ensuring the procedures, code of conduct and processes are well understood and followed. Lastly recruitment should be done in a fair way and that the human resources department should ensure that proper vetting is done in order to hire staff with good ethical morals right from the beginning.

81-101

Authors: Dereje Muleta Lencho

Motivation is significant issues affecting human behavior and it is not only affecting other cognitive factor like perception and learning but also affects total performance of an individual in organization setting. Hence this study was focused on investigate the effect of employee motivation on their job performance in Fiche General hospital. It also intended to evaluate employee level of motivational and their level of job performance. In order to meet this objective, the researcher has used simple random sampling techniques; in collected from 179 employees out of 287, using Likert scale questionnaires. Data was analyzed using descriptive statistics (mean, and standard deviation) and inferential statistics (correlation and regression). The result of the descriptive statistics finding indicated that the employee job performance has been under practiced in Fiche General Hospital. The results of inferential statistics have revealed that all motivational factors under study are positively related to employee job performance. According to this finding the employee empowerment practices is more significantly associated and has impacts on employee job performance than all motivational factors under study. Hence, managers of Fiche General Hospital as advised to more empower their employee in the work place as motivational tool in order to enhance their job performance.

113-126

Authors: Sintayehu Tulu Wondimu, Mengistu Deyassa Dadi

This study explored the challenges and prospects of taxing an informal economy in the developing country conducted with survey data in an ordered logistic regression model. The variables of the study like sizes of the informal economy, institutional quality, growth, presumption taxes, governance, and revenue have statistically significant and also they are related to the taxing of an informal economy withholding positive and negative signs. The sign directions of the variables show that the supporting of taxing of an informal economy and also the consequences impacted on informal economy tax practices and approaches. Taxing of an informal economy would be recommendable and mandatory for mobilizing the domestic revenues, for required tax compliances and improve the bargaining powers of society taxpayers; even though as constraints would be the limited revenue, high cost, and weakened governances and institutional quality. Availing of tax for an informal economy required to supports with technology and skilled human resources to improve the tax systems and to manage costs and meet the expected domestic revenue mobilizations for the expected amounts of government expenditure in each fiscal period.

143-154

Authors: Abdu Seid Ali

The central aim of this paper is to investigate the major motives of inward FDI to Ethiopia from 1992-2015. Various economic and financial variables were taken into consideration to assess the relationship between FDI and its motivational factors. Ordinary Least Square method was applied to estimate the association, while Johansen’s co-integration test was employed to examine the combination, and Vector Auto-regressive (VAR) model was used to check whether there is a long run relationship between FDI and explanatory variables. The statistical results show that there is positive and significant relationship between FDI and market size, trade openness, exchange rate and financial freedom whereas inflation had negative and significant association with FDI. However, investment freedom and economic globalization indicated an insignificant relation. Even though all variables jointly affect FDI in the long run, the VAR result didn’t reveal any long term relationship between FDI and its motivational factors individually

166-180

Authors: The Effect Of Implementing E-Filing Systems On Personal Tax Compliance With Internet Knowledge As Moderated Variables (Case Study on Personal Taxpayers at KPP Pratama Jakarta Kramatjati)

The objectives of this study are as follows: 1) Finding empirical evidence regarding the perception of the application of the e-Filing system to taxpayer compliance, and 2) Finding empirical evidence regarding the extent of knowledge the internet can moderate the relationship between the implementation of e-Filing systems and the level of taxpayer compliance.The type of research used in this study is causal research. The population in this study was all individual taxpayers registered at KPP Pratama Jakarta Kramatjati. Selection of samples of the convenience sampling method. The analytical method used to test the hypothesis is the Moderated Regression Analysis (MRA). The results of the study show, 1) The application of e-filing systems has a positive and significant effect on taxpayer compliance; 2) Knowledge the Internet has been proven to moderate the relationship between the implementation of e-Filing systems and the level of taxpayer compliance.

194-203

Authors: Mücahit Abdullah Orhan, Nagehan Candan Uca

The ease of access of the sick individuals to the drugs cause an increase in drug con-sumption with the development of the health sector. The incomplete information of the patients about the drug use causes the treatment to be incomplete and the drugs to become waste medicine. Increasing and improper disposal of drugs that are not used at home threatens human health and the environment. There is an urgent need for the correct disposal process for drug waste in homes. In order to prevent the wrong disposal of these drugs, solutions are produced within the scope of reverse logistics and green supply chain activities. The aim of the study is to understand the system structure in the process of disposal of domestic pharmaceutical waste in Istanbul and to establish a mental link between the structure of the system and the behavior obtained as a result of the system. In the study, the processes of reverse logistics activities in the Turkish pharmaceutical industry in do-mestic drug waste were examined and a system dynamics model was created.