International Journal of Commerce and Finance

50-70

Authors: Aboubacar Doucoure, Serkan Çankaya

The primary goal of this research is to analyze whether the financial efficiency of the banking sector in the Economic Community of West African States region estimated by financial indicators as Return on Asset (ROA), Return on Equity (ROE) and Net Interest Income (NIM) affects the economic development measured by the Gross Domestic Product (GDP) growth. The choice of these profitability and rentability variables is inspired by the World Bank’s indicators of financial institutions efficiency at country level. This research investigated the impact of banking sector efficiency on the economic development in country members of the Economic Community of West African States (ECOWAS) from 2010 to 2019. This study uses quantitative methodology in order to attain the main objective. The research proposes to develop a methodology, through theoretical study as well as making use of related literatures, which can be used in determining the impact of banking sector performance and economic development in West African region. The required data can be classified into two main categories: the factors that determine bank efficiency, and the economic indicator that explains growth in the region. The goal is to analyze whether the financial efficiency of banks lead to growth in the economies of countries. In our model, the banking sector efficiency measured by financial indicators as ROA, ROE, and NIM indicates the explanatory variables while annual growth rate of GDP for economic development measures the predicted variable. The model uses Panel Generalized Method of Moment (GMM) to test the hypothesis from EVIEWS software. The result of our survey suggests that among all the explanatory variables only the return on asset (ROA) has statistically significant influence on the gross domestic product (GDP) growth rate meaning that the banking sector financial performance measured by ROA has significant impact on the economic growth in West Africa. The research shows that the main actors in banking sector and authorities should focus on the efficiency of banking system in order to drive a sustainable economic growth. In addition, this research obviously provides some important information to researchers, governments, financial analysts, banking policy makers and supervisory authorities

101-121

Authors: Sertaç Hamza, Ahu Tuğba Karabulut

This study aims to explore how a global franchisor applies global and local strategies in its Turkish franchisees. McDonald’s is a global franchisor which has a distribution licence agreement with Anadolu Group in Turkey. The effect of the agreement is discussed interms of global and local strategies in the fields of Supply Chain Management, Operations Management, Marketing Management, Finance Management, and Human Resources Management. In dept interviews were conducted with functional managers of McDonald’s Turkey to find out the approach of the company. According to the findings of the in depth interviews, it is found out that the company applies both global and local strategies in Turkey for decreasing its costs, increasing its efficiency and alligning its strategies with its headquater. However, it focuses on local strategies more than global strategies due to the effect of its local distribution licencee Anadolu Group.

140-164

Authors: Mehmet Sağlam, Maryama Dahir Abdullah

The purpose of this research was to examine the impact of Hofstede's culture dimensions (long-term/short term orientation, power distance index, masculinity/feminity index, uncertainty avoidance, and individualism/collectivism) on consumer behavior intentions (word of mouth, complaining behavior, purchase intention, price sensitivity) on two countries namely Turkey and Somalia. Primary data was collected using a questionnaire sent electronically via Google Forms to the respondents’ emails. Convenience sampling was used in the study. the sample size used here included 305 respondents–153 respondents from Somalia and the other 152 respondents from Turkey. SPSS 22 and LISREL 8.7 Packages Program was used for Statistical Analysis. As a result of the study, it was determined that Hofstede culture dimensions did not have an effect on consumer behaviour intention for the Somalia sample, while power distance and uncertainty avoidance had a positive effect on word of mouth communication and long term orientation had a positive effect on price sensitivity and complaining behavior intention for the Turkish sample.

184-205

Authors: Çiğdem Şükran Cede, Aylin Gözen

This study was written to contribute to the literature regarding the relationship between mindfulness and self-efficacy. Mindfulness is a way of directing attention that is rooted in the Eastern meditation tradition. It has started to be discussed and applied more and more in Western culture. It is aimed to direct the mind's attention with a specific method in mindfulness meditation. On the other hand, Self-efficacy as the sub dimension of positive psychological capital focuses on the belief that a person will perform successfully in a specific area. Self efficancy considers the feeling of believing individual's self and abilities in a work or a situation. In this regard, the aim of this study is to examine the relationship between mindfulness and self-efficacy by conducting a literature review regarding those two concepts. As a result of the research, it is concluded that there is a positive and significant relationship between mindfulness and self-efficacy.

18-30

Authors: Minyahil Alemu Haile, Girma Daba Megerssa

Tourism-Led Growth (TLG) hypothesis demonstrates the profound contribution of tourism industry to the growth of real income. This study examines the long-term impact of international tourism on economic growth in Ethiopia, using a series of annual data spanning from 1995 to 2018. We contribute to the existing empirical literature on Tourism-Led Growth hypothesis, by adopting the conventional least squares framework and the Engle-Granger cointegration test between tourism receipts, trade openness, expenditures on physical capital, expenditures on tertiary education and economic growth in Ethiopia. The Engle-Granger (1987) tested stable long-term relation between the variables considered. This partly guarantees the TLG hypothesis. However, contrary to the predictions of TLG, we have estimated insignificant impact of tourism receipts on the long-run growth of Ethiopian economy, while challenging trustworthiness of the hypothesis in the context of Ethiopia. Our results revealed that the theory itself is incomplete. Besides, the foreign direct investment and domestic investments in physical capital were found significant contributor of long-run real income growth in Ethiopia. It is recommended that the government of Ethiopia should encourage private sector participation to develop the necessary infrastructures in order to achieve higher room tenancy.

41-50

Authors: Alemayehu Taddese Kenno

Internal audit plays a significant role in safeguarding and effective utilization of public resources. This study was conducted to assess the practice of internal audit: A case study of selected bureaus in SNNPRS. The researcher employed descriptive research design. Both simple random and purposive sampling techniques were employed by researcher in order to select 195 professionals in the bureaus. The data collected via structured questionnaire has been analyzed by statistical software, SPSS version 21.0. Accordingly, the result of descriptive statistics showed that, independence and objectivity and quality of internal audit has positive contribution to internal audit practice. The study also found that the major challenges of internal audit in regional sector bureaus are lack of training, sufficient audit facilities, management support, competent audit staff, adequate man power and presence of interference by the higher officials. Based on the findings of the study, the researcher forwarded possible recommendations for bureaus to work on identified results due to fact that they can be taken in to considerations have positive influence in improving internal audit practice of bureaus.

62-71

Authors: Abdiaziiz Aqil, Ahu Tuğba Karabulut, Hümeyra Nur Hatipoğlu

The purpose of this study is to examine the effect of employee motivation on the employee performance in banks in Somalia. The article uses a quantitative survey method to empirically analyze the data collected by the questionnaire. The data was collected from 365 employees and managers who work in several Somalian banks in different cities in Somalia. The Employee Motivation Scale developed by Gagné et al. (2010, pp. 641-642) has 12 items and was taken from Zengin (2019, pp. 22-23) and The Job Performance Scale developed by Goodman and Svyantek (1999, p. 261) has 25 items were used in the study. Frequency distribution analysis, reliability analysis, factor analyses, correlation analysis, and regression analysis were applied to the data. According to the results of the analysis, the employee motivation affects the employee performance in banks in Somalia.

77-91

Authors: Olumuyiwa Ganiyu Yinusa, Mayowa Ebenezer Ariyibi, Lateef Adewale Yunusa, Kehinde Isiaq Olaiya

The study examined the impact of Operating leverage on firm value of quoted manufacturing firms in Nigeria. The study selected twenty-two (22) listed (Consumer goods sector) manufacturing firms listed on Nigeria Stock Exchange from 2013-2019.The data used for this study are panel data. The result of this study revealed that DVAS (Variability in sales) has negative insignificant effect on firm value at (β=-1.04, P>0.05). DVPBIT (Variability in profit before interest and tax) has positive insignificant effect on firm value at (β=12.6, P>0.05). OPLE (Operating leverage in asset) has negative significant effect on firm value at (β=-18.95, P<0.05). Based on the findings of the study, it were therefore recommended that; firms would benefit from the quick variability in fixed asset to current asset. (Changes in fixed cost into variable cost influences sales and long-run profit).

109-121

Authors: Mukaila Abiola Tonade, Bamidele Ilo, Olusola Enitan Olowofela

This study examined the relationship between fiscal policy and development financing in Nigeria and the extent to which the former effects the latter. The study employed public choice framework and the model is estimated with time-series data from 1981 to 2014, using the Johansen estimation technique. The findings revealed that there is a strong positive relationship between fiscal policy and development financing, real GDP per capital, consumer price index and capital expenditure respectively. The results further confirmed that more expenses were incurred funding recurrent than capital and this had taken its toll on development. The study recommended that government should increase revenue base so as to fund capital expenditure in order to achieve sustainable development while it is also necessary to reduce recurrent expenditures and domestic debt.

130-140

Authors: Olumuyiwa Ganiyu Yinusa, Olusola Enitan Olowofela, Adewale Lateef Yunusa, Rahmon Abiodun Folami

Financial innovation is a product of technology and the question whether financial innovation spurs economic growth is subject to level of technology in the financial sector of an economy as well as other factors. On this note, this study examines the impact of process financial innovation on economic growth in some selected African countries. The study used annual panel data obtained from the World Bank Development Indicator comprising of seventeen cross section countries covering the period of fifteen years from 2004 to 2018. Generalized Method of Moment (GMM) was employed to analyze the panel data system. The result shows that financial innovation has significant impact on economic growth of selected countries. Automated Teller Machine (ATM) which is a major measure of our process financial innovation has significant impact on economic growth. Number of Bank branches on the other hand has positive but insignificant impact on the economic growth. Financial innovative products such a domestic bank credit also contributes significantly to the economic growth of African countries. It is therefore recommended that policy makers should encourage establishment of more ATM terminals, increase the number of bank branches and improve the credit to private sector of the economy.

156-165

Authors: Aydin Asheghi Oskooee, Mohammad Marfou, Mousa Bozorg Asl

This paper studies the relationship between financial statements disaggregation and audit fees. Financial statements disaggregation is about detailed disclosure of information and is based on the better quality of finer information. To measure this characteristic, native standards and resources (from Iran) were used. Our method of measurement is based on Chen et al.’s (2015) approach, but with a basis of local resources. Providing more detailed information in the financial statements can affect the auditors’ judgment regarding audit scope, which can affect their demanded fee. The results indicate that there is a significant relationship between financial statements disaggregation and audit fees.

181-190

Authors: Zeineb Cherni, Aylin Gozen

The concept of Positive Psychological Capital has started to possess an important role in the literature by the beginning of the 1990s, and many researches regarding this field have been conducted heavily throughout the 2000s. Positive psychological capital focuses on identifying people's strengths and their results personally and on an organizational level, and how it contributes to achieving the desired organizational success. As Individuals and organizations determine success/high performance or revenues as goals to be achieved, a lot of intense effort must be made to prepare a suitable environment in order to overcome challenges and problems. Since the 1980s, an approach called "cynicism" developed among an organization’s employees has started to attract attention in the business world. Therefore, the concept of positive psychological capital is thought to be the best alternative to reduce the negative outcomes of cynicism in organizations in order to have a healthier work environment for better positive outcomes. In this respect, the aim of this article is to understand how Positive Psychological Capital impacts organizational cynicism throughout reviewing the literature since the 2000s.