International Journal of Academic Research in Accounting, Finance and Management Sciences

1–13

Authors: Etumudon Ndidi ASIEN

This paper investigates the impact of firm-level attributes (cash flow from operating activities, sales revenue, profit after tax, firm size, and firm age) on the number of banks firms decide to have. The paper hypothesizes a significant positive relationship between the number of banks and firm attributes. We utilize data drawn from online annual reports and financial statements of 38 Nigerian non-financial quoted firms from 2011 to 2013. We model cross-sectional multiple regressions for the paper, and the test results are largely consistent with a priori expectations, except firm age. After controlling for industry membership, our findings suggest that operating cash flow, profit after tax, and firm size significantly increase the number of bankers. We find that firm age significantly reduces the number of bankers, contrary to prior findings. We find no evidence to suggest that sales revenue affects the number of bankers.

21–33

Authors: Hamed J.H. USROF, Rania Mohamed ELMORSEY

Human resource management and total quality management have been acknowledged as ‘new’ methods that enticed a boundless deal of scholars and practitioners’ interest. Both of the terms are considered to be an imperative management philosophy which underpins organizational efforts to acquire contented customers. The purpose of this paper is to look at human resource management (HRM) practices as the right mix in the implementation of total quality management (TQM) effectiveness. Such practices: recruitment and selection process, teamwork and employee empowerment, training and development, performance appraisals and compensation have the potential to explore and generate new knowledge for the organizations. This paper has reviewed all the literature which is relevant to the practices of HRM and TQM and its implementation in various areas. The review is focused on the implementation, the impacts on the organizational performance and the encouraged indicators to the adoption of practices in organization. It also recognized the benefits from practices during TQM implementation and they believe this approach could give them a chance to achieve their goals. However, several organizations do not adopt HRM and TQM practices because of lack of identified reasons and less serious outcomes manifested in the effectiveness of such practices. Therefore, this paper presents the basic perception of the author with respect to the relationship that occurs between human resource management and total quality management and its influence in the sustainability of the organization. It will also attempt to have a robust understanding to the implementation of practices and procedures for improving business performance.

44–52

Authors: Essono E. FABIENE, Sandeep Lloyd KACHCHHAP

Being an important concept in human resource management, a wide span of literature exists on employee’s commitment research. However, little is known of the factors that enhance employee’s commitment among healthcare professionals in the Philippines. Consequently, this study sought to examine the influence of selected factors on the commitment of healthcare professional in the Philippines. Using quantitative methods the study established that the factors in the study were significantly and positively correlated with employee’s commitment. Among the factors, job satisfaction of employees emerged as the most important in explaining employee’s commitment. Finally recommendations for research and practice are made.

61–75

Authors: Izlem GOZUKARA, Osman YILDIRIM

Justice in an organization is related with several favorable outcomes at both individual and organizational levels. Employees with a perception of fairness in the workplace are likely to engage in more innovative behaviors. Innovation is considered as the key concept for organizational survival and success, and employees’ innovative behaviors may be the most important resource in this regard. In order for an organization to adopt an innovative climate, a learning capacity is required since information is essential to innovation. Therefore, the purpose of the present study is to determine whether distributive justice is related with innovative behaviors of employees and whether organizational learning capacity plays a mediating role in such relationship. The study data were obtained using questionnaires and analyzed in SPSS and AMOS software programs. The study results demonstrated a significantly positive relationship between distributive justice and innovative behavior as well as a mediating effect of organizational learning capacity on this relationship.

87–97

Authors: Rembulan Rahmadia FITRI, Muhamad Nadratuzzaman HOSEN, Syafaat MUHARI

The purpose of the research is to examine the effect of Return On Assets (ROA), Debt to Equity Ratio (DER), Assets Growth and Dividend Payout Ratio in a Year Before (DPRt-1) towards Dividend Payout Ratio (DPR) on Listed Companies at Jakarta Islamic Index during 2009-2014 period. This research is using annual report that collected from Indonesia Stock Exchange. The method used in this research is panel data regression analysis and the chosen models that used common effect model. The results showed a positive and significant effect of ROA and DPR in a year before to Dividend Payout Ratio. The results also showed a negative and significant effect of Asset Growth to Dividend Payout Ratio. However, the results also showed no significant effect of Debt to Equity Ratio to Dividend Payout Ratio. The most significant variable that effecting Dividend Payout Ratio is Dividend Payout Ratio a Previous Year (DPRt-1).

104–113

Authors: Melis ERCAN, Emrah ONDER

Financial performance evaluation of firms is a kind of multi-criteria decision making (MCDM) problem which has multiple and conflicting criteria (financial ratios). Companies should monitor their performance indicators in order to ensure appropriate and timely decisions and plans. The aim of this study is to evaluate the financial performance of five listed insurance companies in the Istanbul Stock Exchange (Borsa IstanbulBIST) during 2010–2015 (quarterly) periods. VIKOR method is used for the ranking of firms. Our model shows that Avivasa Emeklilik and Hayat A.S. (AVISA) is the best performing insurance company in these five companies during the years 2010–2015

121–133

Authors: Cecilia MAIGUA, Gekara MOUNI

This study sought to investigate the influence of interest rate determinants on the performance of commercial banks in Kenya. Interest rates are the major economic factors that influence the economic growth in an economy. They can be used to control inflation and to boost economic development. The interest rates determinants that were studied are Inflation Rates, discount rates, Exchange Rate and reserve requirement to determine the influence they have on performance of banks. The target population of the study was all 43 commercial banks operating in Kenya. The sample size was 26 commercial banks obtained from the population. The data analysis technique applied in this study was the multiple regression analysis. The results showed that discount rates, inflation rates and exchange rates had positive influence on performance of commercial banks while reserve requirement ratio had negative influence. The study concluded that higher levels of discount rates, inflation rates and exchange rates lead to higher performance in commercial banks in Kenya, higher levels of reserve requirement ratio result in lower bank performance in Kenya. The study recommends that the Central Bank of Kenya should set base reserve requirements that do not pressurize banks in their operations. This will help grow the banking industry in Kenya and hence develop the economy. Lastly, the study recommends that the commercial banks management should strategize on best way to set up discounts rates for their banks as this will go a long way dictating the borrowing and lending culture of the commercial banks in Kenya and in return enhance their performance.

140–145

Authors: Olukayode Abayomi SORUNKE, Aderemi Daniel ADEKANMI

The Nigerian nation is no stranger to economic reforms. Yet, in spite of more than half a century of reforms, the debilitating effects of an economy in distress are still very much with us. The manufacturing sector that is supposed to be the engine room of the nation’s economy has been characterized by low capacity utilization and declining contribution to national output. The resultant effect of all these is poor standard of living and ravaging poverty. Adopting the “Principal – Agent Model” as a theoretical basis, the paper argued that due to the privileged position of the agents (elected public officials) to public resources and information, they tend to abuse these privileges by acting contrary to the interest of their principal (the electorates). The paper therefore among others recommends that the principals should be more alive to their responsibility by seeking for information and regular monitoring of the activities of the agents in order to ensure Public Sector Accountability.

159–168

Authors: Paul Aondona ANGAHAR, John Inyongun IVARAVE

he study empirically investigated the effect of capital structure on corporate profit; evidence from cement manufacturing firms in Nigeria. It focused on quoted cement manufacturing firms in Nigeria from 2004- 2013 using ex-post facto research design. Multi regression analysis was used to test the hypotheses. The findings were that, there exists a positive and significant effect of short term debt, long term debt and shareholder’s fund on the profit of cement manufacturing firms in Nigeria. The study recommends among others that, management should adopt a sound financing mix which will be beneficial to firms in the long run also; policies by Government should create a favourable macro-economic environment for cement companies to operate profitably.

175–183

Authors: Muhammad Ali Jibran QAMAR, Faisal KHALIL, Waheed AKHTAR

The purpose of study is to investigate the unique dimension of corporate governance of mutual fund that how culture of good and bad governance transmits from corporate industry of Pakistan to Mutual funds? Independent directors who are working in other industries and same time are independent directors of mutual fund are transmitting good or bad corporate governance culture of other industries into the mutual fund industry as well. Furthermore, it is investigated that how females and foreign director on board of mutual fund effect the culture of corporate governance in the mutual funds. We have applied fixed effect panel regression and results revealed that independent directors transmit shareholder friendly culture into mutual fund industry in Pakistan that called expertise effect, whereas if dependent directors of fund are connected with outside industry it is not good for governance of mutual fund due to cronyism effect. Moreover, foreign and female directors on board are not helping in promoting a good culture of corporate governance in the Mutual fund industry.

196–203

Authors: Emmanuel Agwu ARISI-NWUGBALLA

The purpose of this exploratory research was to investigate the effect of outsourcing security, cleaning, and laundry services on the quality of the outsourced services and, by implication, the quality of healthcare services delivered by federal healthcare institutions in South-East Nigeria. A self-designed survey instrument was distributed to a sample of 303 permanent staff of the institutions (the internal customers of the service providers), and 162 usable copies of the questionnaire were retrieved, representing 54 per cent response rate. From the data analysis 66.9 per cent of the respondents perceived improvement in the quality of security services; 69.1 per cent of the respondents perceived improvements in the quality of cleaning services; and 65.8 per cent of the respondents perceived improvements in the quality of laundry services since the services were outsourced in the institutions. These responses show that outsourcing led to improvements in the quality of all the outsourced services. And being inputs in the healthcare delivery process, improvements in the quality of these services suggest improvements in the quality of healthcare services offered by these institutions. The result of this study justifies the decision to outsource the services, and encourages public organisations to outsource non-core activities as a strategy towards improving the quality of their service delivery.