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Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality
Adjei Luther Ntim,
Oteng Evans,
Fianu Anthony
Issue:
Volume 2, Issue 3, May 2014
Pages:
30-40
Received:
19 March 2014
Accepted:
20 April 2014
Published:
30 April 2014
Abstract: It is recognized that appropriate accounting information is important for a successful management of a business whether it is large or small. Currently, at the European Union (EU) level, accounting regulation is in place for large and small enterprises with the coming into being differential accounting reporting standard. However, in Ghana, There is no obligation for the sole trader or small business owner to disclose any information about the financial performance of his business, to prepare financial statements or to have the accounts of the business audited. Because of the importance of appropriate accounting information for owners and managers of small enterprises and their different stakeholders, it was considered important to study the various accounting and control systems applied in the Small and Medium Scale Enterprises (SMEs) in Ghana, taking Techiman Municipality as a case study. To meet the objective of this study, the researchers sampled 50 firms operating in various sectors of economic activity. A structured questionnaire was used to collect primary data from the respondents which were analyzed to generate frequencies and percentages. The study revealed that SMEs kept at least one book of account to record business transactions. The results obtained on the control system of SMEs revealed that SMEs set up various accounting controls in their operations. The results also revealed that, the need to prepare a complete set of financial statements is determined by the size of the firm, age of business and engagement of accounting personnel. It is recommended that national regulators must develop specific accounting guidelines for SMEs and develop accounting training programmes for entrepreneurs in small businesses
Abstract: It is recognized that appropriate accounting information is important for a successful management of a business whether it is large or small. Currently, at the European Union (EU) level, accounting regulation is in place for large and small enterprises with the coming into being differential accounting reporting standard. However, in Ghana, There i...
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Analysis of the Returns of Small and Medium-Sized Enterprises in Mongolia
Togtokhbuyan Lkhagvasuren,
Huo Xuexi
Issue:
Volume 2, Issue 3, May 2014
Pages:
41-47
Received:
9 April 2014
Accepted:
18 April 2014
Published:
30 April 2014
Abstract: This study analyses the profitability of small and medium-sized enterprises (SMEs) in Mongolia. SMEs play a crucial role in the Mongolian economy and are considered to be the stimulus of economic development in the country. The present paper investigates the factors that affect the performance of SMEs. It examines the relationship between returns, gender, age, education, bank advances, turnover volume, innovation, management experience, labour, interest rates, customer base, inflation and exchange rate based on data collected from 200 SMEs that have different capital structures. The equation specified profitability as the dependent variable and loans, sales, firm age, firm size and interest rates as independent variables. All data except interest rates which were derived from Central Bank data were gathered from a primary field survey. The conclusion to our study is that there is a strong positive correlation between sales growth, bank advances, business size and profitability.
Abstract: This study analyses the profitability of small and medium-sized enterprises (SMEs) in Mongolia. SMEs play a crucial role in the Mongolian economy and are considered to be the stimulus of economic development in the country. The present paper investigates the factors that affect the performance of SMEs. It examines the relationship between returns, ...
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Switching Regime in Investors’ Risk Perception
Houda Litimi,
Ahmed BenSaïda
Issue:
Volume 2, Issue 3, May 2014
Pages:
48-52
Received:
13 April 2014
Accepted:
25 April 2014
Published:
30 April 2014
Abstract: Financial assets’ risk is considered as heteroskedastic, and is generally modelled with GARCH models. However, this risk is perceived in the same manner, only external events change, such as returns and historical risk. The way these events are treated by investors, is assumed static. Some scholars explain that risk perception is subject to structural breaks, which are not taken under consideration in GARCH models. For this reason, this paper aims to develop the switching regime GARCH model SWGARCH. Results clearly show that the SWGARCH can capture the risk dynamics of the studied indexes better than classical models.
Abstract: Financial assets’ risk is considered as heteroskedastic, and is generally modelled with GARCH models. However, this risk is perceived in the same manner, only external events change, such as returns and historical risk. The way these events are treated by investors, is assumed static. Some scholars explain that risk perception is subject to structu...
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Adopting of Balanced Scorecard by Manufacturing Firms in Bahrain: An Empirical Study
Issue:
Volume 2, Issue 3, May 2014
Pages:
53-61
Received:
25 April 2014
Accepted:
9 May 2014
Published:
20 May 2014
Abstract: Performance measurements play an important role in understanding the determinants of successful performance of firms. The balanced scorecard is one of the integrated performance measurement systems that has wide acceptance in several countries. The prior studies investigated different aspects of balanced scorecard in the developed countries, but this study contributes to the performance measurement literature by collecting evidence about the extent of adoption the balanced scorecard in one of the developing countries such as Bahrain. Also, this study statistically examined the effect of a firm's size on adopting balance scorecard. The main instrument in surveying the Bahrain firms is a questionnaire. The findings rejected the null hypotheses. It is found statistically that there are differences between Bahraini manufacturing firms in adopting the balanced scorecard. Also the study found that there is effect of the firm's size with the growing use of non-financial measures by the BSC adopters.
Abstract: Performance measurements play an important role in understanding the determinants of successful performance of firms. The balanced scorecard is one of the integrated performance measurement systems that has wide acceptance in several countries. The prior studies investigated different aspects of balanced scorecard in the developed countries, but th...
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Effect of Exchange Rate Movements on Ghanaian Banks
Albert Amponsah Addae,
Michael Nyarko-Baasi,
Michael Lawer Tetteh
Issue:
Volume 2, Issue 3, May 2014
Pages:
62-71
Received:
29 April 2014
Accepted:
12 May 2014
Published:
30 May 2014
Abstract: The main purpose of this paper is to look at the exchange rate sensitivity of some listed banks on the Ghana Stock Exchange (GSE) between 2005 and 2010. In order to achieve the purpose, we adopted both quantitative and qualitative approaches. Econometric models were employed to deal with both the exchange rate sensitivities and to ascertain the exchange rate exposure of the Banks. The study discovered that all the banks studied engage in forex trading and made gains/profits from such activities. It was further found that apart from Ghana Commercial Bank and Standard Chartered Bank who were exposed to foreign exchange risk - pound sterling, the rest of the banks had no exposure to any of the currency risk. All the banks on the other hand have risk management structures in place to mitigate any risks that arise as a result of their operations. The overall interest in risk management by the banks is very high as they have put in some financial derivative measures to mitigate any exchange rate risk that they are exposed to.
Abstract: The main purpose of this paper is to look at the exchange rate sensitivity of some listed banks on the Ghana Stock Exchange (GSE) between 2005 and 2010. In order to achieve the purpose, we adopted both quantitative and qualitative approaches. Econometric models were employed to deal with both the exchange rate sensitivities and to ascertain the ex...
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Edwards & Bell’s Concept of Profit: An Empirical Analysis on the Basis of Historical Cost and Current Costing
Issue:
Volume 2, Issue 3, May 2014
Pages:
72-80
Received:
16 May 2014
Accepted:
3 June 2014
Published:
10 June 2014
Abstract: The measurement of income occupies a central position in accounting. Income measurement is probably the most important objective and function of accounting, accounting concepts, principles and procedures used by a business enterprise. In general, income represents increase in wealth and success of business; the higher the income, the greater will be the success of a business. The theory of business income as developed by Edgar O. Edwards and Philip W. Bell is a classic treatise. It has attained a reputation as a major contribution to the accounting literature. In the book “The theory and measurement of business income” the authors made to classify the methodological approach in developing the theory of business income, knowledge of how a particular work fits within the array improves our understanding of the evaluation of accounting theory. They have suggested that the central objectives toward which accountants should point in formulating measures of a business income. The general theory of profit maximization by the individual firm provides a simplified picture of the decision-making process under conditions of uncertainty, the process which must be evaluated with the aid of accounting data. They have reconciled economic income and accounting income with considering price level adjustments. An attempt has been taken in this study to clarify these concepts of profit on the basis of historical cost and current costing.
Abstract: The measurement of income occupies a central position in accounting. Income measurement is probably the most important objective and function of accounting, accounting concepts, principles and procedures used by a business enterprise. In general, income represents increase in wealth and success of business; the higher the income, the greater will b...
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Board Characteristics and Company Performance: Evidence from Nigeria
Edem Okon Akpan,
Noor Afza Amran
Issue:
Volume 2, Issue 3, May 2014
Pages:
81-89
Received:
9 May 2014
Accepted:
3 June 2014
Published:
20 June 2014
Abstract: This study examines the relationship between board characteristics and company performance (measured by turnover) in Nigeria. The study uses multiple regression technique on 90 sampled firms from the main board of Nigerian Stock Exchange from 2010 to 2012. The empirical evidence shows that board size and board education are positively and significantly related to company performance. While there is no relationship between board equity, board independence, and board age. Also, this study evidences a negative significant between board women and turnover. Their appointment is window dressing as the percentage is too small for meaningful positive effect on company performance. Based on this finding, the study recommends legislation mandating companies listed on Nigerian Stock Exchange to appoint at least 30 to 35% of women on the board of directors.
Abstract: This study examines the relationship between board characteristics and company performance (measured by turnover) in Nigeria. The study uses multiple regression technique on 90 sampled firms from the main board of Nigerian Stock Exchange from 2010 to 2012. The empirical evidence shows that board size and board education are positively and significa...
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