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Hanging Trade-off at Risk and Its Implication in Ethiopian Commercial Banks
Sitina Akmel Surur,
Kirubel Asegdew Yimenu
Issue:
Volume 6, Issue 6, November 2018
Pages:
134-140
Received:
18 October 2018
Accepted:
9 November 2018
Published:
18 December 2018
DOI:
10.11648/j.jfa.20180606.11
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Abstract: Financing mix explains the way a firm finances its asset. Decision on banks financing mix is one of the challenging and debatable issues, but it is also a vital decision for their profitability and continued survival. By considering the imperative role of banks in the economy, this study was conducted to examine the effect of financing mix on financial performance of Ethiopian commercial banks for the period of 2005-2016. Out of eighteen (18) banks operating in Ethiopia, nine (9) of them were used in the study, considering the availability of data in the study period. Three models were used based on measure of financial performance; net interest margin, return on capital employed and return on equity. Whereas, debt to asset and debt to equity are used to measure financing mix and size was used as a control variable. The study adopted explanatory research design with quantitative research approach. The data collected from secondary source (audited annual reports) of sampled firms was analyzed through multiple regression technique, specifically, generalized linear model. The study revealed that financial performance indicators were negatively and significantly affected by capital structure proxies except return on equity, which was positively and significantly affected by debt to equity. The overall results indicated that financial performance of Ethiopian commercial banks was adversely affected by their financing decision and are not at tradeoff as well, which may lead to future bankruptcy.
Abstract: Financing mix explains the way a firm finances its asset. Decision on banks financing mix is one of the challenging and debatable issues, but it is also a vital decision for their profitability and continued survival. By considering the imperative role of banks in the economy, this study was conducted to examine the effect of financing mix on finan...
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Research on the Correlation Between Executive Compensation and Business Performance in Electric Power Listed Companies
Issue:
Volume 6, Issue 6, November 2018
Pages:
141-149
Received:
29 October 2018
Accepted:
20 November 2018
Published:
20 December 2018
DOI:
10.11648/j.jfa.20180606.12
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Abstract: With the rapid development of China's socialist market economy, the power industry has become a pillar industry for the development of the national economy. The reform of the electricity market system is also steadily advancing, and the competition among power companies is becoming more and more fierce. The effective improvement of the performance of power companies faces challenges. As an important part of the enterprise's human resources, executives play an extremely important role in the growth and steady development of the company; executive compensation can play a role in the strength of the company's senior management team and may affect the performance of the company. This paper analyzes and empirically studies the executive compensation incentives of listed companies in the power industry in 2017 and corporate performance. From the empirical analysis, it can be concluded that in the power industry, there is a significant positive correlation between firm size and executive compensation, and the correlation between corporate performance and executive compensation is not significant. Establish executive compensation and companies in listed companies in the power industry. The benefit-linked compensation management mechanism still has a long way to go. The conclusion of this study is of great significance and value for the salary management and enterprise performance improvement of power companies.
Abstract: With the rapid development of China's socialist market economy, the power industry has become a pillar industry for the development of the national economy. The reform of the electricity market system is also steadily advancing, and the competition among power companies is becoming more and more fierce. The effective improvement of the performance ...
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PITA 2011 and Voluntary Tax Compliance: Towards Achieving Sustainable Revenue Generation in Kaduna State Nigeria
Nyor Terzungwe,
Jonathan Agnes Jummai,
Mustapha Lateef Olumide
Issue:
Volume 6, Issue 6, November 2018
Pages:
150-161
Received:
1 November 2018
Accepted:
3 December 2018
Published:
2 January 2019
DOI:
10.11648/j.jfa.20180606.13
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Abstract: Sustainable governance entails using the compulsory contribution paid to government by her citizens to support law and order, provide security and social amenities for the benefit of present and future generations. Nigeria's Personal Income Tax Act (PITA) 2011 was amended to provide for sustainable tax policies and administration that would secure voluntary tax compliance and guarantee sustainable revenue generation. The amendment introduced a more equitable tax system by providing realistic tax rates, and recommending an efficient and effective tax administrative system, and simpler tax laws. This study examines the determinants of voluntary tax compliance in Kaduna state Nigeria taking self-assessment, income tax rates, and penalties as provided by PITA 2011, with a view to ascertain whether the Act has significantly affected voluntary tax compliance in the State. The population of study is 4925 registered self-employed individuals who are subjected to Direct Assessment system in Kaduna State, Nigeria. A sample 370 respondents was arrived at using the Yaro Yamani formula. Descriptive statistics and multiple regression technique were used to analyze the data. The study reveals that the amended provisions of PITA 2011 on Self-assessment, Income tax rates and Penalty are capable of enhancing voluntary tax compliance but poor knowledge of the tax laws, unstable economy and administrative bottlenecks have affected the potency of the Act. The study therefore recommends among others that the Kaduna state Government employ measures to boost compliance, such as educating tax payers by summarizing the provisions of PITA 2011 in some widely spoken languages and communicating same.
Abstract: Sustainable governance entails using the compulsory contribution paid to government by her citizens to support law and order, provide security and social amenities for the benefit of present and future generations. Nigeria's Personal Income Tax Act (PITA) 2011 was amended to provide for sustainable tax policies and administration that would secure ...
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Creditworthiness of North American Oil Companies and Minsky Financing Categories: Assessment of Shifts Due to the 2014-2016 Oil Price Shock
Ruud Weijermars,
Alison Johnson,
John Denman,
Kim Salinas,
Gregg Williams
Issue:
Volume 6, Issue 6, November 2018
Pages:
162-180
Received:
2 November 2018
Accepted:
5 December 2018
Published:
16 January 2019
DOI:
10.11648/j.jfa.20180606.14
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Abstract: Our study provides a unique and comprehensive analysis of oil and gas companies' performance over the latest oil price crisis of 2014-2016. The oil price declined under the pressure of global oil oversupply instigated by OPEC under the strategic leadership of Saudi Arabia, in an effort to retain market share by diminishing the production growth of shale oil and oil from oil sands in North America. The financial performance of 45 North American oil companies was assessed over the 2014-2016 period of decreased oil prices, distinguishing six peer groups based on market capitalization, of which 11 representative companies were selected for further in-depth analysis. For each selected company, a forensic financial analysis was performed on the three principal accounts of corporate financial performance: profit-loss account, cash flow account and balance sheet. Financial accounts were consolidated in annualized graphs for 2010-2015. Next, the historic production output and operational income from the existing assets (2010-2015) were projected forward to stress test future liquidity positions (2016-2020). These projections incorporated known maturation dates of corporate debt and any announced divestments and/or acquisitions. The majority of the companies are classified in Minsky's speculative financing category, which is riskier than hedge financing and less risky than Ponzi financing. The oil price collapse pushed numerous companies into Ponzi financing and led to a record number of bankruptcies. Lessons learned and recommendations are formulated for company management, shareholders and lenders, based on the corporate financial performance of the analyzed companies during the decade (2010-20120) spanning the 2014-2016 oil price shock.
Abstract: Our study provides a unique and comprehensive analysis of oil and gas companies' performance over the latest oil price crisis of 2014-2016. The oil price declined under the pressure of global oil oversupply instigated by OPEC under the strategic leadership of Saudi Arabia, in an effort to retain market share by diminishing the production growth of ...
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