International Journal of Finance, Accounting and Economics Studies: 2 (2)

Open Access Article

1 - Compliance with Statement of Accounting Standards and Performance of Nigerian Banks

Banks play important roles in promoting national development. In order to provide efficient services and to perform their statutory roles effectively, banks are required to comply with established standards. In Nigeria, the Statement of Accounting Standards (SAS), Compa More

Banks play important roles in promoting national development. In order to provide efficient services and to perform their statutory roles effectively, banks are required to comply with established standards. In Nigeria, the Statement of Accounting Standards (SAS), Companies and Allied Matters Act (CAMA) and the Central Bank of Nigeria’s directives and regulations provide guidelines to banks in the preparation and presentation of the records of their financial transactions. In recent time, some Nigerian banks appear to be engaging in non-standardized and unprofessional practices, which could lead to distress and liquidation. The objectives of this study therefore are to assess the level of Nigerian banks’ compliance with statement of accounting standards as established by the Nigerian Accounting Standards Board and appraise the relationship between level of compliance with Statement of Accounting Standards and performance of Nigerian banks. Twenty selected banks quoted on the Nigerian Stock Exchange constituted the target sample and these were banks whose annual financial reports for the period of study were fully available. Both primary and secondary sources of data were adopted in carrying out the study. A researcher-designed questionnaire was used to obtain data from senior and managerial staff of each of the twenty sampled banks. The instrument was structured to accommodate the sixteen Statements of Accounting Standards which are related to banks and used in the assessment of banks’ compliance. Twenty five questionnaires were administered to the staff of each of the twenty selected quoted banks. Thus, a total of five hundred randomly selected respondents participated in the study. The annual financial reports of the selected banks from 2005 2009 (post-consolidation era) were also used. The collected data were analyzed using Kruskal Wallis Test, CAMEL Ratios, Analysis of Variance (ANOVA). Based on the findings of the study, it was recommended that the Nigerian Accounting Standards Board (NASB) should overhaul and properly equip its monitoring unit in order to ensure better banks’ compliance with accounting standards and to take appropriate actions against defaulting banks. Manuscript profile

Open Access Article

2 - Study of Influencing Factors in Successful Implementation of Accounting Information Systems (AIS) on listed Companies of Tehran Stock Exchange (TSE)

In this research we study the influencing factors that have direct effect on successful AIS implementing. According to other researches, we specified some factors that are most efficacious ones, and categorized them through three main hypotheses of human recourses, tech More

In this research we study the influencing factors that have direct effect on successful AIS implementing. According to other researches, we specified some factors that are most efficacious ones, and categorized them through three main hypotheses of human recourses, technical characteristics of AIS and management strategies. To study various dimensions of these groups we determined some other factors as subsidiary hypotheses. Results of this study showed that all of the main and subsidiary have direct effect on successful implementing of AIS and among the main hypotheses human recourses as placed as the most influencing factors. Manuscript profile

Open Access Article

3 - The Information Content of Accounting Variables in Companies Accepted in Tehran Stock Exchange (TSE)

Various researches have been carried out about benefits of accounting information and their influence on decision making of financial statements users. For example, many researches have examined the relationship between accounting variables and stock returns or stock pr More

Various researches have been carried out about benefits of accounting information and their influence on decision making of financial statements users. For example, many researches have examined the relationship between accounting variables and stock returns or stock price. This study determines and compares the relative and incremental content of accounting variables, too. For this purpose, the relationship between stock return and accounting variables is examined for production companies accepted in Tehran Stock Exchange (TSE), during period of 2000 through 2004. Independent variables, in this study, are Net Income (NI), Operational Profit (OP) and Cash Flows from Operations (CFO) and dependent variable is annual Stock return. In order to eliminate the effect of company size, we choose total asset as control variable. The results show that OP has related information content in comparison with other variables and NI and OP have incremental content beyond each other, but CFO doesn’t have incremental content. Manuscript profile

Open Access Article

4 - Export Instability and Economic Growth (The Case of OPEC)

Oil sector is the most effective sector in these countries. Oil is the most important product that world industries use as the cheapest energy. The price of oil depends on the world’s supply and demand and many economic, political and geographical variables. This More

Oil sector is the most effective sector in these countries. Oil is the most important product that world industries use as the cheapest energy. The price of oil depends on the world’s supply and demand and many economic, political and geographical variables. This is the reason why the price of oil has fluctuations. The fluctuations in oil price lead to fluctuate in the oil revenues of the member countries of OPEC. Because the economic system of these countries directly depends on oil sector, economic growth affected by the oil sector. The research made to explain the effect of export instability on economy, by using economic growth modeling and panel data analysis with time series data from 1981 to 2006 with seven member countries of OPEC. The results show that there is a strong negative relationship between export instability and economic growth. In other words, export instability either positive or negative create many problems for these kind of countries. This means that if the revenue of oil exports in these countries increases, they fall in trouble. We can also clearly see this problem in economic growth rate. Therefore, export instability is not beneficial in OPEC countries and they should try to stabilize and manage their revenues their revenue usage properly. Manuscript profile

Open Access Article

5 - The Effect of Unconditional Accounting Conservatism on non-profitability in An Emerging Market: Case of Iran

The present study is intended to examine the effect of accounting conservatism on firms’ non-profitability in Tehran Stock Exchange in 48 unprofitable firms and 57 profitable firms over a period of seven years from 2001 to 2007. This study was conducted according More

The present study is intended to examine the effect of accounting conservatism on firms’ non-profitability in Tehran Stock Exchange in 48 unprofitable firms and 57 profitable firms over a period of seven years from 2001 to 2007. This study was conducted according to Givoly and Hayn model to measure accounting conservatism index in non-profitable and profitable) firms. Data analysis performed with logistic regression. The results of study showed that there is significant and direct relationship between unprofitability and accounting conservatism. It was also concluded that, unprofitability is positively correlated with financial leverage, and is negatively correlated with firm size and profitability index. In addition, the results of the study showed that there was not any significant relationship between sales growth and non-profitability; moreover there is a direct relationship between financial leverage and non-effectiveness of sales growth in non-profitable firms. The results showed that accounting conservatism is an effective mechanism to limit the bias behavior of managers in overstatement of earnings in non-profitable firms and it consequently increase the firm value of non-profitable firms in long term. Manuscript profile

Open Access Article

6 - Comparison of Portfolios Formed by Use of Grid Strategy Model Based on New and Traditional Variables Performance With Sharpe and Treynor Measures (Evidence of IRAN Exchange)

In this research, performance of portfolios formed by use of grid strategy based on new variables (aggressive, indifference and defensive stocks) presented by Rahnamaye Roodposhti (1388), and traditional ones (growth, growth-value and value stocks), calculated with Shar More

In this research, performance of portfolios formed by use of grid strategy based on new variables (aggressive, indifference and defensive stocks) presented by Rahnamaye Roodposhti (1388), and traditional ones (growth, growth-value and value stocks), calculated with Sharpe and Treynor performance measures and tested by an Active portfolio management approach to identify the portfolios by performance higher than market portfolio performance. For testing the research hypothesis the Mann-Whitney test is used and its results shows that performance calculated by Sharpe ratio shows higher performance for growth and aggressive portfolio than market portfolio but performance calculated by Terynor ratio shows higher performance than market portfolio only for growth portfolio. Manuscript profile

Open Access Article

7 - An Analysis of ‘Triangle Ordering’ in Foreign Exchange Market (Forex): Simultaneous Ordering of Three Major Currency Pairs

With considering a ‘triangle of three major currency pairs’, there is a tiny difference between multiplication of exchange rate for the first two currency pairs and the third. To discover whether this little difference can lead to a neutral arbitrage or not, More

With considering a ‘triangle of three major currency pairs’, there is a tiny difference between multiplication of exchange rate for the first two currency pairs and the third. To discover whether this little difference can lead to a neutral arbitrage or not, I took portfolios of 35 baskets of three major currency pairs(combinations of all 7 major currencies). There are eight approaches (different cases of short and long positions) in each basket; for example buying 1st currency pairs and selling two others, etc. Historical monthly FX rates were gathered from January 1990 until July 2011. Profit or loss derived from eight approaches in all baskets has been calculated. Number of months with a profit has been compared with the months with a loss. Covariance’s of all approaches of FX rates between growth rates were calculated. I found that this ‘triangle ordering’ of three currency pairs will not always eventuate to a profit. In the other meaning, this is not a neutral strategy. The results showed that in 94% of 280 cases, the probability of gaining profit is almost equal to gaining loss. Also it was found that the most profitable approach is not the best in probability of profit. Standard deviations of results (as indicators of risk of the approaches) were diagramed with the amount of profits. This figured ‘efficient frontier’ of approaches, the best combinations of risks and profits. Covariance were often positive (in 70% of 280 cases), showing probability of simultaneous effectiveness of external factors on all currencies. Manuscript profile

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