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Users Intention Towards Digital Financial Service Adoption in Ethiopia
Issue:
Volume 10, Issue 5, September 2022
Pages:
196-205
Received:
11 August 2022
Accepted:
20 September 2022
Published:
28 September 2022
DOI:
10.11648/j.jfa.20221005.11
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Abstract: In recent times, mobile money services have become a fashioned services following to the rapid development of mobile technologies and increasing demand for cashless business transactions. Such demand has also ushered a new era to the banking industry and bank users. However, the bank users’ intensions to adopt the services, particularly in Ethiopia, were not studied yet. To fill this study gap, data was collected from 384 users of banks branching in Addis Ababa and analyzed by integrating the modified extended unified theory of acceptance and use of technology (UTAUT2) and with the structural equation model. According to the path analysis, the study found performance expectancy, effort expectancy, facilitation conditions, hedonic motivation and price value to be a positive and strong predictor of the bank user’s behavioral intension to adopt the mobile money services followed by the exogenous predictors such as perceived security and trust on the technology. Another interesting finding is that the users’ behavioral intention to adopt such services is significantly transformed in to actual behavior. But, none of the moderating variables have significant effect on the users’ behavioral intension to adopt the services and they are excluded from the path. Based on the finding, the study advices the mobile money service providers to use an aggressive approach to strengthen positive trust drivers, eliminate insecurity dimensions, and design aesthetically appealing services with a state-of-the-art technology which have multi-purpose operational interfaces.
Abstract: In recent times, mobile money services have become a fashioned services following to the rapid development of mobile technologies and increasing demand for cashless business transactions. Such demand has also ushered a new era to the banking industry and bank users. However, the bank users’ intensions to adopt the services, particularly in Ethiopia...
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Exchange Rates Volatility and Earnings Management in Listed Manufacturing Companies in Nigeria
Shamusideen Kehinde Kassim,
Olaolu Ayodeji Awoniyi,
Olubunmi Adewole Ogunode,
Bolanle Olubunmi Amusa,
Andrew Taiwo Iwala,
Tolulope Ruth Omosebi,
Ishola Rufus Akintoye
Issue:
Volume 10, Issue 5, September 2022
Pages:
206-214
Received:
2 September 2022
Accepted:
20 September 2022
Published:
28 September 2022
DOI:
10.11648/j.jfa.20221005.12
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Abstract: Volatilities impact the trend movements of exchange rate on earnings management and it varies from country to country and from company to company. The study investigated how exchange rate volatility has contributed to earnings management, within the manufacturing sector in Nigeria. A pooled panel regression analysis was employed on 16 manufacturing companies based on their capitalization in the Nigerian Exchange Group between the periods 2011 and 2020. The Discretionary Accrual Model was employed in deriving the earnings management series. Findings made in the study revealed that management controls its earnings based on its intentions to be actualized. This motive is either to follow the Generally Accepted Accounting Principles (GAAP) through discretionary accruals or to convincingly manipulate its earnings for self-interest, thereby misleading other stakeholders. However, findings affirmed that despite the upward swings in the Nigerian exchange rates against US Dollars in the past decade, exchange rate volatility favourably and significantly influences earnings management which consequently affects the financial achievement of firms in the manufacturing sector, both in short and long runs. The study also discovered that movements in exchange rates directly affect outputs, of the manufacturing sector, in the long run, which is more beneficial compared to the short-run effect, although the benefit is not significant. This study therefore recommends that policymakers and government reassess existing import-substitution industrialization strategies, to encourage local manufacturers to develop commodities that are currently imported.
Abstract: Volatilities impact the trend movements of exchange rate on earnings management and it varies from country to country and from company to company. The study investigated how exchange rate volatility has contributed to earnings management, within the manufacturing sector in Nigeria. A pooled panel regression analysis was employed on 16 manufacturing...
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Implication of IFRS 17 on the Operational Performance of Listed Insurance Companies in Nigeria
Tunji Shiyanbola,
Joseph Bartholomew Matoh,
Ogunwale Mudashiru Olanrewaju,
Ijaduola Anuoluwapo
Issue:
Volume 10, Issue 5, September 2022
Pages:
215-222
Received:
16 August 2022
Accepted:
16 September 2022
Published:
28 September 2022
DOI:
10.11648/j.jfa.20221005.13
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Abstract: Although the application of IFRS 17 will generally affect the system and data required by insurance companies, the choice of measurement and models, and internal control system, discussion surrounding the standard suggests it will be an improvement on the former standard which failed to provide acceptable options to the insurance companies. Hence, this study examined the implication of IFRS 17 on the operational performance of listed insurance companies in Nigeria. Being a specific standard, a survey research design was employed in selecting at random 100 respondents with relevant profession expertise. Correlation and regression analysis were employed and applied using SPSS in explaining the implication of IFRS 17 on operational performance of the insurance companies under review, System data, internal control and measurement models were used as proxies for IFRS 17 and tailored questions developed to sample respondents’ opinion. The result of the analysis revealed that, change in system and data, and measurement models have effect on operational performance of insurance companies in Nigeria. The study therefore recommends that, insurance companies put the necessary system and structure in place to support in adoption and implementation of the standard. In addition, measurement and models must be selected to suit the nature of operations within the company. Finally, the financial reporting council of Nigeria (FRCN) should continue to ensure that the adoption and application of new standards is encouraged.
Abstract: Although the application of IFRS 17 will generally affect the system and data required by insurance companies, the choice of measurement and models, and internal control system, discussion surrounding the standard suggests it will be an improvement on the former standard which failed to provide acceptable options to the insurance companies. Hence, ...
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The Effect of Recurring Expenditure Financed by External Grants on Promoting Sustainable Economic Development of Sub-Saharan Africa Countries
James Daniel Chindengwike
Issue:
Volume 10, Issue 5, September 2022
Pages:
223-229
Received:
14 July 2022
Accepted:
27 September 2022
Published:
11 October 2022
DOI:
10.11648/j.jfa.20221005.14
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Abstract: This study examined the effect of recurring expenditure financed by external grants on sustainable economic development of sub - Saharan Africa Countries. This paper asked the participation of external grants on the recurring expenditure as one of the source of funds, separately from international finance perspective; the mechanism of domestic did not talk about. This paper filled this gap in literature by determining the recurring expenditure financed by external grants. The study adopted a time series research design where by secondary data were used. The population of the study was external grants and Gross Domestic Product (GDP) from 1988/89 - 2019/20 financial years (Annual Data). The sample size of the research was 32 observations. Purposive sampling was used to choose the Tanzania as a study area of the research; data were collected from the Organization for Economic Co-operation and Development (OECD). The parameters tests such as test for co integration and unit root test was used to investigate co-integrating vectors. After that, Autoregressive Distributive Lag Model (ARDL) was carrying out to find the results. The finding shows that, recurring expenditure financed by external grants influence sustainable economic development; with P- Value of 0.002. At the same time as inflation rate looks to be insignificant with P- Value of 0.719. The study recommends in order encouraging sustainable economic development, government must proceed to promote the relationship with nations by giving development programs which are consistent with supporting programs. additionally, the research predict the requirement for introducing strong policies that will assist and promote strong collaboration with donor nations and spend more in substantial speculation and utilization expenditure in order to increase the level of production as which will affect the sustainable economic development.
Abstract: This study examined the effect of recurring expenditure financed by external grants on sustainable economic development of sub - Saharan Africa Countries. This paper asked the participation of external grants on the recurring expenditure as one of the source of funds, separately from international finance perspective; the mechanism of domestic did ...
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Effect of Financial Risk on Financial Performance of Insurance Companies in Rwanda
Issue:
Volume 10, Issue 5, September 2022
Pages:
230-237
Received:
12 April 2022
Accepted:
27 May 2022
Published:
27 October 2022
DOI:
10.11648/j.jfa.20221005.15
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Abstract: Financial risks, cover credit, liquidity, and operational risks, are the risks which Insurance face during their operations and all these risks have severe impact on the profitability of Insurance companies. Insurance businesses, agents, and brokers face numerous problems in less developed cultures where political and socioeconomic systems are still in flux. The study's goal is to examine the impact of Claims Management Policies on the financial performance of Rwandan insurance companies, as well as the impact of working capital management on the financial performance of Rwandan insurance companies. The research design was based on the Theory of Financial Distress. The research used a descriptive research design that included quantitative and qualitative methods. The study adopted target population of 60 and multi-level random sampling of 45. Survey data was collected by use of a structured questionnaire. The data obtained was analysed using both qualitative and quantitative analysis. The results showed that the total model had a significant F statistic of 5.976, which was greater than the essential F value of 3.88 with (1, 219) degrees of freedom at the P = 0.05 level of significance. The F-p statistic's value was more than 0.05, indicating that the coefficient in the fitted equation was not equal to zero, implying a good fit. This implied that considering the simple regression fitted, working capital management had a little effect on ROE. The study recommended that the insurance companies should maintain optimal capital structure and ensure that the companies fully utilize their debt facility according to their capabilities. Financial managers should increase investment in working capital by extending the days in the time for the average payment period so that they can also improve the profitability of the firms.
Abstract: Financial risks, cover credit, liquidity, and operational risks, are the risks which Insurance face during their operations and all these risks have severe impact on the profitability of Insurance companies. Insurance businesses, agents, and brokers face numerous problems in less developed cultures where political and socioeconomic systems are stil...
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