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Impact of Ownership Characteristics on Modified Audit Opinion in Jordan
Saleh Zaid Alkilani,
Wan Nordin Wan Hussin,
Basariah Salim
Issue:
Volume 4, Issue 3, September 2019
Pages:
71-83
Received:
7 June 2019
Accepted:
4 July 2019
Published:
30 July 2019
Abstract: It is well established that ownership characteristics are impacted by the quality of financial reporting. The purpose of this work is to examine the role of ownership characteristics in minimising the prospect of corporates obtaining a modified audit opinion in Jordan. Three ownership characteristics [family ownership (FAOWN), institutional ownership (INOWN) and foreign ownership (FAOWN)] and modified audit opinion were studied. The study used 117 samples of corporates listed on the Amman Stock Exchange (ASE). Logistic regression was employed to analyse the association between the modified audit opinions as a dependent variable and ownership characteristics as independent variables. Ownership characteristics are anticipated to be more successful in improving the quality of financial statement, and thus, reduce the prospect of firm obtaining a modified audit opinion. The analysed results from 2012 to 2016 periods of these corporates in Jordan showed that FAOWN and FOOWN validated this projection. Interestingly, the effect of family and FOOWN improve the quality of financial statement, thereby, reduce the cases of a modified audit opinion. Additionally, the study could not find any association impact between the INOWN and modified audit opinion.
Abstract: It is well established that ownership characteristics are impacted by the quality of financial reporting. The purpose of this work is to examine the role of ownership characteristics in minimising the prospect of corporates obtaining a modified audit opinion in Jordan. Three ownership characteristics [family ownership (FAOWN), institutional ownersh...
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Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors
Nuno Teixeira,
Maria José Lopes,
Teresa Godinho
Issue:
Volume 4, Issue 3, September 2019
Pages:
84-94
Received:
14 June 2019
Accepted:
16 July 2019
Published:
6 August 2019
Abstract: This study aims to evaluate the material level of impairment losses registered by the Cape Verdean companies, as well as to analyze its fiscal impact. For this purpose, we ran the Cape Verdean’ accounting standards about this subject and studied the tax procedures on impairment registration in the country. In the empirical study, we performed an analysis of the annual report and accounts for 2012 and 2011 of fifty-seven large companies in Cape Verde. These were the benchmark years for establishing the country's major contributors and the normative framework on impairment’ application. Evidences showed that, in its vast majority, companies registered impairment losses, namely on customer debts and inventories. We also found that, empirically, impairment value was materially relevant and had impact on tax level, giving the meaningful association between payed taxes (negative association) and turnover (positive association), and registered impairment. In a future work, already in progress, we intended to verify the impairment registration’ during the period between 2013 and 2016. We will also try to understand if there is a greater social responsibility by Cape Verde’ major contributors.
Abstract: This study aims to evaluate the material level of impairment losses registered by the Cape Verdean companies, as well as to analyze its fiscal impact. For this purpose, we ran the Cape Verdean’ accounting standards about this subject and studied the tax procedures on impairment registration in the country. In the empirical study, we performed an an...
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Correlational Study Between Capital Markets and Financial Performance of Commercial Banks in Rwanda
Issue:
Volume 4, Issue 3, September 2019
Pages:
95-101
Received:
13 July 2019
Accepted:
5 August 2019
Published:
29 August 2019
Abstract: The main objectives of this study were to examine the link between Capital Markets and the Financial Performance of Commercial Bank. The study was guided by three objectives such as: To examine the effect of equity market on the financial performance, to assess the effect of bond market on the financial performance, to establish the effect of securitized products on the financial performance of Bank of Kigali. The study adopted quantitative approach to collect data from 32 respondents’ employees of BK by using purposive sampling technique. Data collected was analyzed using SPSS, and the instruments of data collection were questionnaire, interview, and documentary techniques. The results show that perceptions of respondents about effect of bond market on the financial performance of Bank of Kigali Rwanda show that more than 84.4% of respondents confirmed that Size of Equity market affects market capitalization for generating net profit margin for BK; and 84.4% that size dimension of equity market reflects turnover ratio of BK. The R-Square was.759 while ANOVA shows the Sum of Squares of 7.875. The results on the effect of bond market on the financial performance of Bank of Kigali confirmed by 84.4% of respondents who said that Bond market of BK helps to increase its interest income; and 78.1% of respondents confirmed that accessibility of Bond market facilitates an increase of capital gain to BK in Rwanda. R-Square was.610 and ANOVA table shows that Sum of Squares of 7.875. The effect of securitized products on the financial performance of Bank of Kigali confirmed by more than 84.4% who said that commercial mortgages offered by BK increases the internal return of this commercial bank; 78.1% of respondents participated in the study confirmed credit card receivables facilities BK to increase income from borrowers of this bank; and 68.8% agreed that the Auto loans and student loans of BK increase the net profit margin. R-Square was 743 and its adjusted R-Square was.638. ANOVA table shows that Sum of Squares was 7.875 combining the regression of 5.850; and residual of 2.025. Mean Square was.650 for regression while.092 was on the side of residual in the Mean Square. As conclusion, based to the findings, there is significant positive effect of Capital Market son the financial performance of Bank of Kigali in Rwanda.
Abstract: The main objectives of this study were to examine the link between Capital Markets and the Financial Performance of Commercial Bank. The study was guided by three objectives such as: To examine the effect of equity market on the financial performance, to assess the effect of bond market on the financial performance, to establish the effect of secur...
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