Malaysian Management Journal (MMJ) Vol. 24, July 2020

DOES SIZE OF THE FIRM MATTER IN THE RELATIONSHIP BETWEEN FOREIGN OWNERSHIP AND DIVIDEND POLICY?

*ADAMU IDRIS ADAMU
OYINDAMOLA EKUNDAYO

Department of Accounting, Faculty of Management Sciences

Federal University Dutsin-Ma, Nigeria

HUSSAINI BALA
Department of Accounting, Faculty of Management Sciences
Kaduna State University, Nigeria

*Corresponding author:adamuidris48@gmail.com

Abstract | Full Text

Prior studies have revealed that foreign shareholders have a greater influence on dividend policy. However, it is unclear how foreign owners in large firms affect the propensity to pay dividends. This paper is aimed at exploring the relationship between the propensity to pay dividends and foreign ownership. It also examined the moderating role of firm size on the relationship between the decision to pay cash dividend and foreign ownership. The study uses pooled logistic regression on a data set of non-financial listed firms on the Nigerian Stock Market from 2011 to 2015. The results showed that foreign ownership has a great tendency to influence the propensity of a firm to pay a cash dividend. The effect is more pronounced in larger firms, thus, indicating that in larger firms, foreign owners mitigate agency problems using dividends. Based on the findings, firms should be encouraged to pay a dividend to attract foreign investors and in return will help the firms to acquire the expertise of foreign owners.

Keywords: Propensity to pay dividends, foreign ownership, firm size, Nigeria.

THE EFFICIENCY OF ISLAMIC AND CONVENTIONAL BANKS IN PAKISTAN

*HASSAN ALI
MS Finance, Department of Management Sciences
Capital University of Science and Technology Islamabad, Pakistan
*Corresponding author: hassanalib22@gmail.com

Abstract | Full Text

In Pakistan, the conventional banks start their functions after the independence of Pakistan and followed by the introduction of the Islamic banking’s. In this study, four Conventional and four Islamic banks were selected. The different types of ratios will be used to check the performance of banking sector these ratios are profitability, liquidity, investment and solvency ratios. The different types of ratios were used to check the performance of banking sector and to evaluate the trends of Islamic and commercial banks. The objectives of our study were to evaluate the trend of performance of conventional and Islamic banks and analyses the key performance indicators of the banking systems. The SPSS version 20 was used and the t-test was applied to the data. The findings revealed that the conventional banks were more efficient than the Islamic banks.

Keywords: Conventional banks, Islamic banks.

EXTERNAL AUDIT(OR) QUALITY AND ACCRUAL EARNINGS MANAGEMENT: FURTHER EVIDENCE FROM NIGERIA

*KENNY ADEDAPO SOYEMI
OLUBUKONLA ABOSEDE OLUFEMI
Department of Accounting, Faculty of Administration & Management Sciences
Olabisi Onabanjo University, Ago-Iwoye, Nigeria

SEMIU BABATUNDE ADEYEMIE
Department of Accounting, Faculty of Management Sciences,
University of Lagos, Akoka, Nigeria
*Corresponding author: k.ade.soyemi@gmail.com

Abstract | Full Text

Hinged on the quest for quality financial information, this study examined the influence of audit quality on restricting the incidence of accrual-based earnings management among 30 quoted non-financial firms in Nigeria, an emerging country which provides a rich institutional background and cultural setting different from developed nations. Secondary data were gathered from annual reports and audited financial statements for 11 years from 2008-2018. These firms were selected using stratified sampling technique. Thereafter, panel ordinary least square technique was used to estimate specified model for the study. While the descriptive statistics revealed the absence of accrualbased manipulation of earnings among quoted non-financial firms in Nigeria, the multivariate fixed effects ordinary least square depicted that audit quality variables adopted are mutually and statistically significant in explaining 49 percent changes in earnings management. Further, audit tenure and auditor independence exhibited positive and significant relationship, while total assets as the control variable, displayed a negative and significant influence on earnings management. Surprisingly, the size of audit firm appeared positive but statistically insignificant. Consequently, the relevant authorities and policy makers should not only sustain but improve on the current practice of audit engagement partner and/or auditor switch after certain years of continuous engagement to enhance their independence and reduce client-auditor engagement periods to avoid familiarity threat.

Keywords: Audit fees, auditor independence, auditor tenure, discretionary accruals, Nigeria.

JEL Classification Codes: M41, M42

DEVELOPING A MEASUREMENT SCALE FOR ASSESSING THE EFFICIENCY OF TAX ADMINISTRATION AMONG OIL AND GAS COMPANIES IN NIGERIA

*ABBA YA’U
NATRAH SAAD
ABDULSALAM MAS’UD
Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia
*Corresponding author: abbayau1@gmail.com

Abstract | Full Text

Inefficient tax system causes the government to lose a huge amount of revenue. Tax administrators are primarily responsible for collecting taxes due from taxpayers following the relevant tax laws and regulation in a way that instils confidence on taxpayers through efficient tax administration. This paper aims at validating relevant and reliable measurement scale for assessing the effectiveness of tax administration efficiency in dealing with oil and gas companies operating in the Nigerian oil sector. Hence, an adapted questionnaire comprising four items was administered on 300 local and multinational oil and gas companies in Nigeria. All the items were subjected to evaluations and validations by eight experts’ reviewers with cognate experience in oil and gas activities. Evaluation of reliability and validity of the measures of tax administration efficiency was performed through Confirmatory Factor Analysis (CFA) using SPSS version 25 and Smart PLS version 3.8. The results provide evidence that the proposed tax administration efficiency scale attained reliability and validity criteria. Consequently, Policymakers, practitioners and researchers can adapt this scale to assess the effectiveness of tax administration efficiency by companies in different jurisdictions across the globe. This study expands existing literature and contributes new ideas to the subject area. By implication, the validated scale will assist oil and gas producing countries to come up with policies that ensures efficiency in tax administration and increase government revenues.

Keywords: Tax administration efficiency; measurements scale; oil and gas; oil companies.

FIRM-SPECIFIC DETERMINANTS OF DEBT MATURITY STRUCTURE OF LISTED NON-FINANCIAL FIRMS IN NIGERIA

*LAWAL MOHAMMED
ALIYAH MUSA MUBI
Department of Accounting, ABU Business School,
Ahmadu Bello University, Zaria, Nigeria
*Corresponding Author: lawal.mohammed.sani@gmail.com

Abstract | Full Text

The importance of debt financing to firms as a basis for decision-making cannot be over-emphasised. This implies that the maturity structure of debts becomes important for understanding the outcomes of firms’ decisions. There is a dearth of evidence from the Nigerian context in the current body of literature on factors that determine debt maturity structure of listed firms. We observed a persistent and steady decline in the average ratio of length of maturity period among non-financial firms among listed non-financial firms in Nigeria. This study examined the extent to which non-debt tax-shield, liquidity, assets intensity, diversification, investors’ confidence, growth opportunity, firm size, profitability and dividend policy determines the debt maturity structure of non-financial firms in Nigeria. The secondary data collected from the annual reports of a sample of 92 listed non-financial firms were analysed using the Two-stage Generalised Method of Moments (GMM) regression model for the period between 2010 and 2015. The results indicate that the non-debt tax-shield, liquidity, assets intensity, diversification, growth opportunity, firm size and the dividend policy significantly determine the debt maturity structure among the listed non-financial firms in Nigeria. However, the evidence is not enough to conclude that profitability and investors’ confidence determine the debt maturity structure among the non-financial firms in Nigeria. Firm diversification and liquidity appeared to have the most profound negative effect on the debt maturity structure in line with predictions of special use of debt hypothesis and the pecking order theory. Overall, it is concluded that the firm-specific factors determine the choice of debt maturity structure among Nigerian listed non-financial firms. Although the findings of the study are robust, future studies in the areas can extend the literature by identifying and investigating institutional and macroeconomic factors that drive debt maturity structure in Nigeria.

Keywords: Debt maturity, leverage, determinants,GMM, non-financial firms.

DEVELOPMENT OF THE SUSTAINABLE ENTREPRENEURSHIP MODEL

FATEMEH BAKHSHANDEH
*HOSSEIN KAZEMI
Faculty of Management
Vali-e-Asr University of Rafsanjan, Rafsanjan, Iran

HOSSEIN SAYYADI TOORANLOO
Faculty of Management, Meybod University, Meybod, Iran
Corresponding author: hkazemi1384@yahoo.com

Abstract | Full Text

The most prominent feature of today’s economy is rapid change. To succeed in such an economy, countries must be able to adapt to these changes with great agility. One of the most potent tools for achieving this end is sustainable entrepreneurship. Sustainable entrepreneurs are those who undertake entrepreneurial endeavors while taking into account different aspects of social, economic and environmental sustainability. These entrepreneurs strive to keep their resources focused on sustainable development and to balance the objectives of entrepreneurial success and sustainability so as to solve social and environmental problems. In this study, after reviewing the research literature and identifying the factors pertinent to sustainable entrepreneurship, a conceptual model was developed by drawing on the expertise of 10 experts, who were selected by snowball sampling. Interpretive Structural Modeling (ISM) approach was used to examine the network of relationships among the factors. The findings showed that the considered factors fall into four levels: sustainability culture was placed at the most fundamental level, legal requirements, resource preservation, social participation, green management and human resources management were placed at the second level, social justice, effective and efficient processes, and customer-centricity were placed at the third level, and social well-being and economic benefits were identified as the top-level factors or outputs of sustainable entrepreneurship. The proposed model depicted means, process, first order and ultimate goal in inhacing entrepreneurship sustainability endeavors.

Keywords: Entrepreneurship, sustainable entrepreneurship, ISM (Interpretative Structural Modeling).

ACTORS IN INDUSTRIAL RELATIONS: GROWTHS AND DWARFISM OF INDUSTRIAL RELATIONS SYSTEM IN NIGERIA

*ALIYU, MUSTAPHA OLANREWAJU
KADIRI, ISMAILA BOLARINWA
Department of Industrial Relations and Personnel Management,
Faculty of Management Sciences, University of Ilorin, Ilorin, Nigeria.
*Corresponding author: aliyu.om@unilorin.edu.ng

Abstract | Full Text

The study focused on the actors in industrial relations and their contributions towards the growth and dwarfism of Nigeria’s industrial relations system. It identified some problems which have been brought by other actors in industrial relations - the employees. In pursuit of the previously mentioned objectives, a survey research was employed. The population used for the study was 160 staff of Micheal Imoudu Institute for Labour Studies, Ilorin, Nigeria. A sample size of 114 was determined using Taro Yamani’s formula (1964). The study made use of both primary and secondary data and questionnaires were administered to 114 staff but only 99 were collected, analysed and interpreted. The multiple regression analysis was used to test the hypotheses at 0.05 significant level using SPSS v.20. It was found that governments at all levels have significant impacts on the growth and dwarfism of the industrial relations system of Nigeria. The study concluded that actors in industrial relations in Nigeria affect the growths and dwarfisms of Nigeria’s industrial relations system and it is recommended that further research be extended to other industries such as construction, agriculture and telecommunication. The study can also be used as guidelines for human resource aficionados and industrial relations experts.

Keywords: Actors in industrial relations; industrial relations; growth; dwarfism, employers’ association; trade union; Nigeria.

FEMALES IN GOVERNANCE AND CORPORATE TAX AVOIDANCE: THE MODERATING EFFECT OF ACCOUNTING CONSERVATISM

SALAMI SULEIMAN
Department of Accounting
Ahmadu Bello University, Zaria, Nigeria
*Corresponding author: suleiman_salami@yahoo.com

Abstract | Full Text

High cash outflow in the form of corporate taxes reduces the corporate firms’ liquidity, available funds for re-investment and growth opportunities. Corporate firms’ attention is therefore geared towards ensuring minimum tax liability. The purpose of this study is to examine the effect of females’ presence in the governance on corporate tax avoidance, moderating for the role of accounting conservatism. The study is based on the companies listed on the Nigerian Stock Exchange and utilised the ex-post factor research design. The panel corrected standard regressions was employed to test the hypothesis. Female CEO, percentage of female directors and presence of female in the audit committee have significant positive effects on tax avoidance. The moderating for accounting conservatism, the percentage of female directors on the board and female director presence in the audit committee remains significant. The findings may be of interest to the academic researchers, investors and regulators. For academic researchers, it is interested in discovering whether females’ presence in the governance affect tax avoidance and the moderating role accounting conservatism. For investors, it shows that women in the boardroom can improve the bottom line financial performance through tax reduction strategies.This study extends the existing literature by examining the mediating role of accounting conservatism on the relationship between females in governance and tax avoidance in the Nigerian context.

Keywords: Tax avoidance, females in governance, accounting conservatism, female CEO,Nigeria.

THE RELATIONSHIP BETWEEN ORGANIZATIONAL CLIMATE FOR INNOVATION AND INNOVATIVE WORK BEHAVIOR: MEDIATING ROLE OF EMPLOYEE ENGAGEMENT IN PAKISTAN

*ASIF ALI
WAQAS FAROOQ
MUHAMAMAD AHSAN KHALID
University of Management and Technology Lahore, Pakistan
*Corresponding author: rajaasif92@gmail.com

Abstract | Full Text

The purpose of this study is to empirically investigate the mediating result of employee engagement between organisational climate for innovation and innovative work behaviour. This study will have positive contribution towards theory. The tool used for data collection was closed-ended questionnaire. Results indicated that organisational climate for innovation and innovative work behaviour has a direct and indirect impact on innovative work behaviours. In this study, employee engagement has partial mediation impact between the organisational climate for innovation and innovative work behaviour. Approximately, 210 respondents participated in this study. The unit of analysis used in this study was employees. For practical implication, it will be useful for HR specialists who are concerned in increasing successful intercession that encourage employees to engage in innovative work behaviour. This paper offers contribution to the understanding of the relationship between the innovative work behaviour and organisational climate and mediating role of employee engagement.

Keywords: Employees’ innovative behaviour, employee engagement, organisational climate, innovation, Pakistan.

FOREIGN DIRECT INVESTMENT AND THE PERFORMANCE OF INDONESIAN MARKETPLACE E-COMMERCE CORPORATION: AN APPLICATION OF NETWORK, OWNERSHIP, LOCATION AND INTERNALISATION FRAMEWORK

*M. ELFAN KAUKAB
Faculty of Economics and Business,
Universitas Sains Al-Qur’an, Wonosobo, Indonesia

VINCENT DIDIEK WIET ARYANTO
Universitas Dian Nuswantoro, Semarang, Indonesia
*Corresponding author: elfan@unsiq.ac.id

Abstract | Full Text

Data on real-time marketing performance from micro, small and medium enterprises (MSMEs) selling their products in marketplace e-commerce corporations (MECCs) is a big challenge for researchers studying the performance of MECCs capital structure. This article explores the use of Google Trends to determine the impact of Foreign Direct Investment (FDI) on MECCs’ performance. The findings of the trend analysis are explained using the N-OLI framework. It is found that there was a sharp trend decrease in MECCs with partial FDI (Tokopedia and Bukalapak) and full domestic investment (Blibli).On the other hand, there was a sharp increase in MECCs full FDI (Shopee). Other MECCs with full FDI, namely Lazada, has experienced a decrease but it is not as consistent as that of partial FDI. An increase trend in Shopee has negative correlation with a decline trend in Bukalapak. However, after being grouped, partial FDI has a significantly higher mean score compared to full FDI, and MECCs without FDI has the lowest mean score. This finding shows that in the case of Indonesia, FDI plays a role in encouraging the success of MSMEs, especially in MECCs, which have a combination of FDI and domestic investment.

Keywords: FDI, MSMEs, marketplace, Google Trends, N-OLI framework.

Malaysian Management Journal (MMJ) Vol. 24, July 2020

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