Template-Type: ReDIF-Article 1.0 Author-Name: Sirajo Murtala Author-X-Name-First: Sirajo Author-X-Name-Last: Murtala Author-Name: Mohammed Ibrahim Author-X-Name-First: Mohammed Author-X-Name-Last: Ibrahim Author-Name: Sagir Lawal Author-X-Name-First: Sagir Author-X-Name-Last: Lawal Author-Name: Buhari Baba Abdullahi Author-X-Name-First: Buhari Baba Author-X-Name-Last: Abdullahi Title: Capital structure and return on capital employed of construction companies in Nigeria Abstract: This study examined the impact of capital structure on return on capital employed of construction firms in Nigeria. The data for the study was obtained from the annual report and accounts of the sampled firms. The study employed panel data analysis and pooled regression, fixed-effect and random-effect estimation techniques for the analysis and Stata 12.0 was used. The study concluded that capital structure has a negative impact on return on capital employed of the sampled construction companies in Nigeria. The study recommends that the managers of the construction companies should be careful while using debt as a source of finance; they should try to finance their activities with retained earnings and use debt as a last option. Journal: African J. of Accounting, Auditing and Finance Pages: 1-20 Issue: 1 Volume: 6 Year: 2018 Keywords: capital structure; performance; return on capital employed; African; accounting; auditing and finance; construction companies; Nigeria. File-URL: http://www.inderscience.com/link.php?id=91125 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ajaafi:v:6:y:2018:i:1:p:1-20 Template-Type: ReDIF-Article 1.0 Author-Name: Wided Khiari Author-X-Name-First: Wided Author-X-Name-Last: Khiari Author-Name: Azhaar Lajmi Author-X-Name-First: Azhaar Author-X-Name-Last: Lajmi Title: Towards the implementation of corporate governance best practices for Tunisian listed firms: an empirical approach using the artificial neuronal networks Abstract: The object of this study is to propose a code allowing the assessment of some corporate governance best practices for Tunisian listed firms. This code is based on the most reputable set of codes of good governance practices worldwide and on the point of view of a sample of Tunisian experts. This code is presented as a potential tool that measures the quality of some corporate governance characteristics, such as board of directors and its committees, transparency and information policy, directors' compensation and entrenchment, and ownership structure. Using a questionnaire distributed to a sample of Tunisian experts (about 102 experts) and referring to a new approach based on the artificial neural networks, this study allowed us first, to identify the importance given by the experts to a number of criteria in assessing corporate governance of Tunisian listed firms, and second, to create consensus among experts on the values that should take the different criteria in order to achieve good governance. Journal: African J. of Accounting, Auditing and Finance Pages: 21-42 Issue: 1 Volume: 6 Year: 2018 Keywords: corporate governance; referential; neuronal connections; Tunisian firms; best practices. File-URL: http://www.inderscience.com/link.php?id=91128 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ajaafi:v:6:y:2018:i:1:p:21-42 Template-Type: ReDIF-Article 1.0 Author-Name: Adriana Tiron-Tudor Author-X-Name-First: Adriana Author-X-Name-Last: Tiron-Tudor Author-Name: George Silviu Cordos Author-X-Name-First: George Silviu Author-X-Name-Last: Cordos Author-Name: Melinda Timea Fülöp Author-X-Name-First: Melinda Timea Author-X-Name-Last: Fülöp Title: Stakeholders' perception about strengthening the audit report Abstract: The need for change in the accounting and audit profession is a topic discussed and accepted by both regulators and accounting professionals. As a result of the global financial crisis, users need more information regarding the auditor's work. This study aims to investigate whether users of audit reports agree with the IAASB's proposal to modify the audit report structure and to include a new section, key audit matters, with the purpose of comprising more information concerning the audit mission, with the aim of improving audit communication. The authors achieve this objective by a qualitative research: exposing a theoretical background and a literature review. In order to fulfil the research objective of analysing responses provided to the IAASB 2013 exposure draft, this study uses the method of content analysis. The results show that the respondents agree with the new audit report structure and the inclusion of the key audit matters section in the audit report. Journal: African J. of Accounting, Auditing and Finance Pages: 43-69 Issue: 1 Volume: 6 Year: 2018 Keywords: audit report; IAASB; audit reporting changes; exposure draft; key audit matters; KAM; comment letter; audit theories; audit; credibility; financial crisis. File-URL: http://www.inderscience.com/link.php?id=91138 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ajaafi:v:6:y:2018:i:1:p:43-69 Template-Type: ReDIF-Article 1.0 Author-Name: Bilali Basesa Jumanne Author-X-Name-First: Bilali Basesa Author-X-Name-Last: Jumanne Author-Name: Choong Chee Keong Author-X-Name-First: Choong Chee Author-X-Name-Last: Keong Title: Ownership concentration, foreign ownership and corporate performance among the listed companies in East African community: the role of quality institutions Abstract: This study examines the role of institutions to stimulate the relationship between foreign ownership and corporate performance for the panel data of 58 non-financial listed firms in EAC over 2007-2015. The panel unit root tests by Im-Pesaran-Shin and Fisher-ADF confirm that data are stationary and are also cointegrated according to Pedroni tests. The regression output using GMM estimator reveals that ownership concentration is negative and statistically significant determinant of corporate performance. Moreover, the significant positive relationship between the interaction term (foreign ownership and institution) and corporate performance indicates that quality institutions stimulate foreign ownership towards superior corporate performance and the protection of minority shareholders. Acknowledging the importance of minority shareholders for capital market development and economic output, this study recommends to the authorities to enforce ownership structure diversity and enforce quality institutions for accelerating the catching up of the potential foreign shareholders towards economic growth. Journal: African J. of Accounting, Auditing and Finance Pages: 70-90 Issue: 1 Volume: 6 Year: 2018 Keywords: ownership concentration; foreign ownership; quality institutions; corporate performance; panel data; East African community; EAC. File-URL: http://www.inderscience.com/link.php?id=91141 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ajaafi:v:6:y:2018:i:1:p:70-90 Template-Type: ReDIF-Article 1.0 Author-Name: Rory Grant Author-X-Name-First: Rory Author-X-Name-Last: Grant Author-Name: Michael Harber Author-X-Name-First: Michael Author-X-Name-Last: Harber Author-Name: Tessa Minter Author-X-Name-First: Tessa Author-X-Name-Last: Minter Title: An analysis of the impact of audit firm rotation on audit fees: a South African perspective Abstract: The study contributes to research on audit fee determinants and the impact of firm rotation on fees. Through an analysis of companies listed on the Johannesburg Stock Exchange over a ten year period, the impact of audit firm rotations on audit fees was analysed considering the first years after rotation, the size of the audit firms involved and the existence of accounting restatements. The findings identify a strong link between client restatements and an increase in audit fees. Restatements issued after a rotation did have an impact on audit fees, suggesting that an increase in audit fees is likely when the newly appointed auditor requires restatement. Evidence was also found of fee discounting, which is more pronounced in smaller audit firms and which is attributed to increased levels of competition. Unexpectedly, it fails to detect solid evidence of a fee increase in the second year of a new auditor-client relationship. Journal: African J. of Accounting, Auditing and Finance Pages: 91-108 Issue: 2 Volume: 6 Year: 2018 Keywords: auditing; audit firm rotation; audit fees; audit fee determinants. File-URL: http://www.inderscience.com/link.php?id=92361 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ajaafi:v:6:y:2018:i:2:p:91-108 Template-Type: ReDIF-Article 1.0 Author-Name: Philip Ayagre Author-X-Name-First: Philip Author-X-Name-Last: Ayagre Title: Public sector mergers and internal control systems of public sector organisations: evidence from Ghana Abstract: The study investigated the impact of the merger of the three revenue agencies in Ghana on the internal control system of the combined organisation. Data for the study was collected from questionnaires administered to senior officers of the three revenue agencies who had joined before the merger and, had a good understanding of the internal controls of the organisation pre-merger and post-merger. Responses received were gauged on a five point scale, ranging from strongly disagree to strongly agree. The study results revealed that the merger of the three organisations had no significant impact on three control components of the internal control system. However, it was found that the merger negatively impacted the risk assessment component. The study concluded that the merger had an adverse effect on the internal control system of the merged organisation. Based on the findings of this paper, it is recommended that, internal audit should be engaged to monitor internal controls before, during and after mergers and report material weaknesses to the appropriate authorities. Journal: African J. of Accounting, Auditing and Finance Pages: 109-129 Issue: 2 Volume: 6 Year: 2018 Keywords: internal controls; merger; public sector; organisations; Ghana. File-URL: http://www.inderscience.com/link.php?id=92376 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ajaafi:v:6:y:2018:i:2:p:109-129 Template-Type: ReDIF-Article 1.0 Author-Name: James Arasa Agwata Author-X-Name-First: James Arasa Author-X-Name-Last: Agwata Title: Using multiple approaches in the financial distress evaluation of companies listed in the manufacturing segment of the Nairobi Securities Exchange Abstract: Studies employing various models in the measurement of financial distress in different markets have gained prominence in the last few decades. This study assesses the effectiveness and the generalisability of three bankruptcy prediction models, i.e., the original Altman Z-score model, Ohlson O-score model and the Zmijewski's model by using industry data from the manufacturing segment of the Nairobi Securities Exchange (NSE). The study has three objectives, i.e., to identify the financially distressed firms in the manufacturing segment, to assess whether a significant difference in bankruptcy prediction methods results existed, and to determine which of the three methods highlighted above is the most conservative in its predictions at the NSE. The study concluded by identifying a number of financially distressed and safe firms as per the method results. It was also noted that a significant difference existed in the prediction results of the three methods highlighted above with the Ohlson O-score method coming out as the most conservative in its outcomes. Journal: African J. of Accounting, Auditing and Finance Pages: 130-153 Issue: 2 Volume: 6 Year: 2018 Keywords: Nairobi Securities Exchange; NSE; Altman; Ohlson; Zmijewski; financial distress; manufacturing segment; Kenya; discriminant analysis; probit; logit. File-URL: http://www.inderscience.com/link.php?id=92377 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ajaafi:v:6:y:2018:i:2:p:130-153 Template-Type: ReDIF-Article 1.0 Author-Name: Felix Gariba Author-X-Name-First: Felix Author-X-Name-Last: Gariba Author-Name: Mohammed Amidu Author-X-Name-First: Mohammed Author-X-Name-Last: Amidu Author-Name: William Coffie Author-X-Name-First: William Author-X-Name-Last: Coffie Title: The risk and returns effects of corporate governance and funding strategy of banks in Ghana Abstract: This paper examines the effects of corporate governance mechanisms and funding strategy on risk and returns of banks in Ghana. We employ a panel dataset of banks from 2000 to 2014, to further shed light on funding modes and performance nexus by analysing the complex interaction between corporate governance, funding strategy, and risk and return. The paper establishes among others, a positive and significant relationship between executive compensation and bank returns implying that appropriate compensation to executive members of banks may improve bank performance and reduce bank risk exposure. The overall implication of this result is that improvements in corporate governance practices ensure more transparent method in determining board structure as well as in setting executive compensation for increased bank returns. Journal: African J. of Accounting, Auditing and Finance Pages: 154-175 Issue: 2 Volume: 6 Year: 2018 Keywords: corporate governance; funding strategy; risk; return and developing countries. File-URL: http://www.inderscience.com/link.php?id=92378 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ajaafi:v:6:y:2018:i:2:p:154-175