Afro-Asian J. of Finance and Accounting http://www.inderscience.com/browse/index.php?journalID=214&year=2011&vol=2&issue=4 Inderscience Publishers Ltd en-uk Afro-Asian J. of Finance and Accounting 1751-6447 1751-6455 © 2011 Inderscience Publishers Ltd editor@inderscience.com https://www.inderscience.com/images/files/coverImgs/aajfa_scoveraajfa.jpg http://www.inderscience.com/browse/index.php?journalID=214&year=2011&vol=2&issue=4 http://www.inderscience.com/link.php?id=43866 This paper examines the sensitivity of the governance mechanisms to the financial information quality in an emerging context which is the Tunisian market. It focuses mainly on the characteristics of the board of directors and the ownership structure in order to determine the principal governance mechanisms in the Tunisian firms. Using a multivariate analysis of variance for a sample of 22 firms listed on the Tunis Stock Exchange, we find that the accounting quality affects the implementation of the governance mechanisms in the Tunisian firms. Particularly, the irrelevance of the financial reporting increases the control by the foreigners, the families and the blockholders and reduces the presence of the State and the financial institutions in the Tunisian firms. Our findings confirm the governance role of the accounting information in the Tunisian market. The governance role of the financial information: empirical evidence in the Tunisian context
Nesrine Klai; Abdelwahed Omri
Afro-Asian J. of Finance and Accounting, Vol. 2, No. 4 (2011) pp. 283 - 298
This paper examines the sensitivity of the governance mechanisms to the financial information quality in an emerging context which is the Tunisian market. It focuses mainly on the characteristics of the board of directors and the ownership structure in order to determine the principal governance mechanisms in the Tunisian firms. Using a multivariate analysis of variance for a sample of 22 firms listed on the Tunis Stock Exchange, we find that the accounting quality affects the implementation of the governance mechanisms in the Tunisian firms. Particularly, the irrelevance of the financial reporting increases the control by the foreigners, the families and the blockholders and reduces the presence of the State and the financial institutions in the Tunisian firms. Our findings confirm the governance role of the accounting information in the Tunisian market.

]]> 10.1504/AAJFA.2011.043866 Afro-Asian J. of Finance and Accounting, Vol. 2, No. 4 (2011) pp. 283 - 298 Nesrine Klai; Abdelwahed Omri High Institute of Management, University of Tunis, 14, Rue Aziz Tej, Mourouj I, Ben Arous, 2074, Tunisia. ' High Institute of Management, University of Tunis, 41, Avenue de la Liberté, Cité Bouchoucha, 2000, Bardo, Tunisia corporate governance board of directors ownership structure director identity shareholder identity financial information quality accounting governance role principal component analysis PCA multivariate ANOVA analysis of variance Tunisia MANOVA financial reporting. 2011-11-25T23:20:50-05:00 2 4 283 298 2011-11-25T23:20:50-05:00 http://www.inderscience.com/link.php?id=43867 This study examines antecedents of capital structure of firms in the Johannesburg Securities Exchange. The difficulties in measuring attributes of interest are addressed on two fronts: conceptual and methodological. A broader conceptual framework is developed by introducing several new proxies for firm-specific and industry attributes. We employ a range of measures of leverage that allow us to examine definitional sensitivity of the explanatory power of capital structure theories. A two-step procedure consisting of exploratory factor analysis and multiple regression is employed. Analysis of data obtained from a sample of 152 firms, across a period of eight years (i.e., 2002 to 2008) indicates that the explanatory power of antecedents of capital structure of JSE listed firms is sensitive to how leverage is defined. We also find that capital structure is negatively influenced by such factors as profitability, liquidity, intangible-unique-growth opportunities, and business risk; it is positively affected by industry factors. Rethinking the antecedents of capital structure of Johannesburg Securities Exchange listed firms
Tesfaye T. Lemma; Minga Negash
Afro-Asian J. of Finance and Accounting, Vol. 2, No. 4 (2011) pp. 299 - 332
This study examines antecedents of capital structure of firms in the Johannesburg Securities Exchange. The difficulties in measuring attributes of interest are addressed on two fronts: conceptual and methodological. A broader conceptual framework is developed by introducing several new proxies for firm-specific and industry attributes. We employ a range of measures of leverage that allow us to examine definitional sensitivity of the explanatory power of capital structure theories. A two-step procedure consisting of exploratory factor analysis and multiple regression is employed. Analysis of data obtained from a sample of 152 firms, across a period of eight years (i.e., 2002 to 2008) indicates that the explanatory power of antecedents of capital structure of JSE listed firms is sensitive to how leverage is defined. We also find that capital structure is negatively influenced by such factors as profitability, liquidity, intangible-unique-growth opportunities, and business risk; it is positively affected by industry factors.

]]> 10.1504/AAJFA.2011.043867 Afro-Asian J. of Finance and Accounting, Vol. 2, No. 4 (2011) pp. 299 - 332 Tesfaye T. Lemma; Minga Negash School of Accountancy, University of Limpopo, Private Bag X1106, Sovenga 0727, South Africa. ' Department of Accounting, Metropolitan College of Denver, 1201 5th Street, Denver, CO 80204-2005, USA; School of Accountancy, University of the Witwatersrand, Private Bag 3, Wits 2050, Johannesburg, South Africa capital structure antecedents South Africa exploratory factor analysis. 2011-11-25T23:20:50-05:00 2 4 299 332 2011-11-25T23:20:50-05:00 http://www.inderscience.com/link.php?id=43868 This paper evaluates corporate governance variables (CGVs) and corporate performance (CP) in Nigerian listed companies. In specific terms, the paper examines CGVs that affect CP, proxied by return on assets (ROA), profit margin (PM) as used in literature but extended to include return on equity (ROE). We used 50 listed companies that cut across the Nigerian Stock Exchange market. We obtained the CGVs of board size (BOS), board composition (BOC), board ownership (BOO) chief executive status (CES) and audit committee independence (ACI) with corporate governance disclosure (CGD) and enterprise risk management disclosure (RMD) added to our model. Using the ordinary least square (OLS) regression, findings revealed that CGD and RMD are positively and significantly related to ROA and PM. It is suggested, on account of these findings, that there should be sustenance of the current corporate policies profile on CGD and RMD as they positively affect CP; while corporate boards, as strategic policy makers should note with caution the CGVs with negative relationships with CP. Such caution is required in order to redirect and refocus policies which could minimise the negative impact of such CGVs on CP. Corporate governance and corporate performance in selected companies in Nigeria
Chinwuba A. Okafor; Peter Okoeguale Ibadin
Afro-Asian J. of Finance and Accounting, Vol. 2, No. 4 (2011) pp. 333 - 348
This paper evaluates corporate governance variables (CGVs) and corporate performance (CP) in Nigerian listed companies. In specific terms, the paper examines CGVs that affect CP, proxied by return on assets (ROA), profit margin (PM) as used in literature but extended to include return on equity (ROE). We used 50 listed companies that cut across the Nigerian Stock Exchange market. We obtained the CGVs of board size (BOS), board composition (BOC), board ownership (BOO) chief executive status (CES) and audit committee independence (ACI) with corporate governance disclosure (CGD) and enterprise risk management disclosure (RMD) added to our model. Using the ordinary least square (OLS) regression, findings revealed that CGD and RMD are positively and significantly related to ROA and PM. It is suggested, on account of these findings, that there should be sustenance of the current corporate policies profile on CGD and RMD as they positively affect CP; while corporate boards, as strategic policy makers should note with caution the CGVs with negative relationships with CP. Such caution is required in order to redirect and refocus policies which could minimise the negative impact of such CGVs on CP.

]]> 10.1504/AAJFA.2011.043868 Afro-Asian J. of Finance and Accounting, Vol. 2, No. 4 (2011) pp. 333 - 348 Chinwuba A. Okafor; Peter Okoeguale Ibadin Accounting Department, Management Sciences Faculty, University of Benin, P.M.B. 1154, Benin City, Edo State, Nigeria. ' Accounting Department, Management Sciences Faculty, University of Benin, P.M.B. 1154, Benin City, Edo State, Nigeria corporate governance corporate performance proxies Nigeria return on assets profit margin return on equity board size board composition board ownership chief executive status audit committee independence enterprise risk management boards of directors. 2011-11-25T23:20:50-05:00 2 4 333 348 2011-11-25T23:20:50-05:00 http://www.inderscience.com/link.php?id=43869 The Indian banking sector has witnessed a series of reforms since 1991 with the major objective to promote flexibility, operational autonomy and competition in the system and to raise the banking standards in India to the international best practices. There is a change in the importance of public sector banks because of the entry of foreign and private sector banks. In the recent past, the banking industry has succeeded to draw attention of investors by its steady performance and tremendous prospects to grow and to meet broad challenges like threats of risks from globalisation; implementation of Basel II; improvement of risk management systems; implementation of new accounting standards; enhancement of transparency and disclosures etc. The competitive pressures force banks to improve their efficiency scores, and mapping the progressive pathway is an education tool for investors. In this backdrop, this study evaluates the technical efficiency (TE) of public sector banks (PSBs) operating in India during the post reforms period from 1992-1993 to 2009-2010, using non-parametric linear programming-based technique data envelopment analysis (DEA). The results exhibit the positive impact and greater propel of reforms on 20 banks and seven showed an inverse trend. Efficiency of public sector banks operating in India: post-reforms period analysis
Namita Rajput; Monika Gupta
Afro-Asian J. of Finance and Accounting, Vol. 2, No. 4 (2011) pp. 349 - 368
The Indian banking sector has witnessed a series of reforms since 1991 with the major objective to promote flexibility, operational autonomy and competition in the system and to raise the banking standards in India to the international best practices. There is a change in the importance of public sector banks because of the entry of foreign and private sector banks. In the recent past, the banking industry has succeeded to draw attention of investors by its steady performance and tremendous prospects to grow and to meet broad challenges like threats of risks from globalisation; implementation of Basel II; improvement of risk management systems; implementation of new accounting standards; enhancement of transparency and disclosures etc. The competitive pressures force banks to improve their efficiency scores, and mapping the progressive pathway is an education tool for investors. In this backdrop, this study evaluates the technical efficiency (TE) of public sector banks (PSBs) operating in India during the post reforms period from 1992-1993 to 2009-2010, using non-parametric linear programming-based technique data envelopment analysis (DEA). The results exhibit the positive impact and greater propel of reforms on 20 banks and seven showed an inverse trend.

]]> 10.1504/AAJFA.2011.043869 Afro-Asian J. of Finance and Accounting, Vol. 2, No. 4 (2011) pp. 349 - 368 Namita Rajput; Monika Gupta Sri Aurobindo College (M), University of Delhi, K-94, 1st Floor, Kirti Nagar, Delhi-110015, India. ' 3405/248, Hansa Puri, Tri Nagar, Delhi-110035, India competition data envelopment analysis DEA flexibility India banking industry operational autonomy post-reforms period public sector banks PSBs technical efficiency banking reform Indian banks. 2011-11-25T23:20:50-05:00 2 4 349 368 2011-11-25T23:20:50-05:00