Journal of Accounting Research, Business and Finance Management (e-ISSN: 2582-8851)

Analysis of Relationship amongst Money Supply, Prices and Output in India

2024-09-24T17:35:03+0530

The paper studies the relationship between Money Supply, Prices and Output by creating a robust VAR Model incorporating the changing trend of the macro-economic variables. The observations were that rate of change of Prices and Money Supply have a direct relationship (in short and long run), rate of change of Price and Private Consumption have an inverse relationship (more significant in long run), and rate of change of Investment and Money Supply have an inverse relationship (significant in long run). The study provides a foundation for understanding of stability and shocks amongst the macro-economic variables which have further scope of exploration in terms of magnitude of absolute change and implicit relationships which exist amongst the variables in the Quantity Theory of Money.

Optimality of Capital Structure Inherent in Sustainable Growth Rate (SGR)

2024-09-24T17:19:10+0530

The present paper is a revised version of an article written by the lead author with a co-author and published in 2008 in which the derived formula and analyses were wrong. In the present paper a new approach to determine optimum D/E ratio has been proposed after making all necessary corrections of the first article. In literature the definition of SGR is: Sustainable growth rate (SGR) is the maximum sales growth rate, measured from a base sales level, which a company can support without any additional external equity financing while maintaining a target Debt-Equity (D/E) ratio, given the retention rate, b. SGR formulations available in literature do not consider variable liability as an internal source of financing, and thus, these formulations underestimates SGR. The present study proposes a new formula to calculate optimal D/E ratio of a company at its various levels of SGR. The model considers variable/spontaneous liability as an important internal source of financing. The proposed model derives an implicit relationship between D/E ratio and SGR. From that implicit relationship, the optimal D/E ratio of a company can be calculated for a given level of SGR of the company. As in the first version of this article, we can trace out a SGR―D/E expansion path or continuum. From this continuum, the optimum D/E can be determined for a given level of SGR, and vice versa. The present study empirically finds that at a positive SGR, optimum D/E is zero. This level of SGR can be called the cut-off point. However, initially as D/E increases, SGR also increases at an increasing rate. But there is a limit to increase of D/E. At that level, SGR suddenly becomes negative. This level of and at one level of D/E ratio, SGR reaches its maximum. After that level of D/E ratio, SGR becomes negative. This value of D/E is the optimum or breakeven value of D/E ratio. If the company further increases it’s D/E, SGR will remain negative but its absolute value will fall. Empirical test supports the findings of this study.

Determinants Influence on Green Purchase Intention among Young Consumers in University of Sri Jayewardenepura

2024-09-24T16:41:09+0530

The purpose of this study is to measure the determinants influence on green purchase intention among young consumers in University of Sri Jayewardenepura. Based on the prior studies, the study identified determinants of green purchase intention such as environmental knowledge, environmental attitude, government initiative, green advertising and price.
A quantitative study was conducted to address the research objectives. The survey was done among young consumers in University of Sri Jayewardenepura. The used sample method was convenient sample collection. Primary data were gathered through a questionnaire and evaluate the questionnaire through five-point likert scale. There were 254 usable questionnaires from undergraduates of University of Sri Jayewardenepura. The data was analyzed using IBM SPSS statistics 23. Descriptive statistics, correlation analysis were used to evaluate the gathered data. Five hypotheses were developed to conduct this research and those were tested using Spearman’s Correlation Analysis and Multiple Regression Analysis.
The results of the research indicated that price has the much significant influence on green purchase intention among young consumers in Sri Lanka. Also environmental attitude and government initiative have significant influence on green purchase intention among young consumers in Sri Lanka. In contrast, environmental knowledge and green advertising have no significant influence on green purchase intention.

An Evaluation of Mono-product Economies & examining the sine qua non for diversification - In West Asian Region

2024-09-24T17:41:33+0530

The discovery of oil in West Asia has contributed to its integration into the international capitalist system. The mono-commodity, oil, has brought tremendous wealth to West Asia. But a rising population and an ever growing demonstration effect, has caused imports to grow exorbitantly, with oil prices expected to fall, depicted explicitly by recent oil price drop, also over time as interest in climate change increases after RIO-20, and more options of renewable energy sources coming on line like Gas, Solar Energy, wind power and nuclear energy etc. the rentier mode of development followed by west Asian economies is clearly unsustainable.
Further the oil producing nations are so over-specialized that they do not possess the necessary flexibility to shift their resources from one sector to another, or to develop substitution if and when the need arises. Moreover, the ability of oil producing countries to respond to deliberate or accidental economic measures taken abroad is limited.
This paper theoretically analyses the standing of the West Asian mono product economies, their specific traits, benefits and disbenefit of current condition and looks into the case for diversification of West Asian Region. As diversification is a sine qua non in long Run for the sustainability of the West Asian economies.

Corporate Governance Compliance Practice in the Food and Allied Company: The Case of Bangladesh

2024-09-24T17:24:56+0530

The prime concern of this study is to investigate the corporate governance practices in the food and allied companies of Bangladesh from various perspectives on the basis of compliance guidelines of Bangladesh Securities and Exchange Commission (BSEC). To achieve the core objective, the study is examined the annual report of four food and allied companies for the period of 2016 to 2020. The findings of the study revealed that the average compliance of the four companies was 94.33 percent with the compliance guidelines of BSEC. Moreover, the government long-run prudential financial and monitoring policies may help to ensure the corporate governance practices for sustainable food and allied industries as it is the fastest growing sector in Bangladesh.

Reasons for Low Audit Fees: Evidence from Bangladesh

2024-09-24T17:09:15+0530

Law requires companies to have their accounts audited. The fee charged to an external auditor by organizations to conduct an audit is called audit fees. That form of fee is of concern to all auditors and their clients because it represents savings to businesses as well as it represents a reputation for audit service efficiency. It is evident from different studies that remuneration of auditors has a significant impact on the quality of audit performed by the auditors. In Bangladesh, audit fees are relatively poor in comparison to some other SAARC countries but independent auditors are rarely blamed for their poor quality of audit. During the study it was found that both the audit firms and the high officials of different companies have agreed at the point that the remuneration of the auditors should be as such that it can cover the cost of conducting a quality audit and at the same time act as financial motivation for the auditors. The study tried to find the intrinsic philosophy of the companies for neglecting the process of mandatory audit and hence offering poor remuneration to the auditors. Opinions of both auditors and companies have been considered here.

Career Choice Determinants of the Management Students: A Case of a Sri Lankan State University

2024-09-24T16:34:13+0530

Career is identified as a significant research area in the contemporary world of work. This quantitative study aims to investigate the factors which influence the career choice of management undergraduates. Students who are studying in a selected Management Faculty of a state university of Sri Lanka are the population of this study and three hundred and six (306) undergraduates were randomly selected as the sample. A structured questionnaire was administered in collecting data. In the descriptive data analysis, it was conducted frequency and percentage analysis for the demographic items. Mean comparison among the independent variables also carried under the descriptive data analysis. Correlation analysis is carried out in hypothesis testing. The personality of the student, family influence, and teachers’ influence, interest in the subject, career opportunities, career benefits, and self-efficacy are found to be significant with the student career choice. Personality and future career benefits are identified as the most influential factors towards the career choice. Further, it was found that most management students have made their career choice decision during their Advanced level and at the university enrolment. It is recommended to consider the personality type of the student when they are advised by the family, teachers, and career advisors. Communicating the actual career opportunities and benefits to the school students is recommended since they tend to make their career choice decision based on the perceived future opportunities and benefits attached to the career.