Finance

The ethics of a business is currently a high profile issue owing to sensational corporate scandals that had taken place in many countries causing extensive damages to the economy and society. These corporate scandals question the morality of businessmen in general and accountants in particular. It is argued that the accountants have been the main contributors to the decline in ethical standards of a business. The application of ethical standards assists auditors to overcome ethical dilemmas which, allow for the right choice of professional behavior that may not only benefit the client but the public who relies on the auditors reporting. Auditors have an obligation to the clients they serve, their profession, the public, and themselves to maintain the highest standards of ethical behaviour.They have a responsibility to be competent and to maintain confidentiality, integrity, and objectivity. An analysis of attitudes toward ethics in the accounting profession showed that chances to engage in unethical dealings exist. Ethics is considered one of the most important criteria upon which all professions in achieving its goals; particularly the internal audit. It is one of the most important and the most serious issues that are dealt with in all societies; therefore, in this study, the concept of ethics and the need for ethics is necessary, as well as the qualities of faith, the physical, mental and psychological traits of auditor, and shed the light on the methods of preparation of a good auditor. The objective of this study, clarifying the concept of ethics and the importance of ethical principles, and conceptual need for ethics should all be reviewed and upheld by the internal auditor. The importance of this study stems from the importance of the ethical concepts and its necessity. The auditor should also be characterized by a commitment to follow through with their performance of internal audit work in accordance with the professional care needed. Care of any person who is keen and faithful to their work and the origins of a conservative organization, should note the importance of this study and the several recommendations that are important for all professionals of the audit profession.

Working capital management directly effects profitability of any firm. In this study, we select a sample of 33 Pakistani manufacturing firms for the period of 6 years from 2005-2010.We examined the effect of different policies of working capital management AIP (aggressive investment policy) and AFP (aggressive financing policy) on ROA (Return on asset), ROE (Return on equity), ROC (Return on capital). Descriptive analysis and regression analysis are used. The outcome of study shows that there is a significant relationship of ROA and ROC with AIP and AFP. Which means that change in AFP and AIP causes change in ROA and ROC. This study also shows that there is insignificant relationship of ROE with AIP and AFP.

The paper aims at assessing cost of governance and revenue assurance mechanisms. The methodology adopted by the paper involves the use of quantitative data for 9 years, from 2002 to 2010, which was generated from the annual report and accounts of the Central Bank of Iran. The data generated for the study was analyzed using graphs and simple percentage analysis. The finding of the paper shows that Cost of governance at state level has greatly increased in Iran. Similarly, the trend of Extra-Budgetary Expenditure put to question the implementation of budgets at the States. The paper concludes that the task of reducing cost of governance for revenue assurance at states level does not rest on the executive, legislature and judiciary alone. It is task demanding the collective effort of all stakeholders. Finally, the paper recommends that there is the need to reduce recurrent expenditure to sustainable level through reducing waste, inefficiency, corruption and duplication in government, as well as, make capital spending more effective.

The purpose of this study is to investigate the relationship between government deficits and surpluses of budget volatility and money volume volatility with Tehran’s stock price index volatility. The data used in this study is the total price index of Tehran Stock Exchange and fiscal policies of governments and monetary policies of central bank, including deficits and surpluses of budget and money volume as a seasonal period (1996 - 2008). For describing long-term relationships between variables VAR model is used and for investigating this relationship the effect of macroeconomic variables namely interest rate, consumer price index, house price index on the Stock Exchange index are considered. Estimation results show that changes in stock price index have a positive relationship with the money volume and a positive relationship with government deficits and surpluses of budget.

In this paper, we exam firm’s incentive to manage earnings raising external capital varies with investor beliefs. Under the spline specification regression: a firm is more likely to management earnings when investors are more optimistic about the industry prospects, but more reluctant when investor belief is low. We evaluate monitory cost to explore the reasons and find that using venture capitalists as specialized investors with lower monitoring costs than other institutional investors, earnings management is less likely for low investor beliefs but more likely for high investor beliefs for VC-backed firms relative to non-VC-backed firms. We can also obtain the same results as former study that auditor’s quality negatively related with earnings management. Considering above consequence, we documents IPOs firms engaged in managing earnings with high investor beliefs have an influence on the long-run abnormal stock return performance. These findings have implications for investors, firms, and accounting standard setters. More prudential monitory is important during market booming periods.

The banking sector is one of the biggest service sectors in India and now days is in a way to attract the biggest market of Asia in investment. The banking sector today is focusing on how to provide efficient services to its customers. The Indian Banking System consisting of various public and private sector financial institutions whose objective is serving the people for their financial and economic needs. This century has been full of innovations: new technologies, new products, new services and a plethora of new industries have emerged. Yet the call for innovation in business, especially in financial services, has never been more intense. Although research on this topic exists, there is no empirical evidence regarding the critical factors influencing customer adoption of electronic banking innovation in Ghana’s banking industry. The aim of this article is therefore to investigate the factors influencing the adoption of financial innovation in Ghana’s banking industry. Surveys were conducted involving clients of the banks in the country. This study focuses on banking service quality and identified various factors of banking service quality, i.e., access, communication, competence, credibility, reliability, responsiveness, security, tangibility, Courtesy and understanding. Main objective of the study is to understood and analyze the service quality dimensions and customer satisfaction level with banking services on banking sectors.

The aim of this study is to explore the linkage between data mining and CBBE model to increase our brand knowledge by employing consumer questionnaire to determine the linkage between data mining and CBBE model. Two questionnaires are developed, one from the consumer opinions of analyzed with association rule to understand the relationships between the association rules and each stage of the brand equity pyramid; the other based on the literature review about brand equity factor and brand equity pyramid to design expert questionnaire to explore the linkage between brand equity pyramid and factors. Three main objectives in this study were: (1) to address solutions to the three questions related to brand image and each point of brand development; (2) to derive nine association rules in total by using association rules analysis; (3) to construct an expert questionnaire, and assess the relationships between the questionnaire items and measurement factors in the brand equity pyramid. The results not only helped to understand the status of their brand development but also provided strategies recommendations to improve the weak or underdeveloped stages in the process of brand building.

Ratios are the basic tool for analyzing the financial statements; it also plays a vital role in evaluating the performance of the company. There are several important ratios used to judge the company’s performance. Further more Financial statement analysis has also should be the part of the fundamental analysis required for equity valuation. But the analysis has typically been ad hoc. The work on this topic not only identifies the relevant ratios but also gives a way organizing analysis the task. Relying on recent research on accounting based information; this paper ventures a financial statement analysis for use in equity valuation in general and all other significant ratios in particular. An analysis of financing activities is different from the analysis of operating activities. Research is identifying current ratios as predictors of the future ratios that determine equity payoffs. The financial statement analysis enable us to identify the trend either upward or downward the performance of the company. To provide historical benchmarks for forecasting, typical values for ratios are documented for the period 2008–2012. The purpose of this study is to facilitate the investor. The reason for choosing the FCCL (Fauji Cement Company Limited) is that the company is well reputed, making adequate profit, focusing on the share’s holder wealth and in the better financial position.

The aim of this paper is to examine the issue convergence of per capita income of North Africa countries to the per capita income level of countries in Southern Europe. We have applied tests of sigma-convergence and polynomial beta-convergence of Chatterji to assess convergence. We have applied the multiple endogenous breaks test advocated by Bai & Perron (2003) in order to evaluate the sigma-convergence hypothesis. According to our results, the process of sigma-convergence is not uniform over time. There exists a movement of convergence of per capita income of NA countries towards the income level of countries of Southern Europe during the period 1980-1984. The estimate of convergence clubs can refine the results for countries that have started catching up. This test rejects the hypothesis of beta-convergence on the whole period (1980-2007). If the model is estimated for each country, then there is a movement of beta-convergence only for Tunisia and Morocco on the period 1985-2000.On the other sub-periods, the assumption of divergence is accepted. The per capita income level of countries of Southern Europe does not seem to be a target toward which converge the countries of the NA region in the long term.

This paper investigates the affect of international trade and global economy through foreign direct investment. Foreign direct investment (FDI) and trade are often seen as important catalysts for economic growth in the developing countries. FDI is an important vehicle of technology transfer from developed countries to developing countries. FDI also stimulates domestic investment and facilitates improvements in human capital and institutions in the host countries. International trade is also known to be an instrument of economic growth. Global foreign direct investment (FDI) trends are likely to modify during the period 2004-2007. FDI has promoted to effective economic growth in a number of developing countries and the role of the foreign direct investment in this field has been extensively known in China and India, the world’s two most populous growing economics have been using FDI as a stimulus in the growth process. Foreign direct investment (FDI) is an integral part of an open and effective international economic system and a major catalyst to development. The growing role of foreign direct investment and multinational corporations (MNCs) in developing countries in the age of globalization is rarely disputed. The nature of the impact of FDI on the growth and development of the Third World, however, is a controversial topic in contemporary international relations and economic development theory. Historically, developing countries heavily depended on the economies of the industrialized world for their own economic survival. During the past two decades, however, the world economy has increasingly "globalized" through the liberalization of world trade and capital markets, the growing internationalization of corporate production and distribution, and the destruction of barriers to the trade of goods and services through technological advances. Meanwhile, the world’s developing countries are now more important, and influential, actors in international trade and the global market.