Finance

The introduction of corporate government practices in Nairobi stock exchange saw the Bull Run that kicked off in the Nairobi Securities Exchange in the year 2006, which made the market gain more than 50%. As earnings of companies increased, so did the demand for shares by the public, corporate governance was incorporated as a strategy for the company success. The price appreciation forced many companies to split shares owing to the nature of majority of the Kenyan and foreign investors who wanted to invest in listed companies. Companies such as Kenol/ Kobil (Kenya Oil Company Limited), East African Cables Limited, CMC Holdings Limited, ICDCI (Centum Investments Company Limited) and Barclays Bank Limited that were highly priced opted to split shares to make them accessible to the public, and to benefit the company as well as potential investors. Corporate governance formulated and implemented legislation and enforcement procedure in place within the CMA and the NSE, to curb massive falsification of financial reports, conspicuous dealings in the NSE and illegal collaboration of stockbrokers with the intention to defraud investors. It is good corporate governance that even with the recent collapse of many stockbrokerage firms investor confidence in the capital corporate governance still is high. This study explores the contribution of the corporate governance on investor confidence in Nairobi Securities Exchange; recommend the possible solutions to curb corporate governance irregularities that lead to tremendous loss of investor money and confidence.

Ethical accounting concept of business ethics relates directly to transparency, accountability & Corporate Responsibility. The major ethical issues occur in accounting and finance are reporting false income, falsifying documents, allowing or taking questionable deductions, illegally evading income taxes, engaging in frauds etc. Indian Ethos is all about what can be termed as “national ethos”. Self-governance is an abstract concept that refers to several scales of organization. Some degree of consensus decision making is usually involved in any self-governance system, if only because individual members of the group may choose to violate the criteria for invoking outside authority, break the code of silence, or otherwise cause the group to lose its autonomy. The need of the hour is the requirement of ethical accounting regulations and in this research paper tried to relate the Indian ethos for self governance.

The general objective of this study was to investigate the determinants of capital budgeting decision on merchandising companies in Mogadishu. Specifically, this study investigated the effects of company size, degree of risk and capital intensity on merchandising companies in Mogadishu. Capital budgeting decision rank among the most critical types of managerial decisions made in a company and can have major long-term implications, both positive and negative. Merchandise companies was only succeed if their capital budgeting decisions are made well In order to ensure the importance of capital budgeting decisions for merchandise companies and its determinants play the effectiveness and efficiency in merchandise companies. This study was conducted through a descriptive study. In addition the study employed a survey research design in data collection. The sampling procedure of this study is used non-probability sampling procedure particularly purposive sampling or judgmental sampling. This research employed quantitative data collection method whereby data is gathered by the use of closed ended questionnaires which are self-administered. The data collected was analyzed using the software called Statistical Package for the Social Sciences (SPSS) version 20 and results shown in terms of frequency distribution and percentages. A regression model was applied to determine the relationship between Company size, Degree of risk and Capital intensity as the independent variables and Capital Budgeting Decision for merchandise as the dependent variable. Results confirm the varying importance of the determinants of capital budgeting decision on merchandising companies in Mogadishu. In general, the results reveal that Company sizes, degree of risk and capital intensity have significant and positive effects on capital budgeting decision. The study recommends that to improve capital budgeting decision on merchandising companies in Mogadishu, Managers should make use of the DPB on all the projects when the economic situation is not certain, and the use of NPV, DPB and PI should be more frequent as these techniques have been proved to be the best.

The internal controls had been an important part if business operations ever since economic activities became large scale to prevent company losses through errors, theft and embezzlement. Internal control are designed to detect fraud before its too late. The general objective of this study would be to determine the effects of internal control systems on fraud detection in Somali commercial banks. Also this study would use a sample of five commercial banks in Mogadishu, namely, Salaam Somali Bank, Dahabshil Bank, Trust African Bank, International Bank of Somalia and premier Bank. Specifically, this study would be evaluating the effects of establishment of responsibilities, segregation of duties, documentation procedures and physical controls on fraud detection in Somali commercial banks. Also this study would use the framework established by the Committee of Sponsoring Organisations of the Treadway Commision known shortly as COSO Framework. The study would adopt a descriptive study design in data collection. The target population of this study would be 240 people located at headquarters of the commercial banks. This study would use the stratified random sampling technique. The data collection procedure of this study was through hand picking. The study would use quantitative data collection method whereby data will be gathering by the use of close ended questionnaires which were self administrated. The study would make use of the statistical Package for Social Science (version 20) with hand printed worksheets and Microsoft Excel 2007. To analyse the data regression model would be applied and statistical inference would be made from the output of this procedure. The major findings of this study was that there was a positive relationship between establishment of responsibilities, segregation of duties, documentation process and physical controls and fraud detection of the Commercial Banks in Somalia. The study further recommend the need for the Commercial Banks in Somalia to increase their establishment of responsibility, segregation of duties, documentation procedures, physical controls as it was founded that those variables had positively affects the fraud detection of Commercial Banks in Somalia.

The core objective of cureent study is to investigat the costs of financial distress of ongoing manufacturing sector of Pakistan. A panel of 146 manufacturing firms Pakitan are selected for this study for the period of 2001-2011. Two most applicable panel data teachniques (fixed effects and random effects models) are utilized to investigate the costs of financial distress and Hausman’s specification test recommended that fixed effects model is most appropriated model in this study. The results of fixed effects model suggest that financial distress of onging firms of Pakistan has significant direct impact on opportunity losses in case of Pakistan after control average collection period, total assests growth, fised to total assets ratio, tangibility of aessts and sector distresssed. The upcoming studies msut explore direct costs of financial distress and bankruptcy in case of manufacturing as well as service sector of Pakistan.

Current study is carried out to look at the deterinmants of profitablity in insurance sector of Pakistan with a panel data set of 31 insurance firms (life insurance sector and no-life insurance) of Pakitan from 2006-2011. To investigete the deterinmants of profitabiltiy two most applicable panel data teachniques (fixed effects and random effects models) are employed and then Hausman’s specification test is applied to select the most effective model. This test proves that fixed effects model is the most appropriated model for this study. The outcomes of fixed effects model propose that leverage, size, earnings voalitiy and age of the firm are signficant determinants of profitablitiy while growth opportunities and liquidty are not significant determinants of peorfitabiltiy. Accordign to best knowledge of authors this is frist study that covers the whole fiancial sector and emoply the appropriate models on the panel data. This study is very handy for the mangement of insurance sector of Pakistan in regarding their profitabilty decsions and stakeholders of insurance sector.

This study was undertaken for analyzing the impact of dividend payout on the stock prices, profitability, liquidity and risk of the company. Stock price and dividend payout ratio are the dependent variables of this study. It was qualitative research in which primary data was used. Data was collected with the help of questionnaire from 30 respondents. Several statistical tools and different types of techniques such as regression analysis, T-tests, correlation and covariance were applied for getting accurate and useful results. In this research one framework model was designed, that were tested with the help of five hypotheses. Rejection of null hypothesis revealed the positive impact of profitability, leverage and liquidity on the dividend payout. It was also observed that dividend payout has significant impact on the variation of stock price.

Each and every individual living in this world follow certain rules and principles which influence and determine their behavior while performing his day to day activities which are called as Ethics like ‘stealing is wrong’ , ‘one should help the person in need’ and so on. Just like that there are certain rules and guidelines which governs the behavior of a person and a group in their workplace which are known as professional ethics and code of conduct. Every professional persons, have different ethics and code of conduct like lawyer and chartered accountant, both’s ethics and conduct will differ from each other. In this research paper we will be studying who is Registered Valuer and the professional ethics and code of conduct of the registered valuers, who are responsible for valuation of the different assets like plant and machinery, land and building and securities and financial assets which they need to follow while valuing these assets.

Goods and Service Tax (herein after referred as ‘GST’) is a new revelation that is soon to make its appearance in Indian Indirect Tax Regime. The Goods and Services Tax (GST) is a value added tax to be implemented in India, the decision on which is pending. GST is the only indirect tax that directly affects all sectors and sections of our economy. Goods and Services Tax -- GST -- is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level. In this paper we try to attempt to get detailed knowledge about GST , the reasons of introducing GST, know the challenges and threats in imposing GST, see the current status of GST in India, opportunities it will provide to economy, industry exporter, company and government and Shortcomings of GST. The analysis shows that GST is a necessary condition if the country has to go back to double digit GDP growth. GST is a better approach of charging tax on goods & service as problem which is present in the current indirect tax system can be avoided by adopting GST.IT is likely to improve tax collections and boost India’s economic development by breaking tax barriers between States and integrating India through a uniform tax rate. GST is an improvement over VAT & service tax but it is also having some flaws.

The Ministry of Corporate Affairs has introduced the MCA21 e-Governance programme with a view to providing all services relating to ROC offices on-line in e-Governance mode.MCA21 replaces the erstwhile practices broadly consisting of physically filing of documents, incorporation of companies and inspection of documents with the Registrar of Companies. This project is the first of its kind and is intended to create a health business eco system conducive to foreign investment thereby boosting the Indian economy. This paper investigate whether the goals of the project i.e to improve the service standards to all the stakeholders have been achieved or not ?what are the new amendments in MCA project and how it is beneficial to all the stakeholder?. The analysis shows that among other e-governance programmes MCA 21 is the one which have a positive impact on the user and day by day its importance is increasing .It does not include other offices like Liquidators , CLB(Company Law Board)/Tribunals and Courts. Many up gradations were done in MCA 21 project like –XBRL,NEFT but still there is a need for increasing the awareness about use of online procedures relating to MCA and improvement in website facility during peak season.