International Journal of Accounting & Finance Review 2021-02-27T09:33:00+00:00 Managing Editorial Board Open Journal Systems International Journal of Accounting & Finance Review (IJAFR),Accounting & Finance Review,Accounting, Finance MANUFACTURING FIRMS’ CAPITAL STRUCTURE IN BANGLADESH: COMPARISON BETWEEN LISTED MNCS AND LOCAL COMPANIES 2021-01-06T17:25:49+00:00 Syed Mohammad Khaled Rahman Tasmina Chowdhury Tania <p><em>The capital structure of a firm has immense significance as it has implications on corporate value and financial performance. The basic aim of the research was to analyze and compare the capital structure of Dhaka Stock Exchange (DSE)-listed multi-national companies (MNCs) and local companies of Bangladesh over 24 years (1996-2019). Stratified sampling techniques were applied to the selection of firms. Six financial leverage ratios were used to analyze and compare capital structures. There were significant differences in capital structure between local companies and MNCs as the null hypothesis was rejected. It was also found that the mean equity-financing proportion of domestic companies and MNCs were 65% and 92.5% respectively. The proportion of long term debt in total capital employed was very low for both types of companies. </em><em>MNCs can raise the proportion of both short and long-term debt to take the advantage of financial leverage. Domestic companies can redeem some short term loan and replace some short term debt with long term debt</em><em>. This research </em><em>w</em><em>ould be useful for corporate financial managers, creditors, and investors to take appropriate financing as </em><em>w</em><em>ell as investment decisions </em><em>w</em><em>hich </em><em>w</em><em>ould affect shareholders' </em><em>wealth and value of the firm in the long run to a significant extent.</em></p> <p><strong>JEL Classification Codes: </strong>G30, G32, G39</p> 2021-01-06T17:24:17+00:00 ##submission.copyrightStatement## DO PERSONALITY TRAITS PREDICT BIASEDNESS WHILE MAKING INVESTMENT DECISIONS? 2021-01-13T16:15:31+00:00 Ashutosh Yadav G. Badri Narayanan <p style="text-align: justify;"><em>The Investors’ rationality assumption of traditional finance theories has long been contested by behavioural finance over the past few decades. Various non-financial factors, responsible for shaping investors’ behaviour, including individual personality characteristics and the social environments surrounding the decisions to be made, have emerged in recent studies. With the advancement of behavioural finance, it is important to recuperate our understanding of how an individual’s personality make-up influences her susceptibility towards behavioural biases while making investment decisions. In this study, we explore the effect of the five personality traits on select behavioural biases (overconfidence, disposition and herding) in financial decision-making. A questionnaire comprising measures of personality traits, overconfidence and herding along with demographic variables was circulated to a representative sample (n=251) of Indian investors. Our findings suggest a significant impact of personality traits on the vulnerability of individuals while making investment decisions. Extrovert investors are more balanced, not overconfident, and do not follow the herd. Openness, extroversion, and agreeableness negatively impact the susceptibility of investors towards overconfidence and herding. The results can be used by financial advisors to develop personality specific financial tools to customise to the requirements of their clients.</em></p> <p><strong>JEL Classification Codes:</strong> D14, D90, D91, G11.</p> 2021-01-13T16:10:24+00:00 ##submission.copyrightStatement## CORPORATE SOCIAL RESPONSIBILITY REPORTING: DOES WRITING STYLE MATTER? 2021-02-05T05:03:05+00:00 Maretno Agus Harjoto Jadallah Jadallah Indrarini Laksmana W. Eric Lee <p><em>This study offers an extension of Harjoto, Laksmana and Lee (2020) by presenting a descriptive comparison of gender differences in writing style, and how they impact the choice of words and the readability of corporate social responsibility (CSR) reports. We examine readability, solidarity, and certainty of CSR reports. We find that female CSR leaders use a writing style that conveys greater solidarity with their audience, thereby making a better connection with the stakeholders. These CSR reports are also more readable than those written by their male counterparts. The attributes of readability and solidarity, but not certainty, are in turn positively related to future CSR performance. In comparison, for CSR reports issued by male signers, we find a writing style that conveys greater certainty, which is in turn positively associated with the firms’ future financial performance. Overall, findings show that writing style of CSR reports is an important issue for both firms and investors to consider.</em></p> <p><strong>JEL Classification Codes: </strong>M4, Q5, Z1.</p> 2021-02-05T04:56:38+00:00 ##submission.copyrightStatement## IMPLEMENTING THE PATHWAYS COMMISSION RECOMMENDED FIRST ACCOUNTING COURSE: A PROFILE OF EARLY ADOPTERS 2021-02-24T18:42:24+00:00 Timothy G. Bryan Mark A. McKnight <p><em>The primary purpose of the current research is to explore the extent to which schools and colleges of business have adopted Pathways Commission recommendations for a new first accounting course. This paper explores the extent to which schools of business and accounting programs have implemented curriculum revisions made by the Pathways Commission, as well as provide a profile of the early adopters of one of these recommendations. This study investigated common traits and characteristics of colleges and schools that had adopted the curricular changes.&nbsp; Specifically, the research focuses on the fourth recommendation from this list, which calls for a new first accounting course to be integrated into business and accounting programs.&nbsp; For the study, 68 faculty members from a cross-section of universities and programs answered questions about their institutions and the Pathways Commission recommended a new first course in accounting.&nbsp; Results indicate some ambivalence toward the curricular changes but also allowed for a profile of the early adopters of this specific change.&nbsp; Thus, the secondary purpose of the research is to identify environments in which the changes have been implemented and to provide a foundation for further research into best practices for implementing these types of curricular revisions.</em></p> <p><strong>JEL Classification Codes: </strong>M40, M41, M49, I20.</p> <p><strong><em>&nbsp;</em></strong></p> 2021-02-24T18:40:18+00:00 ##submission.copyrightStatement## DETERMINANTS OF CREDIT RISK 2021-02-27T09:33:00+00:00 K. Riyazahmed Gunja Baranwal <p><em>This study aims to empirically examine the impact of managerial effectiveness on the credit risk of the Indian public and private sector banks. We consider the return on assets as a proxy for managerial effectiveness and gross non-performing assets (GNPA) to total advances as a proxy for credit risk. The study uses fixed effects and dynamic panel data models to examine the impact. The econometric model estimations suggest a negative impact of return on assets on credit risk. Further, we analyze the impact of return on assets by the information of microeconomic and macro-economic variables in dynamic generalized methods of moments (GMM) approach. The results remain the same after using dynamic GMM modelled with lagged credit risk and lagged return on assets. Further, the effect of macroeconomic variables such as repo rate and reverse repo rate confirms the theory.&nbsp; Heterogeneity checks at regions and sector levels substantiate the robustness of results.</em></p> <p><strong>JEL Classification Codes: </strong>G20, G21.</p> <p><strong><em>&nbsp;</em></strong></p> 2021-02-27T09:30:43+00:00 ##submission.copyrightStatement##