International Journal of Accounting & Finance Review

INTERNATIONALIZATION AND FINANCIAL STABILITY OF DEPOSIT MONEY BANKS IN NIGERIA

Egbule Chukwuka, Rufus Ishola Akintoye, Theophilus Anaekenwa Aguguom — Thu, 11 May 2023 12:19:58 +0000

This study aims to examine the effect of internationalization on the financial stability of deposit money banks in Nigeria. The study is crucial, as financial stability is significant in the effective functioning of all other sectors of the Nigerian economy. The data for the study were extracted from the financial statements of the deposit money banks listed on the Nigerian Exchange Group as of 2ist December 2021. The validity and reliability of data were premised on their certification financial statements by statutory auditors. Descriptive and panel data analysis were employed for the data analysis. The findings demonstrate that foreign assets to total assets and foreign taxes to total taxes have insignificant effects, while foreign profits and total profits and cross-border banking activities have significant effects. However, the joint statistics further reveal that internationalization has a positive effect on the financial stability of deposit money banks in Nigeria. The result suggests that managers at the foreign operations of the banks should review operational strategies to ensure adequate support and improve foreign banking operations performance towards contributing to the financial stability of the banks.

JEL Classification Codes: G50, P45, F23, B17.

IMPACT OF SOCIAL RESPONSIBILITY DISCLOSURE ON THE INTEGRATION OF GREEN ACCOUNTING AND CORPORATE GOVERNANCE ON HIGHLY POLLUTED INDUSTRIES IN INDIA

Jyoti Tanwar, NVM Rao — Wed, 21 Jun 2023 17:56:09 +0000

Fulfilment of environmental and social obligations is required for sustainable development. Green accounting integrates all environmental consequences into corporate accounting accounts. Disclosure of Corporate social responsibility is a component of accounting performance tied to the social, economic, and environmental aspects of a company's programme that can be vital in cultivating stakeholders. The current research aims to investigate the effect of social responsibility disclosure on integrating green accounting and corporate governance of highly polluting industries in India. The study employed a descriptive study design and qualitative research methods in accordance with the interpretative research philosophy and collected the sample data from 52 highly polluted industries from Central Pollution Board in India. The study employs a structural model, descriptive statistics, and F-test analysis. The result reveals that green accounting and firm characteristics significantly enhance the selected firms' social responsibility disclosure. Furthermore, it was discovered that corporate governance and social responsibility disclosure impact the chosen firms' performance and value. However, it has been determined that green accounting does not affect the profitability or market value of the selected firms. Also, this work concludes that a good firm gives its surroundings and surrounding community enough consideration in addition to its pursuit of profit. As the research is based on 52 industries, the generalized result can not bed determined. The knowledge of the respondent also impacts the research.

JEL Classification Codes: M49, M14, G30, Q56.

THE IMPACTS OF CHARACTERISTICS OF HOMETOWN CONNECTEDNESS BETWEEN AUDITORS AND EXECUTIVES ON AUDIT QUALITY: EVIDENCE FROM CHINA

Deli Yuan, Md. Abu Issa Gazi, Guangrui Liu, Xiaolin Chen, Mohammad Nurul Alam — Sat, 11 Nov 2023 15:51:27 +0000

Quality audit depends on the qualified audit team. Hometown connectedness affects audit quality among executives and auditors. Higher auditor-executive hometown connectivity degrades audit quality more. The present study aimed to analyse and test the influence of the strength and density of auditors-managers hometown connectedness on audit quality. Panel data research methods were employed here. The data is analyzed using the Regression model, including the Logit regression model and OLS regression model, Pearson correlation coefficients, χ2 grouping test and Heckman two-step regression, by using 3674 observations of the Chinese Stock markets from 2008 to 2020 and from the perspective of sociology and economics that were reserved over 15 different industries and the auditor-manager hometown connectivity involved 25 different provinces. The present study reveals that the auditors-manager's hometown connectedness has a negative effect on audit quality. The influence degree increases along with the strength of the auditors-manager's hometown connectedness. Secondly, the influence degree increases along with the density of auditors-managers hometown connectedness. Finally, some suggestions related to audit quality supervision are put forward. The above findings are still valid after controlling for potential endogenous problems. The research on the relationship between auditors-managers' hometown connectedness and audit quality is extended and deepened. The present study's findings apply to auditors and executives in that a bias-free relationship is essential to carry out an influence-free audit process. Audit organizations and business organizations can benefit from this research.

JEL Classification Codes: D73, F65, G32, H54, L32, M41.