ORIGINAL_ARTICLE
Impact of Current and Non-Current Assets on the Profitability of Pharmaceutical Companies of Pakistan
This research study examined the impact of current and non-current assets on the profitability of pharmaceutical companies of Pakistan. For this study 9 years data was collected from the annual financial statements of six pharmaceutical companies listed in Karachi Stock Exchange over a period of 2010 to 2018. The profitability was measured by ROA.Current and non-current assets were taken as independent variables. The regression analysis was used and the result showed that current assets have a significant positive impact with the return on assets while the fixed assets have a significant negative impact on profitability of pharmaceutical companies of Pakistan.
https://www.ijmae.com/article_114653_5db4cd6ab1883c85001be15ded4dd7ff.pdf
2019-11-01
770
779
Current Assets
Non-Current Assets
Profitability
Return on Assets
Pakistan
Habib
Ullah
habibuoswat@gmail.com
1
Centre for Management and Commerce, University of Swat, Khyber Pakhtunkhwa, Pakistan
LEAD_AUTHOR
Waqar
Ahmad
3076316799@qq.com
2
College of Economics And Management Huazhong Agricultural University of China
AUTHOR
Abata, M. A. (2014). Asset quality and bank performance: A study of commercial banks in Nigeria. Research Journal of Finance and Accounting, 5(18), 39-44.
1
Alavinasab, S. M., & Davoudi, E. (2013). Studying the relationship between working capital management and profitability of listed companies in Tehran stock exchange. Business Management Dynamics, 2(7), 1.
2
Chowdhury, A., & Amin, M. (2007). Working capital management practiced in Pharmaceutical companies in Dhaka stock.
3
Cyril, U. M., & Ogbonna, E. E. (2013). Evaluation of the Effect of Non-Current Assets on Return on Assets of Cement Manufacturing Industry in Nigeria. Journal of Theoretical & Applied Statistics, 3(2), 22-30.
4
Eljelly, A. M. (2004). Liquidity‐profitability tradeoff: An empirical investigation in an emerging market. International journal of commerce and management, 14(2), 48-61.
5
Herrick, A. (1944). Current assets and liabilities. Journal of Accountancy (pre-1986), 77(000001), 48.
6
Husain, I. (2011). Prospects and challenges for increasing India-Pakistan trade: Atlantic Council.
7
Inyiama, O. I., Ugbor, R. O., & Nnenna, C. V. Evaluation of the Relationship between Assets Growth Rate and Financial Performance of Manufacturing Firms in Nigeria.
8
Iqbal, A., & Mati, M. (2012). Relationship between non-current assets & firms profitability: University Library of Munich, Germany.
9
Korankye, T., & Adarquah, R. S. (2013). Empirical analysis of working capital management and its impact on the profitability of listed manufacturing firms in Ghana. Research Journal of Finance and Accounting, 4(1), 124-131.
10
Kusuma, A. E., Santosa, R. A., & Handayani, A. (2018). Effect of Current Assets on Profit Through Credit on Jakarta Islamic Index Company 2012-2014 In Indonesia Stock Exchange. Journal of Social Science Studies, 5(2), 183-200.
11
Lydia, C. (2018). Effect of Asset Performance Management on Profitability of Deposit Taking Saccos in Nakuru County. Jkuat.
12
Memon, W. (2009). Importance of Pharmaceutical Industry, First published May 2008, updated 2009.
13
Mwangi, L. W., Makau, M., & Kosimbei, G. (2014). Effects of working capital management on performance of non-financial companies listed in NSE, Kenya. European Journal of Business and Management, 6(11), 195-205.
14
Niresh, J. A. (2012). Working capital management & financial performance of manufacturing sector in Sri Lanka. European Journal of Business and Management, 4(15), 23-30.
15
Okwo, I. M., Okelue, U. D., & Nweze, A. U. (2012). Investment in fixed assets and firm profitability: Evidence from the Nigerian brewery industry. European Journal of Business and Management, 4(20), 10-17.
16
Olatunji, T., & Adegbite, T. (2014). Investment in Fixed Assets and Firm Profitability: Empirical Evidence from the Nigerian Banking Sector. Asian Journal of Social Sciences and Management Studies, 1(3), 78-82.
17
Peterson, R. H. (2002). Accounting for fixed assets: John Wiley & Sons.
18
Rehman, M. Z., Khan, M. N., & Khokhar, I. (2015). Investigating liquidity-profitability relationship: Evidence from companies listed in Saudi stock exchange (Tadawul). Journal of Applied Finance and Banking, 5(3), 159.
19
Salman, A., Folajin, O. O., & Oriowo, A. (2014). Working capital management and profitability: a study of selected listed manufacturing companies in nigerian stock exchange. International Journal of Academic Research in Business and Social Sciences, 4(8), 287.
20
Singh, J., & Pandey, S. (2008). Impact of Working Capital Management in the Profitability of Hindalco Industries Limited. ICFAI journal of financial Economics, 6(4).
21
Sudiyatno, B., Puspitasari, E., & Sudarsi, S. (2017). Working capital, firm performance, and firm value: An empirical study in manufacturing industry on Indonesia stock exchange. Economics World, 5(5), 444-450.
22
Svettana, K., & Aaro, H. (2012). Does Investment Intensity Impact Company Profitability. Paper presented at the 2nd International Conference on Economics Trade and Development. Singapore. IACSIT Press.
23
Tufail, S., & Khan, J. (2013). Impact of working capital management on profitability of textile sector of Pakistan. Paper presented at the Proceedings of 3rd international conference on business management.
24
Vishnani, S., & Shah, B. K. (2007). Impact of working capital management policies on corporate performance—An empirical study. Global business review, 8(2), 267-281.
25
ORIGINAL_ARTICLE
Board Independence, Expertise, Foreign Board Member and Financial Performance of Listed Insurance Firms in Nigeria
Most studies on board independence, board expertise, foreign board members and financial performance in Nigeria and other parts of the world showed different results with some showing positive, negative and mixed results. This study examined the effect of board independence, expertise and foreign board member on the financial performance of listed insurance firms in Nigeria. The population of the study comprises 26 listed insurance firms in Nigerian Stock Exchange and 17were selected as sample the size using random sampling technique. The regression analysis revealed that board expertise and foreign members have statistical significant effect on the financial performance measured by return on asset (ROA). Board independence has a significant effect on ROA but do not have significant effect on return on equity ROE. The study therefore, recommend that regulators must ensure that competent independent board members are well represented in the board of directors, and insurance companies should adhere strictly to the corporate governance code of conduct as it affects board expertise and foreign board members so to improve the quality of financial performance.
https://www.ijmae.com/article_114667_5de0520fb20f871a0879e45ad37106c5.pdf
2019-11-01
780
794
Board Independence
Board expertise
foreign board member
Firm Size
leverage
financial performance
Joshua
Gambo
babantehillah@gmail.com
1
Department of Accounting and Management, Nigerian Defence Academy, Kaduna, Nigeria
LEAD_AUTHOR
Nyor
Terzungwe
2
Department of Accounting and Management, Nigerian Defence Academy, Kaduna, Nigeria
AUTHOR
Okpanachi
Joshua
3
Department of Accounting and Management, Nigerian Defence Academy, Kaduna, Nigeria
AUTHOR
Samuel
Agbi
4
Department of Accounting and Management, Nigerian Defence Academy, Kaduna, Nigeria
AUTHOR
Adenikinju, O. & Ayonrinde. F. (2001). “Ownership Structure, Corporate Governance and Corporate Performance: The Case of Nigerian Quoted Companies”. Unpublished Final Report Presented at the AERC Bi-Annual Workshop, Nairobi.
1
Adesanmia, A.D., Sanyaolua, O.A., Isiakaa, M.M. & Fadipea, O.A. (2019) Empirical analysis of board diversity and the financial performance deposit money banks in Nigeria. Growing science, Canada. An open access article distributed under the terms and conditions of the Creative Commons Attribution (CC-BY) license (http://creativecomm ons.org/licenses/by/4.0/).doi:10.5267/j.ac.2019.5.001
2
Ahmadu, U. S., Tuku G. & Aminu, S.M (2011). Board independence and Firm Financial Performance Evidence from Nigeria: African Economic Research Consortium
3
Anderson, R.D., Reeb, A., Upadhyay, A. and Zhao, W. (2011), The economics of director heterogeneity, Financial Management, 40(1): 5-38.
4
Charitou, A., Louca, C. & Vafeas, N. (2007). Boards, ownership structure, and involuntary delisting from the New York Stock Exchange. Journal of Accounting and Public Policy, 26(2): 249-262.
5
Christine, K. (2017). Effects of corporate governance on organizational financial performance in Kenya: A case of Insurance Companies. A Thesis submitted in partial fulfillment of the requirements for the award of the degree of master of Business Administration, Catholic University of Eastern Africa
6
Coles, J.L., Daniel, N.D. & Naveen, L. (2008). Boards: Does one size fit all? Journal of Financial Economics, 87(2): 329-356.
7
Dandago, K.I. (2012). Application of research methodology in managerial science. Paper presented at Department of Accounting, Ahmadu Bello University, Zaria.
8
Davidson III, W.N. & Rowe, W. (2004). Intertemporal endogeneity in board composition and financial performance. Corporate Ownership and Control, 1(4): 49-60.
9
Defond, M. L., Hann, R.N. and Hu, X. (2005), Does the market value financial expertise on audit committees of boards of directors? Journal of Accounting Research, 43(2): 153-193.
10
Dimitropoulos, P.E. & Asteriou, D. (2010). The effect of board composition on the in formativeness and quality of annual earnings: Empirical evidence from Greece. Research in International Business and Finance, 24(4): 190-205.
11
Duchin, R., Matsusaka, J.G. & Ozbas, O. (2010). When are outside directors effective?, Journal of Financial Economics, 96(2): 195-214.
12
Edwards, J.R., Anderson, M. and Chandler, R.A. (2007), Claiming a jurisdiction for the Public Accountant in England prior to organisational fusion, Accounting, Organizations and Society, 32(1-2):61-100.
13
Effiok, S.O., Effiong, C. & Usoro, A.A. (2012). Corporate governance, corporate strategy and corporate performance: Evidence from the financial institutions listed on the Nigerian Stock Exchange. European Journal of Business and Management, 4(13): 95-112.
14
Egwakhe, A. J., Akpa, V. O., & Ajayi, A. A (2019). Board diversity and profitability of insurance firms in Nigeria: Evidence from listed insurance firms. International Journal of Advanced Studies in Business Strategies and Management | IJASBSM p-ISSN: 2354-4236 | e-ISSN: 2354-4244 Volume 7(1), pp 41-59
15
Fama, E.F. (1980). “Agency Problems and the Theory of the Firm”. Journal of Political Economy, 88(2): 288307.
16
Foluso, O. A. & Lateef, O. A. (2017). Corporate Governance Mechanisms and Financial Performance of Quoted Insurance Companies in Nigeria International Journal of Management Studies, Business & Entrepreneurship Research
17
Gardachew, W. F. (2015).Corporate governance on financial performance of insurance industry. Corporate Ownership & Control, Volume 13, Issue 1, pp. 1201-1209.
18
Guner, A.B. Malmendier, U. and Tate, G. (2008). Financial expertise of directors, Journal of Financial Economics, 88(2): 323-354.
19
Hailab, G.M. (2014). The impact of corporate governance on firm performance: A study on selected companies in Ethiopia. A Thesis submitted in partial fulfillment of the requirements for the award of the degree of master of Business Administration, Jimma University, College of Administration, Ethiopia.
20
Hardwick, P., Adams, M. and Zou, H. (2011), Board characteristics and profit efficiency in the United Kingdom life insurance industry, Journal of Business Finance and Accounting, 38(7-8): 987-1015.
21
Ibe, H. C. A., Ugwuanyi, G. O. & Okanya, O. C. (2017). Effect of corporate governance mechanisms on financial performance of insurance companies in Nigeria. Journal of Finance and Accounting, 2017, Vol. 5, No. 3, 93-103
22
Jhunjhunwala, S., and Mishra, R. K. (2012). “Board diversity and corporate performance: The Indian evidence”. IUP Journal of Corporate Governance, Vol. 11 No. 3, pp. 71-79.
23
Kim, H. & Lim, C. (2010). Diversity, outside directors and firm valuation: Korean evidence. Journal of Business Research, 63(3): 284-291.
24
Liu, C., Sheu, H., Chung, H. & Liao, P. (2010). Board independence and family control. Working Paper, National Chiao Tung University Taiwan, Retrieved February 10 Available from www, finman/Xiamen/BIFC 11001.PDF.
25
Najjar, N. (2013). The impact of corporate governance on the insurance firm’s performance in Bahrain. International Journal of Learning & Development, 3(2): 56 - 65.
26
Nwonyuku, K. N. (2016). Corporate governance and profitability of listed food and beverages firms in Nigeria. Industrial Engineering Letters, 6 (3), 47 – 105.
27
Olayinka, M.U. (2010). The impact of board structure on corporate financial performance in Nigeria. International Journal of Business and Management, 5(10): 155-166.
28
Oxelheim, L., and Randøy, T. (2003). “The impact of foreign board membership on firm value”. Journal of Banking and Finance, Vol. 27 No. 12, pp. 2369-2392.
29
Sanda, A.U., Mikailu, A.S. & Garba. T. (2005). Corporate Governance Mechanisms and Firm Financial Performance in Nigeria. AERC Research Paper 149. African Economic Research Consortium, Nairobi, Kenya.
30
Sanda, A.U., T. Garba and A.S. Mikailu, 2008. Board independence and firm financial performance, evidence from Nigeria. Paper submitted to the centre for the Study of African Economics (CSAE), for Presentation at the CSAE Conference 2008, titled Economic Development in Africa at St Catteries College, University of Oxford. March, 2008
31
Schwizer, P., Soana, M. & Cucinelli, D. (2012). The relationship between board diversity and firm performance: The Italian evidence. Working Paper. Department of Banking and Insurance, Faculty of Economics, University of Parma.
32
Tomislava, P. K., Ana, A & Mirjana, P. (2018) Measuring the impact of board characteristics on the performance of Croatian insurance companies. International Journal of Engineering Business Management, Volume 10: 1–13
33
Tornyeva, K. & Wereko, T. (2012a). Soft Governance and Firm Performance: A Study of Ghanaian Insurance Firms. European Journal of Business and Management, 4(13): 86-94.
34
Tornyeva, K. & Wereko, T. (2012b). Corporate governance and firm performance: Evidence from the insurance sector of Ghana. European Journal of Business and Management, 4(13): 95-112.
35
Tukur, G & Abubakar, B.A. (2014) Corporate board diversity and financial performance of insurance companies in Nigeria: An Application of Panel data approach: Asian Economic and Financial Review, 2014, 4(2):257-27.
36
Ujunwa, A. (2012). “Board characteristics and the financial performance of Nigerian quoted firms”. Corporate Governance: The International Journal of Business in Society, Vol. 12 No. 5, pp. 656-674.
37
ORIGINAL_ARTICLE
Environmental Accounting Disclosure Practices in Bangladesh and Its Impact on Investor Decisions
The focus of this study is to identify the environmental disclosures made by Bangladeshi companies and analyze the overall disclosure practice of the countries’ industries. And also collect the investor’s feedback on whether or not environmental disclosure information is making a difference in their decision making process and their opinion about the company. For conducting the research, the study has used 5 sectors- Engineering, Pharmaceuticals, Food, Textile and Fuel and Power along with 10 companies with each stratum. This study has used the standard environmental disclosure index developed by prior researchers to show the volume of the selected companies’ environmental disclosures in the annual reports. To show the impact of the environmental disclosures on the investors’ decision, the study has conducted a survey among the investors. The study shows evidence that reinforces the fact that Bangladeshi companies are disclosing less environmental information than an ideal company should. Also there are lack of regulation and interest in disclosing proper information. Although by conducting a survey it was seen that majority of investors and probable investors are interested in these information and are supportive of eco-friendly companies.
https://www.ijmae.com/article_114668_0c226e5bdb7dba690ad905afdc3a3fe3.pdf
2019-11-01
795
830
Environmental Accounting
Investor’s Decision
Bangladeshi Industries
content analysis
Annual Reports
Pizus
Biswas
pizusbiswas22@gmail.com
1
Department of Accounting and Information Systems, University of Dhaka, Shahbag, Dhaka, Bangladesh
LEAD_AUTHOR
Tasnia
Rahman
2
Department of Accounting and Information Systems, University of Dhaka, Shahbag, Dhaka, Bangladesh
AUTHOR
Nikher
Sarker
3
Department of Accounting and Information Systems, University of Dhaka, Shahbag, Dhaka, Bangladesh
AUTHOR
Adhora
Sudha
4
Department of Accounting and Information Systems, University of Dhaka, Shahbag, Dhaka, Bangladesh
AUTHOR
Tushar
Dey
5
Department of Accounting and Information Systems, University of Dhaka, Shahbag, Dhaka, Bangladesh
AUTHOR
Ahmed, K., and Nicholls, D. (1994), “The Impact of Non-financial Company Characteristics on Mandatory Compliance in Developing Countries: The Case of Bangladesh”, The International Journal of Accounting, 29(1), 60-77.
1
Ayuso, M. G. and Carlos. L. (2003). Environmental disclosure in Spain: Corporate characteristics and media exposure. Spanish Journal of Finance and Accounting; 115:184-214.
2
Beckerman, N. (1994). Sustainable development: is it a useful concept. Environmental Values 3:191-209.
3
Choi, J. S., (1998). An evaluation of the voluntary corporate environmental disclosures a Korean Evidence. Social and Environmental Accounting, 18(1): 2-7.
4
Christmann, P. (2000). Effects of “Best Practices” of environmental management on cost advantage: The role of complementary assets. The Academy of Management Journal, 43(4), 663-68
5
Clare B. Roberts, (1991) "Environmental Disclosures: A Note on Reporting Practices in Mainland Europe", Accounting, Auditing & Accountability Journal, Vol. 4 Issue: 3,
6
Cooke, T. E. (1991), “An Assessment of Voluntary Disclosure in the Annual Reports of Japanese Corporations”, The International Journal of Accounting, 26, 174-189.
7
Cooke, T. E. (1992), “The Impact of Size, Stock Market Listing and Industry Type on Disclosure in the Annual Reports of Japanese Listed Corporations”, Accounting and Business Research, 22(87), 229-237.
8
Cormier, D T & Morgan, M (2004), “The impact of the web on information and communication modes: the case of corporate environmental disclosure”, International Journal of Technology Management, Vol. 27, No. 4, pp. 393-416.
9
Deegan, C. and M. Rankin., (1997). The Materiality of Environmental Information to Users of Annual Reports”. Accounting, Auditing and Accountability Journal, 10(4):562-583.
10
Deegan, C. and Samkin, G. (2009), New Zealand Financial Accounting, McGraw-Hill Australia Limited, North Ryde.
11
Deegan, C., (1999). Implementing triple bottom line performance and reporting mechanisms. CA Charter 70(4): 40-42.
12
Deegan, C., (2002). The legitimizing effect of social and environmental disclosures- a theoretical foundation. Accounting, Auditing and Accountability 15(3): 282-311.
13
DiMaggio, Paul J. and Walter W. Powell. (1983). “The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields.” American Sociological Review 48:147–60.
14
Dincer, I. and A. R, Marc, (1998). A worldwide perspective on energy, environment and sustainable development. International Journal of Energy Research. 22(1):1305-1321.
15
Dutta, P., & Bose, S. (2008). Corporate Environmental Reporting on the Internet in Bangladesh: An Exploratory Study. International Review of Business Research Papers, 4 (3), 138-150.
16
Elkington, J. (1998).Cannibals with forks: 1he triple bottom line o/21" century business. Gabriela Island, BC: New Society Publishers.
17
Environmental accounting. (2018, February 05). Retrieved February 07, 2018, from https://en.wikipedia.org/wiki/Environmental_accounting
18
Gray, R., Kouhy, R., & Lavers, S. (1995). Corporate social and environmental reporting: A review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing, and Accountability Journal, 8(2), 47-77.
19
Gray, R., Owen, D. and Adams, C. (1996), Accounting and Accountability: Change and Challenges in Corporate Social and Environmental Reporting, Prentice Hall, London.
20
Hamid, M.A.R.A. (2002), “Theoretical Framework for Environmental Accounting - Application on the Egyptian Petroleum Sector,” Presentation paper of the Ninth Annual Conference of the Economic Research Forum (ERF) 26-28 October 2002,American University in Sharja, United Arab Emirates, available at http://www.erf.Org.eg/9th annual conf/9th conference_main.php, accessed on 20.01.2018.
21
Hossain M, Islam, K and Andrew, J. (2006), “Corporate social and environmental disclosure in developing countries: evidence from Bangladesh”, Proceedings of the Asian Pacific Conference on International Accounting issues, Hawaii. University of Wollongong, Research Online, Faculty of Commerce - Papers Faculty of Commerce.
22
Hossain M. (2016), “Environmental Reporting Practices in annual Reports of selected pharmaceutical and chemical companies in Bangladesh”, International Journal of Business and Management Invention, 5(7), 20-28, Available in Online: www.iiste.org
23
Hughes, S.B., Anderson, A., & Golden, S. (2001). Corporate environmental disclosures: are they useful in determining environmental performance? Journal of Accounting and Public Policy, (20) 3, 217-240.
24
Idowu, S. O., & Louche, C. (2011). Theory and practice of corporate social responsibility. Heidelberg: Springer.
25
Islam, M. A, and Deegan, C. (2010), “Social Responsibility Disclosure Practices: Evidence from Bangladesh”, Published by Certified Accountants Educational Trust for the Association of Chartered Certified Accountants.
26
ISO - International Organization for Standardization. (2015, September 14). Retrieved February 12, 2018, from https://www.iso.org/iso/catalogue_detail?csnumber=3180
27
K. M. Nazmul Islam and Dr. Ahmed Kamruzzaman Majumder. (2010, July 23). Environmental accounting. Retrieved February 16, 2018, from Stapleton, P.; Glover M. A; and Davis P. 2001. Environmental Management Systems: An Implementation Guide for Small and Medium-Sized Organizations. Second Edition. Michigan: NSF International UN CSD .http://www.thedailystar.net/news-detail-1479
28
Kamla R, Gallhofer S. Haslam J. (2006), “Islam, nature and accounting: Islamic principles and the notion of accounting for the environment”, Accounting Forum, 30(3), 245–265, Available in online: www.sciencedirect.com
29
Neu, D. & Warsame, H. & Pedwell, K., 1998. "Managing public impressions: environmental disclosures in annual reports," Accounting, Organizations and Society, Elsevier, vol. 23(3), pages 265-282, April.
30
Pramanik, A. K. (2002), Environmental Accounting and Reporting (eds.), , Deep & Deep publications Pvt. Ltd: New Delhi.
31
Rahman and Muttakin, (2005), “Corporate Environmental Reporting Practices in Bangladesh – A Study of Some Selected Companies. The Cost & Management, July- August. 22. Rajapakse, B. (2001), Environmental Reporting Expectation Gap: Evidence from Private Sector Organisation in Sri Lanka, IWE Journal, 3, p.99-117
32
Robkob, P., & Ussahawanitchakit, P. (2009). Antecedents and consequences of voluntary disclosureof environmental accounting: An empirical study of foodsand beverage firms in Thailand. Review of BusinessResearch, 9(3), 1-30. 24.
33
Sarmento, M., Durão, D., & Duarte, M. (2005). Energy, 30(8), 1247-1257. doi:10.1016/j.energy.2004.02.006 25. Savage AA. 1994. Corporate social disclosure practices in South Africa: a research note. Social and Environmental Accounting14(1): 2-4. 26. Schaltegger, S. (1997). Information Costs, Quality of Information and Stakeholder Involvement – The Necessity of International Standards of Ecological Accounting. Eco- Management and Audit, 4, 87-97. 27.
34
Shil and Iqbal, (2005). Environmental Disclosure – A Bangladesh Perspective. The Cost & Management, July- August. 28. Sing DR, Ahuja JM. 1983. Corporate social reporting in India. International Journal of Accounting 18(2): 151-169. 29. 28.
35
Singh, G., & Joshi, M. (2009). Environment management and disclosure practices of Indian companies. International Journal of Business Research, 9(2), 116-128. 30.
36
Trent, W. (2006). CEO Incentives and Earnings Management. CFA Digest, 36(4), 18-19. http://dx.doi.org/10.2469/dig.v36.n4.4296
37
Tsang EWK. 1998. A longitudinal study of corporate social reporting in Singapore: the case of the banking, food and beverages and hotel industries. Accounting Auditing and Accountability Journal 11(3): 624-6 Dutta P, and Bose S. (2008), “Corporate Environmental Reporting on the Internet in Bangladesh: An Exploratory Study”, International Review of Business Research Papers, 4(3), 138-150.
38
Ullah, M. H. (2013), “Accounting and Reporting Practices of Islamic Banks in Bangladesh, M. Phil Thesis, University of Chittagong, Bangladesh
39
Zhang, J. et al, (2009) (2009) “The Influence of Financial Factors on Environmental Information Disclosure in China Chemical Industry”, International Journal of Global Environmental,9(3), 272-286.
40
ORIGINAL_ARTICLE
Effect of Ownership Structure on Working Capital Management of Listed Downstream Oil and Gas Companies in Nigeria
This paper examines the effect of ownership structure on working capital management of listed Downstream Oil and Gas Companies in Nigeria. The study uses panel data for eight (8) companies for the period 13 years (2005 – 2017). There are several aspects and dimensions of ownership structure, which may influence a firm’s working capital management but this study focuses on three characteristic of ownership structure: namely ownership concentration, managerial shareholding and institutional ownership. Firm’s working capital management has been measured through Cash Conversion Cycle (CCC). Findings indicate that there is a positive significant relationship between ownership structure and firm’s working capital management as measured by CCC. This paper recommends that the code on owner's equity of listed downstream oil and gas companies in Nigeria should be sustained and encouraged so that the firms can have a perpetual life, because the stake of this owners could serve as a check and balance mechanism to further strengthen the corporate governance of the downstream oil and gas companies in order to give room for enhanced effective working capital management.
https://www.ijmae.com/article_114669_b8c1367280efb5731c3eab8e6e524d2f.pdf
2019-11-01
831
843
Ownership structure
WCM
downstream oil and gas companies
Moses
Olanisebe
walemose@gmail.com
1
Department of Accounting, Bayero University Kano, Kano, Nigeria
LEAD_AUTHOR
Rabiu
ADO
rabsadds@yahoo.com
2
Department of Accounting, Bayero University Kano, Kano, Nigeria
AUTHOR
Abdioglu, N. (2016). Management ownership and corporate cash holdings: Insights from an Emerging Market. Business and Economics Research Journal, 7(2), 29-41.
1
Ahmad, H., Akhter1, N., Siddiq, T., & Iqbal, Z. (2018). Ownership Structure, Corporate Governance and Capital Structure of Non-Financial Firms of Pakistan. Information Management and Business Review, (10)1, 31-46.
2
Akinlo. O. O. (2011). The Effect of Working Capital Management on Profitability of firms in Nigeria. Evidence from General Method of Moments. Asian Journal of Business and Management Sciences, 1(2), 130-135.
3
Ali, B., & Shah, S. (2017). The Impact of Corporate Governance on Working Capital Management Efficiency: A Quantitative Study Based on Pakistani Manufacturing Firms. City University Research Journal, 7(2), 272-284.
4
Basheer, M. F. (2014). Impact of corporate governance on corporate cash holdings: An empirical study of firms in manufacturing company in Pakistan. International Journal of Innovation and Applied Studies, 7(40, 1371-1383.
5
Dastgir, M., & Honarmand, M. (2014). The impact of corporate governance mechanisms on the efficiency of working capital management of listed banks in Egypt. Quarterly of Accounting Management, 2(2), 90-107.
6
Fiador, V., & Fiador, V. (2016). Does corporate governance influence the efficiency of working capital management of listed firms: Evidence from Ghana? African Journal of Economic and Management Studies, 7(4), 482-496.
7
Gill, A. (2011). Factors That Influence Working Capital Requirement in Canada. Economics and Finance Review, 1(3), 30– 40.
8
Gill, A. S., & Biger, N. (2013). The impact of corporate governance on working capital management efficiency of American manufacturing firms. Managerial Finance, 39(2), 116–132.
9
Kajananthan, R., & Achchuthan, S. (2013). Corporate Governance Practices and Its Impact on Working Capital Management: Evidence from Sri Lanka. Research Journal of Finance and Accounting, 4(3), 32-53.
10
Kamel, S. R. (2015). The impact of Corporate Governance and Firm Maturity on Working Capital Management Efficiency: Evidence from Listed European Firms. Being A Thesis Submitted to the Department of Management in partial fulfillment of the requirements for the degree of Master of Science in Finance. The American University in Cairo School of Business.
11
Lee, K. W., & Lee, C. F. (2009). Cash holdings, corporate governance structure and firm valuation. Review of Pacific Basin Financial Markets and Policies, 12(03), pp. 475-508.
12
Njoku, G. C. (2017). The Impact of Corporate Governance on Working Capital Management in Nigerian Organizations. A dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Management: Finance Walden University.
13
Oladipupo, A. O., & Okafor, C. A. (2013). Relative contribution of working capital management to corporate profitability and Dividend payout ratio: Evidence from Nigeria. International Journal of Business and Finance Management Research, 2053-1842, 11-20.
14
Palombini, N. V. N., & Nakamura, W. T. (2012). Key factors in working capital management in the Brazilian market. Revista de Administração de Empresas, 52(1), 55–69.
15
Pouraghajan, A., Pourali, M. R., & Akbari, L. (2015). Relationship between ownership structure and corporate cash holdings in Iran. Applied Mathematics in Engineering, Management and Technology, 3(1), 771-778.
16
Rahimian, N., & Janfada, R. (2014). Corporate governance system and financial constraints (investment sensitivities to cash flows). Knowledge of Investment, 10(2), 39-51.
17