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Effect of Budgeting on Public Sector Wage Bill Management by the Government of Kenya
Mogere Henry Nyakundi,
Simiyu Justo Masinde,
Mugenda Nebat Galo
Issue:
Volume 4, Issue 3, May 2016
Pages:
86-101
Received:
21 March 2016
Accepted:
5 April 2016
Published:
7 May 2016
Abstract: The main aim of budgeting by the government is to create plans on how to source, allocate and spend public resources prudently to meet allocation, development and stabilization objectives. All government expenditure should be controlled if both development and recurrent objectives are to be met. This is however not the case with the public sector wage bill in Kenya since it has been at a spiraling level in the recent past. The wage bill to GDP ratio was 12.1% in the year 2012/13 as compared to the internationally accepted level of 7%. The wage bill to revenue ratio was 47% in the year 2012/13 as compared to the internationally accepted levels of between 30% and 40%. The wage bill to expenditure ratio was 57% in the year 2012/13 as compared to the conventionally accepted levels of utmost 40%. This implies fiscal unsustainability of public expenditure. Public sector wage bill reforms like retrenchments, salary cuts and introduction of Salaries and Remuneration Commission to bring fiscal guidelines in wage Bill has not worked in managing the public sector wage bill in Kenya. This study aimed at assessing the effect of budgeting on public sector wage bill management in Kenya as another intervention in wage sanity. The study relied on Principal agent theory of budgeting, Top Down theory of budgeting, Bottom up theory of budgeting and incrementalism theory of budgeting which postulate that budgeting is a tool for control of expenditure. The specific objectives of the study were to establish whether the revenue forecast, recurrent expenditure budgetary projections, capital expenditure budgetary projections and expected growth in GDP have effects on public sector wage bill management. Causal research design was used to establish the cause and effect relationship between the independent and dependent variables. Purposive sampling was employed in selecting 13 fiscal year budget data. Step-wise multiple linear regression models were employed in establishing the degree and magnitude of the relationship between the variables. Student’s t-test and F-ratio were respectively applied to test hypotheses and overall significance of the regression models at 5% level of significance. The findings of this study indicates significant effect of revenue forecast, development expenditure projection and GDP on wage bill to revenue ratio and wage bill to GDP ratio and no significant effect on wage bill to recurrent expenditure ratio. It therefore implies a budget can be a control tool for expenditure. This study recommends the need for the government of Kenya to adopt program based budgeting system that factors output factor to control the wage bill.
Abstract: The main aim of budgeting by the government is to create plans on how to source, allocate and spend public resources prudently to meet allocation, development and stabilization objectives. All government expenditure should be controlled if both development and recurrent objectives are to be met. This is however not the case with the public sector w...
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The Extent of Tunisian Corporate Social Responsibility
Issue:
Volume 4, Issue 3, May 2016
Pages:
102-110
Received:
22 March 2016
Accepted:
5 April 2016
Published:
7 May 2016
Abstract: The concept of corporate social responsibility began to attract early reflections from the first decades of the 20th century. The concept of Corporate Social Responsibility is essentially linking to the social theme and the relationship of the company with internal and external partners. It is thus necessary that companies take responsibility for the externalities that are borne by stakeholders. To assess the effectiveness of policies of social responsibility Tunisian firms, we conducted an exploratory study using a questionnaire distributed to a sample of Tunisian company. The researcher divides this work on two parts. The first one discusses the theoretical concepts relating to the social corporate responsibility strategy required. In the second part, the researcher presents the research methodology and the analysis and interpretations of the results generating from a field survey. The results showed that Tunisian firms (our study sample) take into account their social and corporate responsibility in their short and long-term strategies.
Abstract: The concept of corporate social responsibility began to attract early reflections from the first decades of the 20th century. The concept of Corporate Social Responsibility is essentially linking to the social theme and the relationship of the company with internal and external partners. It is thus necessary that companies take responsibility for t...
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Corporate Governance and the Performance of Seasoned Equity Offering Firms in Nigeria: The Mediating Effect of Agency Costs
Mohammed Aminu Bello,
Aminu Kado Kurfi,
Bamidele Adeboye Adepoju,
Abdu Ja’afaru Bambale
Issue:
Volume 4, Issue 3, May 2016
Pages:
111-125
Received:
6 April 2016
Accepted:
18 April 2016
Published:
14 May 2016
Abstract: The objective of this study is to implement Analysis of Moment Structure (AMOS) at the same time analysing the power of corporate governance on Post – Seasoned Equity Offerings (SEO’s) performance as well as in determining whether agency costs exist as a mediating variable between them. We conjecture that the mediating function of agency costs reduction is fundamental to the causal relationship between corporate governance and Post-SEO underperformance. Failure to tackle agency costs as a mediating variable may perhaps be one reason for the inconclusive findings in the allied literature. This study intends to focus on an SEO sample, for the reason that it is essential to evaluate how better corporate governance mechanisms can enhance SEO performance by estimating the relationship between different variables. To achieve this, the study will apply the approach and analyse SEOs in Nigeria from 2005-2015.
Abstract: The objective of this study is to implement Analysis of Moment Structure (AMOS) at the same time analysing the power of corporate governance on Post – Seasoned Equity Offerings (SEO’s) performance as well as in determining whether agency costs exist as a mediating variable between them. We conjecture that the mediating function of agency costs redu...
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Adoption of Treasury Single Account (TSA) by State Governments of Nigeria: Benefits, Challenges and Prospects
Ekubiat John Udo,
Ime Edet Esara
Issue:
Volume 4, Issue 3, May 2016
Pages:
126-130
Received:
2 May 2016
Accepted:
7 May 2016
Published:
17 May 2016
Abstract: Nigeria’s Public Funds at all levels have been wrongly accounted-for by previous administrations. But to avert this threat coupled with the present country’s dwindling economy, Federal Government of Nigeria has implemented Treasury Single Account (TSA) to properly manage the scare financial resources but State Governments of Nigeria have been left-out. The aim of this study was to examine the benefits, challenges and prospects of adoption of Treasury Single Account (TSA) by State Governments of Nigeria. Descriptive cross-sectional survey design was adopted for the study. The population for the study consisted of 200 Professional Accountants in Akwa Ibom State. Taro Yamane’s statistical formula was used to select sample size of 133. Purposive sampling technique was used to select the 133 respondents/samples. The data obtained from questionnaire administration were analyzed using descriptive statistics and t-test statistics. The finding reveals that, TSA adoption and full implementation by the state governments will be of greatest benefit as showed in the weighted means scores of 4.20 and tcal of 24.87; there will be challenges in a short-run but the benefits at a long-run will definitely out-weight the challenges. It is the conclusion in this study that, State Governments of Nigeria should adopt and fully implement TSA for successful control and accountability of public funds so as to avoid bailout funds always from any source. State governments should enlighten all stakeholders on the benefits of TSA adoption as well as professional and regulatory bodies (ICAN, CBN, IMF, etc.) should help in designing, conceptualizing and road-mapping of TSA for the states.
Abstract: Nigeria’s Public Funds at all levels have been wrongly accounted-for by previous administrations. But to avert this threat coupled with the present country’s dwindling economy, Federal Government of Nigeria has implemented Treasury Single Account (TSA) to properly manage the scare financial resources but State Governments of Nigeria have been left-...
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Effects of Chinese Foreign Direct Investment in Africa
Roquia Fane Madouka Koumou,
Wang Manyi
Issue:
Volume 4, Issue 3, May 2016
Pages:
131-139
Received:
21 March 2016
Accepted:
29 April 2016
Published:
20 May 2016
Abstract: Over the past twenty decades, countless studies both empirical and theoretical have attempted to study the effect of Foreign Direct Investments (FDI) on the economy. A great majority of these studies reached the conclusion that FDI accounts for technology transfer across countries, which in turn increases the total investment in the economy of the host countries. These studies seem also to suggest that FDI contribute relatively more to growth than domestic investment. However, with regard to studies about the Chinese investments in Africa, many authors claimed that Chinese investments in Africa bring more harm than good to the economy. They go even far to claiming that Chinese are predators of the African raw materials, and most authors remain very cautions when it comes to listing the positive effects of these investments. The goal of this paper was thus to weigh out effects (both negative and positive) of the Chinese investments in Africa. The conclusion drawn at the end of this investigation was that far from being all negative, Chinese investments are setting the African economy on the road to achieving economy development. This is because they allow African countries to go towards the modernization, industrialization and strong economic growth. It was however also observed that the claims as to which Chinese are predators of the African raw materials is slightly true. Furthermore, this hanger of raw materials leads to the closing of many local companies. Hence, it was concluded that the harmonization and the improvement of Chinese investments in Africa should pass by the respect for rules dictated by the governments (institutions) and the respect for the international standards.
Abstract: Over the past twenty decades, countless studies both empirical and theoretical have attempted to study the effect of Foreign Direct Investments (FDI) on the economy. A great majority of these studies reached the conclusion that FDI accounts for technology transfer across countries, which in turn increases the total investment in the economy of the ...
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The Effect of Fiscal Policy on Economic Growth in Nigeria
Issue:
Volume 4, Issue 3, May 2016
Pages:
140-145
Received:
24 April 2016
Accepted:
7 May 2016
Published:
20 May 2016
Abstract: This study investigated the effect of fiscal policy on economic growth in Nigeria. The main objective is to analysis how various components of fiscal policy have contributed to the growth rate of the Nigerian economy. This study uses secondary data which were obtained from the Statistical Bulletin of the Central Bank of Nigeria (CBN) covering the period from 1985 to 2015. Descriptive statistics and the ordinary least square (OLS) multiple regression analytical method was used for the data analysis after ensuring data stationarity. The results from the analysis revealed that total government expenditures is significantly and positively related to government revenue, with expenditures climaxing faster than revenue. Investment expenditures were much lower than recurrent expenditures evidencing the poor growth in the country’s economy. Consequently, it is recommended that government should formulate and implement viable fiscal policy options that will stabilize the economy. This could be achieved through the practice of true fiscal federalism and the decentralization of the various levels of government in Nigeria.
Abstract: This study investigated the effect of fiscal policy on economic growth in Nigeria. The main objective is to analysis how various components of fiscal policy have contributed to the growth rate of the Nigerian economy. This study uses secondary data which were obtained from the Statistical Bulletin of the Central Bank of Nigeria (CBN) covering the p...
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The Effects of CSR Input on Valuation and Accounting Quality -- Biotechnology and Medical Industries
Ling-Hui Cho,
Li-Kai Liao
Issue:
Volume 4, Issue 3, May 2016
Pages:
146-156
Received:
22 April 2016
Accepted:
9 May 2016
Published:
25 May 2016
Abstract: This paper examines the effects of the corporate social responsibility (CSR) input on company’s valuation and accounting quality by using the samples of biotechnology and medical industries. After considering the interaction term between the accounting quality and CSR, this paper further examine whether the companies which input higher CSR will not be wrong valuation from the market. The findings show that the companies with a higher CSR, their stock prices are less likely to be underpriced by the market. The companies with higher prior period’s CSR have better current period’s accounting quality. After controlling for the interaction between accounting quality and CSR, the companies which input higher CSR at current and lagged-one periods are less likely to be under-valuation by the market.
Abstract: This paper examines the effects of the corporate social responsibility (CSR) input on company’s valuation and accounting quality by using the samples of biotechnology and medical industries. After considering the interaction term between the accounting quality and CSR, this paper further examine whether the companies which input higher CSR will not...
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