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Research on the Credit Risk Management of Small and Medium-Sized Enterprises Based on Supply Chain Finance
Xingang Weng,
Xiaohua Lv,
Yujiao Wu,
Xiaorong Li
Issue:
Volume 4, Issue 5, September 2016
Pages:
245-253
Received:
20 July 2016
Accepted:
29 July 2016
Published:
15 August 2016
Abstract: Small and medium-sized enterprises have made great contribution to the prosperity of market economy and the stability of social order in China, but they often suffer from the financing difficulties. Supply chain finance model is a new angle of view to solve the financing difficulties of small and medium-sized enterprises. Firstly, this paper defines the related theory of supply chain finance. Secondly, it analyzes the three main financing models of supply chain finance: the financing model of prepayment, the financing model of inventory pledge and the accounts receivable financing model. Thirdly, it combines the expert evaluation method and the fuzzy comprehensive evaluation method to establish the comprehensive evaluation model of financing credit risk of small and medium-sized enterprise. Finally, it provides some suggestions in the financial institutions aspect to prompt the financing development of small and medium-sized enterprises. The contents of this study have certain innovative and practical significance, it may benefit to solve the financing problems of small and medium-sized enterprises in China.
Abstract: Small and medium-sized enterprises have made great contribution to the prosperity of market economy and the stability of social order in China, but they often suffer from the financing difficulties. Supply chain finance model is a new angle of view to solve the financing difficulties of small and medium-sized enterprises. Firstly, this paper define...
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The Impact of Corporate Governance on Dividend Payout of Manufacturing Firms Listed at the Nairobi Securities Exchange
Caroline Ikunda,
Monica Muiru,
Simon M Kamau
Issue:
Volume 4, Issue 5, September 2016
Pages:
254-261
Received:
31 May 2016
Accepted:
12 June 2016
Published:
29 August 2016
Abstract: This study sought to examine the impact of corporate governance on dividend payout of manufacturing firms listed at the NSE. The objectives of the study were; to determine the impact of board size, board composition, CEO tenure and managerial equity holding on dividend payout of manufacturing firms listed at NSE and finally, to establish the impact of corporate governance on dividend payout of manufacturing firms listed at NSE. The study employed a correlational research design and the population of the study comprised all manufacturing firms which were consistently listed at the Nairobi Securities Exchange from 2008-2014. Correlation and regression analysis were used to test the impact of the independent variables relating to corporate governance practices on the dependent variable (Dividend Payout). Independent one-way ANOVA test and independent t-test (one tailed) were used to determine the level of significance. The study found that board size, board composition, CEO tenure and management equity holding have a weak negative relationship with dividend payout. Further, the study found that board size has a statistical significant impact on dividend payout, while board composition, CEO tenure and managerial equity holding were found to have no statistical significant impact on the dividend payout. The empirical results from the multiple regression analysis indicated that there is a strong positive relationship between corporate governance and dividend payout. However, there was no statistical significant relationship between the two variables. Therefore, this study concludes that corporate governance has no impact on dividend payout of manufacturing firms listed at NSE.
Abstract: This study sought to examine the impact of corporate governance on dividend payout of manufacturing firms listed at the NSE. The objectives of the study were; to determine the impact of board size, board composition, CEO tenure and managerial equity holding on dividend payout of manufacturing firms listed at NSE and finally, to establish the impact...
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Comovement of Asset Returns Between Single and Dual Listed Firms Within a Single Stock Exchange
Edson Kambeu,
Zakaria Chikaza
Issue:
Volume 4, Issue 5, September 2016
Pages:
262-270
Received:
22 May 2016
Accepted:
15 June 2016
Published:
31 August 2016
Abstract: This study analyzed the comovement of asset returns between single and dual listed firms on the Botswana Stock Exchange (BSE) with ultimate aim being to determine if investors can realize diversification benefits by investing across single and dual listed firms in a single stock exchange. Using correlation coefficient and the β coefficients of two univariate regression models in which returns of single listed firms were regressed against the returns of dual listed firms and vice versa to determine the strength and direction of the comovement of the asset returns respectively, evidence of weak but positive comovement of the returns was found. Since diversification benefits can be only be realized if assets are both weakly and negatively correlated, we concluded that it is not possible to reap diversification benefits by investing across single and dual listed firms on the BSE. Although weak comovement implied that it may possible to reap diversification benefits by investing across single and dual listed firms, evidence of positive comovement negate the realization of such potential diversification benefits.
Abstract: This study analyzed the comovement of asset returns between single and dual listed firms on the Botswana Stock Exchange (BSE) with ultimate aim being to determine if investors can realize diversification benefits by investing across single and dual listed firms in a single stock exchange. Using correlation coefficient and the β coefficients of two ...
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Effect of Auditing on Financial Performance of Water and Sanitation Company in Kirinyaga County, Kenya
Lucy Wangithi Munene,
Mungai John Njangiru,
Susan Wahito Ngungu
Issue:
Volume 4, Issue 5, September 2016
Pages:
271-284
Received:
6 July 2016
Accepted:
26 July 2016
Published:
7 September 2016
Abstract: Within the framework of modern business world, auditing is a major part of managing an organization. Audits are performed to ascertain the validity and reliability of information and also to provide an assessment of a system's internal control. The goal of an audit is to express an opinion on the truth and fairness of the organization financial statements. The theories guiding this research are the policeman theory, the lending credibility theory and the theory of inspired confidence and the agency theory. The overall objective of this study was to examine the effect of auditing on financial performance of Water and Sanitation Company in Kirinyaga County. The specific objective was to determine the influence of auditor’s independence on financial performance of Water and Sanitation Company in Kirinyaga County. The study used a descriptive survey research design targeting the top management level, middle management level and lower management level staffs of Kirinyaga Water and Sanitation Company. A sample of 42 respondents was selected from a study population of 137 staffs of the company. Proportionate stratified random sampling method was used to get the sample size. Data was collected from primary sources i.e. directly from respondents through open and close ended questionnaires. The collected data was both qualitative and quantitative. The qualitative data was analyzed using content analysis while quantitative data was analyzed using multiple regression analysis and correlation analysis. Analyzed data was then presented in form of data tables. The results of the study revealed that there is a positive relationship between financial performance success and auditor’s independence. The study therefore recommends that Kirinyaga Water and Sanitation Company should maintain and enhance audit assurance services and strong internal control environment.
Abstract: Within the framework of modern business world, auditing is a major part of managing an organization. Audits are performed to ascertain the validity and reliability of information and also to provide an assessment of a system's internal control. The goal of an audit is to express an opinion on the truth and fairness of the organization financial sta...
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Guided Cash Payout Policy and Firm Value: Evidence from China
Yin-Che Weng,
Shiyu Liu,
Yu Qi,
Yadi Qin
Issue:
Volume 4, Issue 5, September 2016
Pages:
285-292
Received:
6 August 2016
Accepted:
22 August 2016
Published:
9 September 2016
Abstract: This study considers the “Guidelines for Cash Dividend Distribution of SSE-Listed Companies” (the “Guidelines”) issued by the Shanghai Stock Exchange (SSE) in January 2013 as an exogenous shock to corporate payout policy and assesses the effect of cash dividends on stock performance. The authorities believe that urging firms to pay out no less than 30% of their annual earnings is attractive to outside investors; however, the study results show that, whereas firms raising dividends to meet the level of payouts in the SSE’s “Guidelines” may gain superior valuation relative to the counterparts in the short term, this effect does not exist in the middle term. In addition, young, growing companies and startups that follow the policy suffer from downsized financial slack and future corporate investment levels. The results contribute to the literature on corporate payout policy and financial liberalization and indicate policy implications for the government of China and SSE-listed firms.
Abstract: This study considers the “Guidelines for Cash Dividend Distribution of SSE-Listed Companies” (the “Guidelines”) issued by the Shanghai Stock Exchange (SSE) in January 2013 as an exogenous shock to corporate payout policy and assesses the effect of cash dividends on stock performance. The authorities believe that urging firms to pay out no less than...
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The Development of Islamic Finance Mechanism for the Financing of Small and Medium Enterprises: Study Case in Sudan Islamic Banks
Issue:
Volume 4, Issue 5, September 2016
Pages:
293-300
Received:
31 May 2016
Accepted:
25 August 2016
Published:
12 September 2016
Abstract: The cureent study deals with the obstacles faced by Banks during the financing of the small and medium enterprises by virtue of equations that restructuring resource control within the Banks. Likewis, it discusses the possibility of providing funding for small enterprises through the combination and the establishment between the contracts to comply with the multiple of these institutions needs. The study shows that the importance of the development of the currently funding mechanisms used during the development of feasibility studies and the development of safeguards and invent new formats cater to the financing needs of these institutions, in line with the restructuring of resources within the Islamic Banks in particular.
Abstract: The cureent study deals with the obstacles faced by Banks during the financing of the small and medium enterprises by virtue of equations that restructuring resource control within the Banks. Likewis, it discusses the possibility of providing funding for small enterprises through the combination and the establishment between the contracts to comply...
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An Empirical Analysis of Activity Based Costing in Chinese Enterprises
Huijuan Lin,
Yanglin Li,
Wanxin Li
Issue:
Volume 4, Issue 5, September 2016
Pages:
301-309
Received:
19 September 2016
Published:
19 September 2016
Abstract: In recent years, with the rapid development of China's economy, the progress of productive forces and economic system led to the shift from a seller's market to a buyer's market, the single species mass production mode to the varieties and labor intensive industry to technology intensive industry. Therefore, production based on sales have become the norm, once high profits caused capital investment along with the releasing capacity and increasing production, the competition between the enterprises gradually bases on the cost. Therefore, with the needs of business development, a new cost accounting system - activity based costing came into being. Activity based costing is based on the cost driver, which could allocate the indirect manufacturing costs more reasonable, then achieve the purpose of further cost control. In many western developed countries, activity based costing has been used in the enterprise. Although its application scope in Chinese enterprise is not very extensive, it has already got certain attention of many enterprises in China.
Abstract: In recent years, with the rapid development of China's economy, the progress of productive forces and economic system led to the shift from a seller's market to a buyer's market, the single species mass production mode to the varieties and labor intensive industry to technology intensive industry. Therefore, production based on sales have become th...
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