Dr. Maria Ciurea
Associate Professor, Department of Economics Sciences, Faculty of Sciences, University of Petrosani, Romania.

ISBN 978-93-5547-713-2 (Print)
ISBN 978-93-5547-715-6 (eBook)
DOI: 10.9734/bpi/cabef/v2

This book covers key areas of Business, Economics and Finance. The contributions by the authors include business enterprises, information and communication technology, business incubation, business performance,  Managerial style, computer based accounting information system, managerial performance, sugar industries, revitalization, Financial statements, capital market,  financial information,  Revaluation of property, stock price, Foreign trade policy, bilateral trade agreement, global supply chains, anti-protectionist forces, trade policies,  market efficiency, sukuk indices,  GARCH-in-Mean, Business Income Tax , corporate sponsorships, tax-exempt organizations, qualified sponsorship payments, Privatization, divergence, convergence, OHADA uniform accounting act, international financial reporting standards, Agricultural insurance, wine supply chain, public subsidies, insurance indicators, controlled and guaranteed origin denomination , economy of viticulture, ARIMA, time series,  Job satisfaction, and  turnover intention. This book contains various materials suitable for students, researchers and academicians in the field of Business, Economics and Finance.

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Small business enterprises, or SBEs, are often defined by their small size, limited resources, and low employee count. Some of them were given access to incubation programs, which provide access to working space, business capacity building, networking, mentoring, and business development support services in order to overcome those problems during the early phases of business operations. This study looked at how information and communication technology (ICT) can help SBEs in Tanzania that have been subjected to incubation programs improve their business performance. Purposive sampling was used to collect primary data from fifty SBEs undergoing incubation programs at the Tanzania Engineering and Manufacturing Development Organization, one of the government facilities. The data was analyzed using the Statistical Package for Social Science and the R Programming Language. The results showed that incorporating ICT into day-to-day activities improves access to business information, increases market overage and market share, strengthens marketing promotion efforts, and reduces financial difficulties by over 70%. In terms of increasing output from business operations, the findings revealed that the use of ICT is likely to improve business performance by creating a favorable business environment, reducing business-related obstacles, and shortening the time it takes to bring new products to market for 64 percent, 78 percent, and 72 percent of respondents, respectively. Improving corporate efficiency is a side effect rather than a direct result. Furthermore, using ICT, incubated SBEs have a significant possibility of growing the number of products sold, the quantity of money earned, and profit margin by more than 60%. Nonetheless, the impact of ICT on the ability to sell firm assets on the open market is just 52%. As a result, despite their limited resources, incubated SBEs must try to integrate ICT-mediated technology into their operations.

The goal of this research was to discover a solution to an issue involving the impact of managerial style and the installation of a computer-based accounting information system (CBAIS) on the managerial performance of Indonesian sugar industries. This research was conducted through deductive analysis supported the phenomenon then sought evidence through survey to several sugar industries in Indonesia to get the empirical data. This is a descriptive (explanatory) study that uses hypothesis testing to describe the causal link between particular variables. The managerial style of using management accounting information on sugar industries in Indonesia is classified as interactive, which means that managers utilize management accounting information to include employees and subordinates in decision-making activities on a regular and personal basis. The application of CBAIS to Indonesian sugar industry is categorized as moderate, indicating that the situation is neither poor nor excellent. Managerial style and CBAIS adoption have a substantial impact on the success of Indonesian sugar businesses.

We'll look at why accounting and financial reporting systems developed differently in different countries in this study. Finally, we'll look at research methodologies that attempt to explain disparities in accounting quality observed between nations using national factors, even after these countries transitioned to mandatory compliance with IFRS for listed companies. The indicated boundaries are determined by national or international standard setters, such as the IASB, who promulgate the techniques of recognition and measurement, consolidation presentation, and disclosure that the corporation must follow. When it comes to those concerns, certain standard setters give you a lot of options. Companies located in countries where standard setters allow many choices with regard to recognition and measurement issues have much more accounting flexibility in the presentation and valuation of this assets, liabilities, earnings and financial position. As a result, users of financial statements from companies in countries with greater accounting freedom will have more difficulty comparing the performance of different companies than users of yearly accounts from companies in countries with less accounting flexibility. Harmonization improves the comparability of financial data and provides greater openness to financial data users. As a result, there is less information asymmetry between stakeholders and businesses.

Accounting provides an account – an explanation or report in financial terms – about the transactions of an organization. Accounting enables managers to satisfy the stakeholders in the organization (owners, government, financiers, suppliers, customers, employees etc.) that they have acted in the best interest of the stakeholders rather than themselves.

This explanations are provided to stakeholders through financial statements or reports, often referred to as the company’s accounts’. The main financial reports are the Profit and Loss account, The Balance Sheet and the Cash flow statement.

The presentation of financial reports must comply with Schedule 4 to the Companies Act, 1985, which prescribes the form and content of accounts. Section 226 of the Act requires the financial reports to represent a ‘true and fair view’ of the state of affairs of the company and its profits. The companies Act requires directors to state whether the accounts have been prepared in accordance with accounting standards and to explain any significant departures from those standards. For companies listed on the Stock Exchange, there are additional rules contained in the Listing Requirements, commonly known as the Yellow Book, which requires the disclosure of additional information.

The purpose of this study was to determine the impact of revaluation of property, plant, and equipment on stock prices and the rate of return on stock in a manufacturing company. The manufacturing firms represented in the index LQ45 on the Indonesia Stock Exchange from January 2011 to December 2013 were included in the population. The data were examined using multiple regression and the descriptive approach. The information was acquired via data collecting, data processing, and statistical analysis from an annual financial report on the Indonesian stock exchange.  The main objective of the financial statement is to provide information about the financial position, performance, and the changes in the company's financial position that will be useful for economic decision-making. The findings of this study indicate that: 1) There is a relationship between the financial asset classes of property, plant, and equipment at fair value with reliability, 2) Reporting of fixed asset property, plant, and equipment at fair value biased and unreliable especially for SE (The difference between the change in the value of assets) and PPNINC (the increase of the value of property, plant, equipment company in period t), and 3) The fair value can explain the explanatory power which is quite significant to the stock price, exceeds that can be presented with the historical cost. The conclusion drawn from the findings is that asset reporting at fair value did not exhibit a reliable quality. This resulted from a discrepancy in the reporting of a growth in the value of property, plant, and equipment in some quarters and an exaggerated increase in the value of firm assets in certain periods. Additionally, changes in the value of property investment, plant, and equipment were recorded together with investor assessments and carried a reliability value.  

The main aim of the article is indication of  the increasing importance of bilateral trade agreements in the foreign trade policy and the rise of global supply chains in the modern international business,. The subject of the discussion and theoretical contribution in the undertaken research program is presents new tendencies in international business - the rise of importance of bilateral agreements in foreign trade policy. It is important to underline  that a few multinational firms are responsible for a major share of world trade and for the rise of global supply chains. On the one hand, these firms should support regulatory harmonization across different Preferential Trade Agreements (PTAs) in order to lower trade costs. On the other hand, they might also resist harmonization – and encourage certain non-tariff measures – in order to prevent new competitors from entering markets. This may partly explain the persistence of regulatory divergence, and suggests that the political economy of regulatory convergence, especially in the conditions of the rise global supply chains, may be more complex than is sometimes suggested.

The Efficiency of Sukuk Indices by Different Tenures Following the 2008-Financial Crisis

Syazwani Abd Rahim

Current Aspects in Business, Economics and Finance Vol. 2, 14 July 2022, Page 98-116

The sukuk market in the Islamic capital market has evolved and grown significantly. During the 2008 global financial crisis, the deteriorating economic conditions of countries, particularly Malaysia, the world's largest sukuk market, had a negative impact on the value of sukuk investments. The 33% decrease in total global sukuk issuance following the 2008 crisis created a complicated situation among sukuk investors (who classified sukuk as a risky investment), which increased the number of sukuk defaults. In addition, the high volatility has an impact on long-term efficiency. The Dow Jones Sukuk 1-3 Year Total Return Index (DJSUK3TR) and Dow Jones Sukuk 7-10 Year Total Return Index (DJSUK7TR) provide daily data for all sukuk indices (DJSUK10TR). As a result, using the GARCH-in-Mean (GARCH-M) model, this study investigates the types of sukuk market efficiency before, during, and after the 2008 global financial crisis. The Efficient Markets Hypothesis (EMH) and the Random Walk model are used in the analyses. The results show that the long-term sukuk index (DJSUK10TR) provides the best market performance analysis. Overall, the sukuk market is considered inefficient. In short, the findings will provide valuable information and guidelines and give issuers, policymakers, regulatory bodies, and investors confidence to invest in and issue sukuk. The empirical contributions in this study demonstrate the significance of sukuk in encouraging investors to invest in sukuk to boost economic growth and investment.

Sarbanes Oxley Act: The Unintended Consequences and Financial Restatements

Kingsley Wokukwu

Current Aspects in Business, Economics and Finance Vol. 2, 14 July 2022, Page 117-128

The present study aimed to compensate for the failure of governances that culminated in Enron, WorldCom and Tyco financial scandals. Corporate managers are being held accountable for corporate governance and Sarbanes Oxley Act also detects what firms can and cannot do. This paper argues that Sarbanes Oxley Act has given investors a fresh breath of life with a renewed sense of confidence in the US financial market. Sarbanes Oxley Act tend to minimize corporate collapses, audit failures and litany of financial restatements that permeated the corporate arena, the financial market several years and bred deep cynicism and public anger. The new standard would require the auditor’s opinion to refer to the Board’s authority. Prior to Sarbanes Oxley Act; auditors were governed by a system of self regulation which did not preserve their ability to act independently and objectively to be watchdogs. The Sarbanes-Oxley Act is signed into law in order to restore investor confidence in public and financial markets through a combination of rules and oversight that address conflict of interest on the investor side and a lack of accountability on the corporate side in order to improve corporate governance. Firms have better internal control environment as a result of Sarbanes Oxley Act. This translates to a more accurate and reliable information conveyed to investors who would rely on published financial statements to make informed investments decisions.

Use of “Privatization”: A Socioeconomic Point of View

Abdullah Murat Tuncer

Current Aspects in Business, Economics and Finance Vol. 2, 14 July 2022, Page 129-138

The main goals of privatization are to increase production efficiency, which leads to faster economic growth and development, strengthen the private sector's role in job creation, improve the public sector's financial health, and provide free resources for use in public-interest sectors such as education, security, health, housing, transportation, and other infrastructure development initiatives. Privatization has become much more common as a result of globalisation. Priva- tizations made with the aim of closing the deficit and paying debts may pro- vide a temporary and false state of well-being. How- ever, in privatizations, the primary goals are gradually shifting to the second- ary, with most privatizations aiming to close the public finance deficit. The transfer of institutions, which have been gained over time with public funds and have historical and sociological significance for countries, to the private sector through hasty and unsuitable privatisations creates substantial long-term losses for societies. The privatizations that accelerated in our country in 1980s were mostly carried out to close the public finance deficit, and at this point, the debts increased, even more, efficient institutions were lost, and public losses emerged. Most of the projects carried out under pub- lic-private partnerships, which should be considered a form of privatization, have cost the public much more than their real values. As a result, when the privatizations were viewed broadly, the total cost to the public was greater than the profit.

OHADA Uniform Accounting Act Compliance Assessment for Public Limited Companies

Michael Forzeh Fossung

Current Aspects in Business, Economics and Finance Vol. 2, 14 July 2022, Page 139-155

The Francophone African countries have made and continue to make remarkable efforts in harmonising the domestic financial reporting framework with the International Financial Reporting Standards (IFRS). Moving from the OCAM streams (effective 1985) to the OHADA Uniform Act  (effective 2001) and now the OHADA Uniform Act on Accounting and Financial Reporting embodying 17 member countries is a milestone towards harmonisation of reporting practice domestically and internationally. This empirical study examines whether the effort of harmonisation, especially after the 2001 standards, has resulted in the successful convergence of firms' accounting practices. Specifically, the study investigates the extent to which public limited liability companies comply with the OHADA Uniform Act and whether such compliance has improved over time. Three public limited firms in the OHADA zone that convert their financial statements into IFRS provided their annual reports for 2008 and 2009, which were used in the study. Data analysis has employed the closeness ranks and compliance index. Findings reveal a relatively high level of compliance with the OHADA Uniform Act on Accounting and Financial Reporting. The findings also show harmonisation in the accounting practices of limited companies within member countries, as they were discovered to be substantially consistent in compliance, particularly in countries that have implemented the Statistics and Tax Returns (or "DSF") as a reporting system. 

Investigating Grape Insurance in the Conegliano-Valdobbiadene Prosecco Docg Area, Economic Analysis and Assessment of Policy Measures, Period 2014-2017

Antonio De Pin, Pier Paolo Miglietta, Benedetta Coluccia, Fabian Capitanio

Current Aspects in Business, Economics and Finance Vol. 2, 14 July 2022, Page 156-205

Agricultural insurance is essential for the protection of crop products. By decreasing insurance firms' desire to assume climatic risks, the growing frequency of extreme weather occurrences in Italy has a significant impact on the dynamics of the crop insurance market. In this context, this study focuses on the demand for insurance in the Controlled and Guaranteed Designation of Origin (Docg) area of Conegliano-Valdobbiadene. The objective of the analysis is to provide a very detailed snapshot of adherence to agricultural policy measures, to fill the knowledge gap in the attitude of winegrowers towards insurance. The study starts from the microdata of the individual insured farm at the municipal level, preliminarily providing an economic representation of the viticulture of the Docg Prosecco district. Second goal is to define a suitable assessment of the insurance demand, by innovative indicators, identifying the main economic effects of public contributions for the three subjects involved in the market: winegrowers, public stakeholders, and insurance companies. The research provides interesting analysis and discussion of the results, and possible policy implications. In particular, the effect of public measure is investigated using the subsidy efficiency index (SEI). Its overall positivity underlines the relative efficiency of the level of the grants. The capability to represent the real set-up of subsidized grape insurance in such a defined context can feature a significant merit to address knowledge transfer to policy makers and stakeholders.

Revised Study of Daily Time Series Data Analysis of Market Prices

Jeffrey Jarrett

Current Aspects in Business, Economics and Finance Vol. 2, 14 July 2022, Page 206-217

The purpose of this paper is to clarify the existence of time series characteristics of daily stock prices of securities marketed on organized exchanges. This study differs from previous studies where the focus was on index numbers of daily stock market prices rather than the actual prices of traded securities. Furthermore, this study is important because of the theory of market efficiency and its application to short term forecasting of closing prices of traded securities. Furthermore , The study includes analyses by others on stock market reactions to Pandemic influences (Scherf , Matschke and Rieger, 2022, and forecast revision methodologies.

Determining the Factors Influencing Job Satisfaction of Management and Professional Employees in Public Sector Malaysia

Abdul Rahim Zumrah, Kalsom Ali, Ahmad Najaa’ Mokhtar

Current Aspects in Business, Economics and Finance Vol. 2, 14 July 2022, Page 218-227

There are five work environment factors that influence job satisfaction of management and professional employees in this context. The factors include work stress, perceived organisational support, training, peer support, and participative leadership style. This study offers empirical support for the idea that job satisfaction plays a role in lowering turnover intentions, particularly among managerial and professional workers in Malaysia's public sector.