Research Journal of Finance and Accounting
https://iiste.org/Journals/index.php/RJFA
<p class="Default"><span>The scopes of the Research Journal of Finance and Accounting (RJFA) include, but not limited to, asset pricing, investments, risk management, regulation, and insurance to corporate finance, financial intermediation, financial econometrics, financial forecasting, and financial engineering. The journal is published in both printed and online versions. The ambition of RJFA is to become a recognized top tier journal, acclaimed for redirecting international financial research and studies for defining new directions.</span></p><p class="Default"><span>IISTE is a member of <a href="http://www.crossref.org/01company/17crossref_members.html">CrossRef</a>.</span></p><p class="Default"><span><span>The DOI of the journal is: https://doi.org/10.7176/RJFA</span><br /></span></p>The International Institute for Science, Technology and Education (IISTE)en-USResearch Journal of Finance and Accounting2222-1697<div>Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication. <br />Copyrights for articles published are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.</div>Journal coverpage
https://iiste.org/Journals/index.php/RJFA/article/view/62115
Journal coverpageJournal Editor15Adaptation of Mobile Financial Services (MFS): Scenario of Regional Bangladesh
https://iiste.org/Journals/index.php/RJFA/article/view/62116
<p>Financial industry is no exception in need of digitization in changing business eco-system for functioning of various sectors. Adapting sophisticated technological solutions especially Mobile Financial Services (MFS) emerges as a viable option in a country like Bangladesh, where a significant majority lives in regional areas with limited access to traditional banking services. The fact that MFS is less widely adapted in rural areas of Bangladesh than in cities in conjunction with the population concentration. This phenomenon has led to research on the variables influencing MFS adaption among regional communities. Regression analysis was used in this study to examine and determine the factors impacting the situation, drawing attention to the theories on the Technology Acceptance Model, the Theory of Reasoned Action, and the Theory of Planned Behaviour. Perceived usefulness and trust are two of those factors that significantly influence attitude while perceived ease of use, self-efficacy and costs have no significance. Ultimately, this study advances the understandings of MFS adaption in local communities and provides insightful information to financial institutions, service providers, and regulators. It is anticipated that MFS would be crucial in transforming the transaction culture in rural areas of Bangladesh, which are now mostly centred on cash transactions.</p> <p><strong>Keywords:</strong> Mobile Financial Service, Adaptation, Attitude, Cash-less Transaction.</p> <p><strong>DOI: </strong>10.7176/RJFA/15-2-01</p> <p><strong>Publication date: </strong>January 31<sup>st</sup> 2024</p> <p><strong> </strong></p>Mustafa Mamun HayatMohammad Abul Kashem15Analyzing the Success of BRISPOT: Utilizing Human, Organization, and Technology-Fit Factors (HOT-FIT)
https://iiste.org/Journals/index.php/RJFA/article/view/62117
<p>Micro, Small, and Medium Enterprises (MSMEs) constitute the primary market share for Bank BRI, underscoring their significance within the company profile. The annual target for micro-businesses aims to fortify and sustain BRI's position as the market leader for micro-businesses in Indonesia. Recognizing the intensifying competition in the micro-business sector, BRI has developed BRISPOT, a digital-based application with a one-stop service concept. This enables Loan Officers to seamlessly conduct credit processes end-to-end, anytime, and anywhere. This research was conducted at the Bank BRI Denpasar Regional Office. The study population consisted of all micromarketers/mantri, totaling 1,550 individuals. Probability sampling techniques, specifically proportionate random sampling, were employed in this research, and a sample size of 205 was determined, aligning with Hair et al.'s guidelines. The data collection method utilized a questionnaire with a 5-point Likert scale. The data analysis technique employed in this research is SEM-PLS (Partial Least Squares). The results of this research indicate that organizational structure, organizational environment, system quality, information quality, service quality, and self-efficacy positively influence user satisfaction. Furthermore, user satisfaction has a positive impact on net benefits.</p> <p><strong>Keywords: </strong>User Satisfaction, Net Benefit, HOT-Fit, BRISPOT, Micro Credit</p> <p><strong>DOI: </strong>10.7176/RJFA/15-2-02</p> <p><strong>Publication date: </strong>January 31<sup>st</sup> 2024</p>Ida Ayu Mas Indira PramestiI Nyoman Wijana Asmara PutraPutu Agus Ardiana15Cash Flow Management and Growth of SMEs in Uganda
https://iiste.org/Journals/index.php/RJFA/article/view/62118
<p>Cash flow management is a component of working capital management that aims to establish the financial position of the organization. The primary objective of cash flow management is to balance cash inflows with cash outflows in a matched approach to financing working capital. The study investigated the relationship between cash flow management and the growth of Small and Medium Enterprises (SMEs). The study was conducted in Gulu Municipal in northern Uganda using a cross-sectional survey design. Data were collected from a random sample of 94 businesses stratified as private schools (44), hotels (44), and clinics (6). The study used a quantitative approach, and the categorical data were measured using a five-pointLikert scale. Data analysis was based on the generated descriptive and inferential statistics. The study established that there is a significant and positive relationship between SMEs growth and cash flow management at . The study found that motives for cash holding is the major determinants of SMEs growth.The significant and positive relationship between SMEs growth and cash flow management at means that in making liquidity decision management should attach great importance to the cash component of working capital. A coefficient of determination of , means that about one third of the variation in growth of SMEs is accounted for by proper cash management of organizational resources. SMEs need to focus on cash flow management as a component of liquidity decision taken in their business. Financial institutions that finance gaps in working capital should ascertain clear cash holding strategies of the borrowers.<strong> </strong>Other researchers could explore the contribution of the components of working capital to the growth of SMEs. This should be in addition to the contribution of investment decision, financing decision, and dividend decision as a totality of best financial management practices in the promotion of growth of SMEs.</p> <p><strong>Keywords:</strong> Cash Flow Management, Motives for Cash Holdings, SMEs, Uganda</p> <p><strong>DOI: </strong>10.7176/RJFA/15-2-03</p> <p><strong>Publication date: </strong>January 31<sup>st</sup> 2024</p> <p> </p>Okello Gregory NicholasLayet Single AgnesOlido Kenneth15Institutional Ownership and Firm Value: A Literature Review
https://iiste.org/Journals/index.php/RJFA/article/view/62119
<p>Various research results show four different views on the relationship between institutional ownership and firm value: linear positive, negative linear, no relation, and an inverted U shape. This article aims to understand each relationship and develop future research on institutional ownership and firm value. Research articles investigating the relationship between institutional ownership and firm value were used as the data in this study. Several works of literature were collected using the database provided by Google Scholar and Scopus. This article proposes future research to add a moderating or mediating variable, using measures other than Tobin's Q. A similar study can be carried out in developing countries because of the low level of investor protection.</p> <p><strong>Keywords: </strong>Agency Theory, Firm value, Institutional ownership</p> <p><strong>DOI: </strong>10.7176/RJFA/15-2-04</p> <p><strong>Publication date: </strong>January 31<sup>st</sup> 2024</p>Ketut Arya Bayu WicaksanaIda Bagus Anom PurbawangsaLuh Gede Sri ArtiniIca Rika Candraningrat15The Determinants of CEO Cash Compensation in Commercial Banks: Evidence from Jordan
https://iiste.org/Journals/index.php/RJFA/article/view/62120
<p>Compensation paid to top executive managers is one of the sensitive areas in modern corporate finance. The objective of this paper is to investigate the determinants of the Chief Executive Officer and/or the Chairman of the board of directors’ cash compensation. It tests mainly the linkage between ownership concentration, role duality, financial performance, among other variables, and executives cash compensation for a sample of 8 commercial banks listed on Amman Stock Exchange during the period 2010-2013. By using panel data analysis, I find little evidence that highly concentrated ownership structures reduce Chairmen of the boards, but not CEOs, cash compensations. In addition, financial performance plays a major role in setting the Chairmen of the boards, but not CEOs, pay levels. Moreover, CEOs in larger banks are more compensated than others in smaller ones. Whereas, CEOs in high-risk banks are not provided with higher rewards. More importantly, the analysis fails to link executives cash compensation to role duality, suggesting that there is a small and negligible role for the separation of the positions of CEO and Chairman of the board of directors in determining CEO cash compensation. Overall, the results revealed that the factors influencing CEO cash compensation in banking industry are remarkably different of those influencing the Chairman of the board cash compensation. In summary, agency problem in Jordanian banks may not be that severe. Executives’ compensation contracts and ownership structures are, to some extent, effective mechanisms for alleviating the classical agency problem and aligning the interests of owners and managers. However, Jordanian CEOs are unjustifiably overcompensated as they fail to prove their worth, in light of such lamentable performance of the Jordanian banks, which raises questions about executives’ compensations determining mechanism, and the process of hiring CEOs in the first place.</p> <p><strong>Keywords:</strong> Agency theory, Cash compensation, CEO, Ownership structure, Role duality</p> <p><strong>DOI: </strong>10.7176/RJFA/15-2-05</p> <p><strong>Publication date: </strong>January 31<sup>st</sup> 2024</p><p> </p>Yahia M. Al-Mughrabi15Corporate Governance Mechanism Towards Earnings Management: Does Financial Distress Could Make It Better?
https://iiste.org/Journals/index.php/RJFA/article/view/62121
<p>This study aims to assess the impact of institutional ownership, managerial ownership, board size, and audit committee size on earnings management, with a focus on the intervening variable of financial distress. Employing a causality research design, secondary data were derived from the annual financial reports of State-Owned Enterprises listed on the Indonesia Stock Exchange for the period 2017–2021, encompassing 20 companies. A purposive sampling technique was applied to select a sample of 11 companies, and data processing and analysis employed path analysis and t-tests through the IBM SPSS 25 analysis tool. The findings reveal that managerial ownership exerts a negative influence on financial distress, while audit committee size exhibits a positive impact on financial distress. In contrast, institutional ownership and board size do not significantly affect financial distress. Financial distress, in turn, influences earnings management and serves as a mediator in the relationship between audit committee size and earnings management. However, financial distress does not act as a mediator for the effects of institutional ownership, managerial ownership, and board size on earnings management. The study underscores that the implementation of good corporate governance practices within companies can effectively mitigate earnings management practices and safeguard against the onset of financial distress.</p> <p><strong>Keywords</strong>: institutional ownership, managerial ownership, size of board of directors, audit committee size, financial distress, earnings management.</p> <p><strong>DOI: </strong>10.7176/RJFA/15-2-06</p> <p><strong>Publication date: </strong>January 31<sup>st</sup> 2024<em> </em></p>Wiwi IdawatiSugeng PranotoHayu S. PrabowoMuchlis .15Integrated Reporting: A Jurisdictional Review on the Progress of Implementation
https://iiste.org/Journals/index.php/RJFA/article/view/62168
<p>Integrated reporting has evolved over time, being a coagulation of various corporate reporting regimes that have been integrated to form a single concise report. Different jurisdictions have accepted integrated reporting, albeit to varying degrees of implementation. In South Africa, integrated reporting is mandatory for companies listed on the Johannesburg Stock Exchange. In other jurisdictions, integrated reporting is voluntary. This article traces the historical development of corporate reporting culminating in integrated reporting. The progress of implementation in different countries and regions is reviewed, showing challenges and recommendations to improve the implementation statuses.</p> <p><strong>Objectives:</strong> The main objective of this study was to give a historical perspective on the development of integrated reporting over the years and in different jurisdictions, examining challenges of integrated reporting implementation and suggestions for improvement are offered.</p> <p><strong>Methods:</strong> The study used a literature review approach to gather the history of corporate reporting and integrated reporting implementation progress</p> <p><strong>Results:</strong> Integrated reporting is still a developing corporate reporting phenomenon that is at various stages of implementation in various jurisdictions across the world.</p> <p><strong>Conclusions:</strong> The study shows that actions are required to bring the implementation of integrated reporting to similar levels for countries that have accepted it.</p> <p><strong><em>Keywords:</em></strong><em> integrated reporting, corporate reporting, sustainability reporting, corporate governance.</em></p> <p><strong>DOI: </strong>10.7176/RJFA/15-2-07</p> <p><strong>Publication date: </strong>February 28<sup>th</sup> 2024</p>Felix ChirairoMashukudu Hartley Molele15Loan portfolio planning and financial performance of Savings and Credits Cooperatives in Uganda: Evidences from SACCOs in Rubirizi District, Western Uganda
https://iiste.org/Journals/index.php/RJFA/article/view/62169
<p>This study was about loan portfolio management and financial performance of SACCOs in Rubirizi. A sample of 110 respondents was obtained using the Census Method, the study used cross sectional research and correlational approaches. Self Administered Questionnaires and an interview guide were used to obtain the data. Frequency distributions, percentages, means, correlation, and regression were used to examine quantitative data and thematic analysis for qualitative data. Inferential analysis results showed;- loan portfolio planning(r = 0.82**, p = 0.000 0.05) had a strong positive significant relationship with financial performance. As a result, it was determined that loan portfolio planning is critical for financial performance. Based on the findings, the study suggested and recommended to the Ministry of Trade, Industries, and Cooperatives and stakeholders in SACCO management to support loan portfolio planning before extending loans to them</p> <p><strong>Key words: </strong>Financial Performance, Loan portfolio planning and SACCOs</p> <p><strong>DOI: </strong>10.7176/RJFA/15-2-08</p> <p><strong>Publication date: </strong>February 28<sup>th</sup> 2024</p>Jackline AbenaitweAsuman BateyoAluonzi BuraniManyange Nyasimi Michael15