<p><em>This paper provides a comparative analysis on stock market performance and augmentation of frontier economies: Nigeria and Mauritius. Using a Paired-Samples T-test statistical modus-operandi, data of Market Capitalization and Gross Domestic Product were obtained from the Central Bank of Nigeria Statistical Bulletin and Annual Financial Services Commission Statistical Bulletin of Mauritius during 2006-2010. The findings revealed that stock market performance for Mauritius was superior to Nigeria and same for GDP. In addition, the negativity shows that stock market performance has a negative impact on economic progress in Nigeria and Mauritius. This may be due to the fact that frontier markets give attention to money market while relegating stock market to the background. </em><em>On this note, since stock market contributes significantly to economic growth, efforts by both governments should be that of developing policies aimed at further strengthening stock market. These policies should not be ‘written-policies’ but policies that can be put into practice. Also, market capitalization can be stimulated by encouraging investments in stock market. This can be done by ensuring investors are fail-safe of their investments. When investors perceive a safety of their investment, they may want to commit their resources and in turn make the economy to flourish.</em></p>
Purpose: A major thread in accounting literature, which has remained a contentious issue, is how accounting alchemy can be modeled. The paper builds on existing accrual models in proposing an accounting alchemy model and tests if it is still the right medicine for earnings and book value of firms. The accounting alchemy model was based on mechanisms of earnings, book value, earnings before extraordinary items, net profit after tax, cash flow from operations, revenue, and total assets. We modified accrual models on the view that accrual models suggest that incomes/expenses are the most manipulated; contrarily, accounting alchemy proposes that assets are alchemized. Originality/value: This paper proposes a new empirical model of accounting alchemy and practically assesses the validity of the model in Sub-Saharan Africa, where there are no studies. The proposed accounting alchemy model can be used in Asia, Europe, and other parts of the world to see if the study results can be replicated. Design/methodology/approach: Ex post facto design was used, and secondary data were obtained for selected quoted firms in Sub-Saharan Africa comprising Nigeria, South Africa, and Kenya from 2012 to 2016. A sample of 64 firms was selected in the consumer and industrial goods subsector, and data were analyzed via descriptive (mean, standard deviation, correlation) and inferential (regression, fixed, and random effects) statistics. Findings: Findings indicated that earnings and book value are significantly affected by accounting alchemy. This implies that accounting alchemy is not the right medicine for firm’s earnings and book value. The result has practical application for researchers and the regulatory framework of accounting.
Despite the indescribable adversity of COVID-19, which raised deaths in most regions, the pandemic came with a number of good lessons that affect certain value metrics (healthcare, education, productive capacity, and price control mechanisms). In this study, we examined the role played by COVID-19 pandemic cases and deaths in selected regions and the need for policy recommendations. Using a mixed research approach, reported laboratory-confirmed COVID-19 cases and deaths between 12 and 17 March 2020 were obtained across six regions – Western Pacific, Europe, South East Asia, Eastern Mediterranean, America and Africa. Qualitative results showed that the COVID-19 pandemic predominantly affected Western Pacific and European regions. Besides, an analysis of variance revealed an insignificant difference in reported laboratory-confirmed cases and deaths of COVID-19 across the regions during the studied period. These results are, in part, attributable to the homogeneity in the strategies adopted to tackle the COVID-19 pandemic in these regions. Thus, there is a need to strengthen certain valuable metrics, particularly in the healthcare sector by means of upgrading medical equipment (for nations in lack) and recruiting more qualified healthcare workers in view of future events of any pandemic.
This study seeks to (1) assess the relationship between CEO attributes and firm value, and (2) ascertain the moderating role of firm size in the relationship between CEO attributes and firm value, using a panel research design. This study identifies CEO tenure, CEO turnover, and CEO ownership as CEO attributes, Tobin's Q as a measure of firm value, and the natural logarithm of total assets as a measure of firm size. Data were sourced from the database of Machameratios for the period 2010 to 2019 and analyzed using fixed and random effects regression and structural equation modeling. First, the fixed and random effect result revealed that CEO tenure, turnover, and ownership negatively affect the value of the firm; however, the relationship was only significant for CEO tenure and ownership. Second, the structural equation modeling result showed that while firm size does not play a significant moderating role in the relationship between CEO tenure and turnover and firm value, a significant moderating (negative) effect was found for CEO ownership. The study recommends that since CEO turnover and tenure do not matter to the value of the firm, there is a need to ensure that a CEO’s term in office is not lengthened beyond what is required by tenure legislation, i.e., it should not exceed 4 years. In addition, for larger firms, CEO shareholding should be adequately managed to positively affect the value of the firm.
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