Measuring the Statutory Independence of Sub-Saharan Africa Central Banks

Nhavira, John Davison Gondwe; Ocran, Matthew Kofi

doi:10.1353/eas.2014.0002

Cited by 2 publications

(2 citation statements)

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“…Thomsett (2011:73) buttressed by Kararach and Otieno (2016) posits that 'the real definition of inflation is the gradual erosion of purchasing power'. In the context of Zimbabwe, the local currency essentially collapsed (Nhavira & Ocran 2014) because of the magnitude of the hyperinflation.…”

Section: The Essence Of Entrepreneurship In Hyperinflationary Environmentsmentioning

confidence: 99%

The importance of tolerance for failure and risk-taking among insurance firms in hyperinflationary Zimbabwe

Kapepa

Vuuren

2019

The Southern African Journal of Entrepreneurship and Small Busi

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Background: At the dawn of the 21st century, Zimbabwe started moving towards dangerous levels of the infamous hyperinflation trajectory that made management of businesses a nightmare. Many businesses failed.Aim: This study seeks to explore if entrepreneurship, and in particular the aspects of risktaking and tolerance of failure, could have saved the few companies that survived the menace that ravaged the insurance industries among many other sectors of the economy. Setting:The study looks at this particular entrepreneurial behaviour of risk-taking among insurance companies in Zimbabwe during the hyperinflationary environment that ravaged and defied economic logic and fundamentals. Savings were being eroded at a pace faster than anywhere in the world ever before, taking a toll on businesses as they struggled to survive.Methods: Using a survey sample of insurance companies in Zimbabwe, a quantitative approach was adopted. Questionnaires were used to extract data from participants to establish the nature and extent of risk-taking, and in particular tolerance for failure during this period. Therefore, tolerance of failure in corporate entities is discussed in this article as a critical aspect of risk-taking that enhances entrepreneurial innovation and ultimate prospects of corporate prosperity among insurance companies. A measure is developed to gauge the extent of tolerance of failure from the perspective of employees in the insurance industry in Zimbabwe. Results:The benefit of tolerance of failure or the lack thereof was measured on the dimension of profitability and growth. Results revealed that tolerance of failure is a necessary entrepreneurial virtue that encourages knowledge acquisition by both experimental and experiential learning -a risk element that also spurs entrepreneurial innovation and ultimately encourages both profitability and growth of the business entity, if well managed. Conclusion:The study concluded that firms that tolerate failure are more likely to be entrepreneurially innovative and perform better than those that are risk-averse and do not tolerate failure.

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Section: The Essence Of Entrepreneurship In Hyperinflationary Environmentsmentioning

confidence: 99%

The importance of tolerance for failure and risk-taking among insurance firms in hyperinflationary Zimbabwe

Kapepa

Vuuren

2019

The Southern African Journal of Entrepreneurship and Small Busi

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“…First, despite the importance of timely audit reports for CBs' credibility and reputation (Blinder, 2000), limited studies have attempted to address the issue (Arda et al, 2018;Camilleri et al, 2007). Second, the lack of studies is also evident in SSA: despite a number of studies conducted on the governance and independence of SSA CBs (Agoba et al, 2017;Ajakaiye and O'Connell, 2011;Kasseeah et al, 2011;Ndulu and Masawe, 2015;Nhavira and Ocran, 2014), none has addressed the issue of the timeliness of audited reports and its linkage to the board of directors as part of corporate governance which is considered to be one of the problems by Mehran et al (1998) [1]. Third, studies which have investigated the relationship between corporate governance and ARL (such as Afify, 2009;Habib and Bhuiyan, 2011;Habib et al, 2019;Jaggi and Tsui, 1999;Leventis et al, 2005;Mathuva et al, 2019;Rusmin and Evans, 2017) have identified a number of factors which can be categorized into board and auditing characteristics.…”

Section: Introductionmentioning

confidence: 99%

Board characteristics, auditing characteristics and audit report lag in African Central Banks

Chalu

2021

JAEE

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PurposeThe purpose of this paper is to examine the determinants of audit report lag in Sub-Saharan African Central Banks. In this case, the determinants were divided into two categories: independent variables and mediating variables. The independent variables, which were generated from board characteristics, included board size, board gender diversity, governor duality, audit committee size and audit committee meetings. The mediating variables were auditing characteristics and they comprised audit mandate, audit approach and audit quality.Design/methodology/approachThe study used data from 192 observations from African Central Banks' financial reports for the period 2000–2016. The data collected were analyzed using path analysis, whereby four regression models were run and tested simultaneously. From the analysis, the study determined total effects and then decomposed the total effects into direct and indirect effects.FindingsThe study results indicate that in the case of board characteristics, governor duality and audit committee size were found to have a positive influence on audit report lag. In the case of audit quality, only audit mandate was found to have a negative influence on audit quality in the Central Banks. However, the introduction of mediating variables increased the positive effect of governor duality and audit committee size, while also making board size and board gender diversity have a significant negative effect on audit report lag.Practical implicationsThe findings of this paper have implications for the practice and policy of the auditing and governance of Central Banks, which includes designing appropriate governance structures as well as proper auditing strategies.Originality/valueThis is the first study which has examined factors influencing audit report lag in Central Banks. Previous studies on Central Banks' governance have examined the independence and autonomy of the Central Banks, as well as their accounting. This paper extends prior studies by examining the effects of those factors. Another contribution is the study's application of auditing characteristics as mediating variables.

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Measuring the Statutory Independence of Sub-Saharan Africa Central Banks

Cited by 2 publications

References 20 publications

The importance of tolerance for failure and risk-taking among insurance firms in hyperinflationary Zimbabwe

The importance of tolerance for failure and risk-taking among insurance firms in hyperinflationary Zimbabwe

Board characteristics, auditing characteristics and audit report lag in African Central Banks

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