The Effect of Tax Avoidance and Political Connection on Firm Value: Institutional Ownership as Moderating Variable

This research examined the effect of tax avoidance and political connection on firm value with institutional ownership as a moderating variable. It was motivated by many firms that have taken tax avoidance actions in the last period. Tax avoidance activities can reduce firm value from the public perspective. Furthermore, when a business commits a tax offense, it is considered to have violated the law. Tax avoidance activities are conducted to fulfill the interests of firm management instead of the shareholders, which may result in agency conflict. This conflict can be minimized by implementing corporate governance with institutional ownership mechanisms. The existence of institutional ownership can effectively oversee the management. Institutions can also evaluate management performance, reducing tax avoidance activities and controlling political connection between firms and the government. Therefore, firm value cannot be reduced in the long term from the public perspective.This research used secondary data from Manufacturing Firm Financial Reports during 2017-2019. Statistical analysis and hypothesis testing were performed using Smart-PLS software. The results showed that tax avoidance and political connection do not affect firm value. Furthermore, institutional ownership cannot moderate the relationship between tax avoidance and firm value. This research considered institutional ownership as part of corporate governance that can moderate the relationship between tax avoidance, political connection to firm value, and the relationship between tax avoidance and firm value. Meanwhile, institutional ownership could moderate the relationship between political connection to firm value.Keywords: Tax Avoidance, Political Connection, Firm Value, Institutional Ownership

Crypto-currencies and Stock Market Performance: Evidence from the Nigerian Stock Exchange Market

The COVID-19 era ushered in new investment options and payment systems within the global financial system, this investment option operates independently of the economic stock market. Studies have remained inconclusive if the virtual asset is a substitute or complement that can improve the overall performance of the stock market. Due to this lacuna, this study examines the quantile and conditional mean impact of crypto-currencies on stock market performance in Nigeria. The secondary data was monthly data for (60) months from 31st January 2019 to 31st December 2023. The study was anchored on the financial innovation theory of Schumpeter. The VECM (Vector error correction model) and the Quantile regression technique were the econometric techniques used to draw inferences from the outcome and explanatory variables. The VECM findings revealed that 77.5% of the variance in all share index are explained by their shocks, while BIT (Bitcoin), BNB (Binance smart index), ETH (Ethereum), and LIT (Litecoin) jointly explain positive variation in the all share index performance. Specifically BIT (Bitcoin), contributed 5.58%, BNB (Binance smart index) contributed 7.43%, ETH (Ethereum) contributed 3.64% and Litecoin contributed 5.86%. The Quantile regression technique revealed that cryptocurrencies (Bitcoin, Binance smart index, and Ethereum) have positive and negative significant effects on all share indexes at the upper, middle, and lower bound periods. The study recommended that investors and corporate organization pay attention to the new normal in finance since this asset have also ushered in the Fintech innovation in the financial system

Determinants of Financial Inclusion among Rural Households in West Wollega Zone, Ethiopia

The General objective of the study is to investigate the determinants of financial inclusion among rural households in the West Wollega Zone of Oromia regional state, Ethiopia. The study used an explanatory research design and a mixed research approach. This study selected respondents through multi-stage sampling techniques, and used a questionnaire to collect the necessary data from 384 sample households. The data were analyzed using descriptive statistics and a logistic regression model. The result of regression shows that among the incorporated independent variables; financial literacy, level of awareness, monthly income, level of education, and age of household heads had positive relationship with the financial inclusion of households with significance level of 0.000, 0.004, 0.000, 0.030, and 0.018 respectively. The remaining variables had insignificant effect on financial inclusion of rural households. The research findings would have an impact on different stakeholders and policy makers with respect to financial inclusion among rural households. The study recommends promotion of financial education, and creating awareness about financial system among rural households. The study would also contribute to knowledge gap and capacity building with respect to determinants of financial inclusion among rural households in west wellega zone of Oromia regional state, Ethiopia.

The Business Start-up Procedures and Costs for Entrepreneurs

Entrepreneurs may encounter various difficulties when launching a new business. A business setup process can be quite straightforward in some nations and be challenging in others, particularly with regard to the amount of procedures to register a business and procedural costs. This study uses data from multiple nations to evaluate and the number of the required procedures and their costs associated with launching a business over time. 10 years of data from 171 different nations are included in the research sample. The study has two main variables. The findings show that there is a positive and significant relationship between the amount of business start-up procedures and procedural costs. The analysis of the data history also reveals that the time-consuming aspects of business start-up procedures and procedural costs for starting a business have shown a global downward trend over the years. Through a quantitative analysis, this study has demonstrated in the literature that countries consider the importance of making remedial arrangements to encourage entrepreneurship. Facilitating the entrepreneurship process and paving the way for new investments worldwide is essential for the development of national economies. Countries are expected to further improve current policies for entrepreneurial activity

Commercial Diplomacy in the BRICS Framework: Objectives and Outcomes

The article analyzes the features of the development of BRICS+ at the present stage. The main advantages of this association are identified, the problems are analyzed and its development is seen as a tool of commercial diplomacy. The purpose of this study is substantiated by the escalating influence of the BRICS nations on the global political landscape. Brazil, Russia, India, China, and the South African Republic actively participate in addressing pressing contemporary issues and contribute to the reform of the restructured global financial architecture. Notably, the BRICS states strive for economic growth and enhanced international standing among developing nations. The developing nations forming the BRICS alliance aim to ensure economic stability, countering disturbances in the global financial markets primarily originating from Europe and the United States. An overarching goal of BRICS is to address gaps in ensuring stability that established institutions such as the World Bank, International Monetary Fund, and the U.S. Federal Reserve are unable to fill. Thus, investigating the consolidation of BRICS countries amid geopolitical shifts demonstrates its paramount significance, particularly in relation to pertinent trends in global politics and economics

Audit Expectation Gap: An Empirical Analysis from Nigeria

It is not uncommon to associate the failure of corporate entities to the performance of external auditor(s) due to the variance in the opinion of the auditors and users of financial information on the duties of external auditors. In view of above, this study investigated the subsistence of Audit Expectation Gap (AEG) in Nigerian quoted firms with reference to four (4) AEG factors. The study employed "cross-sectional survey research design with online structured questionnaire" via Google form link shared among the respondents. A total of three hundred and ten (310) valid responses through the purposive sampling method were used for the analysis. Meanwhile, the "validity and reliability" of the questionnaire were earlier established. The data were later analysed using the Mann-Whitney U test at 5 percent "level of significance". The result showed the presence of AEG with respect to going concern, independence and responsibility factors. The study concluded that the AEG is still a menace in the accounting profession especially with reference to the Nigerian quoted firms. Therefore, it is recommended that Nigerian quoted firms should ensure the maintenance of sound accounting and internal control systems as well as upholding the independence of external auditor(s).

Interest Rate Fluctuation, Savings Mobilization, and Capital Formation: Evidence from Bangladesh.

This paper focuses on the relationship among interest rate, savings, and capital formation which are macroeconomic indicators of Bangladesh, and provides a scenario of the economy using data from 1976 to 2021. Our analysis performed econometric models of the unit root test, cointegration test, OLS regression model, multicollinearity test, correlation matrix, VECM, and Granger causality test. The regression reveals that interest rate has a negative and statistically significant relationship with capital formation and a positive and statistically insignificant relationship with domestic savings. However, domestic savings and capital formation are negative and statistically insignificant in Bangladesh’s economy. The VECM exhibits a long-term equilibrium association between interest rate and capital formation. Furthermore, Causality implies that there is a unidirectional causal relationship running from domestic savings and capital formation to interest rate. Yet, saving has no causal on capital formation. This outcome has a fantastic execution that can effortlessly stabilize the economy from any unanticipated circumstances. The economy should be concerned with this new study about maintaining a balance with these indicators. Suppose the outcomes of this research work are carried out into policy execution. In that case, that is, proper coordination of regulations on economic variables, progress in the real sector of the economy, velocity of expansion of capital growth, and grass-root mobilization of savings from the surplus market to the deficit market, it will lead to experienced long-run prosperity. We also recommend Policy formulators to accomplish our results properly for the betterment of savings and capital flows in Bangladesh

The Nexus of Quality of the e-tax System, Taxpayers’ Attitude, multiple Mediators, and Tax Compliance Behaviour: A Theoretical Paper.

Several works of the extant literature have explored tax compliance behaviour. Some studies explored that there are factors that have a positive effect on tax compliance behaviour. While some studies use individual theories and other empirical studies focus on institutional theories to explain tax compliance behaviour. Moreover, some works of literature have opined tax compliance behaviour based on economic factors while other studies expounded on social factors. Yet there is a tiny debate regarding the probability of amalgamating both the quality of the e-tax system and attitude towards the e-tax system using multiple mediators to explicate tax compliance behaviour. This paper advances the model suggesting that Tax Compliance Behaviour is the result of the interplay of the quality of the e-Tax System (employing the IS Success Model) and the attitude towards the e-Tax System (arraying the Technology Acceptance Model and the Theory of Planned Behaviour). We suggest that both the quality of the e-tax System and the attitude towards the e-tax system are considerable constructs in expounding tax compliance behaviour through multiple mediators (user satisfaction and behavioural intention)

Financial Management Practices and Performance of Cooperative Organization in Ogun State, Nigeria

Financial management remains a key pillar for any organization most especially cooperatives. This study investigates financial management practices and the performance of cooperative organizations. It specifically evaluates the effect of credit management, budgeting, and dividend management on the performance of cooperative organisations. A Sample size of one hundred and fifty (150) respondents were sampled from five cooperative societies. The data generated through a structured questionnaire were analysed. Findings from the study revealed there is no significant effect of credit risk management on performance (F = 0.24, df = 1, p = 0.625). Also, there is no significant effect of budgeting on performance (F = 1.23, df = 1, p = 0.268). However, dividend management has a significant effect on performance (F = 15.89, df = 1, p = 0.000). Based on the findings of this study, it can be concluded that dividend management has a significant (p < 0.05) effect on the performance of cooperative organizations. These results provide useful insights for cooperative managers and policymakers seeking to improve the performance of cooperative organizations. Cooperative organizations should consider improving credit risk management and budgeting to boost their performance

The Research Proposal to Explore The Effect of Characteristics of Independent Board Members on Performance of Companies

This study presents a research proposal to explore the effect of characteristics of independent board members on performance of companies. Dimensions of characteristics of independent board members are gender, age, education, tenure in the company and career, functional and foreign work experience, committee memberships, and duties.  Questions related to them are could be asked to participants. On the other hand, dimensions of performance of companies are financial performance, marketing performance and innovation performance. Ratio of foreign ownership, number of sectors, product categories, operated countries, and expansion methods into foreign countries (exporting, licencing, joint venture, merger, acquisition, and foreign direct investment) reflect the current position of the companies. Questions related to them could be included to the research as well.   Also, size and headquarter location of the company, size of the board, number of board meetings and independent board members, responsibilities of board members (SWOT analysis, strategy formulation, strategy implementation, control, and leadership), committees and their functions, board and board member evaluation methods, and frequencies and problems of independent board members could be asked to the participants. As a research methodology, structured in-depth interview could be conducted to the participants. The participants of the research could be independent board members of companies which sell their stocks in Star Market of Istanbul Stock Exchange Market (ISEM). Thus, the main population of the research could be independent board members of companies which sell their stocks in Star Market of ISEM whereas the sample of this research could be seven participants who are independent board members of these companies. A structured in-depth interview could be used as a method to gather more organized and comprehensive data from seven respondents. Companies which do not have a duality problem need to be chosen for the research. The Chairmans and CEOs of sample companies need to be different people to have more democratic management approach in the boards. Thus, independent board members could make contribution to the management of the company