Mathematical Analysis of Working Capital Management in MENA SMEs: Panel Data Insights

In this paper, we analyze working capital management strategies (aggressive vs. conservative) employed by 2901 MENA SMEs from 2007-2021, assessing their impact on long-term financial resilience. It offers crucial insights for MENA SMEs navigating their unique economic landscape and contributes to the discourse on developing economies. The findings, particularly relevant amid evolving financial technologies, empower MENA SMEs to refine their strategies and pave the way for further research in this dynamic field

Working Capital Management Roles for Multinational Retail Industry Profitability: A Qualitative Study, Worldwide Perspective

In this study, we explored efficient working capital management strategies for profitability in the retail industry. Analyzing indicators of effective working capital management using qualitative research involved online interviews with 37 financial managers from multinational retail companies. The study found that retailers often adopt aggressive working capital financing policies due to negative cash conversion cycles and low current ratios. Effective cash flow management involves expediting inventory turnover and delaying accounts payable. Positive supplier relationships and market awareness contribute to profitability. Indicators of effective working capital management include inventory turnover, receivable and payable turnovers, liquidity ratios, and the cash conversion cycle. Maintaining higher payable turnover days than receivable turnover days is recommended. Retailers should aim for a current ratio of at least one and improve the cash conversion cycle through efficient inventory management. This study provided specific strategies for efficient working capital management in retail, filling a research gap. The findings offered valuable insights for financial managers to optimize working capital and enhance profitability. The study recommends that retail companies should adopt aggressive working capital financing policies, focus on efficient inventory management, maintain positive supplier relationships, and stay informed about market conditions to achieve effective working capital management and maximize profitability

Evaluation of practical accounting education in Jordan

Purpose – The objective of the paper is to explore and evaluate practical accounting education to find its weaknesses and suggest avenues to build strengths which will provide the market with effective accountants from the universities (the primary source of accountants). Design/methodology/approach – The study uses semi-structured interviews to understand and extract the study problem and build the questionnaire; the final step is to analyse and interpret the questionnaire results based on structured interviews, dividing the research community into professors and market elements, business managers and university graduates. Findings – The market has provided a negative evaluation of practical education. Reasons include a shortage of instructors with professional experience; curriculums that lack the topic of professional and ethical skills; and internships if provided, with unsatisfactory results. The study suggests accounting simulation labs as a reasonable substitution for the placement year (internship) if the labs are qualified and the internship results unsatisfactory. Originality/value – This article is based on a multiregional research community, making results transferable to any country that faces a lack of professional accounting education. The applied evaluation method is capable of use by any other field in the business industry since accounting is part of this industry

The Effect of System Quality and User Quality of Information Technology on Internal Audit Effectiveness in Jordan, And the Moderating Effect of Management Support

The goal of this study is to ascertain the moderating role that management support has in internal audit effectiveness in Jordan, as well as the impact of system quality and user quality of information technology. There were 172 responders in all, and they were split across Jordanian auditors. In the data analysis process, the quantitative analysis test— which consists of the validity test, reliability test, test of conventional assumptions, and hypothesis test—is applied. Information technology system and user quality are independent variables in this study. The dependent variable in this study is internal audit effectiveness, and the moderating variable is management support. The results of this study show that the effectiveness of internal audits is significantly impacted by the system quality and user quality of information technology. Additionally, with Management support acting as a moderating factor, the link between System quality and Audit effectiveness improves. The findings also indicate that when moderating variables are present, the connection between User quality and Audit effectiveness changes from positive to negative. Future research might look at risk management

Explore the Lessee Accounting Treatment When Utilizing the Islamic Financial Leasing

This study aims to discuss the effects of the AAIOFI accounting standards of financial leased assets on the accounting treatment of the lessee in the case of using the Islamic finance lease. The importance of this study became evident when AAIOFI announced Islamic accounting standards with a significant difference between the IFRSs about the recognition of leased financial assets. Islamic financial institutions recognize the financial leased assets following AAIOFI accounting under long-term assets in the statement of financial position. This study used the interviews as a qualitative research method with financial managers of Jordanian companies using Islamic financial leasing. This study reached the conclusion that both Islamic financial leasing parties recognize the assets in the long-term asset side. The recommendations to avoid the inflation of the Islamic financial leased assets will be by applying a reasonable accountancy treatment by the lessee and consider it as operational leasing with proper justification for the non-compliance with the IFRS

Qualitative Analysis of IAS 2 Capability for Handling the Financial Information Generated by Cost Techniques

Using a qualitative research design, this study examined the inventory valuation conflict between financial managers and auditors and its implications for the International Accounting Standard 2 (IAS 2). This study found that the conflict arose due to the lack of precise instructions in the IAS 2 regarding cost–unit calculations. It was recommended that the IAS 2 should provide more examples or use the chamber of commerce as a source of information to clarify what should be considered as the product cost of storage expenses. This study supported previous findings that job order costing was used for customized manufacturing, while process costing was used for standardizing manufacturing. It also highlighted the importance of process costing in evaluating equivalent units and normal and abnormal losses in production, which affect inventory value. This study concluded that cost techniques should be viewed as managerial tools for calculating the cost of a unit. Cost managers should use their expertise to develop the cost formula for their specific industry while maintaining confidentiality. This study contributed to the literature by highlighting the importance of process costing in evaluating inventory valuation and resolving conflicts between financial managers and auditors. It also provided practical implications for improving the treatment of inventory in the IAS 2. This included directing the implementation of stable policies and attaching some indices when computing equivalent units, abnormal losses, and product costs. This study’s limitations included the use of a small sample size, and future studies should consider larger sample sizes from different industries and countries