Open Access Original Research Article

The Use of Information Technology (IT) among Small and Medium Enterprises (SMEs) In Financial Reporting: Evidence from Ghana

Eugene Abrokwah, Isaac Quaye, Charles Omondi, Joseph Yaw Osei, Alfred Sarbah

Journal of Economics, Management and Trade, Page 258-269
DOI: 10.9734/BJEMT/2015/18444

In today’s world, the role of Information Technology (IT) has become an essential tool to the success of every business. A major strategy in ensuring cost reduction, security and remaining efficient and effective in today’s modern business environment is the use of recently emerged IT in business. Better decision-making among businesses will elevate the danger of failure and instead remain competitive. This paper sought to assess the relevance of IT on accounting practices in relation to financial reporting by Small and Medium Scale Enterprises (SMEs) in Ghana; that is determining whether or not IT systems have better influence on accounting practices in relation to organizational performances. Majority of SMEs used in the study indicated that IT provide security with financial information, hence the result of this research showed positive correlation between IT and its usage in financial reporting. According to this study, the use of IT has a positive impact on the accounting practices which directly enhance performance of businesses. Business organizations are however encouraged to embrace IT systems in full capacity for their accounting practices to ensure fast track of their financial reporting to users of accounting information. It would be added advantage if government of developing countries will advocate and create more awareness on the importance of IT in business to ensure development.

Open Access Original Research Article

The Investment Process in the Mexican Industry: The Case of Mexican Chemical Petrochemical Complex

Leticia Armenta, Edgar Nuñez

Journal of Economics, Management and Trade, Page 270-286
DOI: 10.9734/BJEMT/2015/17916

Abstract: The aim of this paper is to analyze the investment process of the mexican chemical petrochemical industry (CQP). In order to do it we take the defined complex following Lifschitz and Zottele [1] methodology and we apply a tobin’s q model with uncertainty following bo [2] proposal. the main conclusions of the study are: q theory model behaves pretty good to explain investment process in the mexican CQP; tobin’s q is a very important factor of the investment process; every percent change of q increases investment between 2% to 5%; uncertainty negatively affects CQP investment from -0.6% to -2% for one percent change in gross profit. One of the contributions of the paper is the application of q model at industry level.

Open Access Original Research Article

Evolutionary Game Analysis of Financial Innovation and Regulation

Ming-Chang Lee, Li-Er Su

Journal of Economics, Management and Trade, Page 287-293
DOI: 10.9734/BJEMT/2015/18651

Financial innovation and financial supervision promote each other mutually. Financial regulation is the motive of financial innovation furthers the improvement of financial regulatory system. Since financial crisis due to excessive financial innovation and the lack of financial regulation still happens. This paper build the dynamic game model and then build the asymmetric evolutionary game model between financial innovation institutions and the regulation authority and analysis their long term dynamic game relationship. Under the objectives, it studies the influence factors of financial innovation and regulation and the interaction between these factors. Through the equilibrium analysis of the game, the paper draws the conclusion that regulators can design the embedded regulatory system. Through the asymmetric evolutionary game analysis, the paper derived the long-term evolutionary stable equilibrium of the innovation and supervision. Finally, the paper gives some suggestions on how to strength the regulation for financial innovation.

Open Access Original Research Article

The Correlation between Business Location and Consumers Patronage: Implications for Business Policy Decisions

Eze Felix John, Odigbo Benedict Ejikeme, Ufot Juliet Alfred

Journal of Economics, Management and Trade, Page 294-304
DOI: 10.9734/BJEMT/2015/16998

The study undertook a critical appraisal of the relationship between business locations and consumer patronage, with a view to pinpointing the implications on business policy and decision-makings. The study sought to: Determine the effect of business locations on consumers’ repeat-purchases; and evaluate the effect of proximity of business locations on consumers’ patronage. Survey design was employed. The area of study was University of Calabar, while the study frame were photocopying operators, consumers of their services and the school’s business regulatory body. The sample size of the study was 100 and structured questionnaire was the instrument used for data collection. The instrument was content-validated, while the test-retest method was used to confirm the reliability. Data analysis was done electronically by the use of Statistical Package for Social Science (SPSS) version 21. Among the findings highlighted in the study were; business location affects a business performance very significantly; it also has a significant effect on the repeat purchases of consumers. Also proximity of the business to customers and competitors has significant benefits to business performance in the University. The implications for business policy and decision-making are that intending entrepreneurs must undertake business location feasibility studies before citing their businesses.

Open Access Original Research Article

Comparative Study between Democracy and Autocracy Based on Social Indicators

M. Shafiqur Rahman

Journal of Economics, Management and Trade, Page 305-312
DOI: 10.9734/BJEMT/2015/18613

Democracy and autocracy are measured by democracy index which is introduced by Economist Intelligence Unit and has been calculated since 2006 for 167 countries covering almost the entire population of the world. The Democracy index is based on five factors: Electoral process and pluralism; civil liberties; the functioning of government; political participation; and political culture. These 167 countries are divided into one of four categories: Full democracy; flawed democracy; hybrid regime; and authoritarian regime or autocracy. This paper deals with comparative study between full democracy and autocracy based on different social indicators such as literacy rate, unemployment rate, per capita GDP, birth rate, death rate, fertility rate, divorce rate, murder rate etc. It is observed that per capita GDP and literacy rate of full democratic countries are significantly higher than that of autocratic countries. Unemployment rate, murder rate, fertility rate and crude birth rate of full democratic countries are significantly lower than that of autocratic countries. No significant difference was observed for crude death rate and divorce rate between democratic and autocratic countries.

Open Access Original Research Article

Study on Housing Prices and Affordability in Some Selected Cities in China

Zhang Xuefeng

Journal of Economics, Management and Trade, Page 313-325
DOI: 10.9734/BJEMT/2015/18082

Great differences in urban housing prices between cities in China have led to the imbalances of housing affordability. This paper will study on this phenomenon and put forward some reasonable suggestions. This paper carries out the empirical analysis with the panel data method and FMOLS model. Results show that: although there was long-term equilibrium relationship between household disposable incomes and housing prices on the whole, the stability was very weak. Meanwhile, there was bilateral causality between household disposable incomes and housing prices. Even more important is that the city's other factors, such as food consumption, education, health care, transportation facilities, communications and so on, also play important part in fluctuation of housing prices. Therefore, policy makers should take measures of balanced regional development strategy to balance the housing affordability between cities.

Open Access Original Research Article

Student Perceptions of Accounting and Business Scandals on the Accounting Profession

Jack T. McCann, Eugene Offoha, Rick Bryant

Journal of Economics, Management and Trade, Page 326-341
DOI: 10.9734/BJEMT/2015/18357

The purpose of this study was to determine the impact of accounting and business scandals on business student perceptions of the accounting profession and to determine if they are differentiated by maturity factors. Student maturity is distinguished by age in years, class standing, and number of accounting classes taken. The study results are based on a survey of business student perceptions regarding their understanding of accounting scandals, related to business student’s knowledge of scandals, student perceptions about the accounting profession, and student perceptions about accounting/business ethics. The relationship between business student perceptions of the accounting profession, ethics and accounting education, and student knowledge of accounting and business scandals and maturity factors is examined. It is interesting to note that the more mature a student is, as measured by numeric age, the more they perceive that the accounting profession has implemented adequate measures to avoid future accounting scandals. Students disagree with the statement that accounting scandals have made the accounting profession more attractive, as separated by the maturity factor of age. Students agree that accounting scandals have stressed the importance of good ethical conduct in the accounting profession. The study also revealed students are becoming more informed about business scandals by regularly reading business publications. The findings of this study have important implications for students and professors alike by enabling efforts to dialog with students about perceptions of the accounting profession.