Open Access Original Research Article

An Analysis of Factors Influencing Financial Control Practices in Community Based Organizations in Baringo County, Kenya

Evans Koitaba, Maina Waiganjo, Serah Wanyoike

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/BJEMT/2016/20158

Aims: The aim of this study was to analyze factors influencing financial control practices of Community Based Organizations (CBO) in Baringo County, Kenya.

Study Design: A survey research design was used targeting 134 management and staff members drawn from different CBOs from six sub counties in the area using stratified sampling.

Methodology: Data were collected using a structured questionnaire and analyzed using both descriptive and inferential statistics.

Research Hypotheses: Four hypotheses were tested and decisions made based on: if the p-value was less than or equal to 0.01, the null hypothesis was rejected; the claim was accept and vice versa. The hypotheses were the following ones:

H01:  Technical skills of CBO officials have no significant influence on financial control practices of CBOs in Baringo County.

H02:  Internal control systems and budgeting have no significant influence on financial control practices of CBOs in Baringo County.

H03:  Bookkeeping has no significant influence on financial control practices of CBOs in Baringo County.

H04: Auditing has no significant influence on financial control practices of CBOs in Baringo County.

Results: The findings of the study show that Technical skills (β = 0.347, p < 0.01) and Auditing controls (β = 0.285, p < 0.01) were significant while Internal control systems and budgeting (β = 0.095, p = 0.224) and Bookkeeping (β = 0.024, p = 0.772) not significant factors influencing financial control practices of CBOs in the area.

Conclusions: The technical skills of the CBO officials in the area needed to be strengthened, especially with regard to spending priorities. It is recommended that standardized accounting and reporting should be provided by the government in order to make the financial activities of the CBOs tractable through sharing of information on a common and acceptable platform. More studies should, however, be done on the effects of regulations governing funding of CBOs on their performance and on the influence of ICT on the financial performance of CBOs.

Open Access Original Research Article

Tax Policy, SMES Compliance, Perception and Growth Relationship in Ghana: An Empirical Analysis

Bismark Ameyaw, Joy Agyeman Korang, Evans Teddy Twum, Isaac Owusu Asante

Journal of Economics, Management and Trade, Page 1-11
DOI: 10.9734/BJEMT/2016/22030

Tax plays a significant role in the growth of Small and Medium Enterprises (SMES). In a developing country like Ghana, SMES play important roles in the development of the economy. It is vital for policy makers to consider the alignment of tax policies to the growth needs of SMES. Government uses taxation and tax regimes to provide means for SMES to contribute their quota to the economic growth of Ghana. Placing emphasis on this issue, the paper critically analyses tax policy, SMES compliance, perception and growth relationship in Ghana. The specific objectives of this paper are: To find out if SMES comply with their tax obligations and policies; To examine SMES perception on tax policies; and To identify the effects of tax policies on SMES growth in Ghana. The research was primarily carried out at the Accra Metropolitan Assembly and it covers four markets of Kantamanto market, Makola market, Malata market and Dome Market. Respondents from these markets were small and medium business owners in operation from 2002 to 2015. The survey was administered using questionnaire and a total of 200 respondents were used with 50 respondents from each market. Data was analysed using SPSS version 21. Multiple regression analysis was employed in this study and the findings of this research indicated that majority of the respondents perceived adverse impact of tax policies on SMES compliance, growth and perception in Ghana. The findings will be beneficial to stakeholders in reforming measures to bridge tax policies to SMES in an efficient and effective manner.

Open Access Original Research Article

Analysis of Namibian Fishing Product Export Prospects and Diversification: Gravity Model Approach

M. Y. Teweldemedhin, B. Chiripanhura

Journal of Economics, Management and Trade, Page 1-12
DOI: 10.9734/BJEMT/2016/20305

This study endeavoured to analyse Namibian fish export prospects and level of diversification through using a Gravity Model Approach on cross-sectional data, specifically testing whether a Random Effect or a Fixed Effect Model better suits the model. The B1 dummy variable for local competition was found to be highly elastic and a positive influence on fish consumption in export destinations, as the local fish production drives for high demand. Analysis followed of the distance and days to arrive to the destination, which were found to negatively influence trade, indicating that geographical location for Namibia, as well as economic scale of size, is negatively influencing fish trading owing to the fact that it has higher handling costs and degree of perishability. The study recommends that the Namibian fish sector should handle better the regulatory environment, which includes permits, tariffs and labour laws, and requires consolidation and coordination to achieve economies of scale for transportation. Furthermore, it is important to have consistent improvement in infrastructure.

Open Access Original Research Article

Nigerian Budget Implementation and Control Reforms: Tool for Macro Economic Growth

Ifeanyichukwu A. Onyiah, N. C. Ezeamama, Joy N. Ugwu, C. C. Mgbodile

Journal of Economics, Management and Trade, Page 1-13
DOI: 10.9734/BJEMT/2016/19556

This paper studied the impact of budget implementation and control reforms of the Federal Government of Nigeria with a view to analyzing their impact on resource management, level of productivity and efficiency and personnel and overhead costs in Ngeria. The study employed ex-post facto descriptive research design. The respondents comprised of Accountants and Economists who are in the federal civil service in Enugu state. The primary data were collected with the aid of a structured 5-point likert scale questionnaires. Secondary data were generated from journals, and other scholarly publications. Three Hypotheses were formulated and tested in this study. The questionnaires were distributed to a sample size of 308 from a population of 1338 using Taro Yamane (1967) formula while Analysis of Variance (ANOVA) was also employed to test the hypotheses. The findings showed that poor project conceptualisation, design or planning practices by Ministries, Departments and Agencies (MDAs) resulted into low resources management. Respondents also perceived that there is no significant reduction in the personnel and overhead cost budgets allocated to the public service. The study concludes that the effectiveness of Medium Term Revenue Framework and Medium Term Expenditure Framework can be achieved through budget discipline. Participatory monitoring and assessment of government projects by host community-members and identifications of opportunities/Challenges for Government Services are recommended.

Open Access Original Research Article

Horizontal Mergers and Corporate Performance: Evidence from Ghana Revenue Authority (GRA)

Albert Laurent Sakabutu

Journal of Economics, Management and Trade, Page 1-12
DOI: 10.9734/BJEMT/2016/22479

Horizontal Mergers and Acquisitions (M&A) have been extensively used by firms as vehicles for growth and competitiveness strengthening within the context of the global economy. Restructuring of government has been a constant theme over the last three decades and revenue administration has not been completely immune to this trend. It is in this spirit that Ghana in 2009 merged all her revenue agencies into a Revenue Authority under Ghana Revenue Authority Act (Act 791) known as the GRA. The GRA has been seen by many as a possible solution to critical problems, such as poor revenue performance, low rates of compliance, ineffective staff, corruption etc. However, since the formation of GRA in 2009, no comprehensive assessment has been made of the Authority that exist today and of how well it has served its intended purpose. The objective of this research therefore is to determine the effect of the merger on the overall corporate performance of the GRA by compiling and ranking the perceptions of GRA management and employees on the improvements in the sixteen (16) key reform areas and also explore the extent to which the perceived improvements have translated into total volume of revenue mobilized post-merger. The study used total yearly revenue and GDP figures for the period of 2005 to 2014. The data was further broken down into pre-merger (2005 - 2009) and post-merger (2010 – 2014) periods. Integration of tax reform, provision of momentum for change and increase tax revenue were ranked top three in terms of best-improved areas. The revenue – to – GDP ratio analysis also revealed that even though both revenue and GDP grew positively post-merger, the revenue growth rate was slower than that of the GDP. The results of the t – test and F – test indicates that there is significant difference between the pre and post-merger revenues and hence concludes that the merger has had a great impact on the corporate performance of the GRA. The study however recommends that, the GRA be strengthened by resourcing it with the requisite manpower, infrastructure and technology to enable it function better. Ghanaians should be educated on the relevance of payment of tax and stiffer punishments should be handed to tax defaulters. Government must check corruption and work towards creating a congenial economic atmosphere for industrial units to generate more revenue.

Open Access Short Research Articles

Factors Affecting for Online Marketing Strategy of Business Development in Malaysia

Aye Aye Khin, Wong Hong Chau, Chong Shyue Chuan, Lim Kok Tong

Journal of Economics, Management and Trade, Page 1-17
DOI: 10.9734/BJEMT/2016/17671

Aims: This paper presents the factors affecting for online marketing strategy of business development for publishers (affiliates) and buyers in Malaysia.

Study Design: The research design was a descriptive, correlation, reliability, hypothesis testing, multiple regression and convenience sampling technique.

Place and Duration of Study: Sample consists of adult online users (buyers) with experience on online purchasing regardless of gender, religion, race, and background and education level. This study was conducted in 2013-2014.

Methodology: This study was quantitative analysis using questionnaire. A total of 152 out of 200 questionnaires were completely received from the selected Malaysians above the age of 21 years old. The research conducted a pilot study and analyzed the data.

Results: The results revealed that product commitment and product homogeneity had a significant relationship with the high click through rate of online marketing link. Moreover, online process simplicity and online purchase complexity; cyberculture effect and the need satisfaction had also a significant relationship of fully mediating affect between the high click through rate of online marketing link.

Conclusion: Therefore, this study contributes that factors affecting for online marketing strategy of business development for publishers and buyers in Malaysia.

Open Access Mini Review Article

Managing Costs for Iraq’s Reconstruction and Recovery

Andreea Gabriela PonorîcăV, Ahmed H. Juhi Al-Saedi, Hamza H. Saedi

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/BJEMT/2016/20524

Aims: To analyze the current situation in Iraq in terms of government expenditure, allotment of funds to different sectors and cooperation with international organizations, in the light of its urgent need of reconstruction and recovery.

Methodology: The patterns for managing costs during the past years were examined in order to assess the efficiency of the new government, estimated budget and development plans, as well as the results of the past involvement of international organizations in the stabilization of the Middle East stage.

Results: It appears that the limited credibility of the government of Iraq has its roots in years of poor governance, inconsistent regulations, corruption and security issues, in spite of the numerous foreign investments; the aforementioned problems have been causing structural weakness and extensive damage to the economy as a whole and thus, we find imperative that the international institutions intervene actively and set strict standards for proceeding in the reconstruction of Iraq as a high-potential country.

Conclusion: Relying on significant achievements in the global fight against terrorism and in high hopes of the declaration of the Middle East as a peace zone, Iraq will be able to fully recover over an extended period of time with the aid of international authorities, by developing its non-oil industries, introducing far-reaching reforms, properly managing investments and shrinking costs.