Intellectual capital, isomorphic forces and internet financial reporting

2019 ◽  
Vol 36 (2) ◽  
pp. 110-133 ◽  
Author(s):  
Juma Bananuka
Keyword(s):  
Financial Reporting ◽  
Intellectual Capital ◽  
Financial Services ◽  
Correlation Coefficients ◽  
Service Firms ◽  
Cross Sectional ◽  
Content Type ◽  
Correlational Data ◽  
Financial Services Firms ◽  
Financial Service Firms

Purpose The purpose of this paper is to report on the results of study carried out to examine the contribution of intellectual capital (IC) and isomorphic forces (IF) to internet financial reporting (IFR) among financial services firms in an emerging economy like Uganda. Design/methodology/approach This study is cross sectional and correlational. Data were collected through a questionnaire survey of 40 financial services firms. Data were analyzed through correlation coefficients and linear regression using Statistical Package for Social Sciences. Findings Results suggest that both IC and IF are significant predictors of IFR among financial services firms in Uganda. However, IF significantly contribute to IFR when IC is not present. Originality/value This study provides an initial empirical evidence on the contribution of IC and IF to IFR using evidence from Uganda’s financial service firms.

scholarly journals Internet financial reporting adoption

2019 ◽  
Vol 24 (48) ◽  
pp. 266-287 ◽  
Author(s):  
Juma Bananuka ◽  
Sadress Night ◽  
Muhammed Ngoma ◽  
Grace Muganga Najjemba
Keyword(s):  
Financial Reporting ◽  
Financial Services ◽  
Correlation Coefficients ◽  
Service Firms ◽  
Role Performance ◽  
Cross Sectional ◽  
Content Type ◽  
Internal Auditors ◽  
Service Role ◽  
Correlational Data

Purpose This study aims to examine the contribution of board role performance and isomorphic forces on internet financial reporting. Design/methodology/approach This study is cross-sectional and correlational. Data were collected through a questionnaire survey of 40 financial services firms. The study’s unit of analysis was a firm. Chief Internal Auditors and Chief Finance Officers were the study’s unit of inquiry. Data were analyzed through correlation coefficients and linear regression using Statistical Package for Social Sciences. Findings The results suggest that board role performance and isomorphic forces are significant predictors of internet financial reporting. However, board role performance is not a significant predictor of internet financial reporting in the presence of isomorphic forces. The control and strategic roles of the board are positively and significantly associated with internet financial reporting unlike the service role. Only the coercive isomorphism is positively and significantly associated with internet financial reporting unlike the normative and mimetic isomorphism. Originality/value This study provides initial empirical evidence on the contribution of board role performance and isomorphic forces on internet financial reporting using evidence from Uganda’s financial service firms. To the researcher’s knowledge, this is the first perception-based study on internet financial reporting.

scholarly journals Intellectual capital and sustainability reporting practices in Uganda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Juma Bananuka ◽  
Venancio Tauringana ◽  
Zainabu Tumwebaze
Keyword(s):  
Intellectual Capital ◽  
Financial Services ◽  
Sustainability Reporting ◽  
Relational Capital ◽  
Service Firms ◽  
External Financing ◽  
Content Type ◽  
Reporting Practices ◽  
Structural Capital ◽  
Financial Service Firms

PurposeThe objective of the study is to investigate the association between intellectual capital (IC) and sustainability reporting practices in Uganda. The study further examines how individual IC elements (human, structural and relational capital) affect sustainability reporting practices.Design/methodology/approachThis study employs a questionnaire to collect data. Data are analyzed using multiple regression analysis.FindingsResults indicate that IC is significantly associated with sustainability reporting practices. The study also found that human capital and relational capital elements have a positive effect on sustainability reporting practices while structural capital element does not have a significant effect.Originality/valueThis study is one of the few studies that examine sustainability reporting by financial services firms in a country where the capital markets are still in their infancy and the major source of external financing are the banks. Its major contribution lies in its focus on how the key IC components explain variations in sustainability reporting practices among financial service firms in Uganda.

Determinants of adoption of International Financial Reporting Standards in Ugandan micro finance institutions

2019 ◽  
Vol 10 (3) ◽  
pp. 336-355 ◽  
Author(s):  
Juma Bananuka ◽  
Zainabu Tumwebaze ◽  
Doreen Musimenta ◽  
Patience Nuwagaba
Keyword(s):  
Financial Reporting ◽  
African Country ◽  
Explanatory Power ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Microfinance Institutions ◽  
Cross Sectional ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Correlational Data

Purpose The purpose of this paper is to report on the results of a study carried out to establish the contribution of board of directors’ effectiveness, intellectual capital (IC) and managerial attitude to the adoption of International Financial Reporting Standards (IFRSs) in microfinance institutions (MFIs). Design/methodology/approach This study is cross-sectional and correlational. Data were collected through a questionnaire survey of 67 MFIs that are members of the Association of Microfinance Institutions of Uganda. The data were analyzed using statistical package for social sciences. Findings Both board of director’s effectiveness and IC positively and significantly contribute to the adoption of IFRSs. Managerial attitude is positively and significantly associated with the adoption of IFRSs, but its explanatory power is subsumed in IC. Originality/value To the authors’ knowledge, this is the first study to investigate the contribution of board of director’s effectiveness, IC and managerial attitude to the adoption of IFRSs in MFIs using evidence from a developing African country like Uganda.

Business networking and internationalization: testing the mediation role of organizational learning

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kasimu Sendawula ◽  
Muhammed Ngoma ◽  
Juma Bananuka ◽  
Saadat Nakyejwe Lubowa Kimuli ◽  
Frank Kabuye
Keyword(s):  
Organizational Learning ◽  
Correlation Coefficients ◽  
Hierarchical Regression ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
Business Networking ◽  
Correlational Data ◽  
The Relationship

PurposeThe purpose of this study was to establish the mediation role of organizational learning in the relationship between business networking and internationalization of manufacturing small and medium-sized enterprises (SMEs) using evidence from Uganda.Design/methodology/approachThis study is cross sectional and correlational. Data were collected through a questionnaire survey of 96 manufacturing SMEs. Data were analyzed through correlation coefficients, hierarchical regression and mediation analysis using Statistical Package for the Social Sciences and MedGraph - Excel Version.FindingsFindings indicate that organizational learning partially mediates the relationship between business networking and internationalization of SMEs. Results further reveal that business networking and organizational learning significantly predict internationalization of SMEs.Originality/valueThis study contributes to the already existing literature on internationalization of SMEs as it provides initial empirical evidence on the mediating role of organizational learning in the relationship between business networking and internationalization of SMEs using evidence from a developing country – Uganda.

Consumer financial anxiety

2014 ◽  
Vol 32 (6) ◽  
pp. 515-533 ◽  
Author(s):  
Devon S. Johnson ◽  
Mark Peterson
Keyword(s):  
Financial Crisis ◽  
Financial Services ◽  
Financial Service ◽  
Service Firms ◽  
Regulatory Oversight ◽  
Content Type ◽  
The Usa ◽  
Financial Anxiety ◽  
The 2008 Financial Crisis ◽  
Financial Service Firms

Purpose – The purpose of this paper is to examine how small and medium-sized, regional financial service firms reacted to the financial crisis by helping their customers cope with their heightened state financial anxiety during the Economic Crisis of 2008. It also examines the variety of strategies pursued by these firms to rebuild consumer trust in their brands in the ensuing years. Design/methodology/approach – The authors relied on grounded theory as a methodological approach to understand the unfolding situation of the financial crisis and to inductively develop a framework explaining managers’ experience with consumer financial anxiety and trust. Data collection involved key informant interviews with 20 CEOs and senior marketing and sales professionals of financial service firms in the USA. Findings – The study discloses a desire among many retail financial institutions to re-personalize their relationships with customers following the financial crisis. One motivating factor for this has been a demand by regulators for more evidence that the firm really knows its customers. The paper also found that some managers are ambivalent about mentioning regulatory oversight and Federal Deposit Insurance Corporation (FDIC) insurance to customers because it is unclear whether these issues heighten or reduce consumer fears. More research is needed to provide guidance to managers on how mention of regulatory oversight may be used strategically in a crisis. Research limitations/implications – This study was limited to regional financial service firms in the USA with assets of less than$1 billion. The extension of the study to compare other geographical markets or to large financial service firms remains to be done. This investigation could tell us whether consumers now trust regional banks more than they do large national banks, difference in the strategies they employed and whether they resulted in different rates of brand equity recovery. Practical implications – This paper suggests that the 2008 financial crisis may have resulted in permanent changes in consumer attitudes to financial services. As one manager suggested, “consumers have moved from a trust-me phase to a show-me phase.” This implies that financial service managers need to rethink how they build consumer trust. Such managers would do well to consider ways of integrating actions that reinforce the company's integrity and commitment to its customers into different stages of their firms’ relationships with consumers. Social implications – Many small and medium-sized banks are re-embracing community-banking practices including building strong personal relationships with stakeholders after years of underinvesting due to these banks’ pursuit of property development investments. As a result of these developments, a stronger financial services industry could likely emerge. Accordingly, trust for this battered industry among consumers could improve. Originality/value – This paper discuss how the depersonalization of customer interactions by financial services firms through increased use of electronic channels and the use of call centers as primary interaction points may have weakened customer relationships and worsened consumer anxiety during the 2008 financial crisis. Additionally, it discusses both the failure of regulatory oversight and the symbolic effects of the big bank failures and the Madoff scandal in heightening consumer fears. Based on managerial interviews the paper discusses how financial service firms countered consumer anxiety by providing social support to customers, by repersonalizing customer interactions, and by reconnecting with local community values.

Board governance, intellectual capital and firm performance

2016 ◽  
Vol 32 (1) ◽  
pp. 20-45 ◽  
Author(s):  
Stephen Korutaro Nkundabanyanga
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Synergistic Effects ◽  
Statistical Modelling ◽  
Service Firms ◽  
Board Governance ◽  
Cross Sectional ◽  
Content Type ◽  
Analytical Technique

Purpose – The purpose of this paper is to examine the relationship between the combined (multiplicative) effect of board governance and intellectual capital (IC) on firm performance. Design/methodology/approach – This study is cross-sectional and follows a positivist view of testing pre-specified hypotheses. The study uses a respondent sample of 128 service firms operating in Kampala, directors or managers are the unit of enquiry. Structural equation modelling with analysis of moment structures is used for statistical modelling. Findings – Board governance and IC make significant contributions to firm performance. However, their interaction is a significant booster to services sector firms’ performance in Uganda. Research limitations/implications – Although an attempt is made at controlling for common method variance in particular by proactive instrument design and testing, and usage of the Harman single factor analytical technique, its influence may not have been dealt away completely owing to failure to obtain a plausible common marker variable. Well, it is meaningful to identify the significant positive multiplicative effects of board governance and IC so as uncover what is needed in service firms to improve their performance. Originality/value – Studies explaining firm performance via board governance only and which ignored the synergistic effects of board governance and IC have often missed the reality that the performance of the firm can significantly be improved by means of leveraging IC while simultaneously calling for effective board governance.

Interacting with Muslim customers for new service development in a non-Muslim majority country

2019 ◽  
Vol 10 (4) ◽  
pp. 1017-1036 ◽  
Author(s):  
Intekhab Alam
Keyword(s):  
Financial Services ◽  
Emerging Market ◽  
Financial Service ◽  
Service Development ◽  
Service Firms ◽  
New Service Development ◽  
Content Type ◽  
Customer Interaction ◽  
Muslim Majority ◽  
Financial Service Firms

Purpose The purpose of this paper is to discuss the process of interaction with the Muslim customers in developing new Islamic financial services in a secular and non-Muslim majority emerging country, India. Design/methodology/approach Data were collected using a multiple case study methodology in which the service managers of 23 financial service firms and their customers were interviewed. A total of 46 managers and 31 Muslim customers provided data for this paper. Findings A service firm must interact with its Muslim customers to obtain key input and information for developing new Islamic financial services, particularly in a Muslim minority country. The Muslim customers are willing to work with the financial service firms for the purpose of new service development and are a good source of information for new Islamic financial services. Practical implications The paper has implications for the financial service firms interested in achieving growth and prosperity by developing and marketing new services to the growing population of Muslim customers in the emerging markets, particularly India. Originality/value The issue of customer interaction in new service development is a key concept in the extant literature, yet no study has explored this concept for the Islamic banking and financial products in a non-Muslim majority emerging market. This is the first paper that has applied the customer interaction in new service development theory to the interaction process of Muslim customers in a non-Muslim majority country and, thus, addressed a worthwhile research gap.

Internal audit organisational status, competencies, activities and fraud management in the financial services sector

2017 ◽  
Vol 32 (9) ◽  
pp. 924-944 ◽  
Author(s):  
Frank Kabuye ◽  
Stephen Korutaro Nkundabanyanga ◽  
Julius Opiso ◽  
Zulaika Nakabuye
Keyword(s):  
Financial Services ◽  
Policy Development ◽  
Internal Audit ◽  
Firm Level ◽  
Cross Sectional ◽  
Content Type ◽  
Internal Auditors ◽  
Services Sector ◽  
Financial Services Sector ◽  
Financial Services Firms

Purpose The purpose of this paper is to study the relationship between internal audit organisational status, competencies, activities and fraud management. As a corollary, this paper examines the contribution made by the internal audit organisational status, the internal audit competence and the internal audit activities on fraud management in financial services firms. Design/methodology/approach This study is cross-sectional and correlational, and it uses firm-level data that were collected by means of a questionnaire survey from a sample of 54 financial services firms in Kampala – Uganda. Findings Results suggest that the internal audit organisational status and the internal audit competence are significant predictors of fraud management. Contrary to previous thinking, internal audit activities do not significantly predict fraud management. Therefore, once internal auditors have appropriate status and are competent in an organisation, they are likely to perform activities that enhance fraud management. Research limitations/implications This study focuses on financial services firms in Uganda, and it is possible that these results are only applicable to the financial services sector. More research is therefore needed to further understand the contribution of the internal audit constructs on fraud management in other sectors such as the public sector. Practical implications The results are important for internal audit policy development, for example, in terms of prescribing the competences and reporting lines for the internal auditors to enhance fraud management in the financial services sector. Originality/value As far as the authors are aware, no research has hitherto been undertaken that investigates the individual contribution of internal audit organisation status, competence and its activities as internal audit constructs on fraud management.

Tax compliance of financial services firms: a developing economy perspective

2019 ◽  
Vol 22 (1) ◽  
pp. 14-31 ◽  
Author(s):  
Doreen Musimenta ◽  
Sylvia Naigaga ◽  
Juma Bananuka ◽  
Mariam Ssemakula Najjuma
Keyword(s):  
Developing Countries ◽  
Financial Services ◽  
Tax Compliance ◽  
Firm Level ◽  
Cross Sectional ◽  
Compliance Costs ◽  
Tax Morale ◽  
Content Type ◽  
Study Results ◽  
Financial Services Firms

Purpose The purpose of this study is to examine the contribution of tax morale, compliance costs and tax compliance of financial services firms in Uganda. Design/methodology/approach This study is cross-sectional and correlational and adopts firm-level data collected using a questionnaire survey of 210 financial services firms in Uganda from which usable questionnaires were received from 152 financial services firms. Findings Tax morale and compliance costs contribute up to 20.6 per cent of the variance in tax compliance of the financial services firms. Tax morale and tax compliance are positively and significantly associated. Results further indicate that compliance costs and tax compliance are positively and significantly associated. National pride and trust in government and its legal systems as dimensions of tax morale independently are significantly associated with tax compliance. Results also indicate that administration costs and specialist costs as dimensions of compliance costs individually are significantly associated with tax compliance. Research limitations/implications This study results should be generalized with caution, as they are limited to the financial services firms in Uganda. Originality/value Whereas there has been a number of studies on tax compliance in both developed and developing countries, this is the first study on the African scene to examine the contribution of tax morale and compliance costs on tax compliance of financial services firms in a single suite. It is unbelievable that the financial services firms, especially commercial banks which are highly regulated by the central bank in many developing countries, can afford to report tax payables year after year.

scholarly journals A theory of financial services competition, compliance and regulation

2021 ◽  
Vol 16 (1) ◽  
pp. 377-412
Author(s):  
Bryane Michael ◽  
Joseph Falzon ◽  
Ajay Shamdasani
Keyword(s):  
Financial Services ◽  
Service Industry ◽  
Service Firms ◽  
Content Type ◽  
Financial Centre ◽  
Financial Regulations ◽  
Fresh Perspective ◽  
Computerised Monitoring ◽  
Compliance Decisions ◽  
Financial Services Firms

Purpose This paper aims to derive the conditions under which a financial services firm will want to hire a compliance services company and show how much money they should spend. Design/methodology/approach This paper uses a mathematical model to show the intuition behind many of the compliance decisions that cost financial services firms billions every year. Findings This paper finds that hiring compliance firms may save banks and brokerages money. However, their advice may lead to an embarrass de riches – whereby the lower compliance costs and higher profit advantages they confer may lead to more regulation. Regulators may furthermore tighten regulation – with the expectation that financial service firms will adapt somehow. This paper presents a fresh perspective on the Menon hypothesis, deriving conditions under which financial regulations help the competitiveness of an international financial centre. Research limitations/implications The paper represents one of the first and only models of compliance spending by financial services firms. Practical implications This paper provides five potential policy responses for dealing with ever ratcheting financial regulations. Originality/value The paper hopefully launches literature on the compliance service industry – and the buy-or-do decision to engage in financial services compliance. This paper finds that efficient compliance can hurt firms, by encouraging regulation. This paper shows how firms can forestall the extra regulation that comes with easier internet and computerised monitoring.

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