Revisiting the Existing Credit Rating Methods of Small and Medium Enterprises

Credit rating of small and medium enterprises is more difficult because most of the SMEs information is not organized like the large corporate organizations. Traditionally used methods for corporate evaluation are not suitable directly for SMEs. For this reason, a comparative analysis is needed to compare the existing methods proposed by the different financial bodies. The aim of this paper is to make a comparative analysis of weight distribution in financial and non-financial factors in SMEs rating for the selected countries and to compare the indicators of proposed SMEs rating methods by ADB, ASEAN & Bangladesh Bank. After completing a comparative analysis, this paper reveals that these three methods give nearly similar weights to financial aspects whereas Bangladesh Bank adds two financial issues in different dimensions named bank relationship risk and financial security risk. Although these three methods have a similar weight for financial and non-financial aspects, there are differences among the indictors of non-financial aspects.

The Impact of International Financial Reporting Standards on Financial Performance

Globalization, capital market crash and the Enron’s case led the accounting profession to insist on the need for a single set of high quality reporting standards. International Financial Reporting Standards (IFRS) were first adopted in 2005 by EU countries while Nigeria agreed to adopt in 2012. The question is: How does IFRS adoption improve the monetary relevance of accounting information? Several studies have explored the monetary relevance of IFRS adoption; however, they are based on foreign countries while Nigerian researches do not contain empirical evidence as they are mostly theoretical. This study therefore seeks to investigate the effect of IFRS adoption on financial performance. The study used correlation research design and data on Earnings per Share (EPS), Change in Earnings per Share (CEPS), Book Value per Share (BVPS) and net profit margin

The Effects of Share Repurchase Announcements on Returns in the Malaysia Stock Market

This paper examines the market response surrounding the share repurchase announcements of Malaysia Listed Companies from years 2012 to 2016. One sample T-test was carried out to identify the abnormal return in the range before and after 20 days from share repurchase announcements. The result shows a significant positive abnormal return in the day of repurchase announcements and continuously until day 1 after the announcements. Multiple regression analysis was performed in order to identify the firm characteristic of share repurchase. The finding is supported with information asymmetric, which shows that stock market reacts more favorably through the repurchase announcements by small firms than large firms. This study is consistent with the signaling hypothesis that shows share repurchase announcement can be an effective tool in stabilizing the stock market in Malaysia. The finding of this study acts as a useful tool for managers and investors to improve their decisions on share repurchase announcements in Malaysia. Company’s managers can conduct share repurchase announcements that are able to make the stock market react positively in order to generate positive abnormal returns.

Determinants of Budget Effectiveness and Implications on Internal Stakeholder Trust

This paper aimed to test and evince from some previous researches: influence of apparatus discretion to budget effectiveness, influence of organizational culture to budget effectiveness, and influence of budget effectivity to trust of internal stakeholders in organization of region of East Lombok Regency. The analytical tool used is Partial Least Square (PLS) with the determination of the sample of head and treasurer at each Organization of Regional Devices (OPD) in East Lombok Regency. The results of this study indicate that the apparatus discretion has a positive effect on budget effectiveness, organizational culture has a positive effect on the effectiveness of budget, and the effectiveness of the budget has a positive effect on the trust of internal stakeholders. With this research is expected government officials can use discretion in accordance with established channels and can apply a good organizational culture patterns that will impact on the achievement of budget effectiveness. The existence of effective budget management can realize the trust of internal stakeholders which is the greatest strength to maintain the sustainability of the organization. The trust of internal stakeholders will affect the work of the organization in completing various programs that have been poured on the Regional Budget (APBD).

Village Funds Accountability and Misuse Prevention in Lombok Tengah Regency of West Nusa Tenggara Province

Enacted law number 6 year 2014 about the village. so that villages receive funds sourced directly from the state revenue and expenditure budget. the village funds sourced from the state budget of revenues and expenditures, make the village government have a much larger budget than in previous yearsThis research aimed to analyze village funds accountability report that could be used to conduct village funds misuse prevention. Research method used was qualitative method with case study approach. Research result showed that village funds misuse prevention carried out on the following accountability report process sides: synchronizing perception from regulation being used, conducting village government accounting standard, conducting verification toward funds using realization report, conducting authorization delegation between Village Ministry with Directorate General for Guidance of the Village Government of Domestic Affair Ministry, and synchronizing understanding concerning accountability report presentation.