Ochuko Benedict Emudainohwo
The extant literature links manageress incentives to earnings management. It has globally accounted for the collapse of some well-known, established firms, since it depicts a low financial reporting quality. This study employed data from the 77 nonfinancial firms listed on the Nigerian Stock Exchange for the period 2013-2019 in order to examine the determinants of earnings management. The result showed strong evidence of an incentive to manage earnings. Profitability (Return on Assets – ROA) and the size of a firm have a strong positive impact on earnings management, while the non-debt tax shield and operating cash flows have a strong negative influence on earnings management. The study suggests that external stakeholders should observe a firm’s factors influencing its assets, non-debt tax shield and operating cash flows (such as accelerating/delaying cash receipts/payment through the use of credit sales and granting discounts), these being the crucial factors influencing earnings management even when the firm is increasing in size. Management should minimally use the above-mentioned factors of a firm as an earnings management instrument.
Anna Pietruszka-Ortyl
The knowledge workers who form the core of the crew of a modern organization have emerged. They have a unique position in an enterprise, which complicates the incentive system building process and managers’ formal impact on their activities. With a „deep-smarts” status, they adopt the attitudes that restrain or even intentionally hide knowledge flow. Providing support to organizational culture is crucial for motivating knowledge workers to contribute to an organization with their knowledge. This research paper is mainly aimed at identifying knowledge workers’ preferences for organizational culture. The paper focuses on indicating the directions of the development of Polish IT companies’ organizational culture in line with the attitudes of the professionals aiming to stimulate their involvement in the implementation of specific knowledge diffusion subprocesses. The paper is based upon the empirical research conducted on a sample of 105 IT sector knowledge workers in Poland in 2020.
Lilianne Isabel Pavón Cuéllar
As proposed by the current theoretical framework, the fact that the economic growth of a country depends not only on the formation of physical and human capital and the sustainable exploitation of its natural resources, but also on the financial inclusion that allows economic agents to find solutions to liquidity restrictions and channel savings towards productive investment is exhibited in this paper. By matching multiple databases, static and dynamic panel estimates are developed, verifying the robustness of results and the endogenous nature of economic growth. The current research demonstrates that social inclusion is not only the desired result of economic growth, but a required input for its future sustainability.
Vlastimir Leković
A total of four original scientific papers and two review papers, as well as the Letter of Appreciation to the Reviewers of the manuscripts submitted to the Journal’s Editorial Board in 2020, are published in the Issue 2 Volume 23 Year 2021 of the Economic Horizons scientific journal.
Dejana Zlatanović
Hasnan Baber1 and D. Tripati Rao2
The decision on immediate lockdown in India put economic, social and religious activities to a grinding halt. The paper examines the impact of the lockdown and social distancing policies on economic activities in India, using a multivariate econometric model for the data collected in the period from 1st January to 31st August 2020. While the social distancing policy is captured in terms of internal movement, domestic travel and international travel restrictions, its effect on the economic activity and the business activity is captured through stock prices, purchasing managers’ index and the exchange rate. Confirmed COVID-19 cases and related deaths are also used as the independent variables. The results reveal a significant negative impact of social distancing policies on the economic activity and the business activity, the stock market and the exchange rate. Furthermore, the economic stimulus provided by the Government could not bring a positive influence on the stock market.
Santosh Borkakati and Konthoujam Gyanendra Singh
Fiscal responsibility law has become an important instrument for better fiscal management and ensuring fiscal discipline, particularly so in the federal countries where their subnational governments often indulge in fiscal indiscipline. In 2003, India adopted the Fiscal Responsibility and Budget Management Act for rule-based fiscal discipline, and the states of India were also asked to adopt their own fiscal rule legislation in line with the legislation adopted by the central government. As a fiscally weak Indian state, Assam enacted the Assam Fiscal Responsibility and Budget Management (AFRBM) Act in 2005 for better fiscal management. The paper attempts to examine the impact of the AFRBM Act on the fiscal performance of the state by analyzing the dynamics of the fiscal variables in the pre- and post-AFRBM Act periods. The study finds that the state has improved its fiscal condition after the introduction of the AFRBM Act, even though it has remained prone to fiscal shocks.
Vladimir Obradović1, Marko Milašinović2 and Jasmina Bogićević1
Information about the segments of a company is an important basis for making business decisions. In order for decisions based on segment information to be adequate, that information should be communicated in accordance with regulations. This paper is aimed at examining the adequacy of the segment information of listed companies in the Republic of Serbia and the Republic of Croatia and determining whether the volume of disclosed financial segment information is related to the company size and character of the audit firm. The research reveals that, in general, the disclosure of segment information is not fully in line with the International Financial Reporting Standard 8 – Operating Segments and that the joint-stock companies with a higher value of their total assets disclose financial segment information in more detail. However, there is no statistically significant difference in the amount of the segment information disclosed between the companies whose financial statements are audited by large audit firms and those that are the clients of other audit firms.
Radovan Kovačević
In this paper, the adequacy of foreign exchange reserves in the Republic of Serbia (RS) and the factors that influence their accumulation is analyzed by means of an econometric model. The relevant variables, such as the Gross Domestic Product (GDP), the Real Effective Exchange Rate (REER) and monetary aggregate M2/GDP are included in the analysis. The unit root tests applied in the research led to the conclusion that the timeseries were integrated of the order I(1). The cointegration test revealed that there was one cointegration equation. The regression model was estimated using the quarterly data for the period from 2002q1 to 2020q3. The estimated cointegration coefficients showed that the economic activity approximated in terms of the GDP had a significant influence on foreign exchange reserves accumulation, which is only followed by appreciation pressure on the dinar (approximated by the REER index) and money supply growth (estimated through the monetary aggregate M2/GDP). In addition to conventional factors, the analysis also points out specific factors and their impact on foreign exchange reserve accumulation in RS. The results of the research study show that foreign exchange reserves in RS are greater than the levels suggested by standard optimality criteria. The findings also suggest that it is necessary to take into account the dividends realized by foreign investors, as well as some segments of portfolio investment in assessing the specific indicator of the adequate level of foreign exchange reserves.