Ibrahim Abidemi Odusanya
In this paper, the way in which economic growth influences income distribution is examined with a focus on Sub-Saharan Africa (SSA). Despite considerable growth in a number of the SSA countries, the region has been slow in reversing the rising trend of income inequality. A large proportion of countries in the region globally rank among economies with extreme income inequality. The study covers a period from 1995 to 2015, due to the limited data on the measure of income inequality, the Gini index, for the largest number of the countries of the region. The Generalized Method of Moments (GMM) system was employed in examining this paradox. The findings of this research study do not only suggest the presence of an inverted-U relationship between economic growth and income inequality, but the supposition of the S-shaped curve hypothesis in the interplay of growth and inequality was also tested and confirmed. It can be concluded that in no way do spurts in economic growth bring about diminution in income disproportion in Sub-Saharan Africa.
Edesiri Godsday Okoro1 and Confidence Joel Ihenyen2
Regardless of the viewpoints of prior studies on earnings management, no study has been carried out on whether earnings management exerts pressure on firms’ return on assets and equity, particularly in Sub-Saharan Africa in a single study. Drawing inferences from the existing earnings management models, a dissimilar model of earnings management, unlike those used in prior studies, which may match the peculiarity of Sub-Saharan Africa is developed in this paper. The data used were obtained from the Stock Exchange database of Sub-Saharan African countries by employing the fixed and random effects statistical technique. Using the proposed earnings management model, the study finds the intriguing results that may contribute to knowledge and magnify the literature that, notwithstanding the fact that earnings management exerts significant pressure on firms’ performances, it is even more so deemed as high in South Africa, only to be followed by West Africa, and low in East Africa. Interestingly, the study finds that the size of a firm plays a vital role in moderating the nexus between the earnings management and performances of Sub-Saharan African firms.
Edirin Jeroh
This paper comparatively analyzes the internal determinants of environmental disclosure practices among firms in Sub-Saharan Africa (SSA). To achieve this, secondary data on the characteristics of the measures of the board and the characteristics of the audit committee were obtained from a sample of 60 companies from across the region (20 each from Kenya, Nigeria and South Africa). The regression technique was used to analyze the data and the results revealed the fact that, while the characteristics of the measures of the board and the audit committee were found to be the significant determinants of the environmental disclosure of firms in Kenya and Nigeria, the same cannot be said of firms in South Africa. The study, therefore, recommends that borrowing from South Africa, environmental management practices should be institutionalized in the entire region. Additionally, standard-setters should make practical efforts by developing new reporting standards which will guide and encourage a full disclosure of environmental concerns by firms.