Articles

The Effect of International Factors on Accounting Earnings and Security Prices

Ronald A. Stunda
Valdosta State University
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Abstract
Past studies find differences in the demand for accounting earnings releases, a timeliness issue, that may be specific to Code-law countries (i.e., Germany, France, Japan, China) versus Common-law countries (i.e., US, UK, Canada).  This difference may be attributed to structural information asymmetry in these countries.  For example, in Code-law countries, stakeholder governance rests in a few hands (i.e., the government or lending institutions).  In Common-law countries the stakeholder governance is more diverse and dispersed.  In addition, prior studies also show that accounting earnings disclosures in foreign countries (when grouped in regions) have a different correlation to security returns than domestic earnings disclosures and returns, a value-relevance issue.  This study extends extant literature by using a more contemporaneous study period (2001-2012) and focusing on countries that have created the most economic growth during this period, namely; the US, UK (Common-law countries), and Germany, Japan, and China (Code-law countries).  In addition, this study also incorporates findings regarding the above issues by eight major industries and across nations, something not attempted heretofore.  Study findings suggest that regardless of the country, each nation studied contains a relatively high degree of demand for earnings timeliness.  In addition, when assessing the timeliness issue by industry, each industry displays a high degree of earnings timeliness with the Healthcare and Utilities industries at the lower end.  With respect to the value of earnings disclosure relative to security returns, findings suggest no significant difference across the nations studied.  With respect to industry analysis, each industry values the relevance of earnings disclosures, at differing significance levels.

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Attitude of Rental Tax Payers and their Compliance with Tax System: An Empirical Study of Mekelle City, Ethiopia

Suresh Vadde
Associate Professor, Department of Accounting & Finance
College of Business & Economics
Mekelle University, Melelle, Ethiopia.
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Abstract

The primary goal of a revenue authority is to collect the taxes and duties payable in accordance with the law and to do this in such a manner that will sustain confidence in the tax system and its administration. The actions of taxpayers — whether due to ignorance, carelessness, recklessness, or deliberate evasion — as well as weaknesses in a tax administration mean that instances of failure to comply with the law are inevitable. Therefore, tax administration should have in place strategies and structures to ensure that non-compliance with tax law is kept to a minimum. Understanding the rental income taxpayers' attitude and their compliance with tax system is one of the most important factors for increasing the revenue of a government. However, the amount of tax that has to be collected from rental income is not sufficient enough to undertake developmental activities. A number of reasons may be attributable for low compliance and attitudinal differences of rental taxpayers such as lack of awareness and inability in capturing the tax laws and regulations. Hence, the purpose of this study is to identify and understand the major factors that influence attitudes of rental taxpayers and their compliance behavior with tax system. Moreover, it is also designed to establish a relationship between the attitudes of rental taxpayers and their tax compliance behaviors.

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Exploring factors that influence students to buy ringtones in Tanzania

Simon Mwanjela
Deparment of Agricultural Economics and Agribusiness
P.O. Box 3007,
Morogoro
Tanzania

 

Felix Nandonde
Assistant Lecturer in Marketing
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Abstract
The purpose of this study is to explore determinant factors that influencing students to buy ringtones. The study administered 200 respondents in two universities namely, Sokoine University of Agriculture and Muslim University of Morogoro, both in Morogoro, Tanzania. Factor analysis technique was used to explore the factors that influence students to buy ringtones.  Principle Components Analysis and rotation Varimax was used for fourteen items and SPSS version 16.0 were employed in analysis. The results indicated that there are four dimensions that determine students purchase of ringtones, namely fashion aspects, hip hop ringtones, religious and prestigious. The implication to marketers is that the students markets should not be considered en mase, but appropriate marketing strategy has to be employed regarding their preferences.

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Impact of Subsidized School Funding on Infrastructure Development in Public Secondary Schools in Sabatia Sub-County, Vihiga County - Kenya

Mbayah, J.T
Mount Kenya University,
Department of Educational Administration and Management;
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Maende, J.B2
Maseno University,
Department of Educational Management and Foundations;
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Abstract

The Jomtien conference in 1990 and the Dakar Declaration of 2000 have provided the benchmark for countries to improve their secondary education to realize education for all goals.  In this regard, the Kenyan government in 2008 began subsidized Secondary education. The purpose of this study therefore was to establish the role of subsidized secondary school funding programme in enhancing infrastructural development in Sabatia Sub-County. The study adopted a descriptive survey design. The population included 28 Principals, 28 Directors of studies, 630 Form 3 students, parents, one Sub-County Education Officer and the Chairman of the Sub-County Education Board. Stratified, purposive and simple random samplings were used to sample the respondents. A total of 248 respondents formed the sample size.  The study utilized questionnaire, interview schedule, Focus Group Discussion, and observation guide as instruments for data collection. A pilot study was conducted in two selected schools to enable the researcher to strengthen the reliability and validity of the data collection instruments. Data were analyzed using descriptive statistics. Predictive analysis software (PASW) was used to compute  means, percentages and frequencies. Data was presented in the form of frequency tables, pie charts and bar graphs. The study established that: higher enrollment of students in the schools caused the need to construct additional classrooms and dormitories. The Government disbursed funds late due to bureaucracy. Dormitories, classrooms and pit latrines in the schools were inadequate as reported by over 71.00% of the Directors of studies; The Government subsidized funding was inadequate to cater for infrastructural development projects such as building of more classrooms and dormitories as indicated by all Principals. The status of the Dining halls and Libraries was good at mean ratings of over 3.50 while that of Pit latrines in the schools was poor at a mean rating of below 2.50; The Government should allocate more funds to cater for infrastructural development in the schools.

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Application of Structural Equation Modeling (Sem) in Hypothesis Testing

Henry Kimani Mburu
Morgan State University
Earl G. Graves School of Business and Management
1700 E. Cold Spring Lane, Baltimore, MD 21251 USA
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Abstract
This is a methodological paper illustrating how structural equation modeling (SEM) technique can be used to test hypothesis.  The illustration involves a job analysis assignment in human resource management. Hypotheses are made and tested.  Results are used to amend the hypotheses in line with the results.  The paper also illustrates how to use exploratory factor analysis variable construction based on existing job analysis literature.  Using data collected from bus drivers for a job analysis project, the paper has three main stages.  At the first stage data is subjected to exploratory factor analysis (EFA) to identify a reasonable number of variables to work with.  Reliability of the constructs is tested.  The second stage involves naming the constructs, and using them to specify a measurement model applying confirmatory factor analysis (CFA).  The third stage uses structural equation modeling to test the hypotheses and to re-specify the model before determining the final results.
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