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This study determined the effect of IFRS on the quality of financial reporting among Nigerian financial firms. The study adopted stock price (Ohlson, 1995) and return (Easton and Harris, 1991) models, that have been commonly used in accounting research. Data were collected from Thompson Reuters (stock price) and Bank Scope Data Streams (net income and total expenses) to determine the relationships. The study found that there is a greater relationship between net income and total expenses with the stock price and return. Furthermore, the relationships have been statistically significant using Cramer Z-statistic for both stock price and return model. The overal result have shown value relevance of net income, operating expenses, and change in net income and operating expenses has improved as a result of IFRS adoption among Nigerian listed financial institutions. The study implication for the policy makers, standard setters and investors are to give more emphasis on the use of IFRS for all firms even if they are not listed in the stock market as IFRS adoption provided a better quality accounting information than domestic reporting. Besides the relevance of these study findings to security market, the literature has provided greater contributions to fewer market research in African capital market particularly, Nigeria after the IFRS adoption being the first study to carry such study in Nigeria.
This study is one of very few studies which have investigated the value relevance of net income and operating expenses in emerging economy.
The Effect of Access and Quality of Education on Economic Development in Botswana
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Strike Mbulawa , Piyush Mehta (2016). The Effect of Access and Quality of Education on Economic Development in Botswana. International Journal of Business, Economics and Management, 3(11): 144-159. DOI: 10.18488/journal.62/2016.3.11/188.8.131.52
The study investigates whether or not access and quality of education contributes to the development process and economic well being of Botswana by (1) examining the impact of access to education on economic development, (2) establishing the relationship between quality of education and economic development and (3) testing the causal relationship between education and economic development. The study uses time series data from 1980 to 2014 which was analyzed using vector error correction model and vector auto regression approaches to test both long and short run relationships respectively. The paper provides a strong background on the political economy of education in Botswana since independence to date as a departure from our current understanding in literature. Findings show that the level of access to education has a positive and significant effect on the level of economic development; there is bidirectional causality between quality of education and the level of economic development; unidirectional causality moves from economic development to access to education. The study suggests that access to education should be complemented by enhancing more employment creation to forester long term development and private investment in inventory and tangible assets should be enhanced. Attracting more foreign direct investment and maintaining low inflation improves quality of education in the short as they work through enhanced economic development.
The paper contributes to the existing literature by showing bidirectional causality between quality of education and the level of economic development. Access to education has both long and short run effects on economic development. The impact during the former period depends on the measure of access to education employed.