European Journal of Economics, Finance and Administrative Sciences

Issue 101
May-June, 2019

Impact of Banks on the Small and Medium Enterprises Equity Investment Scheme on Strategic Market Performance of Smes in Lagos, Nigeria
Olusegun Adekunle W and Makinde, Abiola, O

Past research has proven the importance of small and medium Enterprises to economic development in Nigeria. However, there has been limited study which specifically evaluates impact of the roles of the Central Bank of Nigeria (CBN) and banks on the strategic performance of SMEs under the Small and Medium Enterprises Equity Investment Scheme (SMEEIS). This study assessed the roles of CBN, banks, and factors that influence the strategic performance of SMEs under SMEEIS.
Using Survey Research Design, this ex-post facto research adopted the post-positivist view. The population of the study consisted of funded SMEs, funding bank officials, and officials of the CBN. Using stratified sampling technique, samples were selected from various banking categories and SME sector. Questionnaires were administered to the officials of 20 banks, and Managing Directors of 160 funded projects with accurate physical addresses in Lagos. The response rate for CBN was 100%, 65% for banks, and 50% for SMEs. To test for the reliability and validity of the primary research instrument, questionnaires were pre-tested among similar subjects, peers and supervisors for this research and adjustments were made to remove perceived ambiguities.
Primary data were collected using structured questionnaires, while secondary data were gathered through content analysis of The SMEEIS Revised Guidelines. Data were analyzed using both descriptive and inferential statistics. Results showed significant improvement with t-value (1.865) and 0.066 P-value before and t-value (5.054) with 0.000 P-value after SMEEIS at 7% and 1% level of significance respectively. Another t-test showed that SMEEIS significantly impacted contributions of SMEs to economic growth with P-value of 0.00 at 1% level of significance. The Chi-square statistic was used to determine whether the SMEs perceived banks as being supportive. Results showed that banks were supportive since the x2cal (76.375) was greater than x2tab (15.507) while logistic regression depicted no significant difference in the role of CBN on building the capacity of SMEs through entrepreneurial orientation.
Banks encountered problems of inadequate openness and partial disclosure of genuine record books by SMEs; and SMEs needed essential infrastructure for better performance. This study therefore recommends clear documentation of roles of stakeholders in measurable terms as well as the provision of clear framework for collaboration through avenues such as workshops and training to build capacity and trust. There is the need for thorough review of the Scheme by CBN and the Bankers’ Committee with representatives from SMEs using findings from this study to make necessary amends; future Scheme must include detailed and measurable roles for all stakeholders.

Gender Perceptions and Duration of Participation as Determinant of Contributory Pension Scheme Sustainability in Lagos State Nigeria
Wright, Olusegun Adekunle, Olonilua, Oluponmile O, Claxton, Julia, Makinde, Abiola O and Adeoye, Ayodele O

Considering the pension reform in Nigeria and the adoption of the Contributory Pension Scheme (CPS), establishing sustainability from the point of view of beneficiaries was an issue to be considered. With a focus on pension funds sustainability, this study assessed gender perceptions and duration of participation as determinant of contributory pension scheme sustainability in Lagos state. Nigeria.
The study was guided by a positivism paradigm. Quantitative data was collected by administering survey questionnaires to CPS beneficiaries from Lagos State civil service. Using a five-point Likert scale, questionnaire items measure respondents’ perception of pension funds sustainability. Data were processed and analyzed using Statistical Package for Social Sciences (SPSS). Hypotheses were tested and confirmed using Student’s T-test and Analysis of Variance (ANOVA).
Empirical findings showed that beneficiaries have a strong perception of the CPS in Lagos State, and that most beneficiaries are optimistic that the scheme would provide income, post-retirement. Female beneficiaries do not perceive pension funds sustainability differently from their male counterparts. This also indicates that there is no statistical association between gender status and perception towards pension fund sustainability.Also, The finding shows that on average, beneficiaries with more than five years’ experience of participation in the scheme had superior perception of pension funds sustainability than beneficiaries who had participated in the contributory scheme for five years and less.Lastly, there was an association between the age category of beneficiaries and their perception towards sustainability of the CPS. Therefore age seemed to exert a significant effect on pension funds sustainability.
Appropriate recommendations were made.
Keywords: Gender, Duration, Contributory Pension Scheme

Internal and External Factors Influencing Capital Structure of Indonesian Companies on 2002-2016
Dewi Tamara and Angkola Indradewa

This study examines about internal and external factors of capital structure of Indonesian companies. The samples are Indonesian company listed in LQ45 Index. However, there are only six company that consistently in LQ45 Index for the 15 consecutive years. There are determinants are fully out of company control, such as stock market condition (including annual stock return and annual market index return), debt market condition (including 1-year vs 10-year yield spread), and macroeconomic condition. There are also determinants that partly or completely influence by company’s strategy, such as profitability, company size, and company growth (including change in assets and capital expenditure to asset ratio). The result of the research is internal factors has significant relationship to financial leverage, since there are two variables that has significant influence to dependent variable. While there are no variables from external factors that have significant influence to dependent variable. The research also found that there are only 2 out of 9 independent variables that has significant influence to dependent variable. Profitability and firm size has significant influence to financial leverage. Though only two variables that has significant influence to financial leverage, the altogether 9 (nine) independent variables has significant influence to financial leverage.
Keywords: Internal factors, external factors, capital structure

Impact of Tax Legislation: True and Fair View in Italy
Maria Silvia Avi

The true and fair view, in many Italian company, is not applied in financial reporting. The company often apply a different principle which is affected by tax legislation. This “new” principle can be called: the “tax true and fiscally fair” principle.
An empirical research I conducted in Italy have shown that Italian financial statements are “contaminated” by regulations that differ from accounting standards. In fact, many Italian financial statements are not prepared according to national and/or international accounting standards, but rather based on tax laws upon the occurrence of fiscal interference in the final financial statements assessments, the balance sheet and income statement can no longer be considered true and correct as they are influenced by regulations that have nothing to do with the determination of the valuations of the financial statements.
Keywords:Empirical research, financial statement, Italian financial reporting, tax, tax in Italian financial reporting, true and fair view

Apparel & Non-Apparel Manufacturing Industry Analysis in Italy: Does being a Luxury Firm Make a Difference?
Barbara Sveva Magnanelli and Sara Trucco

Apparel & non-apparel manufacturing industry represents a leading industry in the Italian setting (in 2017, the market value reached more than $10,000 million). Worldwide firms had relevant effects on their performance after the global financial crisis started from 2008 and scholars have studied the financial crisis from different perspectives. However, to the best of our knowledge, there is a gap in literature with regard to this topic in the Italian setting. Therefore, the first aim of this study was to investigate on the Italian listed firms, questioning if belonging to the apparel and non-apparel industry made a difference in terms of performance after the global financial crisis. The second purpose of this study was to focus on the luxury segment within the apparel & non-apparel manufacturing industry, investigating if being a luxury firm led to a higher firm performance. Empirical results demonstrate that apparel & non-apparel manufacturing firms perform better than the other Italian listed firms and, among them, the luxury firms even perform better than the other apparel & non-apparel manufacturing firms.
Keywords: Luxury firms; Apparel & non-apparel manufacturing firms; Italian setting; performance; financial crisis
JEL Classification code: M10, M41