European Journal of Economics, Finance and Administrative Sciences

Issue 107
November, 2020

Accounting Standard in Italy: Interpreting and Essential Integrating Instruments of the Law about Financial Reporting But…
Maria Silvia Avi

In Italy, companies are divided into two categories: companies listed on the stock exchange or otherwise required by law to prepare their financial statements by applying IAS/IFRS (Alexander D., Britton A , Jorissen A., (2007); Ankarath N., KJ Mehta K.J., Ghosh T.P., Alkafaji Y.A. ,( 2010); Delvaille, P., Ebbers, G. and Saccon, C. (2005) ; Cristea, S. M. and Saccon, C. (2008); Hopwood, A. G., Chapman C. S., Shields M. D. (2007a) Hopwood, A. G., Chapman C. S., Shields M. D. (2007b)) and companies that, on the other hand, prepare financial reporting on the basis of the Italian Civil Code. The latter is supplemented, to all intents and purposes due to the enactment of Law 116 of 11 August 2014, by the Italian Accountig Standard, issued by the body whose name is OIC (The Italian Standard Setter) (Benston, G. J., M. Bromwich, R.E. Litan, and A. Wagenhofer, (2006) ; Godfrey, J.M., , Chalmers K., (2007)).
It is now unanimously accepted that accounting standards, for those who have to draw up financial reporting according to the civil code, are principles that supplement and interpret the law. It is therefore, mandatory to refer to these standards. However, in Italy, there is an extremely significant limit to this fundamental principle deriving from a judgement of the Court of Verona of 18 September 2010, which has never been called into question by any other subsequent judgement. According to this jurisprudential decision, the mere referral to standard accounting of the OIC (The Italian Standard Setter) entails the radical nullity of the financial reporting and the possibility to challenge the financial reporting by anyone, not only the shareholders Mouritsen, J., K. Kreiner (2016)).

Probabilistic Analysis of Insolvency Risk and its Effect on Share Prices: A Case Study on Kuwaiti Banks
Musaed S. AlAli

This study aims to examine the insolvency risk of ten Kuwaiti banks and its effect on their share prices returns over the period 2008-2018. Using Hannan and Hanweck (1988) Z-index, results shows that eight Kuwaiti banks had a very low probability of being insolvent. Results also reveals that while there is a statistically significant relation between banks shares price returns and both Z-index score and insolvency probability, only Z-index score showed a significant cause-effect relation with change in share prices.
Keywords: Hannan and Hanweck Z-index, Insolvency risk, Bankruptcy probability, Kuwaiti bank, Panel OLS Regression, share price.

Absolute Amount or Percentage Discount Framing the Moderate Role of Product Price, a Case of Syrian Pound
Muntasser Abd-Ali Khonsor

This research explores the impact of discount framing (Amount off, Percentage off) on customer perception of Purchase intention, perceived saving, with a moderate effect of product price.
We have conducted a two by two between subject's design to examine the main effect of two levels of discount framing (Percentage off, amount off) economically equivalent on the dependent variables, also to explore the interaction effect with two levels of product price (High-priced, low-priced).
We have demonstrated that when customer consider a high-priced product, framing expressed as an amount off, results a higher purchase intention, perceived saving than the framing expressed as a percentage off. In contrast with a low-priced product, as the framing presented in percentage off, will results a higher purchase intention, perceived saving than the framing presented as an amount off.
Keywords: Discount framing, Amount off, Percentage off, Product price, Purchase intention, Perceived saving

A Stochastic Price Model Using an Ito Diffusion and General Disaster Processes
Mohammad Zainal and Basel M. Al-Eideh

Many economic structures, such as prices, are observed to experience sudden external jumps or disasters. The occurrence of such external jumps, whether due to natural disasters such as floods, earthquakes, epidemics such as the pandemic Covid-19, or severe weather, etc. is most naturally analyzed as a random phenomenon. There is a considerable concern in stochastic analogs of classical difference and differential equations describing phenomena in theoretical models involving economic structure. In this paper, an exact solution to an Ito diffusion price model subject to the general disaster process is determined. Under the assumption that the disaster rate is low, and their magnitudes are random variables and having a general distribution function, the moments are derived. More specifically, the mean and the variance and the sample path of such a process are determined.
Keywords: Stochastic differential equation, Ito Diffusion price process, General disaster process, Moments, Mean, and variance.

Students Perception of Labour Market Expectations and Challenges of Unemployment in Universities in Calabar Geo-Political Zone
Odigwe, F. N. and Okoi, I. I.

Tertiary institutions must prepare young people for the world of work and avoid being two focused on ‘obsolete’ entrance requirement. The study focused on student’s perception of labour market expectations and challenges of graduate unemployment in Calabar Geo-political zone, Nigeria. One thousand two hundred and eighty six (1286) final year students constitute the population. Stratified and purposive sampling techniques were adopted. Labour market expectations and challenges of graduate unemployment questionnaire were used. A reliability estimate of 0.51 and 0.63 was determined using Cronbach alpha estimate. Pearson product moment correlation statistics was used for data analysis. The result shows that student’s perception of labour market expectations in terms of graduate preparedness, skill oriented curriculum significantly relate to challenges of unemployment. The recommendations were that institutions of learning, educational stakeholders, government and curriculum planners need to develop a nurturing curriculum on the current labour market needs based on relevant and employable skills in universities as this will go a long way to solve the problem of skills mismatch in our society.
Keywords: Labour market expectations, unemployment and skill oriented curriculum.