Abstract: This work aimed the analysis of the volume of disbursement done in the environment function by the Brazilian federation members, within 2002 and 2011. To do so, vertical and horizontal analysis of the expenses with Environmental Management and its subfunctions have been done. It was noticed that there was an increase of expenses in the environmental area in the period, but there was decrease of representativeness, since the expansion did not occur according to the growth rate of the total expense. On average, the expenditure concerning environmental issues in relation to the average total expense of the states decreased in the period. The Environmental Management of the states that had the biggest representativeness in the period were the ones that least kept regularity in disbursement in relation to the average. The country presented increase of Environmental Management expenses in the period and tendency to keep on growing, though its representativeness is insignificant if compared to the total expense. It is concluded that, in spite of the fact that Environmental preservation and conservation are subjects very talked about today, it is verified that, financially, little is done to favor the effectuation of the environmental protection in Brazil, since the participation of the environmental management was small, fact evinced in the analysis results.

Abstract: This study investigates the short run and long run relationship of returns for cross listed stocks on two non-synchronous international markets using daily data for the period from Jan 2001 to May 2012. Further, the co-movements of prices and causal relationships on ADRs of Indian stocks pertaining to telecommunication sector cross listed in the US markets is examined by applying Cointegration test, Granger causality testand Vector Error Correction Model. Results indicate that in the long run, domestic stock price series and ADR prices are cointegrated. In the short run, error correction coefficients of ADR opening prices and closing prices are statistically significant. But there persists a weak short run relationship in the domestic stock opening and closing price. Due to the weak relationship in the domestic stock opening and closing price, multimarket listing generates opportunities for arbitrage. As a result of this, the pace of global market integration gets reduced in developing markets like India due to information asymmetry.

Abstract: This paper seeks to determine the extent of knowledge about gift tax in Ghana using the Accra-Tema Metropolis as a sample population. It further seeks to ascertain the extent of compliance with Gift Tax in Ghana. If the level of compliance is low, then to find out reasons for non compliance in order to ascertain the applicability of Fischer’s tax compliance model in Ghana. Finally, the paper aims at contributing to the very scanty literature on tax compliance in Ghana. In order to achieve the above objective, the researcher used a direct method of measuring tax compliance, which involves the use of direct surveys of taxpayer behavior. Furthermore, a cross sectional data on individual tax returns filed for the years of assessment 2009 to 2012 was also used. The results indicate a very low awareness rate of Gift Tax; consequently, the compliance rate is also very low. The respondents cited lack of knowledge as the main reason for failing to comply with the tax. Educational level and the low detection rate were the other principal factors cited for non-compliance. The Fischer tax compliance model was thus accepted as explaining the non compliance nature.

Abstract: Ghana’s economy has experienced a windfall of merger and acquisition activity recently. This has necessitated several structural changes in the operations of the companies involved. One of the acquisitions that occurred in Ghana was between Guinness Ghana Limited (GGL) and Ghana Breweries Limited (GBL) in 2004. Using the pre and post-acquisition performance of the acquirer from financial statement information running from 1999 to 2009, the impact of the merger on the profitability and financial performance on the acquirer is examined. The growth rate implications for the merged firm are also examined by considering both the sustainable and internal growth rates. The results indicate a general downward trend in profitability after the acquisition. Generally, liquidity ratios increased during the post-acquisition period but plummeted in the last two years post-acquisition. Earnings per share and dividend per share increased continuously except in one year, where it fell marginally.

Abstract: In the last 25 years, financial reporting of Heritage Assets has become a highly problematic issue for the public sector entities holding those assets. Based on the New Public Management (NPM) practices, these entities are required to report to stakeholders on a model disclosing the economic values for all assets under their control. Whilst there exists an extensive prior literature focused on how heritage assets might be accounted for and whether the heritage assets are sufficiently different to merit different treatment, there is little that addresses the reporting of Heritage Assets from an alternative, financial and non-financial perspective. The methodology used in the paper is critical analysis of relevant literature, including the promulgations of accounting standard-setting agencies and related organizations. The paper critically analyzes the doctrines and ideologies of the NPM model, challenging its assumptions that private sector financial reporting requirements based on GAAP are appropriate to account for heritage assets. Instead, the paper proposes APractical Reporting Model based on an alternative metric for the recognition and measurement of the heritage assets, centered on a framework that suggests a set of broad stakeholder-driven social, legal and cultural, rather than only economic values for reporting the Heritage Assets. The proposed practical accounting approach for heritage assets has been based on two sub-approaches: 1- Assets-Liabilities Matching Approach: Capitalize if the information on cost or value of heritage assets is available and heritage assets can be disposed, and hence they can be used to match the liabilities (Unrestricted Heritage Assets). According to this approach, heritage assets should be included in the statement of financial position and their revenues and costs should be included in the statement of financial performance. 2- Non- Assets-Liabilities Matching Approach: Not-Capitalize if the information on cost or value is not available or available but heritage assets cannot be disposed, and hence they cannot be used to match the liabilities (Restricted Heritage Assets). According to this approach, heritage assets should not be included in statement of financial position and should be treated as trust/agent assets. Therefore, each country should create a Trust/Agent Assets Statement where heritage assets stated in this statement in physical units not in financial values. So in order to account for the revenues and costs related to heritage assets, each county should create a Trust Fund (Agent Fund). This fund will include all the revenues and costs related to heritage assets in each country. The balance of the trust fund would be reported as either a liability or an asset in the balance sheet.

Abstract: Maximization of returns and benefits are the major determinants state considers for adopting particular petroleum fiscal regime in the course of exploiting its petroleum resources. Two major fiscal regimes are adopted for exploiting petroleum resources: Joint venture agreement (JVA) and production sharing contract (PSC). However, considering the inherent difficulties associated with Joint venture agreements, developing countries gave emphasis to production sharing contract. This study aims to compare expected returns from exploiting petroleum resources of selected countries (Nigeria, Indonesia, Malaysia and Equatorial Guinea) that have adopted the Production Sharing Contracts. A literature based methodology was adopted, and indeed, data were gathered from the PSC treaties and related documents. The findings suggest that Nigerian PSC provides less return compared to its contemporaries. Indeed, the results showed that Malaysia received the highest returns, followed by Indonesia and Equatorial Guinea. On the other hand, the findings justified the underlying hypothesis of socio-economic factors help shape the terms and conditions of oil and gas contracts in developing countries particularly production sharing contract.

Abstract: The purpose of this paper was to explore the challenges and complexities of performance measures which caused less than desired behavior in the Tanzanian Local Government Authorities (LGAs). Specifically, the paper focuses on performance measures under the Local Government Development Grant (LGDG) system. The LGDG was the performance based grant system established to link LGAs’ performances and their financing. The methodology of the research incorporates review of LGDG documents, field-based interviews and observation. The results are interpreted using the law of decreasing effectiveness (de Bruijn and Van Helden, 2007) and Oliver (1991)’s strategic responses to institutional pressure. The study provides a more detailed analysis of the law of decreasing effectiveness and contributes by adding a component of complexity, to contribute to the causes of pervasive effect. The paper also explains how acquiescence and manipulation strategies (Oliver, 1991) can occur concurrently.

Abstract: Purpose: This paper investigates the use of performance information by local government stakeholders in Tanzania. The use of performance information has been explored at various levels, such as Citizens/communities, Local government managers/officials, Councillors, Legislators, and other decision makers. Methodology: The use of performance information was explored by using interviews, document analysis and observation in four Tanzanian Local Government Authorities (LGAs). Findings: The principal research findings reveal that some of the performance information may not be collected at all as advocated in the rules and regulations issued by oversight bodies; some may be collected for their intrinsic value, and some may be collected and used for legitimacy and efficiency purposes. It is also revealed that stakeholders’ power and interest influence the collection and/or use of performance information for either efficiency and/or legitimacy purposes. Originality/value: Unlike other previous studies, this paper explores the use of performance information by local government stakeholders by integrating a number of stakeholders, such as Councilors, local government officials, central government, and Parliament. From a policy perspective, the findings of this study can provide additional insights to reformers and governments in their quest for NPM reforms and their implications for efficiency and legitimacy.

Abstract: The move towards adopting unified and higher quality accounting standards across the globe started fully in 80s and was catalyzed by stakeholders in advanced economies, in the year 2001 with the establishment of the International Accounting Standards Board (IASB). In its first sitting, the new board unanimously agreed to consolidate all the Standards issued under IASC (IASs) with the ones issued under the new board (IFRSs) as IFRS-framework. The board also stipulated clear procedures to be followed by every entity adopting the consolidated framework. Thus, this study assessed the extent to which the Nigerian Banking Industry complied with these requirements as captured in IFRS 1: First Time Adoption of IFRS. Using ex-post facto and survey research designs, the study sourced data from structured questionnaire and recent audited financial reports of the sampled banks. Qualitative Grading System (QGS) was employed in determining the degree of compliance of the banks while Multivariate regression and Chi-squire test were used in measuring the effect of the factors responsible of such compliance and identified probable difficulties in the process respectively. The study concludes that, Nigerian banking industry complied (semi-strongly) with the requirements of IFRS-framework but, the exercise is still faced with some challenges which include: lack of indepth IFRS knowledge from the preparers of the financial reports. The study also found amenability, globalization and response to users’ needs as factors significantly influencing the compliance level of Nigerian banks with IFRS-framework.

Abstract: Given the importance of the loss function choice [Christoffersen, P. and K. Jacobs (2004) The importance of the loss function in option valuation. J. Financial Economics 72: 291-318], this paper proposes the nonparametric technique of cross validation, to tuning the shrinkage intensity estimation of Ledoit and Wolf [Ledoit, O. and W. Michael (2003) Improved estimation of the covariance matrix of stock returns with an application to portfolio selection. J. Empirical Finance 10: 603-621; Ledoit, O. and W. Michael (2004) Honey, I Shrunk the Sample Covariance Matrix. J. Portfolio Management 30: 110-119; Ledoit, O. and W. Michael (2004) A well-conditioned estimator for large-dimensional covariance matrices. J. Multivariate Analysis 88: 365-411]. By aligning the loss function of out-of-sample forecast identical to the one used for the shrinkage intensity estimation, the proposed cross validation approach shows the significant gains in terms of both the variance reduction and information ratio improvement to various portfolios of the U.S. firms.