The Role of Count of Account in Public Auditing: Turkey Example | Chapter 13 | Emerging Issues and Development in Economics and Trade Vol. 3

Court of Accounts are an integral part of the institutional structure in democratic societies. The duties and structures of them, which are indispensable organs of parliamentary democracy, vary according to the legal tradition, culture, regional relations, political systems, historical development and language of countries. In democratic countries, the Court of Accounts, which are independent supervisory bodies, are responsible for the budgetary oversight. Court of Accounts generally have played an important role in controlling how public revenues are spent and the functioning of the financial system.

Court of Accounts are the higher audit institutions responsible for the supervision of public expenditures at the national level. They ensure the effective use of public resources and the formation of a strong public financial management structure through the audits they perform. In addition, they ensure the creation of a more transparent and accountable structure in public financial management through the publication of independent reports.

The basis of today’s representative democracies lies in the struggle of the representatives of the people against the executive authorities in order to have a voice and decision in determining the public revenues and expenditures. The Court of Accounts are specialized institutions that arise from the emergence of parliaments and acquiring the right to budget, as well as the need to audit resources allocated to the executive on behalf of the parliament by budget laws. Moving from Turkey on this issue, examination of the characteristics and mode of operation of Court of Account audits in Turkey together with the presidential system in recent years is the main objective of this study. In this study, various recommendations and assessments about the Court of Account and its audit are presented by considering the differences between the legislation and the implementation of its audit.

Author(s) Details

E. Seda Koç
Department of Child Development, Vocational School of Health Sciences, Namık Kemal University, Turkey.

Prof Dr. Abdulkadir Işık
Department of Finance, Faculty of Economics and Administrative Sciences, Trakya University, Turkey.

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Global Coordination: Weighted Voting | Chapter 12 | Emerging Issues and Development in Economics and Trade Vol. 3

In order to halt the depletion of global ecological capital, a number of different kinds of meetings between Governments of countries in the world has been scheduled. The need for global coordination of environmental policies has become ever more obvious, supported by more and more evidence of the running down of eco-logical capital. But there are no formal or binding arrangements in sight, as global environmental coordination suffers from high transaction costs (qualitative voting). The CO₂ equivalent emissions, resulting in global warming, are driven by the un-stoppable economic expansion in the global market economy, employing mainly fossil fuel generated energy, although at the same time lifting sharply the GDP per capita of several emerging countries. Only global environmental coordination on the successful model of the World Band and the IMF (quantitative voting) can stem the rising emissions numbers and stop further environmental degradation. However, the system of weighted voting in the WB and the IMF must be reformed by reducing the excessive voting power disparities, for instance by reducing all member country votes by the cube root expression.

Author(s) Details

Jan-Erik Lane
University of Genova, Genova, Switzerland.

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Vietnam Inter-Regional Input-Output Analysis: The Bi-regional and 8-regional Cases of Vietnam | Chapter 11 | Emerging Issues and Development in Economics and Trade Vol. 3

The Leontief’s input-output system was developed to the inter-regional input-output model by Isard in 1951. The idea of the inter-regional input-output model was specified by Richardson and it is considered as an important tool in researching of regional economy. The inter-regional input-output model describes not only the relationship between sectors but also the relationship between regions based on trading flows among regions and the trading flows between regions and foreign countries. This research develops two types of inter-regional input-output tables of Vietnam: the inter-regional input-output table with two regions, and the inter-regional input-output table with eight regions.

Author(s) Details

Bui Trinh
Vietnam Development Research Institute, Association of Regional Econometrics and Environmental Studies (AREES), Vietnam.  

Duong Manh Hung
Vietnam National Account Department, General Statistics Office 6b Hoangdieu, Badinh, Hanoi, Vietnam.

Nguyen Van Huan
Vietnam Economic Institute, Vietnam Academy of Social Sciences (VASS), Vietnam.

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Managing Human Capital: How to Use Knowledge Management to Transfer Knowledge in Today’s Multi-Generational Workforce | Chapter 10 | Emerging Issues and Development in Economics and Trade Vol. 3

The purpose of this exploratory study is to examine knowledge transfer strategies within the framework of a multi-generational workforce. It is common to consider different generational perspectives in the workplace and its impact on knowledge management and transfer strategy. This research compares differences in workforce generations and examines different methods to pass knowledge cross-generationally. Companies must design knowledge transfer strategies conducive to multi-generational workforce dynamics keeping in mind the generational diversity that exists in the workplace. The present study endeavors to provide insight into this issue.

Author(s) Details

Dr. Roxanne Helm-Stevens
School of Business and Management, Azusa Pacific University, 901 East Alosta Avenue, Azusa, CA, USA.

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Analysis of Value Added Tax Effect on Firms’ Cash Flow in Various Sectors of the Emerging Economies | Chapter 09 | Emerging Issues and Development in Economics and Trade Vol. 3

Inadequate cash flow constitutes the major reason for most corporate failures worldwide. However, absence of empirical evidence on value added tax (VAT) effect on corporate cash flow in different industries means that cash flow implications are often ignored by VAT policy makers. This study examines the relationship between VAT and firms’ cash flow in various sectors of the economy within the context of an emerging economy. The study employs factor analysis to determine if there is a statistically significant difference in cash flow effect of VAT on firms among the different industry groupings in Ghana. The study used data on firms registered with the Large Tax Payer Office (LTO) of the Ghana Revenue Authority (GRA) to conduct the analysis. It was established that VAT effect on firms’ cash flow differs significantly between industry groupings, depending on the particular factor influencing the amount of VAT remittance to revenue agencies. The findings also show that governments’ decisions on the efficiency and neutrality of the VAT scheme must not only be influenced by its ability to transfer the tax burden from corporate bodies to final consumers, but also its effect on firms’ cash flow in various industries. The findings have important policy implications for policy makers in evaluating the efficiency and neutrality of different tax schemes.

Author(s) Details

Dr. Hussein Salia
Department of Accounting, Faculty of Business Administration, Heritage Christian University College, Amasaman – Accra, Ghana.

Dr. Williams Abayaawien Atuilik
Department of Accounting, Faculty of Business Administration, Heritage Christian University College, Amasaman – Accra, Ghana.

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Per Pill Price Differences in Bangladesh | Chapter 08 | Emerging Issues and Development in Economics and Trade Vol. 3

The objective of this study was to comprehend the pricing differentiation of essential drugs between the local pharmaceutical companies (LPC) and multinational pharmaceutical companies (MNC) of Bangladesh. Thirty five (35) essential drug prices were collected from a local drug directory, namely Bangladesh National Formulary 2006. The mean and standard deviation of the prices of drugs belonging to all therapeutics categories (Anti-infective drugs, Central nervous system, Respiratory system, cardiovascular system, gastrointestinal system, Endocrine system drugs, Vitamin, drugs for Skin and Analgesic/painkillers) were analyzed. Managers of two multinational companies (MNCs) named GlaxoSmithKline Bangladesh Limited Bangladesh and Sanafi Aventis Bangladesh; and three local pharmaceutical companies (LPCs) named Square Pharmaceuticals Limited, Beximco Pharmaceuticals Limited and Incepta Pharmaceuticals Limited were interviewed after data analysis. A wide range of price variations (p < 0.01) between MNC and LPC essential drug products exist. Antibiotics have higher prices than drug products belonging to other therapeutic groups. Since infectious diseases are the major cause of morbidity and mortality in Bangladesh, the government should consider bearing part of the burden of antibiotic manufacturing costs and deliver antibiotics to the market at reduced price promoting rational prescribing. Further studies are needed to delve the causes of anti-infectives high prices and to propose affordability for treating infectious diseases. This study evaluates the present situation of the pharmaceutical marketing and pricing strategies in Bangladesh in light of the status of the essential drug market. This study will be helpful to assess essential drug affordability, to keep pricing strategies appraised, to advise the drug administration of options and to arrange for appropriate levels of public healthcare.

Author(s) Details

Nishat Chowdhury
Department of Pharmaceutical Technology, Faculty of Pharmacy, University of Dhaka, Bangladesh.

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Tax Evasion and Economic Growth: Empirical Investigation in Sub-Saharan Africa | Chapter 07 | Emerging Issues and Development in Economics and Trade Vol. 3

Tax is the income which is paid to the government in order to fulfill the need of the public. However tax evasion is the act of not paying the tax by use of illegal ways. Allingham and Sandmo being the first researchers studying the tax evasion found a relationship of tax evasion with low penalty fees and a low detection. The tax evasion basically is affected by various factors but it also affects many economic factors. Sub Saharan Africa being a developing region is facing the phenomenon of tax evasion in a crucial way. This study measures the impact of the tax evasion on the Gross Domestic Product (GDP) per capita of Sub Saharan Africa. The relationship between the GDP per capita and tax evasion is tested using the generalized least squared whereby it is found that there is a positive impact of tax evasion on the GDP per capita however the p-value states that the tax evasion is insignificant and is not an important component for the determination of the GDP per capita. Moreover in the presence of tax evasion, this study shows that GDP per capita has also a negative relationship with the Foreign Direct Investment (FDI), positive relationship the Gross Domestic Fixed Capital Formation (GDFCF), a favorable connection with the export, a negative relationship with the import, a positive impact on the inflation and a negative relationship with the government expenditure. To fight against tax evasion for the economic benefit of Sub Saharan Africa, it is advised to review the tax system, to implement strict and severe penalties and very high fines for tax evaders. Moreover, the tax authorities of Sub Saharan Africa need to appoint more experts in auditing department to be able to detect the non-compliance tax payers easily and rapidly.

Author(s) Details

B. Jugurnath
Department of Accounting and Finance, Faculty of Law and Management, University of Mauritius, Réduit 80837, Mauritius.

B. Aumeerun
Department of Accounting and Finance, Faculty of Law and Management, University of Mauritius, Réduit 80837, Mauritius.

H. Soondram
Department of Accounting and Finance, Faculty of Law and Management, University of Mauritius, Réduit 80837, Mauritius.

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Global Warming: Preventing Irreversibility | Chapter 06 | Emerging Issues and Development in Economics and Trade Vol. 3

The United Nations Framework Convention on Climate Change met again in Bonn for the COP23 in the fall with Fiji as host, the focus should have been upon the GOAL II in the COP21 Treaty: decarbonisation with 30-40 per cent of 2005 levels until 2030. Several countries now meet the GOAL I of halting the rise in CO2 emissions. And the rest should be asked and helped to do so. But the GOAL II is a very big challenge. It can only be fulfilled with massive investments in solar panel parks.

Author(s) Details

Jan-Erik Lane
University of Genova, Genova, Switzerland.

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Forward-Looking Information Based on Integrated Reporting Perspective: Value Relevance Study in Indonesia Stock Exchanges | Chapter 05 | Emerging Issues and Development in Economics and Trade Vol. 3

The International Integrated Reporting Council (IIRC) in 2013 has formulated the Integrated Report Framework. Integrated reporting provides forward-looking information related to the company’s holistic picture, future targets and the relationship between financial performance and non-financial performance. Indonesia does not require companies to report integrated reporting, but many voluntary ones have provided partial disclosures about aspects that are regulated in the integrated report framework. This study aims to provide empirical evidence about the effect of forward-looking disclosure on firm value. The research population is a manufacturing company on the Indonesia Stock Exchange for the 2015 and 2016 annual reports. The sample is selected based on the availability of annual reports accessed through the company’s web and the Indonesia Stock Exchange. The population is 144 manufacturing, and sample companies were 70 which was collected for two years, so there were 140 firms’ years. The forward-looking measurement is based on the disclosure index. GCG variables are used as control variables because empirically GCG can affect the value of the company. The results of the study showed that forward-looking disclosure has a significant effect on the value of the company and can explain the 20.9% variation in the value of the company.

Author(s) Details

Wiwik Utami
Universitas Mercu Buana, Indonesia.

Putri Dwi Wahyuni
Universitas Mercu Buana, Indonesia.

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Financial Risk Management via a Two Factors Model on the Risk Level of Vietnam Electric Power Industry during and after the Global Crisis | Chapter 04 | Emerging Issues and Development in Economics and Trade Vol. 3

This research paper aims to find out the risk level of listed electric power firms increasing or decreasing during the crisis 2007-2011. The significance of this paper is to provide these firms with financing information based on risk level. Using a two (2) factors model, this research paper analyzes the impacts of both financial leverage and the size of firms’ competitors in the electric power industry on the market risk level of 20 listed companies in this category.

This paper founds out that the risk dispersion can be reduced to 0,039 (asset beta var) if leverage is up to 30%.

Beside, the empirical research findings show us that the market risk level measured by asset beta mean is also reduced to 0,131 when financial leverage increases 30%.

Last but not least, this paper illustrates calculated results that might give proper recommendations to relevant governments and institutions in re-evaluating their policies after the financial crisis 2007-2011.

Author(s) Details

Pham Tuan Anh
Thuongmai University, Vietnam.

Dinh Tran Ngoc Huy
Banking University, HCM City, Vietnam and GSIM, International University of Japan, Japan.

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