New Issue of the Risk Governance and Control Journal

The recent issue of the journal Risk Governance and Control: Financial Markets & Institutions pays attention to issues of theoretical and empirical studies in risk governance and control with application to financial markets and institutions etc. More detailed issues are given below.

Diteboho Xaba, Ntebogang Dinah Moroke, Johnson Arkaah and Charlemagne Pooe compare the in-sample forecasting accuracy of three forecasting nonlinear models namely: the Smooth Transition Regression (STR) model, the Threshold Autoregressive (TAR) model and the Markov-switching Autoregressive (MS-AR) model. Nonlinearity tests were used to confirm the validity of the assumptions of the study. The study used model selection criteria, SBC to select the optimal lag order and for the selection of appropriate models. The Mean Square Error (MSE), Mean Absolute Error (MAE) and Root Mean Square Error (RMSE) served as the error measures in evaluating the forecasting ability of the models. The MS-AR models proved to perform well with lower error measures as compared to LSTR and TAR models in most cases.

Mubanga Mpundu analyzes comprising of 157 Class I and 234 Class II banks. Class I banks are categorized as those with tier 1 capital in excess of $4 billion and internationally active while Class II banks are the rest. A Cointegrated Vector Autoregressive (CVAR) approach was used on balance sheet liquidity data to ascertain the behavior of variables in relation to bank failure. The study also demonstrated the nature of each of the variables containing estimated Basel III and Traditional liquidity measures for Class I and II banks.

Petter Gottschalk contributes insights into convenience associated with internal private investigations. Hiring private investigators at an early stage of potential crime disclosure enables the organization to control the investigation mandate and influence the investigation process and the investigation output. Getting an early start on reconstruction of the past in terms of a fraud examination makes it possible for the suspect and the organization to influence what facts are relevant and how facts might be assessed in terms of possible violations of the penal code.

Raphael T Mpofu analyses the association between certain macroeconomic variables and food price inflation, non-food price inflation and overall inflation in Zimbabwe, and also seeks to determine the level of association between these variables, given food security implications and overall well-being of its citizens. The study reveals that during the 2010 to 2016 period, Zimbabwe experienced stable food prices - annual food price inflation for food and non-alcoholic beverages averaged a relatively low growth rate of 0.12% monthly, while non-food inflation monthly growth rate was 0.09% and overall inflation growth rate was 0.11%. The findings of the study are food inflation has a low association with the independent variables under study; Zimbabwe broad money supply, rand-dollar exchange rates and the South Africa food inflation. In addition, it can also be surmised that domestic production can cushion the impact of rising prices in general, particularly on food.

Pariang Siagian, Jonny and Noerlina examine leasing business in Indonesia, if there is any effect of leasing literacy to the access into leasing company, motivation to buy and ability to pay liabilities. The research’s object is customers of leasing companies who have been buying leasing products and live around Jakarta. While the methodology used will be the qualitative method by using survey and questionnaire. The outcomes revealed that 68.5% of respondents have the average income of less than 5 million per month, and the type of product leased is dominated by motorcycles and cars.

Nirmala Dorasamy focuses on the relevance of citizen participation as source of input for local government in its quality management system. Using a qualitative approach, the paper examines ISO 18091: 2014 and its contribution to strengthening local governance. Further, the importance of citizen participation at the input stage in the ISO quality management framework is reviewed. This is supported by literature pertaining to the requirements that are necessary to promote the value of citizen input, in ensuring the continued success of local government in achieving the desired results, with respect to fulfilling citizen needs. The author considers citizen participation as necessary, if local government is to respond appropriately to their needs.

Wanjiru Gachie and Desmond Wesley Govender review corporate governance mechanisms and their practical application in two retail companies in South Africa. The research question that informed the study was: What is the nature of corporate governance mechanisms in the South African retail sector? The research design entailed analysis of secondary data, namely Annual Reports and other pertinent documents, and document analysis was used to show what is accessible to the ordinary share/stake-holder and what is not. Data analysis was conducted both qualitatively and quantitatively.

Hussein Mohammed Alrabba and Muhannad Akram Ahmad attempt to bring out a clear depiction of the Enterprise Resource Planning paradigm/system as the main tool to take any credit made in the business accounts mechanics and base criteria. Subsequently, through this paper, all the roles of the tool at hand in enhancing accounting practices will substantially be played up. This research uses Jordan as the suitable setting for the realization of ERP’s comprehensive capabilities. The empirical study is analyzed using a custom bucketing methodology on measuring the trends in the open-ended questions and attributed to efficiency. The latter are the variables tested on the open-ended questions.

Nehemiah Mavetera, Osden Jokonya and Pako Maradung investigate the adoption of Internet banking among Gaborone`s working class and university students. Internet banking comes with convenience and lower costs, which encourage customers to adopt it. Hindering factors to Internet banking adoption include lack of trust and awareness. The study is based on a quantitative research approach. The results suggest that Internet banking adoption is almost the same between the working class and university students.

Harit Satt and Youssef Chetioui underline the effect of goodwill on firm performance during the period between 2005 and 2015. The results of the analysis show that high level of goodwill has a positive impact on firm performance in large firms. Yet, at small firms, goodwill was not proved to improve performance. This can be explained by the fact that only good performing firms invest in goodwill while smaller firms simply struggle to generate tangible assets.

Ardiansyah Rasyid, Elizabeth Sugiarto D. and Wilson Kosasih investigate that some factors that affect the new adoption in management accounting techniques on the Indonesia manufacturing industries, specifically in Jakarta, Bogor, Depok, Tangerang and Bekasi regions. The research can give a clearer portrait of how some factors can significantly affect the adoption of management accounting techniques. The research used some questioners which were sent to respondents who work in manufacturing industries as a middle level management. The methods used to distribute the questioners to respondents were by door to door, by e-mail and by media telecommunication (what’s app or close relationship) up to hundreds questioners. We obtained 45 respondents but we eliminated one respondent, because they are not suitable to the research requirements.

To browse the issue visit this page.