European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals


What Is the Best Way to Invest in Countries Which Have Inflation Problems? (Published)

This research investigated inflation in Iran and collected data in different ways based on a series of polls and studies on various websites and articles and booklets. In general, one of the important and practical issues that were examined in this article was the investment and inflation processes, which were the two facts that formed the main title of this article, the effective role of investment on the lives of all sections of society, especially private individuals and households. normal problems are not hidden from anyone, but the existence of problems such as inflation has caused concern to all members of society, on the other hand, inflation is an unwanted thing, and it cannot be said that none of the members of the society have a 100% role in it, or that they are completely irrelevant. But the main topic of this project is to discuss all these topics and find a solution to compensate for these problems and solve these concerns. The findings of this research generally show that the rate of inflation in third-world countries increases by an average of 54.0% every year. The problems in these countries are not few, from domestic inflation or foreign sanctions in addition to being more severe. Changing the lifestyle of the people in society makes it impossible to save or invest, but financial issues are always looking for solutions and methods to control them. It provides you with a summary of these two controversial difficulties.

Keywords: Inflation, Investment, Third World countries, financial issues., rate of inflation, society problems

How The Energy Sector Is Affecting Economic Growth? – Comparing The United Kingdom with India (Published)

A country’s economy depends heavily on energy. Economic productivity and industrial growth depend on the use of energy in modern economies. In a modern economy, energy is responsible for more than one-tenth of the cost of production but accounts for most industrial growth, according to Barney and Franzi (2002). The economy’s need for energy has grown at about the same rate as that of wealth. It is a fact that wealth creation is predominantly calculated based on the usage of energy by society. At the beginning of the 19th century, biomass is the preferred choice of fuel. Energy demand in the west and advanced economies increased more rapidly because of rising standards during the end of the 20th century. In most production and consumption activities, energy plays a significant role in economic growth. An analysis of the energy sector components and their impacts on economic progress in two countries, the United Kingdom and India, was conducted based on an analytical approach. It is found in both countries that energy efficiency and foreign direct investment (net inflows) are positively correlated. Both the United Kingdom and India have significant correlations between energy efficiency and GDP (percentage of GDP). Employment rates and energy efficiency go hand in hand in both countries. India’s GDP per capita growth (annual %) is positively correlated with energy efficiency (0.447). This study followed only the economic indicators from the World Bank Development Indicators report.

Citation: Merlin Atchuthen, and S. Sankara Muthu Kumar (2022) How The Energy Sector Is Affecting Economic Growth? – Comparing The United Kingdom with India, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 9, pp.13-23

Keywords: Consumption, Energy Efficiency, GDP, Inflation, Unemployment, per capita growth

Perception on the Naira Devaluation and Its Effects on Poverty Reduction in Nigeria (Published)

The crash of crude oil price has devastated Nigerian economy being a mono-product economy. The nation’s reserves have dropped and the Central Bank is finding it difficult to meet its import demands. There is agitation from investors and the IMF to devalue the currency to stimulate economic growth, encourage export and discourage import. The public thinks otherwise. The study revealed devaluation of the naira will not encourage significant demand for local goods but rather rise in the prices of local products which rise in direct proportion with imported substitutes thereby fuelling inflation. Also, the economy has remained neither diversified nor internationally competitive. It is recommended among others that government review the current import tariffs, promote incentives to encourage investment in local manufacturing, direct foreign direct investment (FDI) on manufacturing/productive industries with hundred per cent (100%) local raw materials and tax holidays.

Keywords: Devaluation, Inflation, Perception, Social Infrastructure, economic growth

Accounting for Price Level Changes: Prospects and Problems (Published)

Prices do not remain constant over a period of time. They tend to change due to various economic, social or political factors. Changes in the price levels cause two types of economic conditions, inflation and deflation. Inflation may be defined as a period of general increase in the prices of factors of production whereas deflation may fall in the general price level. These changes in the price levels lead to inaccurate presentation of financial statements which otherwise are prepared to present a true and fair view of the company’s financial health. This is so because the financial statements are prepared on historical costs on the assumption that the unit of account. Accounting for price level changes is a system of maintaining accounts in which all items in financial statements are recorded at current values. This system of accounting ascertains profit or loss and presents financial position of the business on the basis of current prices. Accounting for price level changes is also called inflation accounting.

Keywords: Deflation, Equity, Inflation, Price level changes, Prices

Fluctuation Rate Analysis of Rupiah Exchange in the Indonesian Open Economy (Published)

This research aimed to analyze the long-term balance between KURS (Rate of Exchange), inflation (INF), Foreign Direct Investment (FDI), interest rate of Bank Indonesia (SBI), and the degree of openness of Economics (DKE) An open economy Indonesia using time series data period 1998: 1-2016: 4. Models Autoregressive Distributed Lag (ARDL) was used to observe the effect of these variables. The results show that there is a balance of long-term fluctuations in the exchange Rate against the US dollar which is influenced by the variable inflation and SBI are negatively correlated with the exchange rate. While the FDI variable and the degree of economic openness is positively correlated with the exchange rate. The degree of openness of the economy, inflation, FDI leads to fluctuations on the exchange rate. In the long term, SBI gives a significant effect on the exchange rate. Among the exchange rate with the degree of economic openness has a positive and significant impact. This means that increasing the degree of economic openness, it will result in the appreciated (US dollar depreciated). Economic openness leads to significant fluctuations in exchange rates in the short term and long term.

Keywords: Autoreggressive Distribured Lag (ARDL), Degree of Openness, Exchange rate rupiah/US $, Foreign Direct Investment, Inflation, Interest Rate of Bank Indonesia

Dividend Payout Pattern: Nigeria Deposit Money Banks in Perspective (Published)

Investors invest their money with the hope to have returns that could improve their welfare in future. Dividend is one of those expectations that investors hope to get as a result of their investment. A Company pays dividend in order to encourage further investment for growth. However, the degree and extent by which dividend is made depend on the organization management decision. There has been contradicting arguments on firms dividend payout ratio such as rightist, leftist and the middle of the road hypothesis on whether firms should pay dividend or not. Hence there has not been any conclusive study on the factors that determine the dividend growth pattern of Deposit Money Banks in Nigeria. It is this perceived gap that informs the empirical analysis of growth pattern of dividend payout of quoted banks in Nigeria. The study relies majorly on secondary data sourced from the financial report of seven (7) quoted banks in the Nigeria Stock Exchange. It was found that all the explanatory variables (inflation, share price and earnings per share) have significant impact on dividend payout. The study recommends that deposit money banks in Nigeria should improve on their performance so as to increase earnings which will go a long way in determining the Dividend Payout Pattern of their banks while government should makes both investment and production environment suitable for banks to produce locally and avoid much importation to control inflation.

Keywords: Banks’, Dividend Payout Pattern, Inflation, Investment, Nigeria

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