African J. of Accounting, Auditing and Finance (4 papers in press)

Regular Issues

• Determinants of the West African economic and monetary unions banks going-public decision: empirical evidence on the role of macroeconomic factors  
  by Daouda Lawa Tan Toe, Mamadou Toe 
  Abstract: This research seeks to investigate the determinants of the going public decision in the banking industry by looking at the macroeconomic factors. For this purpose, we resort to a vector error correction model (VECM). Empirical findings indicate that in the West African Economic and Monetary Union, inflation, interest rate and stock market index return are the main factors that explain banks decision to go public. Moreover, findings show that GDP Granger causes the IPO decision. In the light of these findings, it is therefore essential that WAEMU, through its monetary institution, continues to work towards controlling price stability. The authorities also need to make efforts to improve national wealth.
  Keywords: go public; macroeconomic factors; WAEMU; banks; BRVM.
  
  
• Assessing the relative influence of deterrent sanctions, tax fairness perceptions, personal norms and fiscal exchange perceptions on rent income tax compliance in Ghana  
  by David Kwabla Adegbedzi, Samuel Gameli Gadzo, Holy Kwabla Kportorgbi 
  Abstract: This study examines the relative influence of sanctions, tax fairness, personal norms, fiscal exchange, and trust in government on rent tax compliance in Ghana. Using data from 360 rented property owners, analysed through partial least squares-structural equation modelling (PLS-SEM), the study finds tax fairness to be the strongest predictor of compliance, followed by trust in government, sanctions, and fiscal exchange valuation. Personal norm does not influence compliance. The study concludes that low rent tax extraction in Ghana is driven by unfairness perception of rent tax, low trust in government, and weak sanctions. To improve compliance, the study recommends redesigning rent tax laws to address fairness concerns, enhance fiscal exchange, and implement deterring sanction regimes. This study is unique as it fetches perspectives on rent tax in a jurisdiction that often touts unexplored potentials of rent tax and adopts PLS-SEM technique, enabling relative and concurrent study of influence of multiple variables.
  Keywords: rent tax compliance; tax fairness; personal norms; fiscal exchange; trust in government; Ghana.
  
  
• Impact of financial accessibility on small and medium-size enterprises success: Wa Township of the Republic of Ghana  
  by Alhassan Ismail, Kunjal Sinha 
  Abstract: The impact of financial accessibility on the success of SMEs in Wa Township, Ghana, was investigated in this study employing determiners such as guarantee requirements, zero-interest levies, tax exemptions, and start-up incentives. A fixed-format questionnaire was used to select 411 SMEs randomly for the survey. SPSS was leveraged to analyse the results via descriptive and confirmatory statistical means. Correlation and regression techniques aided in determining whether accessibility to funding significantly drives SMEs’ success. The correlation analysis shows that each of the determinants significantly impacted SMEs’ thrives. The regression analysis also reveals funding accessibility as a critical determinant influencing SMEs’ success (R2 = 0.074, Prob > F = 0.000). Collateral requirement explained the largest portion (12.5%) of the difference in SMEs’ success (F = 4.954, p = 0.004). Hence, support for SMEs in the municipality to enhance financial access should not require collateral.
  Keywords: small and medium-size enterprises; SMEs; critical success factor; CSF; access to financing; contribution; development; firm operators; collateral issues; inventory replacement; sustenance; influencer.
  
  
• Individual investor’s investment choice in Tanzania  
  by Dorika Jeremiah Mwamtambulo 
  Abstract: The choice for a particular investment is obscured by the number of investments available in the market. In choosing an investment, individual households consider factors related to the household and individual asset characteristics. The current study examined such factors from the perspective of individual households in Tanzania. Data was collected from a sample of one thousand one hundred twenty (1,120) households participating in investment activities in Tanzania while the multinomial logit model was adopted for the analysis. Factors of occupation, income, risk-taking, irrational behaviours (representative bias, anchoring) and asset availability attributed to taking up risky assets with risk aversion tendencies, overconfidence, anchoring and loss aversion behaviours attributing to taking up less risky assets. The results narrate the importance of integrating both individual assets and household characteristics in selecting an investment. It further calls for an education policy on investment decisions and the availability of information relevant to making investment decisions.
  Keywords: Investment Decision; Investment Selection Decision; Tanzania.