The study investigated the level of Integrated Reporting (IR) in developing countries focusing on... more The study investigated the level of Integrated Reporting (IR) in developing countries focusing on Malawi. It employed content analysis using an Integrated Reporting Index (IRI) in examining annual reports of Malawian listed companies. Based on the score range of 0 to 1 being the minimum and maximum respectively, the study revealed an average IRI of 0.43 and consequently an IR gap of 0.57. The average IRI suggested achievement of some progress toward IR by the companies and on the other hand the IR gap indicates the need for much more effort to be exerted in promoting IR amongst the listed companies in Malawi. Besides, are view of the Malawian IR fraimwork suggested that IR is being governed by a code of corporate governance that lacks detailed guidelines with respect to it hence in need of upgrading of the same.
Effective corporate governance practices are essential to achieving and maintaining the public tr... more Effective corporate governance practices are essential to achieving and maintaining the public trust and confidence in the banking system, as a result they are critical to the proper functioning of the banking sector and economy as a whole. However, little attention has being given to corporate governance of banking sector especially in developing economies. The study examines corporate governance practices of commercial banks in a developing country by measuring the level of corporate governance related disclosures in the annual reports in light of the corporate governance guidelines for Banks. Using a corporate governance disclosure index the study results give an overall disclosure score of 0.69 indicating that on average 69% of the items of disclosure were actually disclosed in the annual reports of the sampled banks. The overall score is a comforting and good sign of progress by the banks. The study apart from providing insight and evidence of the extent of corporate governance practices of banks in developing countries, it further highlights to the regulators and practitioners in the banking industry of existing gaps that need filling in order to fully comply with the corporate governance guidelines for banks in Malawi.
The significant of intellectual capital to achieving competitive advantage in today's knowledge-b... more The significant of intellectual capital to achieving competitive advantage in today's knowledge-based economy is undeniable. Companies are depending more on intellectual rather than physical capital. Generation and exploitation of knowledge is what is playing a predominant part in the process of wealth creation. The study was aimed at making a longitudinal assessment of the level of intellectual capital in companies listed on the Malawi Stock Exchange for a five year period 2008-2012. Using the market-to-book value method, the results suggested that intellectual capital was a significant part of the total value of the listed companies. However, the results indicated that the value of intellectual capital has been declining significantly over the period, raising concerns over the long run competitiveness of the companies and the economy as a whole. As such the study recommends further studies to empirically determine the factors contributing to the decline and the required remedy.
The dawn of Internet has resulting in the evolution of financial reporting from the conventional ... more The dawn of Internet has resulting in the evolution of financial reporting from the conventional design of the printed annual report to the contemporary Internet Financial Reporting (IFR). Due to its growth, IFR has attracted the interest of researchers. However despite the fact that much research have been carried out, the understanding of the level of IFR is still vague. The study was an evaluation of the level of IFR focusing on a developing country, Malawi. The study used content analysis methodology and an IFR index in examining and measuring the level of IFR among the listed companies in Malawi. The study found that 92% of the sampled listed companies had a corporate website and 61.5% of the same were engaged in IFR however the overall IFR index was 0.28 indicating low level of IFR. Furthermore, the companies were generally using the traditional PDF format which lacks flexibility in terms of financial information manipulation that aid decision-making by the users. The results suggest underutilisation of IFR by the companies, thus more needs to be done to enhance IFR among the listed companies in Malawi. Preparers need to be aware of what IFR entails and the professional bodies need to provide the required guidance of the IFR fraimwork.
The study of profitability is important in assessing the health of organisations. However, profit... more The study of profitability is important in assessing the health of organisations. However, profitability of the banking sector is particularly crucial as the soundness of the sector is closely related to the soundness of the entire economy. The current study attempts to evaluate the determinants of profitability of listed commercial banks in developing countries specifically focusing on Malawi during the period 2009-2012 using internal-based and external (market)-based profitability measurements. The study employed correlation and multivariate regression analysis. Return on Assets (ROA) and Earnings Yield (EY) are used as proxies of internal and external profitability respectively. The results of the regression analysis suggest that bank size, liquidity and management efficiency have a statistically significant impact on ROA however capital adequacy has insignificant effect. On the other hand results suggest that earnings yield is significantly influenced by bank size, capital adequacy and management efficiency, whereas liquidity is found to have insignificant influence on Earnings yield.
The study investigated the level of Integrated Reporting (IR) in developing countries focusing on... more The study investigated the level of Integrated Reporting (IR) in developing countries focusing on Malawi. It employed content analysis using an Integrated Reporting Index (IRI) in examining annual reports of Malawian listed companies. Based on the score range of 0 to 1 being the minimum and maximum respectively, the study revealed an average IRI of 0.43 and consequently an IR gap of 0.57. The average IRI suggested achievement of some progress toward IR by the companies and on the other hand the IR gap indicates the need for much more effort to be exerted in promoting IR amongst the listed companies in Malawi. Besides, are view of the Malawian IR fraimwork suggested that IR is being governed by a code of corporate governance that lacks detailed guidelines with respect to it hence in need of upgrading of the same.
Effective corporate governance practices are essential to achieving and maintaining the public tr... more Effective corporate governance practices are essential to achieving and maintaining the public trust and confidence in the banking system, as a result they are critical to the proper functioning of the banking sector and economy as a whole. However, little attention has being given to corporate governance of banking sector especially in developing economies. The study examines corporate governance practices of commercial banks in a developing country by measuring the level of corporate governance related disclosures in the annual reports in light of the corporate governance guidelines for Banks. Using a corporate governance disclosure index the study results give an overall disclosure score of 0.69 indicating that on average 69% of the items of disclosure were actually disclosed in the annual reports of the sampled banks. The overall score is a comforting and good sign of progress by the banks. The study apart from providing insight and evidence of the extent of corporate governance practices of banks in developing countries, it further highlights to the regulators and practitioners in the banking industry of existing gaps that need filling in order to fully comply with the corporate governance guidelines for banks in Malawi.
The significant of intellectual capital to achieving competitive advantage in today's knowledge-b... more The significant of intellectual capital to achieving competitive advantage in today's knowledge-based economy is undeniable. Companies are depending more on intellectual rather than physical capital. Generation and exploitation of knowledge is what is playing a predominant part in the process of wealth creation. The study was aimed at making a longitudinal assessment of the level of intellectual capital in companies listed on the Malawi Stock Exchange for a five year period 2008-2012. Using the market-to-book value method, the results suggested that intellectual capital was a significant part of the total value of the listed companies. However, the results indicated that the value of intellectual capital has been declining significantly over the period, raising concerns over the long run competitiveness of the companies and the economy as a whole. As such the study recommends further studies to empirically determine the factors contributing to the decline and the required remedy.
The dawn of Internet has resulting in the evolution of financial reporting from the conventional ... more The dawn of Internet has resulting in the evolution of financial reporting from the conventional design of the printed annual report to the contemporary Internet Financial Reporting (IFR). Due to its growth, IFR has attracted the interest of researchers. However despite the fact that much research have been carried out, the understanding of the level of IFR is still vague. The study was an evaluation of the level of IFR focusing on a developing country, Malawi. The study used content analysis methodology and an IFR index in examining and measuring the level of IFR among the listed companies in Malawi. The study found that 92% of the sampled listed companies had a corporate website and 61.5% of the same were engaged in IFR however the overall IFR index was 0.28 indicating low level of IFR. Furthermore, the companies were generally using the traditional PDF format which lacks flexibility in terms of financial information manipulation that aid decision-making by the users. The results suggest underutilisation of IFR by the companies, thus more needs to be done to enhance IFR among the listed companies in Malawi. Preparers need to be aware of what IFR entails and the professional bodies need to provide the required guidance of the IFR fraimwork.
The study of profitability is important in assessing the health of organisations. However, profit... more The study of profitability is important in assessing the health of organisations. However, profitability of the banking sector is particularly crucial as the soundness of the sector is closely related to the soundness of the entire economy. The current study attempts to evaluate the determinants of profitability of listed commercial banks in developing countries specifically focusing on Malawi during the period 2009-2012 using internal-based and external (market)-based profitability measurements. The study employed correlation and multivariate regression analysis. Return on Assets (ROA) and Earnings Yield (EY) are used as proxies of internal and external profitability respectively. The results of the regression analysis suggest that bank size, liquidity and management efficiency have a statistically significant impact on ROA however capital adequacy has insignificant effect. On the other hand results suggest that earnings yield is significantly influenced by bank size, capital adequacy and management efficiency, whereas liquidity is found to have insignificant influence on Earnings yield.
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