Jan'19
Welcome to The IUP Journal of Accounting Research and Audit Practices
Focus
Towards Sustainable Economic Growth?. The author makes an attempt to understand the impact of GST on the financial performance of select companies and also analyzes the role of GST in achieving sustainable growth in the economy. The author finds positive change in the performance of the select sectors. The author also finds improvement in various financial parameters and concludes that the positive results would lead to economic growth of the country.
In the second paper, ?Exploring Stakeholders? Perception About IFRS: An Empirical Study?, the authors, Shilpa Vardia and Shiv Lal Parmar, conduct a field survey to explore the stakeholders? perception about the adoption and implementation of IFRS. The authors conclude that the adoption of IFRS would result in high quality, transparent and comparable financial statements with significant accounting consequences and far-reaching business implications.
In the third paper, ?The Determinants of Dividend Policy in Indian Corporate Sector?, the authors, Mahesh Chand Garg and Vikas Bhargaw, specifically test whether the Lintner?s dividend model explains sufficiently the dividend payment behavior of the Indian firms, using additional explanatory variables. The authors conclude that net current year earnings after tax and lagged dividend are two important variables affecting dividend decisions. They also support the argument that greater profitability enables the firms to easily afford a higher amount of dividend payout without disturbing its financial needs.
The deregulation strategies implemented in the oil and gas industry is one of the big decisions taken by the Government of India. It has various benefits for all the petroleum refineries, leading to positive results for the Indian economy as a whole. The deregulated prices help the refineries to invest in necessary infrastructure to expand their network of retail outlets without compromising their profitability. Considering the importance of financial soundness, the authors, Om Prakash Agarwal and Prateek Kumar Bansal, in the research note, ?An Analysis of the Pre- and Post-Deregulation Financial Performance of IOCL and ONGC?, evaluate the financial performance of the two major oil producers in India?IOCL and ONGC? through ratio analysis. The liquidity of both these firms during the pre- and post-deregulation periods has been evaluated using the paired sample t-test. The authors find mixed results as to the impact of deregulation.
Consulting Editor
| Article | Price (₹) | ||
| Goods and Services Tax (GST) in India: Towards Sustainable Economic Growth |
100
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| Exploring Stakeholders? Perception About IFRS: An Empirical Study |
100
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| The Determinants of Dividend Policy in Indian Corporate Sector |
100
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Research Note An Analysis of the Pre- and Post-Deregulation Financial Performance of IOCL and ONGC |
100
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Goods and Services Tax (GST) in India: Towards Sustainable Economic Growth
Goods and Services Tax (GST) has been newly introduced in India. Not only will GST help India to adjust with the global taxation system, but it will also help the Government of India to increase its Tax to GDP ratio. The main objective of the study is to understand the GST launched by the government and to analyze its impact on the financial performance of the companies. The data for four industrial sectors (two industrial goods and two consumer goods) has been taken, namely, cement industry, steel industry, automobile sector and communication sector. A total of 78 companies were taken as the sample and quarterly results related to various financial parameters such as net sales, total expenses, net profit, earnings per share, price-earnings ratio and turnover were collected from the Prowess database. The data was collected for two quarters before and after the implementation of GST on July 1, 2017, so that the impact of GST implementation could be studied across sectors on various performance parameters. The analysis shows that introduction of GST has brought in a positive change in the performance of all sectors selected for this study.
Exploring Stakeholders? Perception About IFRS: An Empirical Study
This study explores the stakeholders? perception about the impact of International Financial Reporting Standards (IFRS). Based on the stakeholders? perception about IFRS and in consultation with academicians, practicing chartered accountants/company secretaries and students pursuing chartered accountancy/company secretary course and IFRS students, 15 key issues and 8 key challenges relating to IFRS were identified. The opinions of 22 academicians, 22 practicing chartered accountants/company secretaries and students pursuing chartered accountancy/company secretary course, and 76 IFRS students were gathered through a field survey. The survey was conducted in Udaipur, Rajasthan, using a closed-ended structured questionnaire. The collected data was empirically analyzed using mean, coefficient of variance, Z-test and ANOVA. The study also revealed that there is a significant difference between average score and neutral opinion on only one question and 22 questions have no significant difference between average score and neutral opinion regarding overall opinion of academicians, professionals and IFRS students exploring the perception on IFRS. The results would benefit the Indian IFRS community to develop better and relevant information for stakeholders.
The Determinants of Dividend Policy in Indian Corporate Sector
The present paper is an attempt to examine the determinants of dividend policy of Indian corporate sector for a duration of 12 years from 2002-03 to 2013-14. The sample contains 200 companies out of listed companies in the BSE-500 index at Bombay Stock Exchange which paid dividend for at least 10 years out of 12 financial years. The well-known multiple regression analysis-based dividend model, namely, Lintner?s (1956) dividend model is used to test the relationship among the study variables. The empirical results suggest that current year profits after tax and lagged dividends are the most important factors that affect positively the current dividend policy of the companies, which demonstrates the suitability of Lintner?s dividend model for determining the dividend behavior of the sample companies. In order to provide a comprehensive analysis of the determinants of dividend policy, additional explanatory variables such as investment demand, flow of net debt, interest payment, and change in sales have also been included along with the Lintner?s dividend model, and it is found that none of these additional variables are significant determining factors of dividend decision of Indian corporate sector. On the practical side, the study holds the argument that information related to profitability and lagged dividend would help the firms to focus on the major factors concerning the payment of dividend by Indian corporate sector.
Research Note
An Analysis of the Pre- and Post-Deregulation Financial Performance of IOCL and ONGC
Indian economy is a developing economy which is dependent on oil and gas for its growth and development. Before 2010, prices were controlled by the State, with the Government of India providing subsidy on oil and gas, which was a cause for the slow growth of economy, which also caused loss of revenue. Indian Oil Corporation Limited (IOCL) and Oil and Natural Gas Corporation (ONGC) are the largest producers of oil products in India. Their financial soundness is very important to Indian economy. To evaluate the financial performance of a company, major techniques like comparative analysis, trend analysis and ratio analysis are used.