Purpose: The purpose of this study is to examine the effect of income diversification on the financial performance of commercial banks in Kenya. Design/methodology/approach: The study used a sample of 31 commercial banks and panel data for the period 2008-2017. Data was extracted from the individual bank’s financial reports and the Central Bank of Kenya’s bank supervision annual reports. The data was analyzed through descriptive and inferential statistics, while the hypothesis was tested using fixed effect regression based on the results of the Hausman test. Financial performance was measured as return on assets (ROA), while Herfindahl-Hirschman Index (HHI) was used to measure income diversification. The study controlled for firm size, firm age and lending strategy. Findings: The findings indicated that income diversification had a positive and significant effect on banks’ financial performance in Kenya. The control variables had varied effects; firm size had a positive effect, while firm age and lending strategy had a negative effect. Practical implications: The article offers insights to bank managers and the regulator. First managers should consider an optimal level of diversification to compensate for the deteriorating interest revenue. Second, the regulator should relax laws that limit the extent banks can diversify their revenue streams. Originality/value: Unlike previous studies which focused on developed and emerging economies, this study centered on a developing economy, and the findings are consistent with the propositions of the modern portfolio theory.

Purpose: The purpose of our study is to explain that satisfaction in some features of e-tax system can increase the perception of service tax climate toward tax institution. In the era of modern technology, taxpayers assess tax institution services through the e-tax system, rather than face-to-face services. The e-tax system represents Director General of Taxes (DGT) services to taxpayers in the digital era. Design/methodology/approach: The method of data collection uses a survey in 2019 with a total sample of 94 taxpayers from the cities of Surabaya, Jakarta, Denpasar, and Semarang who have used the e-tax system at least three times. The analysis technique used SEM with WarpPLS software. The results showed that e-tax system satisfaction related to privacy- security and convenience of life affected the perception of service tax climate. Findings: We found that the system's security risk was the most important indicator of privacy-security, according to the taxpayers. We also found that indicator of "can be used anytime and anywhere" was significant to the taxpayers, especially to the respondent of Millennials and X generation in our study. We also found that privacy-security, job productivity, and convenience of life affect overall e-tax satisfaction. Practical implications: The research offers insights to the tax institution who should focus to enhance more rapid response in e-tax system so that the problems of taxpayers could be resolved effectively and efficiently. Originality/value: This is the first study that examines the influence of e-tax satisfaction, in terms of privacy-security, job productivity, and convenience of life, to the perception of service tax climate toward the tax institution.

Purpose: The purpose of this article is to construct a framework, called fraud evasion triangle, which explains why today’s business environment cannot detect fraud. After identifying the factors that prevent fraud from being detected, radical solutions to fight fraud are proposed for each of these three factors. Design/methodology/approach: A qualitative research approach is selected conducting interviews with certified public accountants, independent auditors and finance officers in different sectors. They ara asked open-ended questions to explain the types of frauds they have witnessed, the reasons for frauds happened, the reasons why frauds could not be prevented and possible measures to prevent frauds. Findings: The findings show that today’s business tools to combat with fraud are not sufficient. Most of the literature and research papers show the reasons of fraud, and don’t explain why fraudulent activities are not prevented. In fact, knowing the motives of fraudsters are not essentials for detecting the fraud. The paper put the obstructive factors of fraud detection into three categories, namely crafty perpetrators, dependent internal auditors, and external audit design. Practical implications: The increasing tendency of fraud is not reversed although regulators put standards, and firms allocate more funds to combat with fraud. The article proposes solutions for each of the three factors of the fraud evasion triangle. Most of the proposed solutions can be easily implemented while some solutions require global consensus and legislation change. Originality/value: This paper explains why it is difficult to detect frauds in a new explanatory framework, and offers radical solutions to fight fraud.

Purpose: The study attempts to analyze the impact of economic and non-economic factors on the Turkish economy which was plunged plunged into a currency crisis in August 2018 due in most part to sanctions and tariffs imposed by the U.S. Design and Methodology: Turkey’s economy is characterized as one with high inflation and persistent chronic deficits. The study was based on a literature review of the adverse impact of America’s weaponizing dollar and abuse of sanction power on Turkish economy. The study analyzes developments that laid the foundation for the collapse of Turkey’s a decade-long credit- fueled economy. The broad analysis of Turkey’s most severe currency shock since the unprecedented 2001 economic crisis looks at various exogeneous and endogenous aspects. Findings: The study shows that Turkish economy possesses instability-inflicting imbalances such as high inflation, growing budget deficit, massive dollarization, alarming levels of external debt, and chronic current account deficit. The study concludes that the causes of Turkey’s gloomy economic situation are not all homegrown, its lackluster performance is blamed on attacks of non-economic basis. Another key finding is that Turkey is in desperate need of foreign capital flows as Turkey’s options to service its massive esternal debt through foreign barrowing have become substantially limited since the 2018 August rout. Practical Implications: In general terms, interest rates are of great importance as a monetary policy tool, but in Turkey, the relationship between the U.S. and Turkey sometimes plays a more pivotal role in determining the interest rate elevation and the consequent spike in inflation. The article offers insights to government authorities who should commit to structural and fiscal reforms to put the economy back on the right track for a faster recovery, or else let it collapse beyond repair. Originality/Value: The conclusions and findings in this study impact the perspective of the Turkish central bank with regard to policy responses under economic and financial distress that may arise from economic, non-economic, political and non- political driving and contributing factors. Because of premature and late responses, Turkish citizens are a lot poorer now than they were prior to the August rout in 2018.

Purpose: The aim of this study is to determine the relationship between the propagation of high-magnitude crises since the late 1990s and emergence of cryptocurrencies in the aftermath of the global financial crisis of 2008. Design and Methodology: The study was based on a literature review of the interaction between financial crises and evolution of money in the digital age. A high-level technical overview of Libra and blockchain is provided. The broad analysis of Libra coin looks at various models and categories of implementation approaches. The study discusses the components of blockchain technology and provides illustrative visuals when possible. We also compare consensus models used in the Libra and Bitcoin blockchain networks. The analysis also touches on the use ofblockchain technology in applications such as smart contracts. Findings: The study shows that cryptocurrencies are not only a natural but an inevitable transformation in the evolution of money. As with any new technology, Facebook’s Libra is going to cause a great deal of disruption in the existing ecosystem of cryptocurrencies that has taken a decade to form. On the other hand, Libra’s financial inclusion and global stability as a public good promises to revolutionize the cryptocurrency world. Practical Implications: If Facebook’s Libra doesn’t sputter out, it will spur central banks to introduce their own cryptocurrency projects. Libra’s vast scale will make access to intermediation by banks easier, faster, and cheaper. Unlike Bitcoin, Libra will be backed by a basket of stable currencies as well as low-risk government bonds and central bank reserve assets. Originality/Value: This study presents a clear picture of both advantages and potential risks of Libra which is considered to be a new invention eventhough Bitcoin has been around more than a decade. The study warns regulators and law makers along with central banks who are running headlong into backlash to Libra can harm consumers more than protect them. Punishing Facebook with a troubled past for violation of privacy and exploitation of users’ data could adversely affect innovation and discourage developments of cryptocurrencies.

Aim of the Study: It is aimed to examine the function and practises of the Public Oversight Accounting and Auditing Standards Authority within the context of surveillance concept by explaining the effects of the surveillance concept on accounting and auditing profession. Therefore; evaluating the outputs of the annual analysis of the Public Oversight Accounting and Auditing Standards Authority held on independent auditing institutions and independent auditors by the context of surveillance duty is mentioned within the aim of the study. Methodology of the Study: After explaining the concept of surveillance, substantial information relating the function and practises of the Public Oversight Accounting and Auditing Standards Authority are stated by examining the effects of the surveillance concept on accounting and auditing profession. Hence; the outputs of the analysis on independent auditing institutions and auditors held by the Public Oversight Accounting and Auditing Standards Authority in 2017 are evaluated. Findings of the Study: According to the results of the 2017 Annual Analysis Report held by the Public Oversight Accounting and Auditing Standards Authority; the major matter mostly noticed within the audit is suggested to be the detection of substantial risks besides the lack of auditing procedures applied against the mentioned risks. Importance of the Study: Any study is not detected about the results of the file analysis held by the Public Oversight Accounting and Auditing Standards Authority within the literature. So that; this study is presented as a qualitative evaluation by analyzing file analysis of the Public Oversight Accounting and Auditing Standards Authority in 2017 in the context of affecting independent auditing’s quality by pointing out the findings on matters mostly noticed in the independent auditing. Only 2017 annual report is analyzed in the study since 2018 report of the Public Oversight Accounting and Auditing Standards Authority is not published yet.

Purpose: The study discussed how cost and character of information, investors’ appreciation of information and the environment synchronized to influence investors preference ordering. It gives insight to the fact that choice of portfolio in investment is not the privy of capital structure and the classical mean-variance efficient analysis theories that see the decision process to be rational. Cost of information, investor characteristics and the environment cannot be treated in isolation but work in tandem for better investment decision. Design/methodology/approach: The Information Driven Efficent Portfolio Model alongside review of the literature were used to analyse how investors bundle of portfolio in a capital structure of a firm, as the dependent variable, is influenced by risk/reward, utility satisfaction, information and its cost of the investor as independent variables. Findings: It is found that there is trade-off between preference ordering (debt and equity) and risk/reward exposure, cost of information as well as information availability of investors in investment decisions. In environments of information asymmetry with uninformed investors in majority, risk is high and preference for debt instrument is equally high. Practicalimplications: Preference ordering,a product of the trade-off, establishes an optional capital structure, but not as determined by management. Investors’ response to the firm’s behaviour promotes the capital structure. Developing the bond market will grow entrepreneurship. Originality/value: The study has characterized; investors and how informed; information design and cost; utility; and investment environment and how they synchronized in responding to behavior in bundling up capitalstructure.

Purpose: The purpose of the study is to examine the effect of operating spread on organizational performances with reference to the listed manufacturing companies in Colombo Stock Exchange. In order to identify the relationship between operating spread and organizational performances, the author used data processed from financial reports of manufacturing companies in Colombo Stock Exchange from 2012 to 2016. Design/methodology/approach: Reformulated financial statement data analysis done using SPSS software, especially correlation and regression analysis. Firms’ performance was measured by ROOA, RNOA and ROE which were depended on Operating Spread. Finding: The result exposed the fact that operating spread positively impact on firm performance, (ROOA, RNOA and ROE). Practical Implications: The article offers insights to manufacturing companies to identify the capacity of debt level and the importance of considering the spread level when making a decision relating to debt capital. Moreover, Invertors can also consider the company spread level when they select a stock to invest. Originality/Value: The article presents significant evidence in terms of its scrupulous approach towards checking the toughness ofresults.

Purpose: This study was conducted to examine the impact of the director’s experience on the acquisition performance. This research also focuses on how the experience of director in making future acquisitions. The authors used. The object of this research is the company that made acquisitions in 2013-2017. Design/methodology/approach: The purposive sampling method is used to select the research sample. The descriptive statistical test, outlier test and hypothesis test is used to analyzed the data using SPSS program. Assuming cumulative abnormal return (CAR) are the performance to measure a success acquisition, and the factors that have an impact on acquisition performance are performance are taken number of prior acquisitions with positive CAR, number of prior acquisitions, average number of acquisitions, number of acquisitions with same industry, percentage number of acquisitions with positive CAR, board independent, board size, managerial ownership, firm size, free cash flow, CEO tenure and leverage as independent variable. The purposive sampling method is used to select the research sample. The descriptive statistical test, outlier test and hypothesis test is used to analyzed the data using SPSS program. Findings: The results from this study show that the number of acquisition with positive CAR can improve acquisitions performance in the future, but the number of prior acquisitions can be reduce the acquisitions performance. Practical implications: This finding will be very helpful for management as a condition in choosing a new CEO. By adding acquisition experience as one of the conditions in choosing a CEO. This will increase the level of successful acquisition of the company. Originality/value: This article present the empirical study of how CEO Experience in Acquisition can increase the success rate of acquisition in Indonesia.