Multinational Research Society Publisher

MRS Journal of Accounting and Business Management

Issue-4(April), Volume-2 2025

1. BEHAVIORAL FINANCE: EFFECT of INVESTOR PSYCHOLOGY on MARKET MOVEMENTS
5

Recep ERTURK*
St. Clements University, Economy and Finance Department, PhD Student/Turkey
1-8
https://doi.org/10.5281/zenodo.15141547

This article examines the basic concepts of behavioral finance and analyzes the effect of investor psychology on the dynamics of the financial markets. Traditional financial theories assume that investors are rational decision makers and evaluate all information optimally (Fama, 1970). However, the studies conducted since the 1970s have shown that individuals act with systematic cognitive prejudices and deviate from rationality in decision -making processes (Kahneman & Tversky, 1979; Thaler, 1993). At this point, behavioral finance comes into play and combines the disciplines of psychology and economy and modeling investor behaviors in a more realistic way. In this context, the study; Experts the effects of cognitive errors on investment decisions such as excessive trust, herd psychology, framing effect, avoidance of loss and prejudice; He argues that these effects lead to anomalies such as balloons, panic and irrational pricing in the markets. In addition, it is emphasized that behavioral prejudices have a wide range of influence from individual investors to institutional actors and that portfolio management and financial counseling should be taken into consideration. As a result, this study reveals that psychological factors are too important in understanding market behavior and optimizing investment decisions.

2. THE ROLE OF MACROECONOMIC STABILITY AND INSTITUTIONAL QUALITY IN ATTRA...
3

Ndubuisi Eme Uguru*, Akparanta...
Department of Economics, University of Uyo, Akwa Ibom State Nigeria
9-17
https://doi.org/10.5281/zenodo.15190743

Nigeria’s economy has undergone periods of turbulence, influenced by factors like volatile oil prices, rising inflation, and fluctuations in the exchange rate. The focus of the study was to analyze the role of macroeconomic variables and institutional quality in attracting foreign direct investment in Nigeria from 1996 to 2023. Various econometric and statistical techniques were employed Considering the behavioral pattern of the variables used for estimation, this study adopted Autoregressive Distributed Lagged model (ARDL). The findings of the analysis show that the lagged values of FDI positively influence current FDI levels, the exchange rate (EXR)) has a negative and significant effect suggesting that past exchange rate values negatively impact FDI, Inflation (INF) and interest rate (INT) coefficients are not statistically significant, indicating they do not have a strong direct influence on FDI, Institutional quality (IQ) shows a mixed impact, with the current value, and its lagged value approaching significance but not quite reaching it. In the light of the findings and analysis of this research, the researcher recommends that given the negative and significant impact of exchange rate on FDI, policymakers should prioritize stabilizing the exchange rate. This can be achieved through prudent monetary and fiscal policies, as well as interventions in the foreign exchange market when necessary. Stabilizing the exchange rate will reduce investment uncertainty and create a more conducive environment for foreign investors.

3. Analyzing the Influence of Budget Deficit Variations on Nigeria’s Macr...
4

Ndubuisi Eme Uguru* , Amos Wil...
Department of Economics, University of Uyo, Akwa Ibom State Nigeria
18-27
https://doi.org/10.5281/zenodo.15339875

The research investigates the influence of budget shortfalls on key economic indicators in Nigeria. spanning the period from 1981 to 2022 through the utilization of VAR analysis. The findings reveal that budget deficits negatively affect the exchange rate in both the short and long run Moreover, they negatively influence the real interest rate in the short term but exhibit a positive impact in the long run. Furthermore, money supply responds unfavorably to budget deficit shocks in both time frames. The study aligns with Keynesian principles and proposes the adoption of restrictive measures in monetary, fiscal, and exchange rate policies to address ongoing inflation and escalating interest rates.

4. Audit Risk and Faithful Representation of Financial Reports of Quoted...
2

Stella Ekwutosi Obiosa*, Profe...
Department of Accounting, University of Port Harcourt, Business School
28-37
https://doi.org/10.5281/zenodo.15339889

This study investigates the effect of audit risk on the faithful representation of financial reports in quoted manufacturing firms in Nigeria, utilizing a quasiexperimental survey design. The research focused on firms listed under the Consumer Goods and Industrial Goods sectors of the Nigerian Exchange Group (NGX), encompassing 21 firms. Data were collected via structured questionnaires assessing three components of audit risk- Inherent Risk, Control Risk, and Detection Risk along with faithful representations of financial report. Descriptive and inferential statistics were used to analyze the data. The results show that while Inherent Risk had no significant impact, Control Risk negatively affected faithful representation, and Detection Risk had a positive and significant influence. The study highlights the importance of effective internal controls and rigorous audit procedures in enhancing the reliability of financial reports. It recommends improvements in internal control systems, audit procedures, and regulatory oversight to ensure the accuracy and credibility of financial statements in the Nigerian manufacturing sector.

5. Treasury Single Account and Government Accountability in the Public Se...
5

Ikeagwu, Sarah*, Ibanichuka, E...
Department of Accounting, University of Port Harcourt, Business School Nigeria
38-46
https://doi.org/10.5281/zenodo.15361821

This study investigates the impact of the Treasury Single Account (TSA) on government accountability within public sector organizations in South-South Nigeria. The research specifically examines how TSA influences two key indicators of accountability: tracking surveys and financial reporting quality, and further explores the moderating role of Political Will. A quantitative research design was adopted, with data collected through structured questionnaires distributed to 286 personnel across selected public organizations. A total of 261 valid responses were analyzed using SPSS version 27, with regression and multivariate analysis employed to test the hypotheses. The results indicate that TSA has a significant and positive effect on both tracking surveys (β = 0.985, p < 0.001) and financial reporting quality (β = 0.982, p < 0.001), demonstrating TSA's effectiveness in improving transparency, traceability, and timely reporting in government finance. Furthermore, the introduction of Political Will as a moderating variable significantly enhanced the relationship between TSA and government accountability (β = 0.389, p < 0.001), confirming that leadership commitment plays a vital role in the success of financial management reforms. The study concludes that TSA significantly contributes to strengthening accountability mechanisms in public sector organizations and recommends that the government sustain strong political commitment to TSA implementation and enhance monitoring mechanisms for compliance. These findings provide empirical support for the continued institutionalization of TSA as a critical tool for public financial management and reform in Nigeria.





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