Firm characteristics, innovation, financial resilience and survival of financial institutions
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Date
2019
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Accounting in Emerging Economies
Abstract
The purpose of this paper is to examine the relationship among firm characteristics, innovation,
financial resilience and survival of financial institutions in Uganda.
Design/methodology/approach – This paper employs a cross-sectional research design, and responses
from 143 officers of 40 financial institutions are analyzed using Statistical Package for the Social Sciences.
The authors used ordinary least squares regression in testing the hypotheses.
Findings – The authors find that firm characteristics of size, age, innovation and financial resilience have a
predictive force on survival of public interest firms such as financial institutions.
Research limitations/implications – The implication drawn here is that a combination of firm
characteristics, firm innovation and financial resilience explains a significant contribution in the survival
chances of financial institutions. However, as much as firm characteristics and financial resilience are
significant, innovation explains more of the variances in financial institutions’ going concern appropriateness.
Originality/value – This paper adds to the limited financial institutions literature and provides the first
empirical evidence of the efficacy of innovation and financial resilience on financial institutions survival. The
auditing profession could consider more seriously the innovation activities and financial resilience of financial
institutions in their test for the going concern assumption of such firms.
Description
Keywords
Survival, Firm characteristics, Innovation, Going concern, Financial resilience
Citation
Nkundabanyanga, SK, Mugumya, E., Nalukenge, I., Muhwezi, M., & Najjemba, GM (2019). Firm characteristics, innovation, financial resilience and survival of financial institutions. Journal of Accounting in Emerging Economies . DOI 10.1108/JAEE-08-2018-0094