Firm characteristics, innovation, financial resilience and survival of financial institutions
Journal of Accounting in Emerging Economies
ISSN: 2042-1168
Article publication date: 19 December 2019
Issue publication date: 13 January 2020
Abstract
Purpose
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.
Keywords
Citation
Nkundabanyanga, S.K., Mugumya, E., Nalukenge, I., Muhwezi, M. and Najjemba, G.M. (2020), "Firm characteristics, innovation, financial resilience and survival of financial institutions", Journal of Accounting in Emerging Economies, Vol. 10 No. 1, pp. 48-73. https://doi.org/10.1108/JAEE-08-2018-0094
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited