IJBED 2051-848X 2051-8498 https://doi.org/10.24052/IJBED/ 26 Volume 10 Issue 02 2022-11-01

203 https://www.ijbed.org/details&cid=203 2022-12-02 Multiple financial institutions are struggling to survive in the current business environment, due to the challenges that arose due to outbreak of COVID 19 and subsequent economic contraction in Namibia. The outbreak of war in Ukraine where Russia is attacking Ukraine has made the business operating environment more challenging in Namibia. The contemporary economic challenges require different types of leadership that are able to accurately assess the business environment, and then initiate innovative and creative approaches to addressing them. This research was motivated by the need to explore a leadership style that would be able to help banks to cope with the harsh business environment and also to suggest innovative approaches and strategies that could lead to profitability and competitiveness of the banking sector in Namibia. The study employed a quantitative research approach to analyse the relationship between leadership style and bank profitability and competitiveness. Four branches were selected in Namibia from two regions, to take part in the study, with a population of 164 employees and management. A sample size that represented more than 60% of the population was selected utilizing, using a stratified sampling method. The data analyses were done using Kruskal Wallis Test and the Mann-Whitney Test, as well as the Analysis of Variance (ANOVA) and regression analysis. The findings of the study demonstrated that bank profitability and competitiveness in Namibia was linked to leadership styles such as transformational leadership and authentic leadership. The study also noted that organizational style can improve by embracing transformational and authentic leadership style. The study recommended that financial institutions must invest more in developing leadership styles that can lead to more productivity and profitability. Abbas, Z. and Advani, A., 2018. Impact of Transformational and Transactional Leadership Styles on Employees’ Performance of Banking Sector in Pakistan”. Global Journal of Management and Business Research , XV(V), pp. 1-9. Abbas, Z., Riaz, H., Bhutta, M. I. and Khan, R. A., 2017. The Impact of Leadership Style on Bank Manager’s Performance through Moderating Role of Motivation. Journal of Management Development, Volume 2, pp. 1-13. Adekanbi, A., 2016. An Investigation into the Impact of Leadership Styles on Employee Retention: Identifying which Leadership Style best encourages Employee Retention in the Nigerian Banking Sector: A Case study of Zenith Bank Plc., Nigeria. Masters thesis, Issue Dublin, National College of Ireland. Aghahowa, O. M., (2021. Leadership styles and its impacts on organisational performance. Guinness Nigeria Plc, Benin City, Edo State, Nigeria. Thesis; Central University of Applied Science , Volume 1, pp. 1-62. Ali, K. S., 2020. Effective Dimension of Leadership Style for Organisational Performance: A Conceptual Study. International Journal of Management, Accounting and Economics, 7(1), pp. 30-40. AL-Khaled, A. A. and Chung, J. F., 2020. The impact of leadership styles on organizational performance. Organisational Climate and Teacher Commitment: A Brunei Perspective., Issue DOI: 10.5281/zenodo.3766106. Bahmanabadi, S., 2015. A Case Study of the Impact of Leadership Styles on Bank Employees’ Job Satisfaction. Södertörn university | The Institute of Social Sciences. Babbie, E. 2010. The Practice of Social Research. 10th Edition, Republic of South Africa, Oxford University Press Southern Africa, Cape Town.. Burns, N. 2015. The Practice of Social Research. 10th Edition, Republic of South Africa,. Oxford University Press Southern Africa, Cape Town. Bass. B. M., 2016. Transformational leadership and organizational culture.. Public administration quarterly,, 17(2), pp. 112-121. BASS, B. M., 2014. Transformational Leadership: Industry, Military, and Educational Impact,. Lawrence Erlbaum Associated, London.. Beardwell, J. and Thompson, A., 2017. Human Resource Management: A Contemporary Approach. 8th ed. New York: Harlow: Pearson Education Limited.. Belias, D. K. A. V. G. and Sdrolias, L. 2015. Organizational culture and job satisfaction of Greek banking institutions.. Procedia - Social and Behavioural Sciences,, Volume 175, pp. 314-323. Creswell, J., 2013. Research Design: Qualitative, Quantitative and Mixed Method. Davis, K. M. and Gardner, W. L., 2012. Charisma under crisis revisited: Presidential leadership, perceived leader effectiveness, and contextual influences.. Leadership Quarterly, 23(5), p. 918–933. Delic, A., Kozarevic, E. and Alic, M., 2017. Impact of leadership style on bank profitability: Case study of a bank in Bosnia and Herzegovina. Indiana Technical Institute, Issue 65, pp. 1-15. Deloitte, 2019. Namibia Banking Sector Dynamics, Windhoek: Deloitte Touche Tohmatsu Limited. Dwiedienawati, 2020. Determinants of perceived effectiveness in crisis management and company reputation during the COVID-19 pandemic. Cogent Business and Management, 8(1), pp. 1-23. Ebrahim, H., 2018. Impact of Leadership Styles on Job Satisfaction. Journal of Human Resources Management Research, Volume 2, pp. 1-8. Ejere, E. I. 2013. Impact of transactional and transformational leadership styles on organisational performance: Empirical evidence from Nigeria. The Journal of Commerce, 5(1), pp. 30-41. Fry, L., 2013. Toward a Theory of Spiritual Leadership. The Leadership Quarterly, Volume 16, pp. 693-727. Kandaswamy, V.,Ndowora, N.& Gnitchogna, R., 2018. Assessment of Competition in Banking Sector of Namibia. IJRDO - Journal of Business Management, 4(5), pp. 68-80. Khajeh, E. H. A., 2018. Impact of Leadership Styles on Organizational Performance. Journal of Human Resources Management Research , 2018(2018), pp. 1-10. Khan, A. Z. and Adnan, N., 2014. Impact of Leadership Styles on Organizational Performance. International Journal of Management Sciences, 2(11), pp. 501-515. Khan, D. R., 2016. Leadership Style and Organization Performance. Munich Personal RePEc Archive, Issue 70387, pp. 1-89. Lacerda, T. C., 2019. Crisis leadership in economic recession: A three-barrier approach to offset external constraints.. Business Horizons, 62(2), pp. 185-197. Langton, N. 2017. Leadership. Organizational behaviour: Concepts, controversies, applications,. Toronto: Prentice Hall Canada, pp. 386-426. Mumba, 2020, C. J., 2020. Impact of leadership styles on organisation performance: a case of microfinance institutions in dar es salaam, Tansania. Masters Thesis, Msumbe University , Volume 1, pp. 1-106. Muchiri, K. J. and Hazel, G., 2018. Effects of leadership styles on organizational performance of listed commercial banks in the Nairobi securities exchange. International Journal of Business Management & Finance, 1(34), pp. 594-614. Mumba, C. J., 2020. Impact of leadership styles on organisation performance: a case of microfinance institutions in dar es salaam, Tanzania. Masters Thesis, Mzumbe University , Volume 1, pp. 1-106. Mwesigwa, N., 2019. The influence of leadership style on organizational perfomance: the case of norton rose fulbright. Masters Thesi, Mzumbe University. Ricablanca, J. L. S. and Abocejo, F. T., 2020 .Manager’s leadership styles and job. European Journal of Management and Marketing Studies, 5(4 ). Samaitan, L. C., 2014. Leadership styles and performance of commercial banks in Kenya. Masters Thesis, Issue University of Nairobi, pp. 1-52. Soebbing, B. P. 2015. The impact of leadership changes on expectations of organizational performance. Journal of Sports Management, 29(5), pp. 485-497. Udovita, V., 2020. Conceptual Review on Impact of Leadership Style on Employee Performance. International Journal of Business and Management Invention (IJBMI), 9(9), pp. 16-23. Ukaidi, C., 2016. The Influence of Leadership Styles on Organizational Performance in Nigeria.. Global Journal of Human Resource Management, 4(4), pp. 25-34. Vroom, V. 2013. Leadership and Decision Making. Pittsburgh. University of Pittsburgh Press. Zehir, C. and Narcikara, E., 2016. Effects of resilience on productivity under authentic leadership.. Procedia - Social and Behavioural Sciences,, Volume 235, pp. 250-258.   https://www.ijbed.org/cdn/article_file/2022-12-02-15-45-49-PM.pdf Lucky Shindume E.I Edoun S. Pooe Financial Institutions economic contraction banking profitability competitiveness Namibia 5057 68 0

204 https://www.ijbed.org/details&cid=204 2022-12-02 While the interests of shareholders contradict with the interests of the managers, agency problem appears. However, the principle of the agency theory is to establish the relationship between the shareholders and managers; and this paper relies on the involvement of corporate governance who can resolve the issues between earnings management and the underlying causes. The main aim of this study is to identify the impact of corporate governance on controlling the discretionary accruals based on the FTSE350 by considering the performance matched discretionary accruals model. It has considered the OLS regression model and tested the hypotheses. The findings of this paper reveal the mixed results as board independence, the presence of female in the board, non-executive director’s fees and block holder have significant impact whereas board size and board meeting do not have significant impacts on controlling discretionary accruals. Abdel, R. M. (2012). The association between earnings management and corporate governance-A survey from Egypt. Journal of Finance & Accounting, volume 3, issue 8, p. 128 – 131. Abdul Rahman, R., & Ali, F.H.M. (2006). Board, Audit Committee, Culture and Earnings Management: Malaysian Evidence. Managerial Auditing Journal, Vol. 21 (7), 783-804. Abdullahi, Z., (2015). Corporate board structure, audit committee attributes and earnings management of listed cement companies in Nigeria. Journal of Financial Economics, 94 (2): 291 – 309. Ali, S. M., Salleh, N. M., & Hassan, M. S. (2008). Ownership structure and earnings management in Malaysian listed companies: The size effect. Asian Journal of Business and Accounting, 1(2), 89–116. Bao, C. & Lewellyn, M. (2017). Are unmanaged earnings always better for shareholders? Accounting Horizons, 111–112. Atik, A. (2009). Detecting income-smoothing behaviors of Turkish listed companies through empirical tests using discretionary accounting changes. Critical Perspectives on Accounting, 20(5), 591–613. Barnea, A., J. Ronen, & S. Sadan. 1976. Classificatory Smoothing of Income with Extraordinary Items. The Accounting Review 78 (3): 641–678. Bassiouny, S, W., Soliman, M.W., & Ragab, A. (2016). The Impact of firm characteristics on earnings management: An empirical study on the listed firms in Egypt. The Business and Management Review, 7(2), 91-101. Bepari, K., Rahman, S.F., & Taher Mollik, A. (2013). Value relevance of earnings and cash flows during the global financial crisis. Review of Accounting and Finance, 12(3), 226-251. Available at https://doi.org/10.1108, Accessed on: 01/03/2021. Bhagat, S., Carey, D.C., & Elson, C.M. (1999). Director Ownership, Corporate Performance, and Management Turnover. The Business Lawyer, Vol. 54, No. 3: pp. 885-919. Cimini, R. (2015). How has the financial crisis affected earnings management? A European study. Applied economics, 47(3), 302-317. Available on: https://doi.org/10.1080/00036846.2014.969828, accessed on: 12/07/2020. DeAngelo, L. E. (1986). Auditor size and audit quality. Journal of Accounting and Economics, 3(3), 183–199. Dechow, P. M., & Skinner, D. (2000). Earnings management: Reconciling the views of accounting academics, practitioners, and regulators. Accounting Horizons, 14(2), 235–250. Dechow, P., R. Sloan, & A. Sweeney. 1995. Detecting Earnings Management. The Accounting Review, 70 (2): 193–225. Dechow, P.M., R.G. Sloan, & A.P. Sweeney. 1996. Causes and Consequences of Earnings Manipulation: An Analysis of Firms Subject to Enforcement Actions by the SEC. Contemporary Accounting Research, 13 (1): 1–36. Ebrahim, R. (2007). Privatization in emerging economies: an agency theory perspective. Academy of Management Review, 25, 650–69. Eccles, R. G. (2001). The value reporting revolution: Moving beyond the earnings game. New York, NY: John Wiley. Effendi, M., Harrast S. A, & Lori M. O. (2007). Can Audit Committee Prevent Management Fraud? The Accounting Journal. 77, (1), 24 – 32. Fama, E. (1980). Agency Problems and Theory of the Firm. Journal of Political Economy, Vol. 88: pp. 88-107. Greene, W. (2014). Econometric Analysis. 7th ed. New York: Pearson Education Ltd. Gujarati, D. (2003). Basic Econometrics, 4th edition, McGraw Hill, New York. Habbash, S. U. (2011): “Corporate Governance and Financial Reporting Quality: A Case Study of Nigerian Money Deposit Bank”, International Journal of Research in Computer Application and Management, vol 1(26), pp12-19. Hampel. R. (1997). Report of the Committee on Corporate Governance. Final Report. London: Gee Publish Ltd. Hasan, S.U., Ahmed, A. (2012). Corporate Governance, Earnings Management and Financial Performance: A Case of Nigerian Manufacturing Firms, American International Journal of Contemporary Research, 2(7), 214 – 226. Healy, P. M., & Wahlen, J. (1999). A review of the earnings management literature and its implications for standard setting. Accounting Horizons, 13(4), 365–384. Healy, P.M. (1985). The effect of bonus schemes on accounting decisions. Journal of Accounting and Economics, 7(1-3), 85-107. Huse, M., & Solberg, A.G. (2006). Gender Related Boardroom Dynamics: How Scandinavian Women Make and can Make Contributions on Corporate Boards. Women in Management Review, Vol. 21, No. 2: pp. 113-130. Jaggi, B., Leung, S., & Gul, F. (2009). Family Control, Board Independence, and Earnings Management: Evidence Based on Hong Kong Firms. Journal of Accounting and Public Policy, Vol. 28: pp. 281– 300. Jones, J. (1991). Earnings Management During Import Relief Investigations. Journal of Accounting Research, 29(2), 193-228. Jones, J. J. (1995). The effects of foreign trade regulation on accounting choices. Journal of Accounting Research, 29(2), 193–228. Loomis, C.J. (1999). Lies, Damned Lies, and Managed Earnings. Fortune, Vol. 140, No.2: pp.74-92. Kankanamage, CA. (2015), ‘The relationship between board characteristics and earnings management: Evidence from Sri Lankan listed companies’, Kelaniya Journal of Management, Vol. 4, No. 2, pp. 36-43. Kao, L., & Chen, A. (2004). The effects of board characteristics on earnings management. Corporate Ownership and Control, 1(3), 96–107. Kasznik, R. (1999). On the association between voluntary disclosure and earnings management. Journal of Accounting Research, 37(1), 57–81. Klein, I. (2012). The impact of changing stock ownership patterns in the United States: Theoretical implications and some evidence. Revue deconomie Industrielle, 82(4), 39–54. Kothari, S. P., Leone, A. J., & Wasley, C. E. (2005). Performance-matched discretionary accruals. Journal of Accounting and Economics, 39, 163–197. Lee. B.B., & Vetter, W. (2015). Critical Evaluation of Accrual Models in Earnings Management Studies. Journal of Accounting and Finance, 15(1): 62 – 71. Lev, B. (1989). On the Usefulness of Earnings and Earnings Research: Lessons and Directions from Two Decades of Empirical Research. Journal of Accounting Research, Vol. 27, No, 3: pp. 15 3 -192. Lopes, P. A. (2018). Audit quality and earnings management: Evidence from Portugal. Athens Journal of Business & Economics, 4(2), 179-192. Lorsch, M., & Maclver, S. (1989). Do managers use the valuation allowance account to manage earnings around certain earnings targets? Journal of the American Taxation Association 28 (1): 43-65. Maurya, H. (2015). Corporate environmental disclosure, corporate governance, and earnings management. Emerald Group Publishing Limited, 13(2), 7- 20. Peasnell, K.V., Pope P.F. & Young, S., (2005), ‘Board monitoring and earnings management: Do outside directors influence abnormal accruals’, Journal of Business Finance and Accounting, Vol. 32, No. 1131-1346. Pratiwi, I. S., & Siregar, S. V. (2019). The Effect of Corporate Social Responsibility on Tax Avoidance and Earnings Management: The Moderating Role of Political Connections. International Journal of Business, 24(3). Salch, M., Graham, J. R., Harvey, C. R., & Rajgopal, S. (2020). The Economic Implications of Corporate Financial Reporting. Journal of Accounting and Economics, vol.40, no.1-3, pp.3-73. Seng H., & Findley D (2015). A General Guide to Writing Research Proposal and Report: A Handbook for Beginning Researchers. Kisumu, Kenya: Option Press and Publishers. Soyemi, K. A. (2020). Internal corporate governance practices and choice of external auditor in Nigeria: A logistic regression analysis. Binus Business Review, 11(1), 9-16. Warfield, T., & Wild, J. (1995). Managerial Ownership, Accounting Choices, and Informativeness of Earnings. Journal of Accounting and Economics, Vol. 20: pp. 61-91. Watts, R.L. & Zimmerman, J.L. (1983). Agency problems, auditing, and the theory of the firm: Some evidence. The Journal of Law and Economics, 26(3), 613-633. Wild, J. (1996). The Audit Committee and Earnings Quality. Journal of Accounting, Auditing and Finance, Vol. 11: pp. 247-276. Wu, D.M. (1973) Alternative Tests of Independence Between Stochastic Regressors and Disturbances. Econometrica 41 (4): 733–750. Xu, W., Hung, Y. S., Niranjan, M., & Shen, M. (2010). Asymptotic mean and variance of Gini correlation for bivariate normal samples. IEEE Transactions on Signal Processing, 58(2), 522–534. Zalata, A., & Roberts, C. (2015). Internal corporate governance and classification shifting practices an analysis of UKcorporate behavior. Journal of Accounting, Auditing & Finance, 31(1), 51–78. Zang, A. Y. (2012). Evidence on the trade-off between real activities manipulation and accrual-based earnings management. The Accounting Review, 87, (2), 675-703. Zhong, C., Zahra, S.A., & Pearce, J.A. (2007). “Boards of directors and corporate Financial Performance: A Review and Interactive Model,” Journal of Management, 15, (2), 291-334. Zona F., Gomez-Mejia L. R., & Withers M. C. (2018). Board Interlocks and Firm Performance: Toward a Combined Agency–Resource Dependence Perspective. Journal of Management, 44, (2), 589– 618 https://www.ijbed.org/cdn/article_file/2023-03-04-23-15-14-PM.pdf Rishiram Aryal Gurjeet Dhesi Corporate governance earnings management earnings quality 4819 98 2