244 research outputs found
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THE EFFECTS OF INTEREST RATE AND MONEY SUPPLY ON SYSTEMATIC RISK ASSOCIATED WITH RETURN IN NIGERIAN EXCHANGE
No full textStock market investors are largely compensated for taking systematic risks as idiosyncratic are controlled through effective portfolio construction but systematic risk cannot be diversified. As such, there is increasing concern among academics to understand systematic risks and its determinants in emerging markets. Hence, the need to investigate the effect of interest rate and money supply as determinants of systematic risk associated with return in the Nigerian Exchange. The study was correlational in nature, and data for the study was collected from the CBN statistical bulletin and the Nigerian Exchange. Monthly data from April, 2012 to December, 2022 were used for the analysis. The study conducted data analysis using autoregressive distributive lag model and other preliminary analysis. Result from the study revealed that money supply has positive significant effect on systematic risk. On the other hand, interest rate exhibited negative and statistically insignificant effect on systematic risk. The study came to the conclusion that money supply is a determinant of systematic risk as it can influence its behaviour significantly while interest rate can affect systematic risk but the magnitude is statistically insignificant. Therefore, the study recommended that investors should continuously study the changes in the behaviour of the determinants in order to make sound investment decision and maximize their return from the market. The government through the CBN should also ensure that they consistently improve their policies on interest rate and money supply. This will help the market to operate efficiently
FINANCIAL DETERMINANTS OF ENTREPRENEURSHIP IN NIGERIA
No full textFinance is a crucial component to entrepreneurial success and the dearth of financial resources can be detrimental to entrepreneurs and affect entrepreneurial activities and growth opportunities. This study investigates the financial determinants of entrepreneurship in Nigeria from 1991 to 2021 using the auto regressive distributed lag model. The findings to the study revealed that while foreign direct investments and financial development negatively affect self-employment rate in Nigeria, access to finance increases the rate of self-employment in Nigeria. This study, therefore, recommends that policy makers need to make access to financial resources easier and at a lesser cost to individuals who wants to be self-employed in order to encourage self-employment and entrepreneurial activities for economic growth and stability
OWNERSHIP CONCENTRATION’S MODERATING EFFECT ON DIVIDEND PAYOUT AND TOBIN’S Q OF LISTED CONSUMER GOODS FIRMS IN NIGERIA
No full textThis paper examines the direct effectof ownership concentration (OWNC), dividend policy as proxied by dividend payout (DPAY) and firm size proxied by log of total assets (FS) on firm value which is proxied by Tobin’s Q. Also,the moderating effect of OWNC on the relationship between DPAY and Tobin’s Q was examined. 16 out of the 18 listed consumers goods sector of the Nigerian Exchange Group (NGX)were purposively selected for this study and the study period 2013 to 2022 and 160 statistical observations per variable were employed for the study. Utilizing a ex-post facto research design, and fixed effects regression for the statistical model to control for unobserved heterogeneity withing firms over time, ensuring a robust examination of the relationships under study. Also, an interaction term (OWNC*DPAY) was introduced to capture the joint effects of ownership concentration and dividend policy on Firm value. At the end of the analysis, DPAY was found to have a statistically insignificant impact on firm value. Secondly, OWNC exhibited a significantnegative relationship with firm value, suggesting that higher levels of OWNC could adversely affect firm value. Thirdly, the moderating effect of OWNC on DPAY-firm value relationship yielded a negative and insignificant effect, suggesting that the influence of dividend policy on firm value is not significantly enhanced by variation in ownership concentration. These findings contribute, in a nuanced manner, to literature on dividend policy and ownership concentration in corporate governance in the context of an emerging markets like Nigeria. It is recommended that managers of firms in the sector should look beyond dividend policy for value enhancement strategies and managers should ensure a balancing act between ownership concentration and dispersed ownership because of possible negative impact that concentrated ownership portend
CEO CHARACTERISTICS AND FINANCIAL PERFORMANCE OF LISTED DMBS IN NIGERIA
No full textThis study seeks to investigate the effect of Chief executive officer’s characteristic on financial performance of listed deposit money banks in Nigeria. The study adopts correlation and ex-post facto as research design. The population of the study consists of 16 listed deposit money banks in Nigeria and the sample of the study consists of 14 listed deposit money banks in Nigeria. Census sampling technique is employed. Multiple regression model based on pooled ordinary lease square robust test is adopted to analyze the panel data obtained from audited financial statements of the sampled listed deposit money banks between 2012- 2021. The study reveals that Chief executive officer’s tenure has a negative and significant influence on financial performance, while, Chief executive officer’s gender was discovered to have a positive effect on financial performance. It is recommended that the board members should initiate coherent and integrated and policies towards reducing tenure ship of the Chief executive officers below the average which will ultimately improve the financial performance of the banks. Also, the board should initiate policy that will always consider female gender in the appointment of Chief executive officer’s positions considering the risk appetite of the female Chief executive officer’s particularly in risk and financial management of the banks which will also influence the financial performance of the listed deposit money banks in Nigeria
MACROECONOMIC DETERMINANTS AND STOCK MARKET VOLATILITY ADMIST THE PERIOD OF ECONOMIC RECESSION IN NIGERIA
No full textThe goal of liberalizing the Nigerian stock market was to improve its performance and increase market efficiency. Nonetheless, it appears that the onset of Nigeria's 2016 economic downturn has skewed the degree to which these macroeconomic factors influence volatility on the Nigerian Stock Exchange. Using monthly data from February 2010 to September 2022, the study investigated how the economic slump affected the connection between macroeconomic factors and stock market volatility in Nigeria. The exchange rate and stock market liberalization are the macroeconomic factors that are being studied. The time series data was subjected to the Philip Perron (PP) and Augmented Dickey Fuller (ADF) unit root tests. The ARCH LM tests was also carried out and the EGARCH model was estimated under the assumption on normally distributed. The ARCH tests results revealed that there exists ARCH effects in the NGX stock returns implying the presence of volatility clustering in the return series. The findings also showed that the relationship between macroeconomic factors and stock market volatility is negatively impacted by economic recession. It was discovered that the exchange rate had little effect on volatility. It was also shown that liberalization of the stock market significantly reduced volatility. The results also show that there is persistent volatility in the Nigerian stock market and that negative news causes more volatility than positive news of the same size. It is recommended that authorities develop regulations aimed at reviving investor faith in the market
LIQUIDITY RISK AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
No full textThis study examines the effect of liquidity risk on financial performance of listed deposit money banks in Nigeria. The correlation research design was adopted based on positivist approach. Secondary data were extracted from twelve listed deposit money banks in the Nigerian Exchange Group (NEGX) from (2013 -2022) and analyzed using multiple regression technique. The study was under pin by risk management theory. The result of the Generalized Least Square Regression model showed that current risk has positive association with financial performance at 5% level of significant while cash reserve risk has a negative significant effect on financial performance of listed deposit money banks in Nigeria significant at 1%. In line with the findings, the study recommends among others; the management of the banks should recheck the need for recapitalization as doing this will enhance the capability of the banks in financing large transactions and resolving mismatching challenges as owners fund will be available for long term financing. The study also recommended that, the management of the banks should ensure compliance by keeping required amount in liquid as directed by central bank of Nigeria, as doing this will enable the banks to meet possible unexpected cash withdrawal, immature term deposit liquidation and other payable on demand which will enhance their performance. The banks’ management should always ensure compliance on regulatory directives particularly on cash reserve as doing this will reduce the possible loss and improve on their performance
BOARD INDEPENDENCE AND FINANCIAL REPORTING QUALITY OF LISTED OIL AND GAS COMPANIES IN NIGERIA MODERATED BY FIRM SIZE
No full textIn the dynamic landscape of corporate governance, the interplay between board characteristics and financial reporting quality stands as a focal point for scholarly investigation. This study investigates the moderating effect of firm size on the relationship between board independence and financial reporting quality of listed oil and gas companies in Nigeria. The study employs a quantitative research design and the populations of the study were all the oil and gas companies listed on the floor of Nigerian Exchange Group from 2012 to 2021. The study used ten (10) oil and gas companies as the population and sample size. The study further used panel regression technique as method for data analysis. The result of the direct relationship revealed that board independence and board size negatively and significantly influence the financial reporting quality of listed oil and gas companies in Nigeria. In the case of moderated effect, the results indicate that firm size does not significantly moderate the influence of board independence on the financial reporting quality of listed oil and gas companies in Nigeria. Based on the results obtained, it can be concluded that the interaction between firm size and board independence does not have a significant impact on the financial reporting quality of listed oil and gas companies in Nigeria. Based on the findings, the study recommended that policymakers such as financial reporting council and Securities and Exchange Commission should enforce the code of corporate governance that will provide for mandatory independent directors with financial expertise. Secondly, the firm size should be properly put into consideration in constituting the number of non-executive directors on the board of directors of listed oil and gas companies in Nigeria
DOES AUDIT QUALITY SHAPE FINANCIAL OUTCOMES? EXAMINING BOARD INDEPENDENCEASASTRATEGICMODERATORFORENHANCEPERFORMANCE OF DEPOSIT MONEY BANKS IN AN EMERGING ECONOMY
No full textThis study examines the influence of audit quality and board independence on the financial performance of Nigerian banks from 2014 to 2023, using panel data and generalized least squares (GLS) random effects regression models. While neither audit quality nor board independence individually demonstrated significant direct effects on return on equity (ROE), firm size exhibited a positive and statistically significant impact on performance. Additionally, the moderating role of board independence on the audit quality–performance nexus was not supported by the empirical evidence. These findings suggest that the governance mechanisms studied interact in complex ways within Nigeria‘s unique institutional context. The study contributes to corporate governance literature by highlighting the limitations of conventional governance assumptions in emerging marketsandunderscorestheimportanceofcontextualfactors.Policyimplicationsincludetheneedforenhanced audit quality metrics and strengthened board independence mechanisms tailored to local realities. Recommendations for future research focus on richer audit quality proxies and broader sectoral analyses
DIVIDEND POLICY AND VALUE OF LISTED NON-FINANCIAL COMPANIES IN NIGERIA: THE MODERATING EFFECT OF INVESTMENT OPPORTUNITY
No full textThe relationship between dividend policy (DP) and the value of firms (FV) has been investigated by several researchers in different jurisdictions. However, the findings of these researchers have been always inconsistent. This is due to the other factors that affect this relationship, which include the investment opportunity (IO). This paper is therefore aimed to empirically examine the impact of dividend policy on firms’ value with investment opportunity as moderator. The population of the study consists of 102 listed Non-financial companies. Based on the criterion set by the researcher, a judgmental technique of sampling was used in selecting 30 non-financial companies from the year 2011 to 2020. Tobin’s’ Q (TQ) and Market Price Per share (MPS) are the proxies for firms’ value, while Dividend per share (DPS) dividend payout ratio (DPR) and dividend yield (DY) are the proxies for dividend policy. Investment opportunity (IO) was measured as fixed asset growth. The study also used Firms’ size (FSIZE), Leverage (LEV) and Industry dummy (IND) as control variables. Descriptive statistics, correlation, and Feasible Generalized Least Squares (FGLS) analysis were used. It was found that DP, DPR, and DY are statistically significant to influence TQ. While MPS was only influenced by DP and DY. It was also found that IO did not moderate the relationship between dividend policy and firm value. It is recommended that the management of corporations should put measures in place that will increase revenue and decrease expenses so that regular dividend payments could be maintained. 
RELATIVE EFFICACY OF THE CAPITAL MARKET OVER THE MONEY MARKET IN A GROWTH-FINANCING ECONOMY
No full textThis study investigates if the Nigerian capital market is more effective in impacting economic growth compared with the money market. The paper uses a growth model that depend on usual labour and capital, as well as incorporates the money and capital market variables to produce outputs. The study uses data from the Central Bank of Nigerian and Securities and Exchange Commission Bulletins between from 1981 and 2020. The paper finds the existence of a long-run link amidst the money market, capital market and growth. In the short- and long run, the capital market (new issue) shows positive and significant effects on growth, whilst the money market indicator (treasury bills) has a negative and significant effects. The growth elasticity with respect to the new issue of 0.27% is highly significant at 1%. The growth elasticity with respect to the traded shares of 0.06% is significant at 5%. The growth elasticity with respect to treasury bill of 0.08% is only significant at 10%. The positive impact of the capital market was found to outweigh that of money market. This supports the efficiency of capital market over the money market for growth financing. The paper recommends that the government should ensure it extends the on-going market reforms to increase the sophistication of the financial market and make it more globally competitive