244 research outputs found
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MODERATING EFFECT OF AUDIT COMMITTEE ON THE RELATIONSHIP BETWEEN AUDIT QUALITY AND EARNINGS MANAGEMENT OF LISTED NON-FINANCIAL SERVICES FIRMS IN NIGERIA
No full textThis study investigated the moderating impact of audit committee on the relationship between audit quality and earnings management. Earnings management is the dependent variable, audit quality is the independent variable proxy by audit independence, audit fee, audit tenure and audit size while the moderator is audit committee proxy by audit committee governance score. Secondary source Panel data was extracted for a period of ten (10) years from a population of 113 listed non-financial services firms and a sample of 76 companies were selected based on the model adopted to measure the dependent variable. The research engaged a historical causal design to answer the research question raised. The data was analysed using the multiple linear regression technique and the results reveals that audit committee moderates the relationship between audit quality and real earnings management. Conclusively, audit independence has positive insignificant effect on real earnings management, audit fee and audit size have a positive and significant impact on real earnings management, audit tenure has a negative and significant impact on real earnings management, while audit committee has a significant moderating impact on audit quality and real earnings management. The study recommends amongst others that the number of financial experts in the audit committee should be increased to three and that the companies should be encouraged by the relevant regulatory authority to engage Big4 auditors as their external auditors for a transparent and credible financial statement. The study is limited to only quoted non-financial services firms in Nigeria
EFFECT OF FEMALES IN THE BOARDROOM ON CORPORATE SUSTAINABILITY REPORTING
No full textIncreasing body of research overtime has focused on corporate sustainability reporting due to its global significance. However, there is still scarcity of studies, especially, on the role of women in improving corporate sustainability reporting. Furthermore, this relationship is rarely investigated using African data. This studytakes advantage of this existing gap to explore the effect of female directorship andrepresentation in the audit committee on corporate sustainability reporting. This study utilized 120 firm year observations from sampled African firms that adopted for the period 2015 to 2020. Using quantitative approach, regression analysis wasused to test the hypotheses. The results of the regression analysis indicate that both female directorship and female presence in the audit committee have a significant positive effect on corporate sustainability reporting. It is therefore recommended that women directorship should be mandated on the boards of African firms to improve corporate sustainability reporting
FIRM ATTRIBUTES AND FINANCIAL REPORTING TIMELINESS OF LISTED CONSUMER GOODS FIRMS IN NIGERIA
No full textThis study examines the effect of firm attributes on financial reporting timeliness of listed consumer goods companies in Nigeria within the period of 2017-2021. The sample size of the study is the entire consumer goods firms listed on the Nigeria Group Exchange (NGX) from 2017-2021. The study used secondary data extracted from the annual reports of the various sampled firms, the Generalized Least Square (GLS) regression technique was used to analyze the data used in testing the hypothesis. The outcome of the regression analysis showed that firm size and financial leverage had a negative and significant effect on financial reporting timeliness. Based on the findings, the study recommends that listed consumer goods firms should increase their size as this will lead to the reduction in the time taking to publish their financial reports. The firms should also restructure their capital structure with a reasonable increase in debt equity as more debts equity will lead to a reduction in the reporting timeliness of the firms’ financial information and in turns helps to promote value relevance of accounting information
MODERATING EFFECT OF BANK SIZE ON THE RELATIONSHIP BETWEEN INTEREST RATE, LIQUIDITY, AND PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA
No full textThe recurring instability of commercial banks’ performance in Nigeria have triggered stakeholders to deploy efforts toward providing solutions where the desired result is yet to be achieved. Consequently, this study examined the moderating effect of bank size on the relationship between interest rate, liquidity, and performance of the banks in Nigeria. An ex-post-facto research design was adopted, where the bank-specific data were sourced from the published annual financial statements of 12 commercial banks listed on the Nigerian Stock Exchange and the macroeconomic data were extracted from the WDI database for a ten-firm-year period from 2011 to 2020. The analysis was done using the panel regression technique with the support of Stata software version 14.2. Findings on the direct effects showed a significant and negative relationship between deposit rate and performance, and both the lending rate and loan-to-deposit ratio have positive and significant relationships with performance. Meanwhile, the intervention effects showed that the bank size has positively moderated the relationship between deposit rate and performance; whereas bank size has negatively moderated the relationship between loan-to-deposit ratio and performance. Therefore, the study recommended that banks should grow their assets to enable them to achieve economies of scale and cost efficiency
IS THERE EARNINGS DISCONTINUITY AFTER THE IMPLEMENTATION OF IFRS IN NIGERIA?
No full textEarnings metrics are major financial indicators which capital market participants and investors focus on for informed decisions. Because reporting earnings increase may enhance firms’ stock price, many managers are motivated to avoid reporting earnings decreases, but prefer to consistently report increase earnings greater than its previous valuation. There is evidence that such practice has led to a situation of conspicuous upward shift in frequency of observations, starting from the left of identified earnings benchmark to the right. Recent studies have shown that a change in accounting regulation may have effects on the shape of the firm-year distribution of earnings. This paper examines the discontinuity evidence for Nigeria, in relation to the adoption of the international financial reporting standard. The aim is to establish whether discontinuity in earnings, represented by the asset-scaled net profits, as well the discontinuity in earnings-change, has reduced following the adoption. According to literature, the study employs three methods – empirical histogram, standardise differences tests and the permutation tests – to validate the aims. The findings suppose evidence for increase in discontinuity, indicating increased in small profits’ earnings management, after the adoption. Contrary, the evidence is not sufficient to conclude that the discontinuity has increase for the earnings-change. It can be argued that the adoption has not achieve much in ensuring firms are monitored against earnings management to avoid losses. The study has limitation, since it considers only the distributions of earnings and earnings-changes. The distribution of forecast errors is not investigated because such is influence by forecast management. Future studies may consider this for improvement
SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA
No full textThis study examines the effect of sustainability reporting (SR) on financial-performance of listed manufacturing firms in Nigeria from 2010 to 2020. Ex-post facto research design was employed and 24 firms form 8 sectors were sampled. Data were sourced from their annual report and analysed using Panel-regression technique. The study found positive significant connection linking DP, ERS and R&D and financial performance while CRS has negative insignificant effect on financial-performance. Base on the findings, the study concluded that SR has positive influence on financial-performance of listed manufacturing firms in Nigeria. The study recommended that relevant authorities should encourage firms to report SR on real-time and make reporting compulsory and not voluntary. There should be strict enforcement on firms to increase investment in R&D as this will increase profitability and help climate change
BOARD DIVERSITY, POLITICAL CONNECTIONS AND FIRM VALUE: AN EMPIRICAL EVIDENCE FROM FINANCIAL FIRMS IN NIGERIA
No full textThe effect of board diversity, political connections and firm value of listed financial service firms in Nigeria is investigated in this study. Firm value, proxied by Tobin's q and computed as the ratio of the firm's market value of equity to the book value of total assets, is the study's explained variable, while board gender diversity, board nationality, board ethnic diversity, and political connections are the study's explanatory variables. The study’s population consists of fifty-one (51) listed financial service firms on the Nigerian Stock Exchange as at 31st December 2020. Thirty-five (35) of these firms made up the sample size for a period of nine years (2012-2020). Data was gathered from the annual reports of the sampled companies and analyzed using the feasible generalized least square regression (FGLS) approach. According to the study, board gender diversity, board nationality, and board ethnic diversity have a positive significant effect on the firm value of listed financial service firms in Nigeria, whereas political connections had a positive but minor effect. According to the findings, the boards of directors of listed financial service organizations in Nigeria should ensure that females are considered for directorship seats on the boards in order to increase their value, as suggested by the resource dependency theory. Also, the board should be made up of foreign directors in order to lure foreign investors to the firm and enhance its value. In addition, the boards of directors of listed financial services firms in Nigeria should consist of a mix of both northerners and southerners to improve firm value
DETERMINANTS OF FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
No full textThis paper seeks to address some factors influencing the financial performance of listed DMBs in Nigeria as the industry has a crucial role to the growth and development of the nation. The major goal of this study was to examine, using secondary data the determinants of financial performance of DMBs with international operating license between 2010 and 2020. Analysis was carried on 8 listed banks using secondary data, correlation and ex-post factor research design. According to the study's findings, all of the indicators have a large impact on the financial performance of the listed financial banks, with the exception of liquidity risk, which has no significant effect. It is therefore recommended that the management of listed DMBs strictly concentrate on investing in lower risky projects, developing and adopting an effective internal control system with clear policies and procedures and to also adhere to CBN directives in maintaining a certain capital adequacy ratio and to checkmate some internal management factors that led to a significant but negative relationship between ROA and LR as the relationship is expected to be significant and positive. This would assist them in achieving their objectives and prevent liquidation and bankruptcy
LIQUIDITY RISK AND PERFORMANCE OF NON-FINANCIAL FIRMS LISTED ON THE NIGERIAN STOCK EXCHANGE
No full textThis study has examined the effect of liquidity risk on performance of non-financial firms listed on the Nigerian Stock Exchange. The main objective was to assess the degree of influence liquidity risk measured by (standard deviation of quick ratio and current ratio) have on performance (return on assets) of the non-financial firms in Nigeria. Data from all the 87 non-financial firms listed on NSE were extracted through financial reports and analyzed using descriptive statistics, correlation and regression through STATA version 16. The findings revealed that current ratio have negative and significant effect on performance, while the quick ratio was not significant in influencing performance. The result implies that an increase in liquidity risk (difficulty in running the operations and offsetting short term maturing obligations), leads to a significant decrease in performance of the firms. The result also confirms that the standard deviation of current ratio provides better measurement of liquidity risk. It was however concluded that, liquidity risk has negative and significant effect on performance of firms in Nigeria. The study recommends that more attention should be given to liquidity management to minimize the risk of insolvency or bankruptcy of firms in Nigeria as such will help in reducing liquidity risk issues and improve performance of the non[1]financial firms in Nigeria
TRANSPARENCY, COMPLIANCE AND SUSTAINABILITY OF CONTRIBUTORY PENSION SCHEME IN NIGERIA
No full textPolicymakers have taken cognisance of necessity to improve the transparency and compliance level among parameters of pension reforms. Empirical literature found positive roles of transparency and compliance toward the achievement of pension reform objectives such as sustainability. However, the level of transparency and compliance of pension fund managers and employers of labour under the contributory pension scheme in Nigeria leaves much to be desired. Thus, this study examined the effects of transparency and compliance on the sustainability of the Nigerian contributory pension scheme. Data was collected with the use of survey questionnaires administered on purposive sampling method on the managerial level staff of contributory pension operators and active participants enrolled in the scheme. The data collected was analysed using partial least square structural equation modelling with the aid of Smart PLS statistical application. The results showed that transparency has positively significant effect on the sustainability of contributory pension scheme in Nigeria while compliance has positive but insignificant effect. The study recommends the need for National Pension Commission as the regulator of the contributory pension scheme to strengthen its capacity to enforce adequate transparency and compliance level among the operators and employers of labour in contributory pension scheme in order to achieve not only the sustainability but other objectives of contributory pension reform