244 research outputs found
Sort by
INTERVENTION ANNOUNCEMENTS AND NAIRA MANAGEMENT: EVIDENCE FROM THE NIGERIAN FOREIGN EXCHANGE MARKET
No full textMany studies establish how foreign exchange intervention affects the exchange rates. Intervention announcement do also have impact different for the actual financial involvement. Recent evidence has tested this for some countries but none has investigated Nigeria, despite volume of interventions and its announcements made via press circulars by the central bank. The paper applies daily data, from January 02, 2001 to May 15, 2023, to verify the impact of intervention announcements on the Nigerian exchange rate. The paper evaluates the relationship based on an event driven baseline specification, which measure the impact of announcement period windows on the exchange rate. The paper finds conclusive evidence of highly significant impacts that past, contemporaneous and future intervention announcements cause appreciation shocks. The naira is revealed to appreciate by 3.5% upon the intervention announcement, and this further increases to 4.49%, 4.55% and 5.22%, on one day, two day, three days after, but subsequently slow down on fourth day (5.21%) and fifth day (3.45%) after the intervention announcements. Robustness test based using alternative data frequency for the estimation yields close (different) result for the monthly (quarterly) periodicity, therefore supposes that the data frequency matters. The result has implications for future conduct of interventions and conventional monetary policies. Amongst others, higher market uncertainty, low credibility of transmission mechanism and possible predominance of global over the national factors may contribute to influences the effectiveness of interventions. The paper’s major limitation is that it excludes the influence of actual intervention, via sales and purchases of dollar, by the central bank
CAPITAL STRUCTURE AND FIRM FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA: MODERATING EFFECT OF BOARD FINANCIAL LITERACY
No full textThe purpose of this work is to examine the interaction of members of the board with financial knowledge on the association among capital structure with firm financial performance in the Nigeria DMBs. Empirical studies were reviewed to scrutinize the upshot of capital structure in connection to the performance of firms. As the result of the foregoing, this study introduces board financial literacy as a moderator variable to interact between capital structure with performance of firms. A correlational design was adopted. Population and sample size of the study consists of 13 listed DMBs on the floor of Nigeria Stock Exchange for the period 2012 to 2021. Fixed effects regression model was employed to analyse the data of the study. Diagnostic test was conducted to confirm the validity of the statistical inferences of the study. The result shows that BFL moderated the correlation involving DEFR with financial performance. Also, the result found that EFR and DEFR were not significant to the firm financial performance of DMBs in Nigeria. This work recommends that board members with financial literacy should come up with effective policy towards encouraging debt financing in their entities by effective supervision so as to enhance the overall firms’ financial performance as well as safeguarding shareholders interest. Research in future should replicate this topic in a domain other than DMBs
FOREIGN DIRECT INVESTMENT, RENEWABLE ENERGY AND ECONOMIC GROWTH: AN EMPIRICAL ANALYSIS FROM SOUTH AFRICA
No full textThis paper explores the connection amid renewable energy, FDI and economic growth in South Africa using the vector error correction model (VECM) and exogeneity granger causality test. The data employed in this study covered 1990-2020, all obtainable from World development indicator (WDI) and International Energy Agency (IEA). The results revealed that a significant causal connection from economic growth to renewable energy is observed over the long-run while renewable energy does not granger cause economic growth, a uni-directional causality exist amid the economic growth and renewable energy. The study recommends that the government should offer some sort of help to make sure organizations or companies are adequately influenced to depend largely on renewable energy which will facilitate ecological friendly system in the country
BOARD EDUCATION, DIRECTOR'S AGE AND EARNINGS MANAGEMENT OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
No full textUtilizing a complete nine-year dataset, this research investigates the link among age diversity among directors, board education qualifications, and earnings management in the context of Nigerian listed deposit money banks. The study was conducted from 2013 through 2021, spanning nine years. Agency theory serves as the underpinning framework for this study. Regression analysis yields strong evidence that the age distribution of directors and the board's educational background impact the profit management of these firms. Specifically, earnings management significantly decreases when there are more board members with formal education, particularly in the financial and accounting sectors. Furthermore, a broad age group on the board may hinder profit management due to age-related risk aversion and varied experience. This study sheds important light on the crucial role that board characteristics play in shaping profit management strategies used by Nigerian banks. It also argues that, to improve governance, banks should encourage the appointment of individuals with a background in finance to their boards. Future studies may enhance these and other aspects, given its limitations, including observational data and a sector-specific emphasis, to provide a more thorough understanding of the dynamics of earnings management. This research provides practitioners and policymakers with guidance for efficient corporate governance in Nigerian deposit money firms by highlighting the critical role that board composition plays in profit management techniques
BOARD CHARACTERISTICS AND EARNINGS MANAGEMENT OF LISTED CONSUMER GOODS FIRMS IN NIGERIA
No full textCorporate governance mechanisms have continued to strengthen the operations and activities of corporate entities in Nigeria. Board characteristics and earnings management have attracted many scholars trying to establish relevant relationship that will assist policy makers and regulatory agencies in facilitating good corporate governance. This study examines the impact of board characteristics on earnings management of listed consumer goods firms in Nigeria. The Agency Theory was used to underpin the study. Board characteristics as the independent variable was proxied using board independence, board meetings, board gender diversity and board expertise while earnings management as the dependent variable was measured using the Modifies Jones Model. The panel data multiple regression was used on data extracted from annual reports of sixteen listed consumer goods firms from 2011 to 2020. The study found that, board gender diversity and board expertise negatively and significantly influence earnings management while board independence and board meetings have no significant influence on listed consumer goods firms in Nigeria. The study therefore recommends that, regulatory agencies and policy makers should encourage listed consumer goods firms in Nigeria to increase diversity in boards and expertise as this will minimize earnings management activities by management
TRIALABILITY AND OBSERVABILITY OF ACCRUAL BASIS INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS IMPLEMENTATION IN NIGERIA
No full textThe study examined the effect of trialability and observability of IPSAS on accrual basis IPSASIMPL in Nigeria. 656 accounting staff of all the 29 Federal Government ministries in Abuja constitute the population of the study. The sample size of 242 was arrived at using Krejcie and Morgan table for Determining Sample Size from a Given Population. The sampling technique adopted for the study was proportionate stratified random sampling techniques. Closed ended Questionnaires were used in collecting the data for this study. The data collected was analyzed using binary logistic regression techniques with the aid of STATA 13 Software. The study revealed that Trialability (TRIALA) and Observability (OBSERV) were negative and significantly related to accrual basis IPSASIMPL in Nigeria. It was therefore concluded that TRIALA and OBSERV have negative effect on accrual basis IPSASIMPL in Nigeria. The study recommends for an increased consideration of the visibility and benefits of IPSAS on one hand and its testing capability and suitability on the other hand in order to facilitate the implementation process of accrual basis IPSAS in Nigeria
SOURCES OF HEALTH CARE FINANCING AMONG SURGICAL PATIENTS SEEN AT THE DALHATU ARAF SPECIALIST HOSPITAL LAFIA NASARAWA STATE NIGERIA
No full textSources of healthcare financing especially among surgical patients in Nasarawa state is presently unknown. Sub-Saharan African countries have introduced a number of methods to funding healthcare system. The Nigerian government commenced implementation of a social health insurance scheme (National Health Insurance Scheme; NHIS) so as to improve on healthcare funding for its citizens. This study determined the sources of financing surgical cases, type of surgeries and compared the cost of treatment among patients attending the Dalhatu Araf Specialist Hospital and other Health Centers in Nasarawa State. It was a hospital based cross-sectional descriptive study among 420 adults aged 18 years to 75 years in a study that lasted for two years. The data collected was analyzed using Statistical package for the Social Science (SPSS) version 20.0. Significant p was < 0.05. The average age of patient was 28.6 ± 11.9 years. There were more females (75.5%) with most (73.8) of our participants living in rural areas. Majority (60.0%) had Caesarean Section and one-sixth had exploratory laparotomy respectively. Most spending for healthcare needs was Out-Of-Pocket (OOP) with only a handful (6.7%) enjoying insurance coverage. The average cost of surgery was 41,337.73 Naira and 28,426.47 Naira among the low and high socio-economic class respectively. Most of the participants in this study were on Out-Of[1]Pocket healthcare financing with only one out of fifteen having health insurance coverage of the NHIS. Most of the surgical patients are from the rural areas, are females, do not attend tertiary level of education and are of low socio-economic status. Caesarean section and exploratory laparatomy were the predominant indications for surgeries. Those from the lower socio-economic status pay more for surgeries even though they earn less. We recommended that the state consider State health insurance agency and this should cater for people in both the formal ana the non-formal sectors. In addition, rural dwellers and surgeries such as caesarean section and emergency laparatomies should not be left out
RISK COMMITTEE DEMOGRAPHIC TRAITS: A STUDY OF THE IMPACT OF EXPERTISE ON RISK DISCLOSURE QUALITY OF LISTED INSURANCE FIRMS IN NIGERIA
No full textThe study explored the effect of risk committee expertise on the risk disclosure quality (RDQ) of listed insurance firms in Nigeria from 2011-2021. Data was obtained from the financial statement and annual reports of seventeen listed insurance firms sampled out of a population of twenty-one firms. The dependent variable employed in the study was RDQ defined by the quantity of risk disclosure sentences while risk committee expertise was employed as the independent variable of the study. The ratio of the number of Directors with expertise in Accounting, Finance, and Risk Management in the committee to the total number of Directors in the committee serves as a proxy for the independent variable. Descriptive statistics, correlation analysis, and GLS regression were used to analyse the data collected. To ascertain the suitability of the data for regression analysis and the robustness of the regression results, post estimation and pre-estimation tests were performed. The result of GLS regression conducted indicated that Risk Committee expertise has a significant positive impact on RDQ. Consequently, the current study recommends that in order to improve the quality of risk disclosure in listed insurance firms, the financial reporting council of Nigeria (FRCN) and other regulatory authorities, such as the national insurance commission (NAICOM), should mandate the establishment of risk committees composed of members experienced and knowledgeable in finance, accounting, risk management, and disclosure in their corporate governance codes. This result has practical implications as it underscores the fact that the knowledge and skill of the risk committee drives improved risk disclosure. In addition, the result further influences the efforts of regulatory authorities in their attempt to develop resilient corporate governance codes that guarantees qualitative risk disclosure
DOES INTERNATIONAL FINANCIAL REPORTING STANDARD NARROWS AUDIT EXPECTATION GAP?
No full textThe many arguments advanced by scholars as to International Financial Reporting Standard’s capacity to enhance audit procedures and outcomes underscores this research’s quest for determining whether International Financial Reporting Standard could help with the perceptional dilemma that triggered the long lingering Audit expectation gap crisis. To this end, this study assays stakeholders’ perception as to whether the adoption of International Financial Reporting Standard could have certain narrowing impact on Audit expectation gap. The study adopted a mixed research design (i.e. exploratory and survey designs) by which structured questionnaires were administered to a purposeful randomly selected sample of 400 respondents drawn from audit practitioners, academics, accounting standards issuers, and members of professional accounting bodies within the North Central States of Nigeria and the Federal Capital Territory to collect data which were analyzed using multiple regression with the help of STATA 13 software. Result of the analysis revealed that both International Financial Reporting Standard induced quality financial report and complexity of audit work could narrow audit performance expectation gap in a significant positive manner, while International Financial Reporting Standard’s induced audit quality was negative in narrowing the expectation gap. We recommend however, that even with the significant result leading to rejection of the null hypotheses, standard setters should look at ways to draw up standards that will harmonize accounting standards and auditing standards in a way that clearly spell out how every category of reportable transactions should be reviewed and reported so as to improve the quality of what auditors deliver to the public
NIGERIA ECONOMIC GROWTH AND CAPITAL MARKET DEVELOPMENT: DOES CONTRIBUTORY PENSION SCHEME MATTER?
No full textWhether the contributory pension scheme (CPS) has addressed the shortage of capital for investments, the challenge of full compliance with the system and the shortage of investment outlets spurred the interest to investigate the impact of the CPS on capital market development and economic growth from 2005 to 2021. Secondary data was adopted for this study, and the data were extracted from the National Pension Commission and world development indicators. The study employed the auto-regressive distribution lag (ARDL) model as an estimation technique. The empirical results show that among the proxies for gross domestic product, total pension fund asset (TPFA) was significant in both the short and long run, which showed that a 1% increase in TPFA would produce a 0.0028% increase in the GDP. Also, among the proxies for capital market development, total pension fund asset (TPFA) was significant in both the short and long run, which showed that a 1% increase in TPFA would produce a 0.024% increase in capital market development. Based on these findings, the study concluded that CPS influenced capital market development and economic growth. Consequently, this study recommended, among others, that the NPC should continue to partner with relevant stakeholders such as pension fund administrators and custodians by making its investment regulations more flexible and encouraging increased pension fund investments