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EFFICIENCY OF DEPOSIT MONEY BANKS IN NIGERIA: DATA ENVELOPMENT ANALYSIS APPROACH
No full textIn today’s turbulent and competitive operating environment, the survival of banks depends on the efficient use of scarce resources. This study examines the efficiency of ten (10) selected banks in Nigeria for the period of five (5) years (2016 to 2020). The efficiency measures of constant return to scale (CRS), variable return to scale (VRS) and return to scale (RTS) were employed using the Data Envelopment Analysis (DEA) approach. The findings from empirical analysis show that only five banks, Guarantee Trust Bank (GTB), First City Monument Bank (FCMB,) Access bank, Union bank and Sterling bank were significantly efficient in Nigeria with respect to CRS and VRS for the period considered. However, all the banks were significantly efficient in the long run with respect to RTS. Therefore, the study recommends that the less efficient banks should study and understand the strategies adopted by the efficient banks. The study also recommends that investors/shareholders should invest more on the efficient banks such as GTB, FCMB, Access bank, Union bank and Sterling bank. Again, the study recommends that the inefficient banks like ZENITH, FIRST BANK, UBA and WEMA should be encouraged to focus more on long term project and explore ways to be more operationally efficient and move towards innovation. Regulatory authorities should ensure strict compliance to resources management policies
FIRM-SPECIFIC CHARACTERISTCS AND FINANCIAL PERFORMANCE OF LISTED AGRICULTURAL COMPANIES IN NIGERIA
No full textThe contribution of listed agricultural firms to market development and economic growth has been consistently low in recent years. This could be traced partly to low profitability of agricultural firms in the country which is a function of several firm-specific factors. The study therefore examined the firm-specific factors that influence financial performance of listed agricultural firms in Nigeria. Data were collected from annual reports of the five (5) listed firms in the sector for eleven years from 2010 to 2020. The data were analysed with static panel data regression approach. The results indicate that asset maturity, dividend payout and liquidity have positive and significant effects on return on asset while firm size has significantly negative effect on the return on asset of the firms at 5% level of significance. The study concluded that that the listed agricultural firms utilised their assets and manage their liquidity efficiently. There is however, some scale inefficiencies in the firms because, the finding of negative relationship between firm size and return on asset indicates that larger the companies become the lower the financial performance. It is therefore recommended that the managements of agricultural companies in Nigeria should ensure that the firms are not overcapitalised in terms of investment in assets in order to boost both the scale efficiency and profitability of the firms
MODERATING INFLUENCE OF MANAGERIAL OWNERSHIP ON DEBT FINANCING AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS QUOTED ON NIGERIAN STOCK EXCHANGE
Get PDFThe study considered the influence of managerial ownership and debt financing on financial performance of manufacturing firms listed on the Nigerian Stock Exchange. The panel regression model utilized secondary data for a period of ten (10) years to 2020. The study sampled twelve (12) listed manufacturing firms in Nigeria. Findings revealed a negative effect of total debt on financial performance of selected quoted manufacturing firms in the period. The managerial ownership also negatively influences the financial performance of the sampled companies. The results clearly demonstrate that the interaction of debt financing and managerial ownership does not significantly influence the financial performance of listed manufacturing firms in Nigeria implying very weak moderating effect. The study recommends that listed manufacturing firms should consider their retained earnings to finance their operations instead of relying on debt finance, and directors should only own minority shareholding right in their companies as ownership of major shares cannot influence borrowing plans of the business
AUDIT QUALITY, TENURE AND REAL EARNINGS MANAGEMENT OF LISTED NONFINANCIAL FIRMS IN NIGERIA
No full textEarnings management is volatile due to its asymmetric nature by managers of non-financial firms. Yet, very few studies have examined the issues that cause this manipulation, especially in non-financial firms. This study, therefore, examines the relationship between audit big4 and audit tenure on REM of 76 listed non-financial firms in Nigeria using a 10-year data set (2010-2019). The MachammeRatios Database is used for data extraction. The results indicate that audit big4 shows significant positive effects on real earnings management. However, audit tenure shows in significant adverse effects on real earnings management. The paper, therefore, concludes that Audit Big4 is very important in mitigating real earnings management in the non-financial companies in Nigeria. The empirical findings are essential for non-financial firms' policy enhancement and further research and contributions to the body of knowledge. Managers should improve audit tenure while enhancing audit big4 independent to reduce incidence earnings management
BOARD STRUCTURE AND FINANCIAL PERFORMANCE OF LISTED PHARMACEUTICAL FIRMS IN NIGERIA
Get PDFThis research attempts to investigate how corporate board structure affects the financial performance of Nigerian pharmaceutical companies that are publicly traded. The study discovered that female directors, institutional directors, and non-executive directors have a strong significant impact on the profitability of the sampled pharmaceutical firms in Nigeria during the period covered by the study using multiple regression technique. The study used a correlational research design and a panel regression technique of data analysis on a sample of seven pharmaceutical firms for a period of ten years (2012-2020). The research found that, the size of the board of directors had no discernible effect on the selected firms' profitability. According to the research, institutional directors have a positive effect on the profitability of Nigeria's publicly traded pharmaceutical businesses, whereas female directors and non-executive directors have a negative impact on the profitability of their organizations. According to the research, a big board does not always increase a company's profitability. Therefore, management and the board of directors of pharmaceutical companies in Nigeria are advised to reduce the size of their boards to a maximum of six members. Additionally, it was advised that the number of institutional directors on the boards of Nigerian pharmaceutical companies that are publicly traded be expanded since their presence contributes to rising profits. The report's conclusion urges policymakers and other interested parties to start a process to limit the number of women who may serve as directors on the boards of publicly traded pharmaceutical companies in Nigeria since their participation does not increase profitability
TAX AGGRESSIVENESS AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Get PDFThe study examines the effect of tax aggressiveness on the financial performance of listed industrial goods firms in Nigeria. The population of the study is made up of the entire listed industrial goods firms in Nigeria. Sample of 10 firms were selected using a census sampling technique and data were collected using secondary sources of data collection from the annual report and accounts of the selected firms. Data for the study were analyse using descriptive and inferential methods of data analyses using STATA 13 statistical software. Findings of the study revealed that GAAP effective tax rate has significant positive effect on return on assets. On the other hand, cash effective tax rate has negative significance effect on return on assts. Based on this, the study concludes that Tax aggressiveness has significance effect on financial performance of listed industrial goods firms in Nigeria and therefore recommends that industrial goods firms should utilized the tax planning opportunities available to them so as to minimize their tax liabilities and improve their performance
TAXATION AND SOCIAL SERVICES: EVIDENCE FROM NIGERIA
No full textThis study econometrically examined taxation effect on social services in which how taxation incomes finance education services were investigated. Data were collected from FIRS bulletin and CBN statistical bulletin covering 1981 to 2020. To realize econometric impact of taxation on social services, regression model, Cointegration, VECM and granger causality wald test were analytically engaged. Petroleum profit tax, company income tax, Value added tax and Custom and Excise Duties have positive significant impact on Social services both in the short run and in the long run in Nigeria. It is concluded that taxation positively ignited education services and vice versa. This displayed bidirectional causality amid taxation and social services. Also taxation has positive significant impact on education services both in the short and long run in Nigeria. The huge revenue earned by the government through taxation assisted government to improve her education and EDUT services. It is recommended that administration of taxes especially company income tax and customs and excise duties should be done in a way that collection and remittance cannot be evaded so that its effectiveness will be properly comprehended in the magnitude of social services provision
MEDIATING EFFECT OF AUDIT COMMITTEE ON BOARD DYNAMIC AND CREATIVE ACCOUNTING IN NIGERIAN FIRMS
No full textSeveral studies were conducted on corporate board dynamic and creative accounting and their findings were mixed. None to the researcher’s knowledge studied the mediating effect of audit committee on such relationship in an entire population of the listed non-financial companies in Nigeria for a period of 10 years (2011-2020). Secondary data was extracted from the annual reports and accounts, companies’ and directors’ profile of the firms. The data was analysed using structural equation model/partial least square regression. The study found among other things that corporate board dynamic and its proxies except board capability have significant impact on the creative accounting of listed firms in Nigeria. Moreover, audit committee has a mediating effect on the relationship between board gender diversity, board ethnicity, board reputation, board nationality, board risk and creative accounting of the firms. The audit committee has no mediating effect on the relationship between board capability and creative accounting. It is therefore, recommended that, the listed companies in Nigeria should ensure the constitution of sound and robust audit committees. They should also ensure the presence of diverse gender, diverse ethnic groups, directors with national honour and foreign directors on the boards. The firms should ensure the establishment of risk management committee in all the firms. They should ensure the presence of highly skilled, experienced, and knowledgeable directors on the boards as these will help in mitigating the creative accounting with the support of audit committee. The implication of the results of this study to literature is that the findings of the study are to be used by researchers in validating tokenism/critical mass theory, social capital theory. Also, to validate upper echelon theory, efficient contracting theory, resource dependency theory, signalling theory, human capital theory, behavioural theory of corporate boards and governance and agency theory
OWNERSHIP STRUCTURE AND FINANCIAL PERFORMANCE OF QUOTED MORTGAGE BANKS IN NIGERIA
No full textThe financial performance of mortgage banks worldwide has been a significant source of worry among researchers, professionals, and other stakeholders because of the substantial role mortgage banks play in people’s well-being and economic activity. Despite mortgage bank reforms, the mortgage banking systems in Nigeria are still developing. They remain at a low level of financial performance, poor financing management, and decline in economic performance indicators due to poor ownership structure among mortgage banks in Nigeria. This study examines the effects of ownership structure (significant shareholding, government holding, and minority holding) on financial performance indicators (earnings per share, net profit margin and bank size via total assets) of Nigerian mortgage banks. Ex-post facto research design was employed as well as the panel regression method of analysis, and data was sourced from selected mortgage banks in Nigeria from 2011 to 2020. The study found that ownership structure components (significant shareholding, government holding, and minority holding) have positive and significant effect on financial performance indicators of selected mortgage banks in Nigeria at less than a p<0.05 level of significance. The study concluded that ownership structure components affect financial performance indicators of selected mortgage banks in Nigeria. Therefore, the study recommended that there is a need for mortgage banks in Nigeria to increase their ownership structure in terms of significant shareholding, government holding, and minority holding), as it was found that ownership structure absolutely affects the financial performance indicators of mortgage banks quoted in Nigeria
ISLAMIC BANKING RODUCTS AWARENESS AMONG ISLAMIC BANKS’ CUSTOMERS IN NORTHEN NIGERIA
Get PDFThis paper analysed the level of customers’ awareness about unique Islamic banking products in Nigeria. The data used for the study was obtained through the distribution of well-structured questionnaires among the Islamic banking customers in which out of 400 sampled respondents, 370 questionnaires were properly filled and returned (that is, a 92.5% response rate) for further analysis. Also, to ensure proper data triangulation in this research, a semi-structured interview was conducted among the Jaiz Bank officials. Using descriptive statistics, the result indicated more than 50% of the customers were not aware of such unique products, though the level of this awareness differs from one product to another as some customers have had practical experience with some of these products like in case of murabahah and ijara. Therefore, the study recommends that, improving information dissemination about Islamic banking products will go a long way in enhancing the consumers’ perception and adoption of this unique system of banking, which will eventually make more individuals to be financially included due to the spiritual, economic and ethical considerations of Islamic financial system