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DETERMINANTS OF AUDIT FEES OF LISTED INSURANCE COMPANIES IN NIGERIA
No full textControversies had risen among investors and other stakeholders of corporations why external auditors receive a substantial amount as remuneration of the audit and non-audit services rendered to their clients. These fees had been charged to add trustworthiness to the financial reports prepared by the management and also to protect the interest of the shareholders. A lot of problems occurred on what are such factors that determine (increases or decreases) the audit fees charged by external auditors. This study is aimed at examining the factors that determined audit fees of listed insurance companies in Nigeria using a correlational research design. The study’s population comprised of twenty-six (26) listed insurance companies in Nigeria. Panel data were generated from the annual report and accounts of the sampled insurance companies for the periods 2011-2020 arrived at using a judgmental sampling technique. The study used random effect Generalized Least Square (GLS) regression for data analysis. The study revealed that client size and audit firm size are the important factors determining audit fees of listed insurance companies in Nigeria. While client profitability, client complexity, client underwriting risk, and client liquidity risk are found to have an insignificant and negative effect on audit fees of listed insurance companies in Nigeria. The study, therefore, recommended that auditors of Nigerian insurance companies should inspire their clients in increasing their total assets including their investments which increases the size of their businesses. This increases the companies’ financial performances, as well as, the professional fees collected by auditors of insurance companies in Nigeria
WORKING CAPITAL MANAGEMENT AND PROFITABILITY OF LISTED CONSUMER AND INDUSTRIAL GOODS COMPANIES IN NIGERIA
No full textMany businesses find it difficult to productively organize their working capital and this causes more trouble than expected because, without it, it is oftentimes difficult to successfully run these businesses and expect profitability, stability, and continuity. This study, therefore, considers the effect of Working Capital Management on the Profitability of Listed Consumer and Industrial Goods Companies in Nigeria. Data from the financial statements of the companies under investigation were used in the research. Generalized Least Square regression, variance inflation factor, multicollinearity, heteroskedasticity, and the Hausman specification test were used to analyze the data. It reveals that the inventory conversion time and working capital to revenue ratio have a significant outturn on their profit, however, the cash conversion period and current ratio have no impact on the profitability of listed consumer and industrial products companies in Nigeria, according to this study. It recommends that managers of consumer and industrial goods companies should adopt positive working capital policies and strategies aimed at enhancing the working capital structure by ensuring that the inventory conversion period is reduced to be the barest minimum for possible upward review of profitability. Thus, management must prioritize working capital management as it is currently viewed as a source of concern for many organizations
LIQUIDITY MANAGEMENT AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Get PDFThe study investigates the effect of liquidity management on financial performance of listed deposit money banks in Nigeria. Liquidity management was measured and proxy with capital adequacy ratio, liquidity ratio and loan to deposit ratio, however financial performance was proxy with Tobin’s Q. Secondary data source was utilized and it was extracted via the audited published annual reports and accounts of the banks selected covering the period from 2010-2019. Panel multiple regression technique was adopted as the technique of data analysis, while Stata 13 was used as the tool for analysis of data. Robustness tests which include heteroscedasticity, multicollinearity and normality test of standard error were conducted. Findings revealed that capital adequacy ratio have positive and significant effect on financial performance of listed deposit money banks in Nigeria. Liquidity ratio has significant but negative effect on financial performance of banks in Nigeria which connotes that high level of liquidity ratio will lead to low level of performance strategically for banks. Loan to deposit ratio has positive but insignificant effect on financial performance. It is therefore recommended that management of board should pursue increased capital with the Central Bank of Nigeria and the CBN should also make sure that banks met and continually meet the requirements in respect of capital adequacy before giving the license to operate. The management of the banks should ensure that most idle cash are investment into short term portfolios to attract higher returns which will eventually increase the value of the banks
EFFECTIVE AUDITORS, SYSTEMATIC CORRUPTION AND THE EGAD REPORT: THE WAY FORWARD
Get PDFThis study investigated the effectiveness of the auditors in combating corruption in the south-south and south-east public sector of Nigeria. The study was carried out in Edo, Anambra, Delta, and Enugu, States respectively (covering South-South and South-East Nigeria). Primary data were obtained through structured questionnaire. Survey design was employed in the study. A total of one hundred and two auditors were sampled. Convenient Sampling Technique was employed in selecting the auditors in the four states’ public organisations. Descriptive statistical techniques such as, charts, mean, standard deviation, tables, and percentages response analysis were used in analyzing the data. Cronbach alpha coefficient was used to test for reliability of the research instrument and the result was (.71). The Pearson Product Moment Correlation Coefficient (PPMCC) was employed in testing the hypothesis. SPSS 23.0 was used. The results revealed that auditors are effective in fighting corruption in the public sector of Nigeria to the extent of their usefulness and practice. The study hereby concluded that auditors have been effective in combating corruption in the public sector despite the absence of auditor’s independence, threats, and absence of sincere political will to combat corruption in the Nigerian public sector. It was recommended that strengthening auditors’ independence, recruitment of more audit staff, auditors’ yearly rotation, submission of audit report to the anti-corrupt agencies, and increasing accountability through annual or quarterly preparation of EGAD report
FIRMS ATTRIBUTES AND FINANCIAL PERFORMANCE ON LISTED DEPOSIT MONEY BANKS IN NIGERIA
Get PDFExamining the effect of the financial performance of organizations has gained importance in the wholesale refinance literature; however, the study investigated determinants of financial performance of listed DMBs in Nigeria for ten years from 2011-2020. The study adopts the correlation design so that to correlate the relationship between variables. The population of this study comprises the Seventeen listed deposit money banks in Nigeria as at 31 December, 2020. A total of thirteen which represent seventy-seven percent of the banks were duly used as sample for the study. The audited annual reports were obtained from Nigerian stock exchange. The result provides evidence Bank size, Capital adequacy ratio and Income diversification have insignificant impact return on assets of the banks. In the determining the effects of moderating impact on firm age is that Capital adequacy ratio, Bank size, Income diversification has a statistically insignificant influence on the return on assets of listed deposit money banks in Nigeria. Based on the findings, the bank management should also continue to put policies and strategies in place to ensure effective management of bank size and efficiency for increased profitability, on the other part, shareholders should ensure management is properly diversified the banks’ income in a way that would yield more revenue and ensure short term cash should not be channeled to capital investment
HUMAN RESOURCE ACCOUNTING AND PROFITABILITY OF LISTED DEPOSITMONEY BANKS IN NIGERIA
No full textOne of a company's most important intangible assets is its human capital. Because a company’ssuccess or failure depends on how well its few physical resources are exploited by its human resources, a company’s failure to account for human resources and the changes that occur inside may present a misleading image of its performance. due to inconsistent in the literature, the study examine the relationship between human resource accounting and financial performance of deposit money banks in Nigeria. The study used ex-postfacto research design as it entails the use of annual reports and accounts of listed Deposit Money Banks in the Nigerian Exchange Group. Secondary data were sourced from the banks’ financial report for the period of seven (7) years from 2015 to 2021. The dependent variable is Return on Assetsuse as a proxy of profitability, the independent variables are: Staff Cost, Directors’ Remunerations use as the proxy of human resource accounting. The study control for age and size.The descriptive statistics, correlation and regression statistical method of analysis are employedto test the nature, relationship and effect among the variables using Statistical Software (STATA v14). The result shows that HRA has significant effect on the financial performance of listed deposit money banks in Nigeria. Thus, upon recommendation, workers should be retain to avoidunemployment, and company management should endeavor to send workers on training and development to accommodate the structural changes
BOARD INDEPENDENCE, AUDIT EFFECTIVENESS AND THE QUALITY OF REPORTED EARNINGS IN THE NIGERIAN CONSUMER GOODS FIRMS
No full textThis paper studied the link of board independence, audit effectiveness and the quality of reported earnings in Nigeria. Using convenient sampling, 7 consumer-goods firms quoted in the Nigerian stock exchange (NSE) from 2016 to 2020 (5 years) were used in conducting the research. The data source was primarily obtained from firm’s annual report and analyzed by using Random Effect GLS in STATA 14. The findings show that board independence and expertise are statistically significant in affecting the quality of reported earnings. The result found board independence and audit expertise to be negatively affecting earnings quality in the Nigerian consumer goods firms. Considering the fact that the results found the characteristics of firms board – independence and expertise - to be significant in affecting earnings quality, the study recommended that the financial users should not over rely and have absolute confidence in using financial report. The monitoring mechanisms for shielding financial report may not be effective, and the final report can mislead the stakeholders in their various decisions. Thus, the regulatory bodies should focus more in revising it guides that will improve quality of earnings to restore stakeholder’s confidence in using financial reports
INTERNATIONAL FINANCIAL REPORTING STANDARD ADOPTION AND AUDIT REPORT LAG OF DEPOSIT MONEY BANKS IN NIGERIA
Get PDFThis study examined whether the adoption of International Financial Reporting Standards (IFRS) has affected the effect of certain corporate governance variables on Audit Report Lag (ARL) of Deposit Money Banks (DMBs) in Nigeria. The study adopted a correlational research design as a guide. The population of the study consisted of Fifteen (15) Deposit Money Banks (DMBs) that are listed throughout the period (2009 - 2020). Given the research design, multiple regression technique was employed as technique of data analysis. Also, paired t test was conducted to test the hypothesis of the study. The findings revealed that not all audit committee characteristics are better associated with audit report lag after IFRS adoption. While audit committee independence and audit committee financial expertise have significantly reduced audit report lag following the adoption, audit fees and audit exercise quality still do not reduce audit delay even after adoption. It is therefore recommended that since having more independent directors on the audit committee improves its oversight function, in addition to the mandatory three non-executive directors on the audit committee, a leeway should be given whereby at least one independent director can be added to the committee. The requirement should however be optional rather than mandatory. In respect of financial literacy, there is need to establish more clear cut criteria (either through regulation or by company charter) that will ensure that it is not only directors on the audit committee that are financially literate but that elected shareholders into the audit committee are also so literate. To this effect, the profiles of all audit committee members should be published in the bank’s annual reports just as its being done for the board of directors. With respect to audit fees, the study recommends that management should structure the fees in such a manner that part of the pay is contingent not just on audit exercise quality but also upon speed of completion of the audit work. The contingent component should be agreed upon at the time of engagement
EFFECT OF BOARD CHARACTERISTICS ON SOCIAL AND ENVIRONMENTAL DISCLOSURE OF LISTED ENVIRONMENTALLY SENSITIVE FIRMS IN NIGERIA
Get PDFSocial and Environmental Disclosure has been at its adoption phase in Nigeria despite the trend of disclosure practices by firms around the world. As a step towards addressing this shortcoming, the paper examined Board characteristics and their effects on Social and Environmental Disclosure in Nigeria. Mixed theoretical approach was deployed in explaining relationship between board characteristics and Social and Environmental Disclosure. Companies were graded on their Social and Environmental Disclosure performance using the Global Reporting Initiative (GRI) Index. For a period of seven years (2012 - 2018), data were obtained from the published Annual Reports of fifty (50) selected environmentally sensitive enterprises listed on the website of the Nigerian Exchange Group as of 2019. Panel corrected Standard Error (PCSE) regression was found appropriate in testing the hypotheses. Board size, board expertise, board independence and board gender diversity were found to be positive and significant to Social and Environmental Disclosure. The study concluded that Board Characteristics impact Social and Environmental Disclosure and further recommends that listed firms should comply adequately with corporate governance requirements related to Board Characteristics to ensure that Social and Environmental Disclosure is not compromised
DETERMINANTS OF CAPITAL STRUCTURE IN NIGERIAN LISTED MANUFACTURING FIRMS: A PANEL GENERALIZED METHOD OF MOMENTS (GMM) APPROACH
Get PDFIn the present day, no large firm especially manufacturing industry has the wherewithal to single handedly finance its operation. Thereby, financing its operation through equity and debt financing become concerning. Despite these, there has been silence on the role play by audit committee on the need for capital structure. Therefore, the study examined the determinants of capital structure in Nigerian manufacturing listed firms using a Generalized Method of Moments (GMM) technique. The result from the GMM discovered that profitability, firm growth and audit committee were directly related to capital structure with their t-statistics (1.8821), (2.4549) and (1.9643) greater than t-values (t0.1= 1.645) and (t0.05 = 1.962) respectively. Also, liquidity ratio exhibited an inverse relationship but non-significance. Therefore, it was concluded that profitability, firm growth and audit committee were the major determinants of capital structure of listed manufacturing firms in Nigeria. It was recommended that Nigerian manufacturing industries especially the quoted firms should consider the feasibility study as carried out by audit committee before deciding on their choice of deb, equity or both. Also, the industries should embrace pecking order theory as propounded by Donaldson during the off-season period to reduce the severity of loan due to unforeseen circumstance