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FIRM ATTRIBUTES AND EARNINGS MANAGEMENT OF LISTED DEPOSIT MONEY BANKS IN NIGERIA: DOES DIVIDEND PAYOUT MATTERS?
Get PDFMost Nigerian banks are known to pay dividend to investors, despite been characterized with high non-performing loan, dwindling financial performance, increased tax liability and weak internal control system. The objective of this study to find out whether dividend payout influences earnings management of listed deposit money banks. Specifically, the research also examined whether profitability, tax rate, firm size and internal control system are functions of earnings management of Nigerian listed deposit money banks. The sample is a census of the population of 14 listed deposit money banks. Quantitative data were extracted from the financial statements of these listed deposit money banks for the period under review and multiple regressions was the technique of analysis used. Robustness test (heteroscadasticity and multicollinearity) were carried out to establish model reliability. Findings revealed that Dividend payout influences earnings management of deposit banks at <5% significant level and based on the finding; the study concludes that banks that payout dividend regularly are constrain to manage earnings opportunistically. The study recommends that banks should comply and sustain CBN directives on thresholds as a prerequisite for dividend payment as this will significantly inhibit earnings management practices
BOARD COMPOSITION AND EARNINGS MANAGEMENT OF LISTED NON FINANCIAL FIRMS IN NIGERIA
Get PDFIn recent years, earnings management has gotten a lot of attention. This is owing to the fact that it is linked to the accuracy of published accounting reports. According to the academic literature, earnings management appears to be widespread among publicly traded firms. In response to calls for a higher proportion and composition of independent directors on boards and for the board of directors to be more financially sophisticated, the paper examined the effect of board composition on earnings management of listed non-financial firms in Nigeria from 2009 to 2018. Secondary data was used and extracted from various annual financial reports of the selected firms. The population for the study consisted of 117 listed non-financial firms in Nigeria as at December, 2018. This study used purposive sampling technique where 20 firms, whose data were accessible and available within the sample period of 2009 to 2018 were selected, being the most recent ten years within which the second corporate governance codes for quoted firms was introduced as a replacement to the 2003 SEC code. The sampled firms cut across 10 industrial sectors as given by NSE. The data were analysed with the use of mean and multiple regression technique. This study showed that the board size of the firms ranges from eight to twelve members while the average annual board meetings stood at 4 times within the sampled period of 2009 to 2018. The result also revealed that board composition had significant and positive effect on earnings management of listed non-financial companies in Nigeria (t = 5.454, p < 0.05). This paper concluded that board composition had significant influence on earnings management practices among quoted non-financial companies in Nigeria. It is hereby recommended that the independent directors’ appointment into the firms’ board should be based on the past records of those directors rather than stressing on their ratio to number of directors on the board. Similarly, meetings of board shall not be more than four times, because meetings held more than that does not pledge healthier monitoring
IMPACT OF BOARD ATTRIBUTES ON EARNINGS QUALITY OF LISTED INSURANCE COMPANIES IN NIGERIA
Get PDFThis research examined the impact of board attributes on the earnings quality of Nigerian listed insurance businesses. The study employed documented data from the annual reports and accounts of the sampled companies from 2009 to 2018. The population of the study is made up of all twenty-seven (27) insurance companies listed onthe Nigerian stock exchange, with fifteen (15) selected as the study sample. Using Stata version 14, the data was analyzed using descriptive statistics to obtain summary statistics for the variable, Pearson correlation analysis, and the Multiple Regression approach. It was revealed that the size and independence of the board of directors had a significant impact on the quality of earnings. Female directors and board meetings, on the other hand, have no significant influence on the earnings quality of Nigerian listed insurance companies. As a result, the study concludesthat board characteristics influence the earnings quality of listed Nigerian insurance companies.Hence, the study suggests that investors should pay more attention to companies with a large number of directors, as stipulated by the NAICOM code of corporate governance, which states that the minimum number of board members should be 7 and the maximum number should be 15, in order to minimize earnings manipulation. NAICOM should also ensure that the terms of the code are fully observed in order to improve the quality of earnings of Nigeria's listed insurance companies, in orderto have effective oversight by independent directors
EFFECT OF GLOBAL CRUDE OIL PRICE ON EXCHANGE RATE AND INFLATION RATE IN NIGERIA
Get PDFThe aim of this study is to assess the effect of global oil price volatility on exchange rate and the inflation rate on Nigerian economic activities. The study also attempted to explained how naira will gain value as a result of increase in price of global crude oil in the oil market environment and also to highlight how the oil shocks will affect the exchange rate and as well as inflation rate in the Nigerian economy. This study developed a structural VAR model, using quarterly data spanning 2002Q1-2020Q2. The study hypothesized positive relationship between inflation rates and exchange rate with the change in prices of global oil market price downward or upward. The result indicated that: first, positive oil price shocks led to accretion of reserves and the naira appreciation against the US dollar, which come along with the wealth effect channel of oil price transmission techniques for oil-exporting countries; second, oil price shocks resulted in inflationary pressures and decrease in output growth; third, response of monetary policy to oil price shocks was found to be generally restrictive; lastly, treasury-bill rate was found to be the optimal monetary policy tool in stabilizing exchange rate and the macroeconomic, amidst oil price shocks in the country
GREEN SUPPLY CHAIN MANAGEMENT AND PERFORMANCE OF LISTED OIL AND GAS FIRMS IN NIGERIA: A MODERATING ROLE OF INTERNET OF THING
Get PDFIntegration of Internet of Things (IoT) into an eco-innovation system in Green Supply Chain Management Practices (GSCM) and Firms Performance (OP) is an important and desired direction with sufficient and necessary potentials to improve supply chain especially in the oil and gas industry. Conversely, the complexity nature of oil and gas supply is capable of influencing oil and gas prices and ecosystem, owing to low environmental standards in the petroleum downstream sector (PDS) in Nigeria. Previous researches displayed a limited role played by GSCM practices on the OP. Therefore, this study investigates the moderating role of IoT on the relationship between GSCM practices and OP in Nigeria’s PDS. A quantitative research approach was employed using a cross[1]sectional survey design. The participants were 365 which is a representative sample of senior staff from 7 companies operating in PDS selected using a stratified random sampling technique. The instrument of data collection was a developed and validated questionnaire designed to elicit responses on a 5-point scale. The data collected were analyzed using SmartPLS 3 by conducting the Partial Least Square Structural Equation Modelling (PLS-SEM) analyses. The results revealed that, GSCM practices has a significant relationship with OP (?=0.91, t=5.07; p < 0.05). Similarly, IoT has a significant moderating effect on the relationship between GSCM Practice and OP (?=-0.051, t= 2.44; p < 0.05). The findings of this study have provided empirical evidence on the effect of GSCM practices on OP and thus, IoT moderates the relationships thereby, supporting the hypothesized relationship. Given that integration of IoT into GSCM practice is relatively new, the integrated IoT application/GSCM framework proposed in this study needs to be further strengthened through refinement and validation across different economy
ENVIRONMENTAL ACCOUNTING DISCLOSURE PRACTICES AND FINANCIAL PERFORMANCE OF LISTED CEMENT COMPANIES IN NIGERIA
Get PDFThis study examined the impact of environmental accounting disclosure on financial performance of listed cement companies in Nigeria. The study employed expo facto research design. Data were sourced from three annual report and accounts of three cements companies listed on the Nigerian Stock Exchange from 2011 to 2019. Descriptive statistics and estimated panel regression methods were employed. The results of the study revealed that environmental accounting disclosure has positive and significant impact on firm financial performance of the listed cement companies in Nigeria. The study concluded that there was a significant positive impact of environmental accounting on return on equity and return on assets respectively. This study therefore recommends that relevant stakeholders including government agencies and regulatory agencies such as financial reporting council among others should put in place workable monitoring mechanism to ensure that firms in Nigerian cement industry engage in better environmental accounting disclosure since it plays key role on their performance and long run survival by extension
BANK SPECIFIC FACTORS AND ASSET QUALITY OF LISTED DEPOSIT MONEY
Get PDFThis study examined the effect of bank specific factors on asset quality of listed deposit money banks in Nigeria. Asset quality was proxied by nonperforming assets whereas the independent variables include Return on Asset, Interest Income Spread, Income Diversity and Credit Growth Rate. The study used a correlation research design for which data were collected from the published annual financial reports and accounts of the studied DMBs listed in Nigeria for seven years ((2012-2018) and analyzed using multiple regression analysis with the aid of STATA software. The population consisted of the 14 listed DMBs on the Nigerian stock exchange as at 31st December, 2018, whereas as a result of applying a filter, the sample size was 13 listed DMBs. The outcome of the study revealed that ROA has a negative and significant effect on Asset Quality of listed DMBs in Nigeria. While Income Diversity and Interest Income Spread have a favorable and considerable impact on DMB Asset Quality in Nigeria. Credit Growth Rate, on the other hand, had a favorable but negligible influence on Asset Quality of Nigerian listed DMBs. The study concludes that management of listed DMBs in Nigeria should aim to balance their profit pursuit with better asset quality, based on the data. Furthermore, in order to enhance the asset quality of DMBs, the study suggests that management should always guarantee that other investments outside of their lending/financial intermediation business are kept to a minimum or not prioritized at all
FINANCIAL DEEPENING, STOCK MARKET RETURNS AND LIQUIDITY MANAGEMENT IN NIGERIA
Get PDFThe capital market is an engine room of economic growth but the extent to which financial deepening influences this institution (capital market) that spur economic advancement of the country is still blurred and subject to debate among researchers. Therefore, this study investigates the causal relationship and impact of three financial deepening indicators on stock market returns and liquidity in Nigeria for the period 1985-2018. The study adopts correlational research design and obtains secondary annual time series data from the Central Bank of Nigeria statistical bulletin. The two-stage least squares regression and pairwise Granger causality test are methods of data analysis used. Findings reveal that financial deepening indicators-the ratio of money supply to gross domestic product, and market capitalization as a ratio of Gross Domestic Product (market capitalization ratio) have positive significant effect on stock market liquidity while ratio of credit to private sector to Gross Domestic Product, though positive but is not significantly related with market liquidity in Nigeria. Empirical findings also reveal that, though, the three financial deepening indicators are positively signed with stock market returns, only market capitalization ratio is found to exert significant effect on the stock market returns in Nigeria. Moreover, stock market liquidity is found to granger-cause financial deepening while a bi-directional causality exists between stock market returns and stock market deepening. Using multivariate modelling approach, this study contributes to financial deepening-stock market nexus literature by emphasizing the positive impact of three different financial deepening indicators on stock market performance in terms of returns and liquidity. This study concludes that financial deepening is a catalyst to capital market performance in Nigeria and therefore recommends that Government of Nigeria should further deepen the financial sector and its synergistic effect on capital market
BOARD PHYSIOGNOMIES AND CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE OF LISTED OIL AND GAS FIRMS IN NIGERIA
Get PDFThis study examines the impact of board characteristics on corporate social responsibility disclosure of listed oil and gas firms in Nigeria for the period of ten years from 2010-2019. The study used census sampling technique to arrive at sample size of nine (9) oil and gas firms listed on the floor of Nigerian Stock Exchange as at 2019. Data were extracted from annual reports and accounts of the sampled firms, the data was analyzed by means of descriptive statistics, correlation and regression analysis using STATA13. The multiple regressions result reveals that foreign directors on the board has positive insignificant impact on corporate social responsibility disclosure while board independence, board meetings and women director on the board have a positive and significant impact on corporate social responsibility disclosure of the sample firms. Based on the findings, the study concludes that board independence, board meetings and women director on the board improved corporate social responsibility disclosure of listed oil and gas firms in Nigeria. Based on the findings and conclusion, its therefore recommends among others, that the management of listed oil and gas companies in Nigeria should maintain proportions of board independence as this will increase their investment in corporate social responsibility. This is because the presence of independent directors on the board will increase the board’s objectivity and its ability to represent multiple points of view of the firm’s role
FIRMS SPECIFIC ATTRIBUTES AND VOLUNTARY DISCLOSURE OF QUOTED CONSUMER GOODS FIRMS IN NIGERIA
Get PDFThe research investigates the effect of corporate-specific attributes and voluntary disclosure of quoted consumer goods firms in Nigeria. The study collected its data from historical financial statement and Accounts of 15 companies under study quoted in Nigeria stock exchange for the period of 2009–2018. Ex-post factor research design was employed and multiple regressions were assigned as the techniques to examine the data. The finding communicates that company’s attributes proxied by; age of the company, and leverage recorded a significant positive effect on voluntary release information. However, size of the firm, profitability and ICT were established to be insignificantly and positively affected the voluntary disclosure of quoted firms under study. Conversely, liquidity communicates negative and insignificant effect on voluntary publication by quoted consumer goods firms in Nigeria. From the findings, it is suggested that, the management of quoted consumer goods companies in Nigeria should pay more attention on the disclosure of voluntary information as it affects share holder’s investment decision making, and reduce agency conflict resulting from information asymmetric between management and firms’ stakeholders. However, as they disclose additional information voluntarily, stakeholders will be informed and, in turn, make the right investment decisions in the companies and also retain its positive impression in mind of their existing and potentials investors and society in general