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RELATIONSHIP BETWEEN BOARD HETEROGENEITY AND ENVIRONMENTAL PERFORMANCE IN NIGERIAN MANUFACTURING FIRMS
Full text linkThis study investigates the relationship between board heterogeneity and environmental performance in Nigerian manufacturing firms, focusing on four key dimensions of board composition, board independence (BIND), board gender diversity (BGEN), board professionalism (BPRO), and board nationality diversity (BNAT), with firm size (FSZ) as a moderating variable. Using a panel dataset of 68 Nigerian manufacturing firms over the period 2015 to 2024, the study employs panel corrected standard errors (PCSE) regression models to address heteroscedasticity and autocorrelation issues. The findings indicate that all four dimensions of board heterogeneity positively influence environmental performance, with firm size enhancing the effect of diversity on sustainability practices. This study contributes to corporate governance literature by demonstrating the importance of board diversity in improving environmental stewardship, particularly in large firms. Conclusively, this study emphasizes the importance of promoting diversity in board composition to improve environmental stewardship. Recommendations include that Nigerian manufacturing firms should prioritize increasing the diversity of their boards, particularly in terms of gender and nationality, to strengthen environmental governance. Additionally, policymakers should consider creating incentives for companies to enhance board diversity as a strategic tool for improving corporate sustainability
MODERATING ROLE OF FINANCIAL INNOVATION ON THE RELATIONSHIP BETWEEN FINANCING DECISIONS AND FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA
Full text linkThe performance of deposit money banks in Nigeria over the last decade is faced with declining profitability, negative profit and inability to pay dividends over a period of time as a result of underperformance. This study investigates the moderating role of financial innovation on the relationship between financing decisions and financial performance of listed deposit money banks in Nigeria. Using a 15-year panel dataset (2009-2023) from 16 banks, and the methodology adopted for the study was descriptive research design employing random effects estimation to test the hypotheses using STATA 13 version software package. Secondary data was adopted, sourced from Nigeria Exchange Group facts book and banks annual financial reports for the period. The study finds that debt and equity financing significantly enhance performance, while risky and risk-free investments negatively affect ROA. Financial innovation significantly moderates these relationships. The study recommends cautious investment practices and greater adoption of financial technologies
THE IMPACT OF ESG PRACTICES ON THE RISK PORTFOLIO OF LISTED OIL AND GAS FIRMS IN NIGERIA USING A MULTILAYERED CRITERION
No full textThis study investigates the impact of Environmental, Social, and Governance (ESG) factors on the risk-adjusted returns of Nigerian oil and gas firms listed on the Nigerian Exchange Group (NGX) over a 11-year period (2012–2022). The study was anchored on signalling theory. Utilizing a correlational research design, data was collected from eight firms meeting inclusion criteria, focusing on ESG scores as independent variables, with Firm Size as a control variable, and risk-adjusted returns as the dependent variable. Diagnostic tests ensured adherence to Best Linear Unbiased Estimator (BLUE) assumptions. Employing both Ordinary Least Squares (OLS) and Two-Stage Least Squares (2SLS) regression techniques, the study addresses potential endogeneity, using industry norms as an instrumental variable (IV) in the 2SLS model. Findings indicate significant, positive relationships between ESG factors and risk-adjusted returns, emphasizing the financial viability of sustainable practices in a sector known for environmental and social risks. Hence, to strengthen financial and operational resilience, Nigerian oil and gas firms are encouraged to prioritize robust environmental practices, including emission reduction, waste management, and prevention of oil spills. Given the social challenges in regions like the Niger Delta, firms should focus on building trust and maintaining positive relationships with local communities through initiatives in healthcare, education, and infrastructure. This study provides key insights into how ESG engagement in Nigerian oil and gas firms may influence firm stability, resilience, and investor confidence, underscoring the role of signalling theory in linking ESG performance to enhanced corporate valuation
DOES TAXATION AFFECT BANKS’ PROFITABILITY: EVIDENCE FROM NIGERIA
No full textAbstract Taxation and tax policy of any economy has a major implication on the growth “and performance of businesses in every economy. fiscal policy instrument should not be rigid for the taxpayers. This is because a flexible and viable taxation system has the capacity to stimulate economic activities. The paper examines how taxation impact the profitability of commercial banks in Nigeria. To test the hypothesis, the paper applied the panel regression on published information from fifteen banks from 2011-2022. The findings reveal that the marginal tax rate, effective tax rate and the average tax rate have strong positive and significant effects on return on asset. The outcome offers corporations useful insights on tax planning strategies properly and show how their tax avoidance skills could be used without practicing tax evasion. Amongst others, the recommends that regulators should grant tax incentives and reforms to reduce the tax burden on companies. Moreso, governments should formulate unequivocal tax policies that would aid tax law and administration that would encourage business growth
FINANCIAL RISK TOLERANCE AND INVESTMENT DECISIONS AMONGST SMES IN ZAMFARA STATE: THE MODERATING ROLE FINANCIAL LITERACY
Full text linkMany small and medium enterprises in Zamfara State face difficulties turning their willingness to take financial risks into sound investment decisions. One key reason for this challenge is the low level of financial literacy among business owners. This study set out to examine how financial literacy shapes and strengthens the relationship between financial risk tolerance and investment behavior among small and medium enterprise owners in Zamfara State. A quantitative research approach was used, drawing on responses from selected business owners across all local government areas in the state. The study population included formally registered enterprises, and participants were chosen through a carefully structured sampling process that ensured fair representation across different business sectors. Data were gathered through a well-designed questionnaire that covered personal information, financial knowledge, willingness to take financial risks, and current investment practices. The questionnaire was administered both in person and through electronic means. The collected data were analyzed using statistical methods that allowed the researcher to test the relationship between the key variables. The findings revealed that both financial risk tolerance and financial literacy influence investment decisions, but the combination of the two had a much stronger impact. The study concludes that financial knowledge plays a vital role in helping business owners make smart, growth-oriented investments. It recommends that government and support agencies offer targeted financial education programs to improve investment outcomes for entrepreneurs in financially constrained environments
BANKRUPTCY PREDICTION AND FINANCIAL RISK ASSESSMENT IN EMERGING MARKETS: EVIDENCE FROM NIGERIA
Full text linkThis study evaluates the predictive performance and associated risks of four prominent bankruptcy prediction models within the Nigerian business environment: the Altman Z-score, Ohlson O-score, and the locally validated IN01 and IN05 indexes. Utilizing a comprehensive dataset of Nigerian firms, the models are assessed across multiple metrics, including overall accuracy, sensitivity, specificity, precision, and F1 scores. Our empirical results demonstrate that the Nigerian-validated IN01 and IN05 models outperform the traditional Altman and Ohlson models, highlighting the critical importance of contextualizing bankruptcy prediction tools to local economic conditions. The analysis further includes Receiver Operating Characteristic (ROC) curves and confusion matrix heatmaps to provide nuanced insights into model discriminative power and classification errors. Findings underscore the practical implications for financial institutions and regulators in improving early warning systems and mitigating systemic risks in emerging markets. Limitations related to data quality and model scope are acknowledged, with recommendations for integrating machine learning and macroeconomic variables to enhance future predictive frameworks
AUDIT COMMITTEE AS A MODERATOR ON THE RELATIONSHIP BETWEEN DIVERSITYINBOARD AND ENVIRONMENTAL REPORTING OF LISTED MANUFACTURING COMPANIES IN NIGERIA
Full text linkCorporate environmental practices are facing more and more scrutiny from stakeholders as a result of growing ecological concerns that affect not just local communities but the planet as a whole. To this end, this paper examines the moderating role of audit committees on the relationship between diversity-in-board and environmental reporting of Listed Manufacturing Companies in Nigeria (LMCN). The paper employed an ex-post facto research design and data collected from annual reports of thirty-six LMCN were analyzed using descriptive statistics and linear multiple regression techniques. Findings suggest that while diversity-in-board positively influenced environmental reporting, this effect became statistically significant when moderated by the audit committee. This underscores the importance of audit committee crucial role as a moderator in influences that impact of diversity-in-board and ensures adequate disclosure of environmental information in the annual reports of listed manufacturing companies in Nigeria. The study recommends among others that Financial Reporting Council (FRC) of Nigeria should no longer allow environmental disclosure in Nigeria to be voluntary, but make it compulsory using ISO 14031 reporting guideline as a common standard among listed manufacturing firms in Nigeria for the purpose of attaining detailed environmental disclosures and easy comparison of such disclosures among firms. Also, encourage regulators to regularly review corporate governance codes to strengthen diversity provisions for more credible stakeholder reporting. Additionally, manufacturing firms should focus on boosting the effectiveness of their audit committees to enhance environmental stewardship, which will in turn improve corporate brand image and reputation
THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON BANK PERFORMANCE IN NIGERIA
No full textThe objective of the study was to investigate the impact of corporate social responsibility on bank’s performance in Nigeria. The ex-post-facto research design was adopted, and the study focused on selected banks. A yearly panel series data from 2007-2016 were sourced from the banks’ annual reports and Nigerian Exchange Group. The data was subjected to panel regression analysis to estimate the parameters of the model. The findings revealed that CSR have a significant and positive impact on net profit margin, suggesting that firms actively engaged in corporate social responsibility initiatives tend to experience better profitability. The analysis also shows a negative relationship between corporate social responsibility and earnings per share, indicating that corporate social responsibility may contribute to long-term value creation. Firm size emerges as a crucial factor in determining financial performance. Larger firms generally enjoy higher returns on equity and are more efficient in utilizing their assets to generate returns. The study concluded that the dual-edged nature of corporate social responsibility engagement, where the benefits to profitability and long-term value must be balanced against the potential short-term financial drawbacks. The study therefore recommended that firms should strategically integrate corporate social responsibility initiatives with their core business objectives to maximize the positive impact on profitability. firms should carefully evaluate the timing and scale of their corporate social responsibility investments. Firms should focus on streamlining operations to prevent the erosion of net profit margins. This can be achieved by adopting advanced technologies, optimizing supply chains, and reducing unnecessary overhead costs. Banks should establish clear metrics for evaluating the success of their corporate social responsibility programs, regularly review their impact on financial performance, and adjust as needed to maintain a balance between social responsibility and profitability
IMPACT OF EXTERNAL DEBTS ON ECONOMIC GROWTH IN NIGERIA
No full textThe study examined the impact of external debts on economic growth in Nigeria. Annual time-series from 2001 to 2022, sourced from Central Bank of Nigeria, Nigerian Exchange Group and Securities Exchange Commission, are adopted. The data was subjected to linear regression analysis which was used to estimate the parameters of the model. The findings revealed that external debts services, debts services costs, and exchange rate fluctuations all have a negative relationship with economic growth. This highlights that higher burdens of external debt servicing and greater exchange rate volatility are associated with reduced economic growth. Thus, the study recommends that government should implement robust debt management strategies that prioritize sustainable debt levels and efficient servicing, The government should introduce policies aimed at stabilizing exchange rates to reduce volatility. Moreso, they diversify the economy, especially by promoting sectors less susceptible to external shock, to reduce dependence on external factors that could exacerbate debt and exchange rate vulnerabilities
EXCHANGE RATE FLUCTUATION AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING COMPANIES IN NIGERIA
Full text linkThe havoc from continuous exchange rate fluctuation poses a sizeable threat to manufacturing companies especially those that utilize import-depended inputs in their production processes and consequentially affect their output and performance. Hence, this study evaluates the exchange rate fluctuation and financial performance of listed manufacturing companies in Nigeria. The study adopted a secondary source of data while descriptive statistics and regression analysis were used to analyze the data. The regression analysis result revealed that at a 5% (0.05) level of significance, all four proxies of exchange rate fluctuations are statistically significant to the financial performance of listed manufacturing companies in Nigeria. This led to the failure to accept any of the hypotheses raised to guide this study, with the conclusion that exchange rate fluctuation significantly affects the financial performance of listed manufacturing companies in Nigeria. Therefore, it was recommended that listed manufacturing companies should consider adopting robust foreign exchange risk management strategies ranging from hedging techniques, diversification of markets, and maintaining a clear understanding of their foreign exchange exposures