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LIQUIDITY AND CAPITAL STRUCTURE OF LISTED OIL AND GAS COMPANIES IN NIGERIA
Get PDFThis paper examined the effect of liquidity on the capital structure of listed oil and gas companies in Nigeria for the period 2006-2016. The population of the study is ten (10) oil and gas companies listed on the Nigeria Stock Exchange (NSE) out of which eight (8) was used for the study. Linear regression technique using Ordinary Least Square (OLS) was used in analyzing the data obtained from the audited financial reports and accounts of the sampled companies. The findings revealed that liquidity has a positive and significant effect on the capital structure of listed oil and gas companies in Nigeria this finding is in line with the prediction of trade-off theory of debt financing. Based on the findings, this study recommends that listed oil and gas companies in Nigeria should remain liquid at all times by ensuring that their current liabilities do not exceed their current assets so that their financial obligations can be discharged on time
GOVERNMENT BUDGET DEFICITS AND MACROECONOMICS VARIABLES: NIGERIA EXPERIENCE
Get PDFOver the years the federal government of Nigeria's budget has been in deficit and this has been receiving attention as regards its effect on the economy and other macroeconomic variables in Nigeria. The study, therefore, examines the impact of government budget deficits on macroeconomic variables (interest rate, exchange rate, inflation rate, money supply, and gross domestic product) in Nigeria. The study employed a time series data between 1981 and 2019 which was subjected to unit root test adopting Augmented Dickey-Fuller to test the stationary of the variable. The result revealed that the variables are stationary at level and 1st difference at intercept. VAR lag order selection criteria test was conducted and most of the criteria suggested lag 2 which was used for the analysis. ARDL bounds test affirmed the existence of a long-run relationship among the variables, hence subjected to ARDL cointegration and long-run form test. The interest rate model indicated a positive and significant relationship between government budget deficits and interest rate while the exchange rate model specified a negative but insignificant relationship between government budget deficits and exchange rate. The study, therefore, recommended that government should minimize budget deficits by minimizing its recurrent expenditure and ensure strict government expenditure control to avoid possible corruption. Government support for local production should be improved to encourage export and minimize importation which will thereby appreciate Naira, and government should ensure a way of improving revenue generation to minimize deficits through tax collection and other levies
OWNERSHIP STRUCTURE AND FINANCIAL PERFORMANCE ON LISTED MANUFACTURING FIRMS IN NIGERIA
Get PDFThis study looked at the ownership structure and financial performance of listed manufacturing companies in Nigeria. The Return on Asset was used as a proxy for the effect of the variables of the ownership structure on the financial performance of the company. A sample of 35 listed manufacturing companies was used for the study. The data was collected and analyzed from nine years of annual reports and accounts of selected sample manufacturing companies. The study found that institutional ownership has a positive and significant impact on financial performance. The study recommends that institutional owners continue to use their resources and expertise to exercise control over management abuse, which has the potential to negatively impact the performance of Nigeria[1]listed manufacturing companies
SHARE OWNERSHIP, EXECUTIVE COMPENSATION AND VALUE OF FIRM: A COMPARISON BETWEEN LOW AND HIGH LEVERED BANKS IN NIGERIA
Get PDFIt is still a paradox on whether individuals would be inspired when they deem it that resilient effort does improve the bank value and enhanced bank value would result into good pay. Conflicting finding have been reported in this area and as such, the study investigates impact of executive pay and share owned by executive as it affects the value of commercial banks listed in Nigeria. Proxies of compensation to executive employed are CEO pay, compensation to chairman and the highest pay to director. However, ratio of interest by executive in shares owned represents the ownership of share to banks’ executives. Value of the bank was measured using Tobin’s Q. Technique employed for estimation is the Robust OLS regression. Meanwhile, the tool of data analysis used was Stata version 13. Data from secondary source was used and were extracted from the published annual accounts statement of the banks covering the period from 2007 to 2018. Post estimation examination which includes normality test of standard error term, heteroscedasticity, multicollinearity was estimated to validate the regression results. The results revealed that, pay to CEO had positive and significant effect on value of high and low levered banks. However, compensation to chairmen and highest paid director had negative effect on value high and low levered banks. Additionally, effective of executive compensation on value of banks does not improve significantly through increase in executive share ownership for both high and low levered banks. It is recommended amongst others that the CEO pay should be tied to their performance. Increase in share ownership shouldn’t be used as a yardstick to achieve improved value for banks through executive compensation. Management should also tie the degree of Chairmen compensation and that of highest paid directors to enhanced value of banks through their efforts
BOARD MECHANISMS AND ENVIRONMENTAL DISCLOSURE QUALITY OF LISTED OIL AND GAS FIRMS IN NIGERIA
Get PDFThis study investigates the impact of board mechanism on environmental disclosure quality in Nigeria. Content analysis was employed on annual reports of seven listed oil and gas companies on Nigerian Stock Exchange over an eight-year period (2012-2019). Panel corrected standard error (PCSE) regression analysis was used to examine the results. The findings indicate that board independence, board gender diversity and board expertise have a significant positive impact on environmental disclosure quality. However, board size and board nationality has an insignificant relationship with environmental disclosure quality. In conclusion, the findings support the study's general claim that effectiveness in board monitoring positively influences the quality of environmental information disclose to stakeholders. Based on the findings obtained in this study, we recommend that Governance codes regulators in Nigeria should emphasize or increase specific minimum characteristics for independence, gender diversity and expertise of the board member as they aid effective monitoring of the board and improves the credibility of information reported to the stakeholders
EFFECT OF E-PAYMENTS ON PERFORMANCE OF COMMERCIAL ACTIVITIES IN YOLA METROPOLIS OF ADAMAWA STATE
Get PDFThe study examined the effect of e-payments on performance of commercial activities in Yola metropolis, Adamawa state. Primary data were sourced via the administration of 373 structured questionnaires designed in five Likert scale format out of which 325 were return for analysis. The study covered the period from 2019 to 2020. Structural Equation Modeling (SEM) was employed in identifying the effect of E-payment product (point of sale (POS), mobile banking and challenges of E-payments on the performance of commercial activities) in Yola metropolis of Adamawa state. The data was normally distributed as indicated by confirmatory factor analysis and normality test. The coefficient of mobile banking and point of sale (POS), are positively related to performance of commercial activities. This implies that a unit increase in mobile banking transaction increases the performance of commercial activities in Yola metropolis by 0.433 units. Also one unit increase in point of sale transaction will increase the performance of commercial activities in Yola metropolis by 0.454 units. On the other hand there is negative relationship between performance of commercial activities in Yola metropolis and challenges of e-payments in Yola metropolis. This implies that one unit increase in challenges of e-payments transaction will decrease the performance of commercial activities in Yola metropolis by -.121units. Moreover, the coefficient of mobile banking, point of sale and challenges of e-payments are found to be statistically significant at 1 per cent. Hence, the null hypothesis was rejected. The study recommends that Government and relevant authorities should formulate monetary policies aimed at encouraging and improved E-payment system so as to actualize the objective of E[1]payment system in adamawa state and Nigeria
INTERACTIVE EFFECT OF AUDIT FIRM AND AUDIT COMMITTEE MEDIATED BY AUDIT PROCESS ON FRAUDULENT FINANCIAL REPORTING RISKS OF LISTED FIRMS IN NIGERIA
Get PDFThe study examines the Interactive Effect of Audit Firm and Audit Committee Mediated by Audit Process on Fraudulent Financial Reporting Risks of Listed Firms in Nigeria. The population of staff working in audit firms in Nigeria is unknown. Therefore, sample size of unknown population for this survey study is calculated using g*power which minimum sample size is 384 respondents. A model of questionnaire is adopted from research conducted and 500 copies of adopted questionnaire which contains 31 items were administered to audit staff and 391 copies were returned. The questionnaire was the main instrument for data collection and adopted a nine-point scale. The study is multivariate in nature so structural equation modelling is employed and smartpls 3 is used for the analysis. However, the result shows that Audit Firm and Audit committee have significant positive effect on Fraudulent Financial Reporting of Listed Firms in Nigeria. In addition, Audit Firm has significant positive effect on audit process of Listed Firms in Nigeria Similarly, Audit process has significant mediating effect on the relationship between Audit committee and Fraudulent Financial Reporting of Listed Firms in Nigeria.And Audit committee has significant positive moderating effect on the relationship between audit firm and fraudulent financial reporting risks of Listed Firms in Nigeria.However, Audit committee has significant negative effect on audit process of Listed Firms in Nigeria. In addition,Audit process has significant negative mediating effect on the relationship between Audit Firm and Fraudulent Financial Reporting of Listed Firms in Nigeria. Similarly, Audit committee has significant negative moderating effect on the relationship between audit firm and audit process of Listed Firms in Nigeria. Base on the conclusion, the study recommends that both the audit committee and external auditors should focus their attention on improving the audit process which in turn will significantly curb the fraudulent financial reporting risks of listed Firms in Nigeria
DOES RISK GOVERNANCE IMPROVES FINANCIAL REPORTING QUALITY OF LISTED NON-FINANCIAL FIRMS IN NIGERIA?
Get PDFRisk governance is beyond mere governance mechanisms such as board independence and committees but more significantly encompasses effective risk systems and policies, remuneration, performance management and the risk culture of the entity. This study integrates explores the relationship between risk governance dimensions of risk structure, culture, appetite and financial reporting quality of listed nonfinancial firms in Nigeria. The population of the study consists of all the 74 listed non-financial firms that are active on the Nigerian Stock Exchange as at 31st December, 2019. The sample is the total population for the study using census sampling technique. Secondary source of data was used and data extracted from the audited annual report and accounts of selected firms for 10 years period. Longitudinal Balanced Panel Multiple regression was used as a technique of data analysis for the study. The findings indicates that the coefficient of Risk Governance Structure is negatively and significantly determining the quality of financial reporting with a t-value of -8.350 and a probability value of 0.000 (p<0.000) which is significant at 1%. Similarly, the regression results show a negative association between Risk Culture and financial reporting quality, which is significant at 1% (p<.001). Thus, risk culture improves the quality of earnings which invariably increases financial reporting quality. Finally, the regression coefficient in respect of Risk Apatite stood at 0.430 with a t-value of 9.250, which is statistically significant at 1% (p<.000), which implies that where the risk apatite increases, the financial reporting quality of the selected firms reduces. The study concludes that risk governance plays an important role in improving the quality of financial reporting of listed non-financial firms in Nigeria. It is therefore recommended among others that shareholders should consider adhering strictly with the provision of the New Corporate Governance Codes while appointing board members so as to appoint members capable of monitoring firms risk investment by serving in board risk committee. Firm managers should also consider maintaining a good risk culture and improving risk appetite to improve financial reporting quality of listed non-financial firms in Nigeria
SYSTEMATIC RISK AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Get PDFBanks in Nigeria experienced dwindling in financial performance as well as financial crisis within the period of the study. Therefore, this study examined the impact of systematic risk on financial performance of listed deposit money banks in Nigeria. Using a sample size of 13 banks for the period of 2007 – 2019, the effect of foreign exchange risk, inflation risk and financial crisis risk on financial performance proxy by return on equity was investigated. Secondary data is collected from the financial statements of the selected banks which was analysed using panel regression. The result of the analysis reveals that foreign exchange risk has positive insignificant relationship with financial performance of banks, inflation risk has positive significant relationship with banks financial performance and financial crisis risk has negative significant relationship on financial performance of Nigerian banks. The study therefore recommends that listed banks in Nigeria should be more cautious in their business operations during inflationary and financial crisis periods. They should also reduce their engagement in foreign exchange business
DETERMINANTS OF AUDITORS INDEPENDENCE: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA
Get PDFThe recent cases of bank failures witnessed in Nigeria despite unqualified audit reports have raised questions about banks auditor’s independence. Given the significance of auditor’s independence in enhancing corporate financial reporting quality, this paper examined the determinants of auditor’s independence of 13 listed deposit money banks in Nigeria from 2006 to 2018. The paper specifically determined the combined influence of audit firm size, auditor’s rotation and non-audit services on auditor’s independence. The study data were generated from the annual accounts and reports of the 13 sampled banks and audit firms during the period. The paper utilized descriptive statistics and ordinary least square regression analysis to analyse the data and test the hypotheses after diagnostic tests were conducted. The results revealed that audit firm size and auditor rotation are determinants of auditor’s independence while non-audit services do not. Based on the findings, it was recommended, among others, that professional accountancy bodies should strengthen legislation through the imposition of stricter penalties and monitoring to ensure that auditors maintain independence while performing the statutory audit function