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FAIR VALUE MEASUREMENT HIERARCHY AND COSMETIC ACCOUNTING IN THE NIGERIAN DEPOSIT MONEY BANKS
Get PDFThe study investigated the effect of fair value financial instruments measurements hierarchy disclosures on cosmetic accounting practices in the Nigerian DMBs, given the possibility of managerial discretion to manipulate the disclosure of fair value measurement, particularly level three fair value hierarchy which is based on adjusted unobservable inputs. The study used a sample of fourteen DMBs in Nigeria that have published their audited annual financial report between 2012 and 2018. The data were subjected to a multiple regression analysis to explore possible effects of fair value measurements on cosmetic accounting. The results revealed that fair value measurements hierarchy significantly reduced the tendency of Nigerian DMBs to manipulate earnings. Specifically, level one and level two fair value measurements which are respectively based on unadjusted and adjustedobservable market information were found to be negatively and significantly influencing the level of cosmetic accounting practice among DMBs in Nigeria. On the other hand, result reveals level three fair value measurement is positively and significantly influencing the cosmetic accounting practices. By implication, the findings corroborate the arguments that fair value hierarchy level one and level two will protect accounts from earnings manipulation while level three measurements will enhance unethical accounting practice because the estimate is largely based on adjusted unobservable market information. Therefore, the study recommends the need for regulatory authorities to create an active market for financial instruments in order to fully achieve the fundamental objective of fair value. Also there must be effective supervisory and regulatory framework to limit the uncertaintyand ambiguities around the application of level 3 fair value hierarchy
SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF LISTED OIL AND GAS FIRMS IN NIGERIA
Get PDFSustainability report is a report produced by firms which disclose their economic, environmental and social performance. These reports are normally geared toward the attainment of the United Nations sustainable development goals (SDGs). Even though compliance is voluntary in Nigeria, its effects on firm’s financial performance are enormous and as a result, it is essential for firm’s prosperity as well as better financial performance. This study examines the effect of sustainability reporting on financial performance of quoted Nigerian oil and gas firms. The population of the study comprises 12 listed oil and gas firms in Nigeria. Census sampling technique was adopted and filter was used. For firm to be selected it must be listed on or before 1st January 2009 and remain listed up to 31st December 2019. The firm must also publish their annual reports for the relevant period of the study. Based on these, five firms that failed to meet the set criteria were filtered out. This study makes use of Return on Asset to measure financial performance. Secondary source was used to collect the relevant data. Data in relation to sustainability reporting were extracted from the firm’s annual reports as well as standalone sustainability reports. However, data in relation financial performance were collected from the firm’s annual reports. Data for this study were analyse using STATA 13 statistical software. The regression result revealed that economic sustainability has a positive insignificant effect on ROA; environmental sustainability has a positive significant effect on ROA while social sustainability has a positive insignificant effect on ROA. Based on the findings, this study therefore, concludes that sustainability reporting has a significant effect on the financial performance of listed oil and gas firms in Nigeria. This study therefore, recommends among others that, listed Nigerian oil and gas firms should emphasize more on reporting their sustainability activities as it is capable of improving their financial performance. The policy makers and standard setting organisations should facilitate the issuance of a sector specific reporting guidelines to facilitate compliance
INFLUENCE OF ENVIRONMENTAL ACTIVITIES AS CORPORATE SOCIAL RESPONSIBILITY DIMENSION ON FIRM FINANCIAL PERFORMANCE OF NIGERIAN LISTED FIRMS
Get PDFEver since the beginning of companies’ activity in Nigeria, the value of corporate social responsibility (CSR) has been an important topic in accounting research. Despite extensive studies on CSR activities in Nigeria, studies to investigate the influence of environmental activities on firm financial performance were limited. The data were obtained through content analysis of published company’s annual reports between the year 2014 and 2018. Based market capitalization rate, the study covered the top one hundred companies in Nigeria whose names and shares were quoted in the Nigerian Stock Exchange (NSE). One independent variable (environmental activities) and one dependent variables earning per share (EPS) was chosen and reviewed in this study. Pearson correlation was used to investigate the correlation between environmental activities and firm financial performance. The outcomes of this study revealed that there is a relationship between CSR measures and company’s financial performance. The findings of this research suggest that, corporation should actively engage in an effective CSR practice to facilitate a shift from traditional approach to a more classical and transparent approach where social concern are being taking care of in the financial statement
MODERATING ROLE OF AUDIT QUALITY ON THE VALUE RELEVANCE OF ACCOUNTING INFORMATION OF LISTED FIRMS IN NIGERIA
Get PDFThis study empirically examined as to whether earnings per share (EPS), book value per share (BVP), cash flow per share (CFPS), and dividend per share (DPS), as well as the interaction of audit quality with EPS, BVPS, CFPS, and DPS, have a significant impact on the share price of publicly traded companies in Nigeria. As of December 2019, there were a total of 161 listed companies. One hundred and fifty-four firms were utilized as the adjusted population after a filter was applied. Only quantitative data were retrieved from the sampled firms’ annual reports and accounts, and the study adheres to the positivist paradigm. Using STATA and multiple regression techniques, the study discovered that audit quality and its relationship with EPS have a considerable significant impact on the share price of listed companies in Nigeria. Interactions of Audit Quality with BVP, EPS, CFPS, and DPS, on the other hand, have a strong negative impact on share price. Thus, the study suggests that regulatory bodies such as the CBN and SEC ensure that enterprises in Nigeria utilize the services of Big4 Audit Firms, as this improves the quality of accounting information and hence improves the link between accounting information and share price
FINANCIAL FORENSIC ANALYSIS AND FRAUD DETERRENCE IN LISTED DEPOSIT MONEY BANKS IN NIGERIA
Get PDFThis study was carried out to investigate how financial forensics, influences fraud deterrence in the listed deposit money banks in Nigeria. A total number of 619 top management staff from the antifraud department, internal control department, compliance unit and the internal audit department of the deposit money banks (DMBs) listed on the floor of the Nigerian stock exchange as at the 31st of December 2020 were considered for this study. Since this study indicated the cumulative impact of the independent variables against the dependent variable, multiple regression was considered to be the most appropriate form of data analysis. The Adjusted R2 was 0.51, indicating that the financial forensics variables (investigative accounting service, litigation support service and expert witness) can explain 51% of changes in fraud deterrence by Nigeria's listed deposit money banks. The Fstat-chi2 value of the model was 76.80, with a P-value of 0.000. This study recommends that listed deposit money banks should engage in financial forensics, which will ensure an unbiased workplace inquiry and interrogation in suspicions of wrongdoings, or discovery of fraud, not minding the magnitude, position, individual or group of individuals involved
AUDIT QUALITY AND EARNING MANAGEMENT OF LISTED INSURANCE COMPANIES IN NIGERIA
Get PDFoai:ojs2.journals.gujaf.com.ng:article/13This study examines audit quality and earnings management of listed Insurance companies in Nigeria over the period of 5 years (2015-2019). The study used simple random sampling technique to arrive at sample size of ten (10) insurance companies listed the floor of Nigerian Stock Exchange as at 2019. Secondary data extracted from annual reports and accounts of the sampled firms was analyzed using multiple regression. The regression result shows that audit firm size has a positive and significant impact on earnings management of the sampled firms, while joint audit service has a negative and significant impact on earnings management. However, auditor independence has negative and insignificant impact on earnings management. Therefore, the study recommends that regulators especially Security and Exchange Commission should encourage or make it as part of law to listed insurance companies in Nigeria to employs the service of both Big 4 audit firm and the local audit firm for audit assignment in order to safeguard firm’s earnings from management manipulation
MODERATING EFFECT OF FOREIGN-DOMESTIC OWNERSHIP RATIO ON FIRM ATTRIBUTES AND ENVIRONMENTAL DISCLOSURE IN NIGERIAN OIL AND GAS QUOTED COMPANIES
Get PDFThe focus of this study is on the assessment of environmental disclosure: the moderating effect offirm attributes and foreign-domestic ownership ratio with specific interest on the role of firm size,leverage and profitability. Secondary data retrieved from the annual reports of oil and gas quotedcompanies on the stock exchange of Nigeria was employed in the study. The study period spans from2010-2018 and the Generalized Least Squares (GLS) regression was used for the estimation of thespecified models. The findings of the study show that profitability has a significant impact onenvironmental reporting of oil and gas quoted companies in Nigeria while leverage and companysize have no significant impact on environmental reporting of oil and gas quoted companies inNigeria. The study further revealed a significant moderating effect of foreign-domestic ownershipratio on the relationship between firm size, leverage, Profitability and environmental reporting. Thestudy recommends that firms that are well to do financially should pay more attention toenvironmental reporting and firms should improve their environmental performance irrespective oftheir leverage. The study further recommends that both small and big firms need to improve theirenvironmental performance and the presence of more foreign-domestic ownership should lead tomore robust disclosures of environmental issues
IMPACT OF AUDIT QUALITY ON EARNINGS MANAGEMENT OF LISTED DEPOSIT MONEY BANKS
Get PDFThe study examined the impact of audit quality on earnings management of listed deposit money banks in Nigeria for the period of 2012-2019 The study adopted correlational research design. The study used data extracted from annual reports of listed deposit money banks in Nigeria. The study was anchored on the agency theory to establish conceptual relationship between the variables. The population of the study comprised of the 14listed deposit money banks. The adjusted population was 12 listed deposit money banks in Nigeria. The data collected were analyzed with the aid of paneled regression. The findings revealed that there is positive and significant relationship between audit industry specialization and earnings management of listed deposit money banks. However, audit tenure has negative and significant relationship with earnings management of listed deposit money banks. Based on the findings, the study recommends that regulatory authorities in Nigeria such as SEC should come out with a policy that encourages audit firms in Nigeria to create departments within their firms that specialize along industry lines of companies listed on the Nigerian Stock Exchange (NSE)and that auditor tenure of three years and above for external auditors of public companies in Nigeria. This reinforces SEC (2014) code of corporate governance which states that Nigerian public companies can retain external auditors for a period of ten years consecutively, while disengaged auditors can only be reappointed after a period of seven years
THE EXTENT OF SUSTAINABILITY DISCLOSURE: EVIDENCE FROM LISTED NIGERIAN OIL AND GAS COMPANIES
Get PDFGlobal reporting initiatives (GRI) guidelines has received wide spread acceptance across the globein the area of sustainability reporting. Several studies conducted in developed countries proved theeffectiveness of the GRI index. In order to enjoy the benefits attributable to sustainability reporting,many developing nations claim compliance with the GRI index. However, the extent of compliancewith the index remain sketchy. The objective of this research is to discuss this challenge bymeasuring the extent of sustainability disclosure in the Nigerian oil and gas companies using theGlobal Reporting Initiatives (GRI) framework as yardstick. The study used secondary data collectedfrom the annual report and accounts of eight (8) selected oil and gas companies listed on NigerianStock Exchange (NSE). Weighted disclosure index was used to measure the level of compliance withsustainability disclosure among these companies. T-test was used to find the means difference of theselected companies using company characteristics. The findings reveal that there is significancelevel of compliance with sustainability disclosure requirement by the companies. It also revealsyearly improvement in the means compliance across the study period. In addition, companiescomplied more with the requirement under strategy and analyses than other categories of thedisclosure requirement. It also shows that big companies complied more with the disclosurerequirement than small companies. However, profitability and audit quality of the companies haveno significance difference in influencing level of disclosure. The study further suggests for futureresearch the assessment of value relevance of this level of compliance. : Sustainability Disclosur
DO FINANCIAL AUDITORS’ INDEPENDENCE INFLUENCE THE PORTFOLIO PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA?
Get PDFThe study examines the impact of financial auditors’ independence on the portfolio performance of Deposit Money Banks (DMBs) in Nigeria. The study uses financial audit fees, financial auditor’s rotation and financial auditor’s tenure as measures of financial auditors’ independence while Return on Assets (ROA) was used as a measure of performance of Deposit Money Banks (DMBs) in Nigeria. The population of the study comprises all the listed Deposit Money Banks (DMBs) in Nigeria. Using a purposive sampling technique, ten (10) Deposit Money Banks (DMBs) eventually became the sampled size. Secondary Data was used and data were sourced from the audited annual financial statement of the sampled banks. Using descriptive statistics, correlation coefficient and the Ordinary Least Square (OLS) regression, the study revealed that there is a positive and not significant relationship or impact between financial audit fees, financial audit firm tenure on deposit money banks performance. It was found that there was no significant and negative impact or relationship between financial audit firm rotations on deposit money banks performance. Resulting from the above findings, the study concludes and recommends that financial auditors’ independence should be encouraged by taking different and drastic measures which includes, but not limited to; adequate financial audit fees, regular rotation of financial auditors and reduction in the tenure of auditors in order to address the various issues militating against financial auditors’ independence and the portfolio performance of deposit money banks in Nigeria