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AGENCY BANKING STRATEGIES AND FINANCIAL INCLUSION OF RURAL AREAS IN KWARA STATE, NIGERIA
Get PDFThe nexus between agency banking strategies and financial inclusion have been a debatable paradox for a long period of time due to the important role play by deposit money banks in finance inclusive economy functions. However, the goal of financial inclusion has not been achieved due to geographical distance of banks to rural area, poor bank innovation and technological advancement to rural settlement. The study investigates the effect of agency banking strategies (bank innovation strategy, geographical coverage strategy, and technological advancement strategy) on financial inclusion in rural areas in Kwara State, Nigeria. The study employed primary data obtained from respondents through administration of questionnaire within the period of 2019 and 2020. The data obtained were subjected to reliability and validity tests as well as Tobit Regression method of analysis. Findings revealed that agency banking strategies such as bank innovation strategy, geographical coverage strategy and technological advancement strategy have positive and significant effect on financial inclusion of rural areas in Kwara State, Nigeria. The study concludes that agency banking strategies enhance financial inclusion of rural areas in Kwara State, Nigeria. The study recommends that deposit money banks management should extend bank innovative products or services and enlighten the rural segment entrepreneurs on bank inclusion strategies so as to increase inclusive financial services and economic activities for the rural segments
MONITORING ATTRIBUTES AND EARNINGS QUALITY OF LISTED CONGLOMERATE FIRMS IN NIGERIA
Get PDFThis paper examines the effect of monitoring characteristics on earnings quality of listedconglomerate firms in Nigeria for the period of ten years from 2010-2019. As at 31st December,2019, there were six (6) listed conglomerate firms in Nigeria and all were selected to serve as thesample using census approach. Three variables independent directors, audit committee andinstitutional ownership were used to represent monitoring characteristics. The Francis et al (2005)model was used as measure of earnings quality. Multiple panel regression was used to test the modelof the study using Ordinary Least Square OLS regression and data was collected from the annualreports and accounts of the sampled firms. The findings of the paper revealed that two of themonitoring characteristics variables (IND and INST) positively and significantly affect earningsquality while AC has a significant but negative effect on earnings quality of listed conglomeratefirms in Nigeria. It is therefore recommended that, board of directors of listed conglomerate firmsshould compose more of independent directors as it was found to have a significant positiveinfluence on earnings quality, also their ownership structure should comprise more institutionalshareholders as it has been found to improve earnings quality positively
FIRM ATTRIBUTES AND EXECUTIVE COMPENSATION OF CONGLOMERATES IN NIGERIA
Get PDFExecutive compensation, particularly in the western countries has over the years received intensemedia and research interest particularly from the occurrence of large corporate failures. Thisbrought to the fore, the seemingly huge compensation been received by the Executive Directorsirrespective of the nature of the performance of the companies they manage. This study examinedthe impact of firm attributes on executive compensation using panel data from a sample of six listedconglomerates in Nigeria for a period of nine years (2010-2018). Ordinary least square (OLS) wasused as technique of data analysis. The findings revealed a positive and significant impact of firmfinancial performance (that is: return on asset and return on equity) on executive compensationwhile executive ownership had a negative and significant effect on executive compensation of listedconglomerates in Nigeria. The study concluded that firm financial performance and executiveownership impact on the quantum of compensation paid to the Executive Directors, whileinstitutional ownership, board composition and board size does not significantly. Therefore, it isrecommended that the listed conglomerates in Nigeria should improve the design of thecompensation of the Executive Directors with financial incentives and stocks (equity) as it willenhance the maximization of the shareholders’ wealth
AUDIT QUALITY, GOVERNANCE MECHANISMS AND EARNINGS MANAGEMENT OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA
Get PDFCorporate failures across the globe have become an issue of concern for stakeholders andregulators. Financial reporting scandals that occurred in oceanic bank, intercontinental bank andthe recent bank crises of Skye Bank in 2016 really motivated the need for this study. The studyexamines audit quality, governance mechanism and earnings management of listed deposit moneybanks in Nigeria for the period of eleven years from 2009-2019. The population of the study consistsof all the 14 listed deposit money banks in Nigeria as at 31st December, 2019. The study adoptedexpo-factor and correlation research designs, and multiple regression was employed as techniqueof data analysis. The findings of the study revealed that audit independence, managerial ownershipand board independent have significant negative impact on earnings management of quotedNigerian banks while auditor size and audit tenure have insignificant influence on earningsmanagement of listed deposit money banks in Nigeria. In line with the findings, the study thereforeconcluded that audit independence, managerial ownership and board independence havesignificant negative impact on earnings management of banks in Nigeria while audit firm size andaudit tenure have no significant impact on earnings management of listed deposit money banks inNigeria. It is therefore recommended that Nigeria listed deposit money banks should maintain theaudit fees they are paying to the audit firm or increase it as any attempt to reduce the audit fees canincrease earnings management. However managerial shareholding should be increase as it willreduce earnings management and also board independent directors on the board should beincreased from minimum of two as it will reduce earnings management of listed deposit moneybanks in Nigeria on the other hand there is no significant impact between audit firm tenure andaudit firm size on earnings management of listed deposit money banks in Nigeria. For audit firmsize the study recommended that local audit firms should be used instead of the Big 4 as the size have no effect on earnings management. Also the study recommended that for audit tenure the bankshould maintain its audit tenure as it does not have any influence on earnings management. 
AGGREGATE DEMAND AND FISCAL POLICY ADJUSTMENT IN NIGERIA: EVIDENCE FROM TWO STAGE LEAST SQUARED AND SIMULATION EXPERIENCE
Get PDFThis study examined the shocks in aggregate demand to fiscal policy adjustment in Nigeria using time series annual data from 1986-2020.The study constructs simple structural macroeconomic models made up of two blocks: consumption and investment sectors that contain seven variables; four are behavioural equations and two are identities. The models were estimated and analyzed using Two Stage Least Square methods and a simulation experiment was also conducted on the simple structural macroeconomics models. The study finds that fiscal policy variables (Tax, government spending and public debt) have significant influence on aggregated demand in Nigeria during the period under investigation. Similarly, the simulation shows magnificent tracking power of the actual from the baseline simulation as the nature of the movement suggested. The study, therefore, recommends that the government should encourage expansionary fiscal policy by expanding public spending channeled to infrastructure and other sectors of the economy like commercial farming and creation of utility. These have to been done through proper monitory as funds usually diverted to private pockets, decrease in taxes as it expands the purchasing power of the citizens which influence aggregate demand and output
CORPORATE ATTRIBUTES AND AUDIT FEE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Get PDFThe objective of the study is to examine the effect of firm characteristics on audit fee of listed Deposit Money Banks (DMBs) in Nigeria. Correlational research design was used for this study with an extensive reliance on secondary data. The population of the study consists of all DMBs listed on the Nigerian Stock Exchange. However, the study utilizes a sample of 10 DMBs in Nigeria selected using certain criteria. Multiple Regression Analysis using the Ordinary Least Square (OLS) technique was employed as the method of data analysis. Diagnostic analysis indicated that the regression assumptions tests such as heteroskedasticity, hausman and the Lagrangian Multiplier (LM) test for the higher order autocorrelation and the study showed that the model satisfied the OLS criterion. The findings indicated that; firstly, there is positive and significant relationship between profitability and audit fees. Secondly, there is no significant relationship between complexity and audit fees. Thirdly, study reveals that there is positive and significant relationship between audit size and audit fees. Fourthly, the study also shows that there no significant relationship between audit risk and audit fees. This shows that bank with higher performance is expected to pay higher audit remuneration. Also, bank with higher capital base is expected to pay less audit fee. The study recommends that there is need for the government to regulate audit fees within DMBs in Nigeri
FINANCIAL RISK AND PROFITABILITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA: MODERATING ROLE OF BOARD DIVERSITY
Get PDFThe financial crises experience by banking sector in Nigeria as a result of 2009 global financial economic meltdown that have led to the challenges of liquidity problem and high operational cost to banks which have affected the operations of businesses and Banks thereby reduce their turnover and profitability. It is against this backdrop that this study examines the effect of financial risk and profitability with a moderating role of board diversity of listed Deposit Money Banks in Nigeria from the period 2010-2019. The census sampling technique was adopted for the study. Secondary data was extracted from the annual report and accounts of the sampled banks. Financial risk as the independent variable was proxied with liquidity risk, credit risk, operating risk while the profit before tax was used to proxy profitability. The hypotheses were stated in a null form and multiple regressions were used to analysis the data. The study adopted panel corrected standard errors (PCSEs) regression model. The findings of the study documented that the moderate role of gender diversity revealed a negative and significant role on the effect of credit risk and operation risk on profitability of listed deposit money banks in Nigeria. It is recommended among others that the banks should minimize the non-performing loan through proper implementation of risk management framework and minimized unnecessary operating expenses as it have been found empirically to reduce the quality of the bank’s profitability and CBN should encourage banks to appoint female director in the board composition
IMPACT OF FIRM SPECIFIC ATTRIBUTES ON CORPORATE TAX AGGRESSIVENESS OF LISTED MANUFACTURING FIRMS IN NIGERIA
Get PDFThis study investigates the impact of firm specific attributes on corporate tax aggressiveness by listed manufacturing companies in Nigeria. Firm attributes in this study were measured by firm profitability, firm leverage, capital intensity, firm growth and firm size. While corporate tax aggressiveness was proxy using effective tax rate (ETR). Hypothesis was tested using data obtained from annual report of 48 listed manufacturing companies on Nigeria Stock Exchange from 2015 to 2019. The study was anchored on agency theory and political cost theory. Diagonistic tests such as multicollinearity, heteroskedatiscity, hausman test and woodbridge test for auto correlation were conducted. Applying robust fixed effect regression, the result shows that leverage and capital intensity has a significant positive influence on corporate tax aggressiveness while profitability has a significant negative influence on corporate tax aggressiveness. However, firm size and firm growth were found to have insignificant relationship withcorporate tax aggressiveness
SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF NIGERIAN AND MOZAMBICAN OIL AND GAS COMPANIES
Get PDFThe thrust of this study is to determine the influence of sustainability reporting on the financial performance of firms from Nigeria and Mozambique and it is triggered by recent increase in sustainability reporting by firms in these countries. Secondary data extracted from published accounts of sampled firms were subjected to multiple regression analysis. Results from the study indicate that economic reporting and environmental reporting affect positively and significantly financial performance of Oil and Gas firms in Nigeria and Mozambique while social reporting had an insignificant negative effect on the performance of Oil and Gas firms in Nigeria and Mozambique. Additionally, the study found that sustainability reporting amongst Nigerian and Mozambican oil and gas companies differ significantly. The study concludes that economic and environmental reporting have a significant positive influence on the financial performance of firms while social reporting has a negative but insignificant influence on the financial performance of Oil and Gas companies in the two countries. The study recommends an international reporting standard to guide companies globally in reporting sustainability activities to enhance meaningful comparison among reporting companies within the same jurisdiction and even internationally
MODERATING EFFECT OF LEVERAGE ON THE VALUE RELEVANCE OF ACCOUNTING INFORMATION IN THE NIGERIAN LISTED OIL AND GAS FIRMS
Get PDFThe study investigates the moderating effect of leverage on the value relevance of accountinginformation in the Nigerian listed oil and gas firms. The study used correlational research designand the data was extracted from the published annual financial reports of the firms for theindependent variables and the moderator. On the other hand, the data for the dependent variable(share prices) was collected from Nigerian stock exchange website. A sample size of 6 firms wereused for a period of eight years (2011-2018). The data was analysed using multiple regressionanalysis. Findings from the analysis showed that earnings per share, and leverage to be valuerelevant. Additionally, book value per share moderated with leverage was value relevant in additionto earnings per share moderated with leverage as well. Based on the findings, the study recommendsthat listed oil and gas firms in Nigeria should strategize to improve their earnings, Moreover, theyshould also find way of managing their book value, as any unnecessary investment means negativeeffect on share price. Additionally, listed oil and gas firms should maintain an appropriate level ofleverage so that the cheap cost of leverage will reduce the weighted average cost of capital andsubsequently increase value to investors. Finally, the explanatory power of the moderated variablesare more than the ones not moderated