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DETERMINANTS OF SOCIAL AND ENVIRONMENTAL ACCOUNTABILITY OF NIGERIAN FIRMS
Get PDFCorporate organisations are following legal and illegal means to avoid and evade payment of corporate taxes considered as corporate burdens that erode profits as the main motive of businesses. Conversely, activities of corporate organisations are associated with depletion and destruction of natural resources and negative impacts on the society and environment and there are increasing pressure on corporate organisations to render social and environmental accountability. However, rendering such accountability is capable of further eroding profits; thus, corporate organisations may render less accountability with payment of corporate taxes. Therefore, the aim of this paper is to evaluate the relationship between corporate tax, size, profitability and leverage, and social and environmental accountability by listed Nigerian construction and building materials and pharmaceutical and healthcare companies from 2009 to 2018. Data on annual social and environmental disclosure are collected from the annual reports and accounts of 5purposively selected companies each as samples from population of 9 companies in the construction and 10 companies in the pharmaceutical industries. Social and environmental accountability is evaluated by obtaining quantity of disclosure using modified words count content analysis while panel regression analysis is conducted to determine the influence of chosen variables on the disclosure. Results from the study indicated that corporate size statistically explain CSED by construction companies while leverage is significant in pharmaceutical companies. Corporate tax is negatively related with CSED in construction industry while other variables are not significant. Stakeholder theory explain the disclosure practices which have the policy implications requiring more CSED by the two industries while public policy makers may regulate CSED in the two industries
EFFECT OF FIRM DYNAMISM AND FIRM CHARACTERISTICS ON CASH HOLDING OF LISTED MANUFACTURING FIRMS IN NIGERIA
Get PDFCash holding decision is one of the most significant decisions taken by the financial managers of any manufacturing firms. The decision not only depends upon the theoretical view but also the firm–specific variables and Firm dynamism variables of the economy. This paper aims at shedding light on the empirical effect of Firm dynamism and firm characteristics on corporate cash holding. The population of the consist of 51 manufacturing firms listed on the Nigeria Stock Exchange, while the adjusted population of 35 firms was arrived based on availability of data. Correlational research design was adopted. The study was anchored on pecking order and resource dependence theory. Multiple regression was employed to analyse data extracted from annual report of selected manufacturing firms in Nigeria from the period of 2012 to 2019. The result of the findings shows that investment opportunity has positive and significant relationship with corporate cash holding. However, negative and significant relationship was found between female leadership, leverage and corporate cash holding. In line with the findings, the study therefore recommends that, to enhance the effectiveness of boards and the efficient use of cash, firms with fewer women on their corporate boards now should look to add more female directors to their boards. Managers should also rationally presume that a firm with high quick asset replacements, high debt, and equity expense should maintain lower cash holdings. If for the unusual object, a firm with high quick asset delegates, high debt, and equity expense has high cash holdings, this force is a flag of a potential agency conflict. Managers should avoid holding excessive cash reserves as this might attract scrutiny from the capital markets
FINANCIAL PERFORMANCE AND CORPORATE SOCIAL RESPONSIBILITY IN LISTED NON FINANCIAL FIRMS IN NIGERIA
Get PDFThis study evaluates Financial Performance and Corporate Social Responsibility in listed Non-financial firms in Nigeria from 2009 to 2018. CSR practice by companies is virtually affected by their operations and performance. Therefore, companies with better performance are expected to engage more in CSR and consider public interest in corporate decision making. The population of this study covers all the seventy-five (75) listed non-financial firms in Nigeria from January 2009 - 31st December, 2018, from these a sample of fifty six (56) listed non-financial firms were selected by filtering. Narrowing down, the study to more specific term, it examines the effect of return on investment and net profit margin using leverage as control variables on CSR of listed non-financial firms in Nigeria. The Researcher employs correlational and expo-facto research designs using panel multiple regression as techniques of data analysis. Quantitative approach was adopted in the study and the study aligns to positivist paradigm. The study reveals that return on investment positively, strongly and statistically determines CSR measured at 1% level of significance respectively. Also, net profit margin positively influences the CSR of listed non-financial firms in Nigeria measured at 5% level of significance. The result implies that financial performance determines the CSR of non-financial firms in Nigeria. The study concludes that non-financial firms with high performance invest more in Corporate Social Services than low performing once. Therefore, the study recommends amongst others that managers of non-financial companies in Nigeria should improve their internal control mechanism for cost reduction and increase of net profit margin. While for return on investment, the management of listed non-financial firms should maintain quality assets that are durable. This is necessary because of the potential of companies that have such assets to vote more funds towards CSR
EFFECT OF MACROECONOMIC FACTORS ON CAPITAL STRUCTURE OF FIRMS IN DEVELOPING AFRICA: A TWO-STEP GMM APPROACH
Get PDFThe study examines the effects of macroeconomic factors and on capital structure of non- financialfirms in Africa. Using a recent data for an advanced dynamic model (2step system generalizedmethods of moment (GMM)) technique for a panel data model of 406 non-financial firm of 8developing African nations. The findings reveal that macroeconomic variables are determinant ofcapital structure of non-financial in Africa. The findings show that financial managers can benefitfrom raising additional capital as macroeconomic conditions are favorable. Moreover,shareholders should employ firm managers with good knowledge of macroeconomic conditions andalso encourage them raise debt capital needed to fund positive investment. Lastly, Policymakersshould enact policies that promote financial market development because such policies wouldcomplement the banks’ financing strategies and firms would have more access to debt capital
DIVIDEND POLICY AND SHARE PRICE VOLATILITY: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA
Get PDFThis study examines the impact of dividend policy on share price volatility of listed deposit money banks in Nigeria. Data for the study were extracted from the annual reports and accounts of twelve (12) deposit money banks in Nigeria from 2014-2018. The study uses share price volatility as dependent variable and dividend per share, earnings per share and bank size as explanatory variables. Descriptive analysis, correlation analysis and regression model were used to perform the data analysis. Random effect regression analysis was utilized to confirm the empirical finding of the study. The results show that dividend per share and earnings per share have a positive and significant impact on share price volatility of listed deposit money banks in Nigeria. The finding of the study revealed that dividends were relevant to investors, indicating that the signaling theory was relevant, and investors believed in information being transferred in the dividend policy decision. The study recommends that the board and management of banks should ensure that good dividend policy is put in place and earnings per share policies are maintained because it has been empirically proven to improve share price movement
NEXUS BETWEEN FIRMS-SPECIFIC CHARACTERISTICS AND CASH HOLDING OF LISTED MANUFACTURING FIRMS IN NIGERIA
Get PDFThis paper aims at shedding light on the empirical relationship between cash holding and firm characteristics. The population of the consist of 51 manufacturing firms listed on the Nigeria Stock Exchange, while the adjusted population of 35 firms was arrived based on availability of data. Correlational research design was adopted. The study was anchored on pecking order theory. Multiple regression was employed to analyse data extracted from annual report of selected manufacturing firms in Nigeria from the period of 2012 to 2019. The result of the findings shows that profitability and networking capital have positive and significant relationship on corporate cash holding. However, negative and significant relationship was found between leverage and corporate cash holding. In line with the findings, the study therefore recommends that managers of Nigerian manufacturing firms should develop a good strategy for earning high returns from their assets since this has positive significant effect on cash holdings. They should avoid holding excessive cash reserves as this might attract scrutiny from the capital markets. There should be an optimal trade-off approach to cash holdings, and also there should be a hierarchy explanation for holding excess cash
MEDIATING EFFECT OF PROFESSIONAL SKEPTICISM ON THE RELATIONSHIP BETWEEN PROFESSIONAL ETHICS AND AUDIT QUALITY
Get PDFThis study assesses the mediating effects of professional skepticism on the relationship between professional ethics and audit quality. One hundred and seven (107) auditors out of one hundred and sixty (160) were selected as sample for the study. Data was collected from primary sources where a questionnaire was administered to the sample selected. PLS path model was used in analysing the data. The findings revealed a direct effect relationship between the variables with significant and positive relationship between professional ethics and auditor’s skeptiscism, audit quality as well as professional ethics and audit quality. It further reveals an indirect effect relationship between professional ethics and audit quality with professional skepticism as a mediator. The study concluded that Professional ethics enhances auditor’s skepticism to produce quality audit work; adhering to the principles of professional ethics is necessary for improving the skeptical attitude of an auditor so as to have a high quality audit work. The study recommends that the regulators and standard setters should strictly enforce and continue to emphasize the importance of applying professional skepticism in auditing and auditors should have adequate knowledge of professional ethics and comply fully with them so as to improve their skeptical attitude. Finally, the Accountancy firms should ensure monitoring of their auditors in order to make them apply professional skepticism during audit engagement
CORPORATE OWNERSHIP STRUCTURE AND INVESTORS' CONFIDENCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Get PDFThis paper investigates the effect of corporate ownership structure on investors’ confidence of listed deposit money banks in Nigeria. The study adopted correlational research design using panel data collected from annual reports and accounts of 14 deposit money banks in Nigeria that form the whole population of the study for the period of 10 years (2010-2019). Descriptive statistics was used to analyze data in order to provide summary statistics for the variables. Pearson’s correlation technique was employed in order to analyze and ascertain the extent of the relationship between the dependent and independent variables. The fixed effect regression results revealed that institutional investors have a positive and significant relationship with investors’ confidence. The result further shows that insider and block ownership has a negative and statistically significant relationship with investors’ confidence. And on the contrary foreign ownership has no significant relationship hence did not play any role in influencing investors’ confidence of listed deposit money banks in Nigeria. Based on the findings, the study recommends managers of listed deposit money banks in Nigeria should give more room to institutional investors to own more shares so that the higher their interest, the more they will be willing to monitor the activities of the firms. This will enable investors to have more confidence in the firms. Insider ownership should be monitored and reduced by the Securities and Exchange Commission; this will prevent insiders from owning a substantial amount of equity which give them the freedom to act in their best interests at the detriment of other shareholders. The study further recommends managers of listed deposit money banks should ensure that their firms desist from higher levels of block holder ownerships in order to reduce ownership concentration
MEDIATING ROLE OF TAX KNOWLEDGE ON THE RELATIONSHIP BETWEEN TAX COMPLEXITY, TAX AGENT, TAX AUDIT AND PETROLEUM PROFIT TAX EVASION: A CONCEPTUAL FRAMEWORK
Get PDFLow tax compliance as a result of tax evasion is gradually increasing in Nigerian oil and gas sector. In addressing this concern, this study proposed a framework to investigate the extent of tax evasion amongst oil and gas companies in Nigeria. The proposed framework is based on economic deterrence theory. This study extends the current body of knowledge in taxation field by expanding economic deterrence theory with the meditating effect of tax knowledge. Also, the study would be useful in guiding stakeholders and policymakers in developing nations on the way to curb the menace of tax evasion. If validated, the framework would provide more meaningful insight on the level of tax evasion in Nigerian oil and gas sector. Nigerian policymakers would benefit immensely from the study if finally conducted as it would help the government to reduce the level of tax evasion, thereby increasing the government revenue. The proposed framework will be empirically examined via collection and analysis of the relevant data
TRADING FLOORS AUTOMATION AND STOCK MARKET EFFICIENCY DURING EQUITY ISSUES ANNOUNCEMENTS IN NIGERIA
Get PDFThis paper examines effect of the automation of trading platforms on the reaction of the Nigerianstock market to Seasoned Equity Offerings (SEOs) announcements. The study utilized a sample of86 SEO announcements between July 1995 and December 2019, out of which 27 were made beforethe automation of trading floors in 1999 and 59 after automation. To investigate reaction of theNigerian stock market SEOs announcements, the standard event study methodology was employed,and the market model was utilized as the benchmark model for computing returns. On the otherhand, effect of automation announcement was examined using difference test for abnormal return.In line with extant empirical evidence, the paper found negative and statistically significantannouncement day abnormal returns -3.33% and -2.91% for the pre-automation and postautomation periods respectively. However, t-statistic of -0.26 was not significant at any of theconventional levels. The paper thus concluded that the negative reaction of the Nigerian stockmarket to SEO announcements is consistent with the notion that investors perceived the announcingfirms as overvalued. it was found that the effect automation. It was also concluded that automationdid not have significant effect on the market’s reaction to SEO announcements in Nigeria. The paperrecommended adequate disclosure of the intended use of proceeds from the SEO prior to theannouncement. It was also recommended that the automated trading platforms and other marketinfrastructure should be constantly upgraded to enhance prompt information dissemination to allmarket participants