244 research outputs found
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CORPORATE SOCIAL RESPONSIBILITY AND PROFITABILITY OF QUOTED NIGERIAN FIRMS: THE MEDIATING EFFECT OF FIRM SIZE
Full text linkThe study examines the link between Corporate Social Responsibility (CSR) and profitability with emphasis on the role of firm size. The population consists of 106 quoted Nigerian non-financial firms, out of which a sample of 86 firms was selected based on data availability. Using hierarchical linear regression analysis, the study found evidence that firm size has significant effect on the CSR-Profitability link; confirming that larger firms have the capacity to invest in CSR activities more than their smaller counterparts. It is also found that corporate donations and employee relations have significant positive effect on profitability of the firms and that this effect is significantly improved by the mediating variable. The results are consistent with Stakeholders theory and suggest that responsible business practices towards primary stakeholders can be profitable and beneficial to Nigerian firms. These results justify the existing corporate investments in CSR activities. Therefore, the study recommends that Nigerian firms should adopt CSR strategy for creating shared value (CSV); mitigating risks (of corruption, scandals and environmental accidents); attracting and retaining quality workforce; gaining competitive advantage and improving financial performance. Regulatory authorities on their part should evolve measures that monitor corporate investment in CSR to promote an honest culture of sustainable economic development
FIRM SPECIFIC ATTRIBUTES AND FINANCIAL PERFORMANCE OF LISTED INSURANCE COMPANIES IN NIGERIA
Full text linkThe financial performance of Nigerian insurance firms has been seen as weak and poor. Owing to the weakness of the insurance sector, the study therefore examined the effect of insurance specific attributes on financial performance of listed insurance firms in Nigeria. The study covered a period of eleven years from 2008 to 2018. The research used correlation research design and secondary data obtained from the annual reports and accounts of firms from 2008-2018. The population of the study is all the 27 insurance firms listed on the Nigerian Stock Exchange as at 31st December 2018, eighteen (18) of these firms were selected as sample. Multiple regression analysis was used in estimating the research model. The result of the study shows that underwriting risk and operating expenses have negative and significant impacts on financial performance and Premium growth reveal a positive and significant impact on financial performance of the study firms. The study concludes that underwriting risk and operating expenses inversely affect the financial performance of listed insurance firms. The study recommends among others that the management of the listed insurance firm should focus more on reducing the level of their underwriting operation and cut their present level of operational cost drastically to improve financial performance
WORKING CAPITAL MANAGEMENT AND THE FINANCIAL PERFORMANCE OF LISTED OIL AND GAS COMPANIES IN NIGERIA
Full text linkWorking capital is required for steering the day to day operations of an organization and hence its importance. This study examines the impact of working capital management on the financial performance of listed oil and gas firms in Nigeria. The study used secondary data only covering a period of 8 years (2011-2018). Correlational research design was used on a sample of 11 oil and gas firms. The study also employed the Robust Generalized Least Squares (GLS) multiple regression technique for data analysis, it concluded that cash conversion circle, and average period of debt settlement are negatively and strongly influencing return on asset of listed oil and gas firms in Nigeria, while average collection periods is positively influencing the return on asset of listed oil and gas firms in Nigeria. But average period of inventory retention has no statistical significant positive impact on the return on asset of listed oil and gas firms in Nigeria. The study therefore recommended that the management of oil and gas firms in Nigeria among others should consider reducing the cash conversion circle so as to increase their firm profitability. In addition, managers’ of oil and gas firms should encourage larger sales turnover and volume by allowing their customers’ shorter periods of account collections through granting of prompt sales cash discounts. The policy implication from the finding is that, management of listed oil and gas firms in Nigeria must embrace a more flexible trade credit policy from suppliers with elongated time to make payments for the profitability of their firms to improve
WORKING CAPITAL MANAGEMENT AND FIRM PROFITABILITY OF LISTED CONGLOMERATES COMPANIES IN NIGERIA
No full textThis study examines impact of working capital management on firm’s profitability. The study focuson six (6) conglomerates firms listed on Nigeria Stock Exchange. Using the panel data set for theperiod 2012-2017, the impact of aggressive working capital investment and financing policies hasbeen evaluated using return on asset. Random effect regression model was adopted for the study.The study reveals that Total Current Assets to Total Assets (TCA/TA) and size of the study firm havea positive and significant impact on firm profitability. The result further found that Total CurrentLiabilities/Total Assets (TCL/TA) has a negative significant impact on firm profitability. Though,the sales growth revealed an insignificant negative effect on the profitability of the firms. The studyconcluded that managers can create value if they adopt a conservative approach towards workingcapital investment and working capital financing policies since aggressive approach has been foundto have a negative impact on return on asset. The study recommends that conglomerate companiesin Nigeria adopt the conservative approach to working capital management so as to experience anincrease in profitability for business sustainability