244 research outputs found
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EFFECT OF PORTFOLIO MANAGEMENT PRACTICES ON THE PERFORMANCE OF SOME SELECTED SMALL AND MEDIUM ENTERPRISES (SMEs) IN NIGER STATE, NIGERIA
Full text linkThis study examined the effect of portfolio management practices on the performance of small and medium enterprises (SMEs) in Niger State, Nigeria. Portfolio management practices are proxies by corporate risk management, diversification, and security choice. Questionnaires were distributed to the whole SMEs in Kontagora portfolio platform. The study adopted a cross-sectional survey method with Ninety-Two (92) SMEs that has data whereas Twenty-Nine (29) firms were left out from the population of 121 SMEs because they did not have data. The data collected from 89 usable copies of questionnaires were subjected to various statistical analyses using SPSS23 and SmartPLS3.0. The results of this study show that CRM and Diversification have insignificant effects on SMEs performance whereas security choice has a positive and significant effect on the performance of SMEs. Therefore, the study concludes that firms should pay more attention to security choice because the variable has a positive and significant influence in explaining the variability of SMEs performance. Finally, a suggestion for future directions was made accordingly
EVALUATING THE DEBT-GROWTH NEXUS IN ECOWAS: AN INTEGRATIVE FRAMEWORK OF THE BURDEN OF DEBT SERVICING
Full text linkThis study investigates the impact of external debt, external debt servicing, employment, and other macroeconomic variables on economic growth within the ECOWAS sub-region, spanning the period from 2005 to 2023. Utilizing panel data from 15 ECOWAS countries, the analysis employs dynamic panel data models to explore the relationships between these variables. The results suggest that external debt negatively impacts GDP growth, while external debt servicing further exacerbates this negative effect. Conversely, employment levels and foreign direct investment (FDI) show positive associations with economic growth, highlighting their importance for long-term development. Additionally, the study finds that the interaction between external debt and debt servicing has a significant influence on growth, emphasizing the need for effective debt management strategies. These findings offer valuable policy implications for ECOWAS nations, advocating for sustainable debt practices, increased job creation, and enhanced investment policies to foster economic stability and growth in the region
OWNERSHIP ATTRIBUTES AND FIRM VALUE: EVIDENCE FROM LISTED NON-FINANCIAL FIRMS IN NIGERIA
Full text linkThe volatile macroeconomic environment in which listed non-financial firms operate in Nigeria has posed many challenges to firm value maximisation due to policy inconsistencies, governance imbalance from ownership configuration, investors’ confidence-related issues, regulatory barriers among others. Hence, this study investigates the impact of ownership attributes on firm value of listed non-financial firms in Nigeria. The study adopted a longitudinal research design and the data of 84 sampled listed non-financial companies were extracted from the annual reports and market data websites. Panel generalised least square regression was employed to analyse the data obtained and the results exhibited that foreign ownership (?=0.1183, p-value = 0.000), institutional ownership (? = 0.5511, p-value = 0.000), managerial ownership (? = 0.2206, p-value = 0.031) and ownership concentration (? = 0.1181, p-value = 0.007) are all significant at 5% significant level, The study concluded that ownership attributes enhance the firm value of listed non-financial firms in Nigeria; thus, it was recommended that sustainable value-creation strategies should be adopted in balancing all forms of ownership attributes among listed non-financial firms in order to enhance firm value
EXAMINING THE VALUE RELEVANCE OF ACCOUNTING INFORMATION: EVIDENCE FROM NAIROBI STOCK EXCHANGE (NSE)
Full text linkPrior studies indicate that with the transition of economy from industrial to a technology-driven service-oriented economy, the usefulness of accounting numbers, especially earnings, has reduced. This is shown by the obscurity of the link?between market stock prices in accounting figures, especially earnings. Based on his perspective, this study examines the extent of stock price movement explained by the change in key accounting metrics using companies listed on the Nairobi Securities Exchange. The sample comprises 56 listed companies across 23 sectors from 2016 to 2023. Using a panel data fixed effects regression, we examine the impacts of key accounting metrics on market share prices. We find that both?(lnEPS ? = 0.137; p < 0.05) and (lnDPS ? = 0.331; p < 0.01) have statistically significant positive relationships with share prices in the market (lnMSP). In contrast, lnOCF (? = 0.01, p <?0.1) and lnTA (? = 0.013, p < 0.1) have positive but insignificant impact effects. The R-squared of the model is 0.471, indicating that the four accounting variables explain 47.1 % of the movement in stock price. The findings align with the Dividend Signaling Theory and the Bird-in-Hand Theory. Additionally, the findings show the existence of a weak-form efficient market in the Nairobi Stock Exchange. Generally,?the study confirms the persistence of accounting information’s value relevance in equity investments in Kenya. 
THE MODERATING EFFECT OF BOARD INDEPENDENCE ON FIRM ATTRIBUTES OF CORPORATE ENVIRONMENTAL ACCOUNTING DISCLOSURE OF LISTED OIL AND GAS FIRMS IN NIGERIA
Full text linkThis study examines the firm attributes of corporate environmental accounting disclosure (CEAD) of listed oil and gas firms in Nigeria: a moderating effect of board independence. To achieve this, panel data were extracted and used from the annual reports and accounts of twelve (12) sampled listed oil and gas firms in the Nigerian Stock Exchange for a period of ten (10) years (2014-2023). Correlation and ex-post factor design were adopted in collecting data, while ordinary least squares (OLS) multiple regression was employed as technique of data analysis. The study found direct relationship of return on assets, while firm size found no significant impact on the corporate environmental accounting disclosures of listed oil and gas firms in Nigeria. The moderating effect of board independence on the relationship between ROA and CEAD is found to be positively insignificant. Where Firm Size and CEADhave statistical positive significant impact on the corporate environmental accounting disclosure of listed oil and gas firms in Nigeria. It thus, highlighted the need for Securities and Exchange Commission (SEC) to come up with enabling laws towards ensuring that listed oil and gas firms in Nigeria embrace corporate environmental accounting disclosures irrespective of their assets, size and the use of Global Reporting Initiative (GRI) of environmental disclosure index (EDI) to be considered as the most acceptable standard for measuring environmental index by the listed Oil and Gas firms in Nigeria
RISK MANAGEMENT STRATEGIES FOR MICROFINANCE BANKS IN NIGERIA: A CREDIT RISK FOCUS
Full text linkThis study, Risk Management Strategies for Microfinance Banks in Nigeria with a Credit Risk Focus, explores the critical role of credit risk management in sustaining capital adequacy and promoting financial stability among Nigerian microfinance banks a sector fundamental to financial inclusion but often overlooked in mainstream banking research. Drawing on a comprehensive 19-year dataset (2005-2023), the study empirically investigates the effects of three key credit risk mitigation instruments: Loan Loss Reserves, Collateralization, and Credit Insurance. Using advanced econometric techniques, including cointegration analysis and the Vector Error Correction Model (VECM), the findings reveal that Loan Loss Reserves and Collateralization significantly influence capital adequacy in the short term, while Credit Insurance demonstrates both short-term and long-term effects, making it an essential tool for sustained financial stability. By focusing specifically on microfinance institutions rather than commercial banks, the study addresses a critical gap in the literature and regulatory discourse. The results highlight the importance of strengthening reserve provisioning frameworks, minimizing over-reliance on collateral through diversified credit risk assessments, and expanding the adoption of credit insurance to reduce default exposure and enhance solvency. Furthermore, the study emphasizes the integration of credit risk practices into broader institutional and regulatory mechanisms aimed at reinforcing both capital adequacy and the financial stability of the microfinance sector. The research contributes to theory by applying the Financial Stability Hypothesis within the microfinance context and offers actionable insights to policymakers and financial institutions seeking to build a more resilient, inclusive banking system
WORKING CAPITAL MANAGEMENT AND MANUFACTURING PERFORMANCE IN NIGERIA
No full textEffective working capital is necessary for financial growth, sustainability, reliable liquidity and profitability of a firm. Management working capital involve the optimization of inventory, debtors and creditor to ensure profitability and liquidity of a firm. The paper aims to show how working capital management affect the performance of manufacturing firms in Nigeria during 2013 and 2022. For this, the paper tests two hypotheses: The first is that it assumes no significant relationship between working capital management and return on assets. The second assumes that working capital management does not significantly impact on return on equity of the companies in Nigeria. To evaluate this, we the study examines the relationship between working capital management variables, including stock turnover, debtor collection period, creditor collection period, and current ratio and performance indicators (return on assets and return on equity). The findings suggest that efficient management of these components enhances performance since stock turnover, debtor collection period, and creditor collection period are positively associated with financial performance. Because this has implication for future performance, the paper offers, amongst others that to enhance the profitability firms in Nigeria, there is the need to adopt more financial technologies can streamline working capital management processes, such as automating inventory and receivables tracking. Also, should be strategic extension of creditor collection periods without compromising supplier relationships to improve cash flow management. For instance, stricter credit control measures can be implemented to reduce the debtor collection period and can improve cash availability and profitability
THE IMPACT OF GENDER DIVERSITY ON EARNINGS QUALITY OF LISTED FINANCIAL SERVICES FIRMS IN NIGERIA: ANALYSIS OF TWO-STAGE LEAST SQUARES
No full textThis study investigates the impact of gender diversity on the earnings quality of listed financial service firms in Nigeria, focusing on the role of gender diversity and board size. Utilizing a correlation research design, it aims to test and predict the relationships among these variables. The sample consists of 36 financial service firms listed on the Nigerian Exchange Group, selected based on criteria ensuring the availability of relevant data from 2008 to 2022. Secondary data from these firms' annual financial reports provided the basis for analysis. To address potential endogeneity, a two-stage least squares (2SLS) regression was used, with instrumental variables estimating the endogenous variables. Additionally, Generalized Least Squares (GLS) and Feasible Generalized Least Squares (FGLS) methods were applied to handle heteroskedasticity and autocorrelation issues. The econometric model assessed earnings quality as the dependent variable, with female financial experts, female CEOs, and female board members of foreign nationality. Earnings quality was measured using the accruals quality model, evaluating the reliability of reported earnings. The findings reveal significant relationships between board attributes and earnings quality, emphasizing the role of gender diversity in enhancing the integrity of financial reporting. The results reveal significant positive relationships between the presence of female financial experts and female CEOs on the board with improved earnings quality, suggesting that gender diversity contributes to more reliable financial reporting. Diagnostic tests, including Multicollinearity, Autocorrelation, Heteroskedasticity, and Normality, confirmed the robustness of the results. This research contributes to the understanding of corporate governance by highlighting how board composition influences earnings quality, highlighting the relevance of gender diversity in corporate boards, and providing valuable insights for policymakers, investors, and stakeholders in the financial industry
CORPORATE SOCIAL RESPONSIBILITY AND PERFORMANCE OF FIRMS IN LAGOS STATE, NIGERIA
No full textCorporate social responsibility (CSR) is widely practiced by multinational companies in developed countries. But Nigerian companies are not widely accepted the concept. Hence, this study examines the impact of CSR on the performance of companies in Lagos State. The study used primary data collected through a questionnaire survey. Ordered logit and Structural Equation Modelling method of multiple regressions was used to analyze the data obtained. The results indicate that educational accountability has a positive, statistically significant effect on service delivery at the 1% significance level. Environmental responsibility was also found to have a significant impact on service delivery. Ethical responsibility also shows a significant effect of service provision at the 1% level of significance. Additionally, a significant effect of service provision is found at the 1% level of financial responsibility. The study concludes that CSR plays an important role in increasing the performance of companies in Lagos State. Nigeria. For this reason, it is recommended that companies should prioritize education and CSR initiatives as these have been identified as key drivers of improved and sustainable customer service
THE MULTIDIMENSIONALITY FOREIGN DIRECT INVESTMENT’S IMPACT ON THE ECONOMY
No full textForeign direct investment (FDI) has been a crucial inflow source for many economies. The contribution of FDI to growth has continued to generate extensive debates. The debate centered on channels through which FDI may enhance technological diffusion through spillover effect of knowledge and new capital goods to better human conditions. In this direction, some earlier literatures have also argued that the contribution of FDI largely dependent on the circumstances in the recipient countries. The study follows the endogenous growth model theory and eclectic theory to demonstrate the multidimensionality impacts of FDI inflows on gross domestic product (GDP), human capital development/utilization (HCDU), national revenue generation (NRG), gross fixed capital formation (GFCF) and gross national savings (GNS), based on published information over the period of 1982 to 2022. We found that FDI have significant effect on GDP; FDI do significantly affect on human capita development/utilization; FDI has no significant impact on NRG; FDI has no have no significant connection with gross fixed capital formation and FDI have significant effect on gross national savings in Nigeria