244 research outputs found
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PRIVATE CAPITAL FORMATION, PUBLIC SECTOR CAPITAL FORMATION AND ECONOMIC GROWTH IN SOUTH AFRICA
No full textThis study examines the relationship between private capital formation, public sector capital formation and economic growth in South Africa. Annual data is used and sourced from WDI to evaluate the study, which spans from 1986-2021. The ARDL approach is employed to analyze the data. The unit root tests indicate that the data are stationary and the bounds test signify that the variables are cointegrated at the long-run. Furthermore, the findings revealed A rise in private capital formation will result in a notable increase in economic growth, as indicated by the coefficients of all the variables in the ARDL long-run result. Private capital formation positively and significantly influenced the nation’s economic expansion. The study recommends increasing private sector capital formation for resilience and offering incentives that encourage adaptation investments, the government should concentrate on creating an environment that allows the private sector to flourish
FINTECH PENETRATION AND CLIMATE-SMART INFRASTRUCTURE: EVIDENCE FROM RENEWABLE ENERGY FINANCING IN THE GLOBAL SOUTH
No full textThis study investigates the impact of financial technology (fintech) penetration on renewable energy investment in developing countries between 2010 and 2024. Drawing on a balanced panel dataset covering 60 developing economies, the study constructs a Fintech Penetration Index (FPI) based on subcomponents including mobile payments, digital lending, and crowdfunding. Using fixed effects and system GMM estimators, the empirical analysis finds a robust and statistically significant relationship between fintech diffusion and renewable energy investment. Specifically, a 1% increase in FPI is associated with a 0.487 unit rise in renewable investment, with individual fintech components also exhibiting positive and significant effects. The findings remain robust across alternative specifications, sensitivity tests, and post-estimation diagnostics. The results highlight the critical role of digital financial systems in lowering financing barriers, enhancing institutional quality, and enabling green capital flows. Policy implications suggest that fintech should be integrated into national green investment strategies, with regulatory frameworks designed to foster innovation while ensuring sustainability and financial inclusion. Future research should explore disaggregated impacts at the firm and household levels, and assess the interplay between fintech adoption, regulatory capacity, and environmental governance
THE EFFECT OF RISK MANAGEMENT COMMITTEE ON THE FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Full text linkThis study examined the effect of risk management committee on the financial performance of listed Deposit Money Banks (DMBs) in Nigeria. Financial performance which is the dependent variable was proxied by return on assets (ROA), while enterprise risk management as the independent variable was proxied by risk management committee independence, risk committee size, ISO 27001 framework and COSO framework. Data were collected from secondary source. The data were extracted from the audited annual reports of the 14 listed DMBs on the Nigerian Exchange (NGX) for the period of 2016-2022. The study employed the Generalized Least Square (GLS) regression technique in analyzing the study data. The findings revealed that ISO 27001 framework and COSO framework have a positive and significant effect on the financial performance of listed DMBs in Nigeria. Hence, it was concluded that ISO 27001 framework and COSO framework are among the major determinants of financial performance of listed DMBs in Nigeria. It was recommended that the managements of the listed DMBs in Nigeria should increase the use of ISO 27001 and COSO framework to assist them in mitigating risk and increasing the financial performance of the banks
EFFECT OF BOARD ATTRIBUTES ON ENVIRONMENTAL DISCLOSURE OF LISTED MANUFACTURING FIRMS IN NIGERIA
Full text linkThe increasing global concern for the environment and the consequent academic interest in researching best environmental disclosure that enhances the quality of reporting had given tremendous drive for this current research. This study examined the effect of board-specific attributes on the environmental disclosure of listed manufacturing firms in Nigeria. The study used the correlational research design with a positivist research paradigm, and agency theory to underpin the relationship between the independent variables and the dependent variable of interest. The population of the study consisted of the 52 listed manufacturing firms on the Nigerian Exchange Group, the population was later reduced to a sample size of 43 manufacturing using the filtration method. Quantitative data were extracted from the audited annual reports of the 43 manufacturing firms used in the study for twelve-year period covering 2011 to 2022. The data were analyzed using the Fixed Effect regression technique. Findings from the study show a significant positive relationship between board size, board gender, board expertise, board independence, and environmental disclosure of listed manufacturing firms in Nigeria. The implication of this result indicate that increase in these variables will lead to a corresponding increase in the environmental disclosure of listed manufacturing firms in Nigeria. Based on the findings of the study, it is recommended that the management of the sampled firms should increase the minimum number of board size to nine members, board independence to about 11.92% of the directors on the board and the minimum number of women on the board should increase to 15.59% as established by the study. This is because it was established by the findings of the study that increase of the various variables as indicated by the descriptive statistics will promote the environmental disclosure among the listed manufacturing firms in Nigeria. Also, the management of the firms should carry out policies that will promote the inclusion of foreign directors on the board as this was also shown to improve the environmental disclosure of manufacturing firms in Nigeria
MICROFINANCE ACTIVITIES AND THEIR LONG-RUN IMPACT ON ECONOMIC GROWTH IN NIGERIA: EVIDENCE FROM ARDL ANALYSIS (1993-2023)
Full text linkMicrofinance has been globally recognized as a catalyst for economic growth, especially in developing economies such as Nigeria. Despite various efforts to improve access to finance, many low-income individuals and small enterprises remain excluded from the formal financial system. examines the effect of microfinance activities savings, lending, and investment on Nigeria's economic growth between 1993 and 2023, using secondary data from the Central Bank of Nigeria. The study employed the Autoregressive Distributed Lag (ARDL) model for the data analysis, the findings show that microfinance savings significantly boost GDP in the long run, while lending and investment exhibit statistically insignificant effects. Inflation and exchange rates negatively affect growth, while government expenditure has a significant positive influence. The study recommends strengthening savings mobilization, improving credit mechanisms, and implementing macroeconomic stabilization policies
INFORMATION ASYMMETRY AND COST OF CAPITAL: A REVIEW OF EMPIRICAL EVIDENCE
No full textThis paper reviewed relevant empirical studies that examined the effect of information asymmetry (IA) on corporate cost of capital (COC) over seventeen years (2007 -2023). Critical/integrative review approach was adopted and the paper found that results obtained by the reviewed studies regarding the impact of IA on COE or WACC are in two sets: positive and negative. However, most of them have agreed and corroborated one another on the positive effect of IA on COE or WACC. And, this goes in line with the basic argument of the pecking order theory in its first proposition. Also, regarding IA and COD, the reviewed studies have agreed that IA positively affects COD. Other findings of the paper are that most of the reviewed studies were carried out in Asia, focusing on non-financial firms. Moreover, most of the studies assessed IA's effect on COE by employing Bid-ask spread and Eastos's (2004) PEG ratio models as common measures. Based on the summary of major findings, the paper concluded that corporate firms will be experiencing a rise in financing cost as long as there is an increase in asymmetric information in the capital market. The increase will affect equity financing, debt financing and overall financing costs. Thus, in line with the conclusions drawn, the paper recommended that corporate firms should strive to minimize the level of IA in the capital market through a commitment to providing high-quality financial reports that furnish the capital providers with relevant, reliable and comprehensive information
POLITICAL CONNECTION, AUDIT FEES, AUDIT QUALITY AND TAX AVOIDANCE OF LISTED COMPANIES IN INDONESIA STOCK EXCHANGE
No full textThe objectives of this research are to assess the effects of political connection and audit fees on tax avoidance and to assess the moderation of audit quality. The population of this quantitative research is mining companies listed on the Indonesia Stock Exchange (IDX) during the 2017-2021 period, from which 142 companies were selected as the sample using purposive judgmental sampling. The Moderated Regression Analysis (MRA) conducted in this research has led to findings that tax avoidance is not affected by political connection and audit fees, that politically connected companies with high audit quality have lower tax avoidance rate, and that higher audit fees paid by companies with high audit quality does not reduce the companies’ motivation to commit tax avoidance
CEO ATTRIBUTES AND FINANCIAL DISTRESS LIKELIHOOD OF LISTED DEPOSIT MONEY BANKS IN NIGERIA: MODERATED BY RISK COMMITTEE GENDER
No full textDespite the series of reform policies initiated by financial authorities to create good atmosphere for effective and standard banking operation in Nigeria which could ensure their growth and survival, yet some of the bank suffered financial distress over the years due to some likelihood factors. Thus, this study examines the moderating role of risk committee gender on the effect of CEO age and gender on financial distress likelihood of listed deposit money banks in Nigeria for the period of fifteen years between 2007-2021. The population of this study consists of fourteen listed deposit money banks in Nigeria. Correlational research design was adopted to analyze the secondary data extracted from the annual audited financial statement of the banks, using logistic regression technique, based on Multi Discriminant Analysis approach of a modified Althman Z score model. The result depicted that CEO age, CEO gender and risk committee gender significantly influence financial distress likelihood negatively. Furthermore, risk committee gender significantly moderated the effect of CEO age and gender on financial distress likelihood. Thus, it is recommended that the board of the deposit money banks in Nigeria should initiate policy that will specifically; consider average aged bracket or young people in managing the affairs of their banks, which by implication will increase the survival tendency of the listed deposit money banks in Nigeria. On the hand, the 255 board of the listed deposit money banks should also, give priority to female in carrying out the affairs of the banks particularly at the top-ranking management positions considering their risk appetite on financial management. This will go a long way in reducing the rate or tendency for financial distress among the listed deposit money banks in Nigeria
EFFECT OF FIRM ATTRIBUTES ON THE GROWTH OF HEALTHCARE COMPANIES LISTED ON THE NIGERIAN EXCHANGE GROUP
No full textThe Nigerian healthcare industry is poorly performing compare to global standards and remains heavily dependent on imports especially Consumer Drugs and Vaccines. It is estimated that total pharma market has come down from 607 million ?248.87B in 2017 with negative growth of 15.6%. In light of this, the study examined the effect of firm attributes on the growth of listed healthcare companies in Nigeria from the period of 2013-2022. The population of the study consisted of eleven 11 healthcare companies listed in Nigeria, three 3 healthcare companies were later filtered out reducing the total population to eight 8 adjusted population. Secondary data were extracted from the annual financial reports of the eight 8 adjusted population from 2013 to 2022. The dependent variable which is firm growth was proxied by changes in sales of the companies, while firm attributes was proxied by leverage, profitability, liquidity and firm size. After all the necessary diagnostic tests were conducted the outcome supported the use of the Random Effect regression analysis technique. The regression result shows that profitability and liquidity have positive and significant effect on the growth of healthcare companies in Nigeria. Therefore, the study concluded that profitability and liquidity are the major determinants of healthcare companies’ growth in Nigeria. In line with the conclusion, the study recommended that the management of the listed healthcare companies in Nigeria should increase their profitability to enhance their growth. Also, the management of the listed healthcare companies in Nigeria should maintain a reasonable ratio of liquidity to ensure their growth
BOARD CHARACTERISTICS AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
No full textThis paper investigates the relationship between specific board attributes and the financial performance of publicly listed deposit banks in Nigeria, focusing on board size and composition, which are examined in relation to the measure of financial performance proxied by the return on assets (ROA). Drawing from agency theories, a panel data approach spanning 2011 to 2020 examines ten deposit banks listed on the Nigerian Stock Exchange (NSE), resulting in 60 firm-year observations. The study obtained data from the annual reports of selected banks and the official websites of the NSE. The model's validity is assessed through a multiple regression analysis. The findings of this study reveal a positive and significant association between board size and financial performance, highlighting the pivotal role of larger boards in enhancing deposit banks' financial outcomes on the NSE. In contrast, the study finds a negative and significant relationship between board composition and financial performance, suggesting that an increased board composition leads to decreased financial performance. Overall, this study underscores the significant impact of board characteristics on the financial performance of listed deposit banks in Nigeria. The implications of these findings are pertinent for policymakers and market regulators, as they offer valuable insights into the role of board characteristics in bolstering the financial performance of banks