244 research outputs found
Sort by
THE IMPACT OF MONETARY POLICY ON SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN THE PERIOD OF ECONOMIC CRISES
No full textThe study examines how monetary policy affects small and medium-scale (SMEs) in Nigeria during 1991–2020. The paper shows how monetary policy variables, such as the interest rate, money supply and inflation rate, drive the relative outputs of the SMEs to GDP (SMEGDP). In line with theoretical consideration, the estimation includes other control variables including gross fixed capital formation and secondary school enrolment rate to represent proxies for capital and labour, respectively. The result shows that the Johansen cointegration establishes long-run relationship amongst the considered determinants of the SMEGDP. The study finds that the money supply and interest rate, respectively, have significant positive and negative impact on the SME outputs, whist inflation rate produces adverse but insigificnat effect on output. The magnitude and significance of interest rate is more than that of the money supply. Generally, the evidence suggests the need for policy to reposition SMEs. The paper recommends that there should be discretionary use of monetary policy in enhancing SMEs and efforts at promoting macroeconomic stability
FIRM ATTRIBUTES AND SHAREHOLDER’S WEALTH OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
No full textThis study investigated the effect of firm attributes on shareholders’ wealth of listed deposit money banks in Nigeria. This paper examined the effect of firm attributes on the shareholders’ wealth of listed deposit money banks in Nigeria. The study population consists of Fifteen (15) listed deposit money banks in Nigeria as at 31st December 2022, filtered to 13 Listed Deposit Money Banks whose data were extracted and studied between 2010 to 2022. Multiple regression techniques using robust ordinary least square (OLS) due to the pooled nature of the data used, and estimation was employed in analyzing the data obtained from the audited annual reports and accounts of sampled firms. The study found that all the independent variables, namely, capital adequacy ratio, credit risk, return on equity, and cost efficiency, have a positive significant effect on the share prices of listed deposit money banks in Nigeria, In view of the findings, this study recommend that management and other stakeholders in Nigerian Banking should ensure that the optimum level of capital adequacy is maintained, maintain an optimal level of credit risk while avoiding excessive risk-taking, maximize the bank’s profitability and cost efficiency, to enable deposit money bank continue to discharge their function effectively to the society while protecting the interest of, and maximizing the wealth of the shareholders at the same time. I certified. This paper is my work and the combination of variables used is not copied from any source
DETERMINANTS OF CORPORATE LEVERAGE IN EMERGING ECONOMIES: THE ROLE OF FIRM CHARACTERISTICS, MACROECONOMIC CONDITIONS, AND INSTITUTIONAL QUALITY
No full textThis study investigates the determinants of corporate leverage among firms in emerging economies, motivated by the need to understand how firm-specific characteristics and macro-institutional factors shape financing decisions.Usinga comprehensivepaneldataset offirmsacrossvariousindustries,theanalysisemploysordinary least squares (OLS), quantile regression, and sensitivity tests with interaction terms to capture heterogeneity in leverage behaviour. The empirical findings indicate that profitability, tangibility, inflation, and institutional quality are positively associated with leverage, while firm size, GDP growth, and interest rates exhibit negative relationships. Notably, the quantile regression results reveal that the strength of these associations varies across the leverage distribution, with profitability and institutional quality exerting stronger effects at lower quantiles. These insights underscore the importance of designing policies that enhance institutional frameworks, stabilise macroeconomic conditions, and promote access to diverse financing options. It is recommended that policymakers strengthen creditor rights, support alternative finance mechanisms, and implement macro- prudential measures to ensure sustainable corporate borrowing practices in emerging markets
BOARD CHARACTERISTICS AND CORPORATE SOCIAL RESPONSIBILITY OF LISTED OIL AND GAS COMPANIES IN NIGERIA
No full textThis research investigated the influence of board characteristics on corporate social responsibility of listed oil and gas companies in Nigerian Exchange. Variables examined are bord size, independence, gender diversity, activity, professionalism and equity ownership of board members. While corporate social responsibility was proxy by CSR expenditure. The population consists of twelve (12) listed oil and gas firms from which five (5) firms have consistently published their annual reports within the period covered and extracted data from their respective annual reports. Panel corrected standard error was used for analysis. Findings revealed both board size and board activity have no significant impacts on CSR while in contrast, board independence, female gender, board professionalism and board equity ownership have a significant effect on CSR. It was recommended that the management of listed oil and gas companies need to have more independent outside directors on the board to enhance monitoring and CSR performance. Also, higher participation of female on the board will improve CSR performance because of their concern for environmental issues. In addition, having more members with professional expertise will improve the decision making of the board and equally shape CSR performance. Board members with equity stake will align the interest of the managers with those of shareholders and likewise, focus more on long-term goals of the firm. Listed oil and gas firm should maintain appropriate board size and required number of board meetings as stipulated by code of corporate governance
PROFITABILITY AND TURNOVER APPRAISAL OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
No full textThe study seeks to appraise the performance of deposit money banks in Nigeria, given the mounting pressure for cashless transactions and the increasing digitization and automation of financial services around the globe. Appropriately, the ex-post facto/casual comparative research design was adopted to obtain relevant and desirable secondary data from the Annual Bulletins of the Central Bank of Nigeria and E-payment Statistics Platforms from 2012 to 2020, to empirically appraise the profitability and turnover of all the 15 Nigerian deposit money banks quoted as at January 1, 2021, in the light of the non-bank led theory. Specifically, the study interrogates the effect of point of sale and online loans on the profitability and turnover of Nigerian deposit money banks, using Pearson Product Moment Correlation and Linear Regression Analysis. The conclusions from findings from E-View 9.0 (inferential) statistical results at 0.05 level of significance are that, while the increasing use and patronage of point-of-sale terminals significantly improves the profitability of Nigerian deposit money banks, it adversely affects their turnover insignificantly; and the flexibility of and increasing preference for online loan facilities adversely affect the profitability, but improves the turnover of deposit money banks in Nigeria. The study recommends that deposit money banks should be operationally flexible and competitive, and fully automate their financial products and services
THE EFFECT OF BANK SECTORAL CREDIT AND EXCHANGE RATE ON FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA
No full textThe study examined the effect of deposit money bank’s credit facilities and exchange rate on the corporate financial performance of listed manufacturing firms in Nigeria. Data for the study were sourced from the annual reports and accounts of the sampled firms for the period of ten years spanning from 2013 to 2022, the collected data were analyzed using Panel regression analysis, result of the analysis showed that credit facilities had a significant and negative effect on the financial performance of the sampled manufacturing firms in Nigeria. It was also revealed that the effect of the exchange rate on the return on assets of manufacturing firms in Nigeria is significant and negative. Accordingly, the study concludes that sectoral allocation and exchange rate are significant determinants of financial performance. Considering the negative and significant effect of sectoral allocation and exchange rate on the profit of manufacturing firms in Nigeria the study therefore, recommends that the government of Nigeria should implement policies that would encourage lending and also ensure a stable exchange rate
CSR INITIATIVES AND SUSTAINABILITY RESILIENCE IN NIGERIA'S OIL AND GAS INDUSTRY: A PLS-SEM APPROACH FROM LOCAL COMMUNITIES' PERSPECTIVE
No full textDespite its potential for economic growth and sustainable development, Nigeria faces social challenges including poverty, environmental degradation, and economic decline. In 2023, it ranked 146th out of 166 on the SDG index, with a poverty headcount of $2.15/day. Over the past two decades, Nigerian oil and gas companies have faced sustainability criticism, emphasizing the importance of CSR initiatives for triple bottom line sustainability. This study examines how the CSR initiatives of Nigerian energy companies impact the sustainability and resilience of the Niger Delta region. By using an explorative research design guided by positivism philosophy, 460 survey responses were collected from Niger Delta community members via Google Form and analyzed using PLS-SEM since the research framework of the CSR and COM-R model comprises five primary dimensions each. The study discovered that CSR initiatives have a significant impact on sustainability and resilience in the Niger Delta. This underscores that integrating socially responsible initiatives not only enhances the ethical standing of these businesses but also generates high strategic value, bolstering their sustainability and resilience. The research recommendations include reassessing CSR initiatives, increasing community engagement, and collaborating with regulatory bodies. This will foster community cohesion, adaptability, and voluntary compliance with industry standards and social norms within the community. The research's descriptive value lies in its empirical demonstration of the connection between CSR and sustainability resilience. Firms can use these findings to enhance their CSR efforts and improve sustainability and resilience in future business practices. The research acknowledges potential biases in data collection stemming from unequal online access among the members of Niger Delta communities, resulting in a partial representation of the diverse range of respondent behaviours across the continent, as various cultural, economic, and social factors can influence their survey responses
THE IMPACT OF FIRM CHARACTERISTICS ON ACCRUALS AND REAL EARNINGS MANGEMENT OF LISTED MANUFACTURING FIRMS IN NIGERIA
No full textThe concerns about earnings management arose after the fall of many multinational companies. Extant literature has shown accruals and real earnings management techniques as dual ways of manipulating earnings. However, prior literatures have dwelled on AEM making it vast and creating a literature gap for REM with unanswered questions. This study examined the effect of firm characteristics on both and AEM was measured using the extended jones model by Yoon, Miller & Jirapon (2006) model while REM was measured by the Rowchowdhury (2006) model. The research sample was 40 firms drawn from listed manufacturing firms on the Nigerian Exchange Group (NGX) for the period 2007 to 2021. The ex post factor research design was used to determine the relationship between the dependent variable (Earnings management proxy by accruals earnings management and real earnings management), the independent variables (firm characteristics proxy by firm size, firms’ growth, firms’ profitability and audit quality) and the tradeoff between AEM and REM. The study used the multiple linear regressions as a tool of analysis. The results indicated; firm size has a consistent negative impact on both AEM and REM, with statistically significant results indicating that larger firms may face unique challenges related to financial reporting quality. Return on assets (ROA), have negative relationship with both AEM and REM which indicates Manager’s aggressive behavior to meet the benchmark has a significant positive association with both AEM and REM. Audit quality was also found to have a positive effect for both AEM and REM (0.0081 and 0.0008) which shows that the choice of audit firm affects both AEM and REM. Moreover, the results indicate that highly leveraged firms engage more in real earnings management than the accruals earnings management. The study concludes that firm growth measured by leverage has a significant positive impact on REM and higher this could be because managers decrease AEM because of strict audits and pressure of debt covenant. The perhaps increased REM knowing that detecting REM is more difficult than AEM, hence manipulated real activities with the purpose of observing finance obligations. Therefore, this study recommends heightened oversight and transparency, particularly in the context of real earnings management; regulators can work towards curbing detrimental practices that impact firm value
THE IMPACT OF AUDIT QUALITY ON FIRM’S PERFORMANCE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA
No full textAbstract The study examines the relationship between audit quality and firm’s performance of listed consumer goods firms in Nigeria, it used both the agency theory and credibility theory. The data used was extracted from secondary source using the annual reports and accounts of listed consumer goods firms in Nigeria for the period of ten years, 2012 to 2021 from 16 consumer goods firms in Nigeria. Multiple linear regression technique is used to analyze the data, using descriptive statistics, Pearson correlation with the help of STATA, as a statistical tool of analysis. While, return on equity and economic value added were used as measures for firm’s performance. The finding from the study indicates that audit firm independence, joint audit, audit firm experience and audit firm partner tenure all have a positive and significant impact on firm’s performance of listed consumer goods firms in Nigeria, only audit firm reputation indicates a negative impact. Hence, shareholders are advised to ensure that their firms are audited by good audit firms that provides more independent, accurate and efficient audit services
OWNERSHIP STRUCTURE AND FEMALE INCLUSION OF LISTED FINANCIAL FIRMS IN NIGERIA
No full textThe study investigated how ownership structure influence the female inclusion of listed financial firms in Nigeria. Using Longitudinal research design findings revealed that managerial ownership exhibited a direct effect on female inclusion, institutional ownership was significant with a direct nexus with female inclusion, while foreign ownership was non-significant but exhibited an inverse sign. The study concluded that share possession held by managers, as well as, other institution that manage people’s wealth determine the percentage of women that participate in board of directors of listed financial firms in Nigeria; while, low share possession held by foreign ownership reduces it. The study recommended that the director within the listed financial firms should ensure that they make their ownership stakes (shares) attractive for foreign ownership through publicity