244 research outputs found
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EFFECT OF SELECTED MACROECONOMIC VARIABLES ON STOCK MARKET VOLATILITY IN NIGERIA
No full textThe Nigerian economy has undergone significant changes in terms of policies that are aimed at improving the performance of the economy and to be able to attract foreign direct investments. It is observed that the performance of the stock market depends to a large extent on the economic condition of the country hence macroeconomic variables are said to have potential effect on stock market volatility. The study focused on macroeconomic variables such as Economic recession, inflation rate, interest rate and stock market liberalisation using monthly data from February 2010 to September 2022. The Augmented Dickey Fuller (ADF) and Philip Perron (PP) unit root tests were conducted on the time series data. The ARCH LM tests was also carried out and the EGARCH model was estimated under the assumption of normally distributed model. The ARCH tests results revealed that there exists ARCH effects in the NGX stock returns implying the presence of volatility clustering in the return series. The results also revealed that Economic recession has a negative impact on stock market volatility. Inflation rate was also found to have a significant positive effect and Interest rate has a positive insignificance effect on volatility. Stock market liberalisation was also found to have a significant negative impact on volatility. The findings also indicate volatility persistence in the Nigerian stock market and that bad news generates higher volatility than good news of the same magnitude. It is recommended that regulators should come up with policies towards restoration of investor’s confidence in the market. Nigerian exchange group should also develop robust risk management strategies to protect investments during economic downturns. This could include diversifying portfolios and using hedging techniques to ensure minimum volatility in stock market prices
FORECASTING AUTOMOBILE DEMAND AND SALES IN THE NIGERIAN MARKET: A MACHINE LEARNING APPROACH TO URBAN MOBILITY, MARKET COMPETITION, AND POLICY INSIGHTS
No full textThe estimation of automobile demand is central to both academic inquiry and policy planning, particularly given the sector‘s critical role in global economic activity. In developed economies such as the United States, Germany, and China, the auto industry serves as a paradigmatic case for analyzing market dynamics in differentiated, oligopolistic settings. Accurate demand forecasting is essential for production planning, pricing strategy, and infrastructure development. However, in emerging markets like Nigeria, empirical research on automobile demand remains sparse despite its growing relevance. Nigeria's automotive landscape is undergoing rapid transformation, propelled by urbanization, a rising middle class, and industrial policy reforms such as the National Automotive Industry Development Plan (NAIDP). This study addresses the empirical gap byevaluating the performance of various regression models, including the OLS, MARS, Regression Tree, Random Forest, and Gradient Boosting, in predicting automobile demand using real-world data. Among the models tested, OLS emerged as the most effective, with the lowest error metrics (MAE = 0.15, MSE = 0.06, RMSE = 0.24) and a strong explanatory power (R² = 0.86). In contrast, the MARS model underperformed, displaying the highest error rates and limited predictive capacity (R² = 0.43). Ensemble methods (RF and GB) showed moderate performance, with GB slightly outperforming RF in terms of relative error (MAPE = 0.01). The RegressionTree modelalsoperformed well,balancingaccuracyand interpretability.Thefindingsoffer valuable insights for both policymakers and industry stakeholders in Nigeria, emphasizing the importance of model selection in automotive demand estimation and the strategic implications for infrastructure and investment planning
FINANCIAL RESILIENCE UNDER CLIMATE RISK: MODERATING EFFECTS OF ENVIRONMENTAL EXPOSURE ON PERFORMANCE OF AGRICULTURAL ENTERPRISES IN NIGERIA
No full textThis study investigates the moderating role of climate sensitivity on the relationship between firm-specific characteristics and financial performance among listed agricultural firms in Nigeria over the period 2014–2023. Using panel data from ten firms and employing a Generalized Least Squares (GLS) random effects model, the analysis explores how climate-related variations influence the impact of leverage, growth opportunity, complexity, liquidity, firm size, and firm age on return on assets. Results reveal that while climate sensitivity independently does not significantly influence financial performance, it significantly moderates the effect of liquidity on profitability, indicating heightened vulnerability to climatic shocks in firms with weaker liquidity profiles. The findings underscore the necessity for adaptive financial strategies in agribusiness, especially under Nigeria‘s climate volatility. The study contributes to the discourse on environmental-financial integration by offering empirical insights for policymakers, investors, and corporate managers in climate-sensitive economies. Limitations include the sectoral scope and data availability, with future research encouraged to explore multi- sectoral analyses and incorporate climate adaptation indices
IMPACT OF AUDIT QUALITY ON EARNINGS MANAGEMENT OF CONSUMER GOODS FIRMS IN NIGERIA
No full textThis study examines the impact of audit quality on earnings management of listed consumer goods firms in Nigeria. The study adopted correlational research design. The population of the covers all twenty-one (21) listed consumer goods firm in Nigeria and two-stages filter was used to arrive at a sample size of fifteen (15) consumer goods firms listed the floor of Nigerian Exchange group as at 31st December, 2022, the data were extracted from annual reports and accounts of the sampled firms for the period of ten (10) years from 2013-2022. Multiple regression was used as a technique of data analysis, regression result shows that audit reporting lag, audit client’s importance and auditor independence have a positive and significant impact on earnings management of the sampled firms, while auditor’s tenure has a negative and significant impact on earnings management. Based on the findings, the study concluded that audit reporting lag, audit client’s importance and auditor independence enhanced the earnings management. while, auditor tenure does not affect earnings management. Based on findings and conclusion, it is therefore, recommends that the regulatory bodies such as Financial Reporting Council of Nigeria and Security and Exchange Commission in Nigeria should ensure that audited reports for private companies are release within a regulated period, this is because prolonged audit lagged increase earnings management by giving management of the companies enough time to manipulate earnings. This will impede the users of financial information to take an informed decision
BOARD CHARACTERISTICS AND AUDIT QUALITY OF LISTED CONSUMER GOODS FIRMS IN NIGERIA
No full textThe study investigates the effects of board characteristics on the audit quality of publicly traded listed consumer goods firms in Nigeria from 2013 to 2022. An ex-post facto research approach was used in this study. For data analysis, the panel regression technique was used in the study. The study's findings revealed that board independence and board financial expertise have a positive and significant effect on the audit quality of Nigerian listed consumer goods companies. However, board gender diversity had a negative and insignificant effect on the audit quality of Nigerian-listed consumer goods companies. The study concludes that boards with more independent members who are not influenced by management may improve the audit process efficacy. To improve audit quality, listed consumer goods firms should focus on retaining board independence and guaranteeing the presence of directors with significant financial experience. While the relationship between board gender diversity and audit quality is still uncertain, it is critical to promote diversity and inclusivity on corporate boards in order to build a more robust governance structure. Continuous monitoring and research in this area will contribute to a better understanding of the relationship between gender diversity and audit quality
BOARD ATTRIBUTES AND TIMELINESS OF FINANCIAL REPORTS OF LISTED NON-FINANCIAL FIRMS IN NIGERIA
No full textThis study is on board attributes and timeliness of financial reports of listed non-financial firms in Nigeria. The study covers a period of ten (10) years from 2011 to 2020. The study embraced the correlational research design. The population of the study comprises of one hundred and fourteen (114) non-financial firms that are listed on the NXG as at 31st December 2020 out of which sixty (60) was selected using a two-point filter to eliminate the firms that has not fulfil the criteria for the sample selection for the study. The dependent variable of the study is timeliness of financial reports and is proxied by audit report lag. The independent variable which is board attributes is proxied by board size and board gender. While the control variable profitability and firm size. Board attribute was found to have a negative and significant impact on timeliness of financial report of listed non-financial firms in Nigeria. This implies that for every increase in the board size and an increase in the number of females on the board, there is a significant reduction in the audit report lag among listed non-financial firms in Nigeria. It can be concluded that board attribute reduces audit report delay among listed non-financial firms in Nigeria. It is therefore recommended that the board of directors of listed non-financial firms should reduce the level of leverage in their capital structure since it was found that delay in audit report increases with an increase in leverage
MODERATING EFFECT OF AUDIT QUALITY ON VALUE RELEVANCE OF FAIR VALUE MEASUREMENTS HIERARCHY OF LISTED FINANCIAL SERVICES COMPANIES
No full textThe International Financial Reporting Standards (IFRS) was developed to enhance transparency and high-quality information as a principle-based standard that allows some degree of flexibility in financial reporting process. An important feature of IFRS is that of paradigm shift from historical cost to fair value-based measurement of certain assets and liabilities. Consequently, the reliability of fair value measurement became a subject of concern, particularly in most developing economies with inactive market for financial instruments. The study examines the value relevance of fair value measurement hierarchy for financial instruments taking into consideration the moderating role of audit quality. The sample comprised of thirty-six (36) out of fifty-nine (59) financial services companies listed on the Nigerian Exchange Group as at 31st December, 2018. The study employed OLS multiple regression and heteroskedasticity corrected standard errors were used to test the relationship. The study revealed fair value measurements hierarchy is value relevant as it has significant impact on share prices. Specifically, Level 1 and Level 2 fair value financial assets were found to have positive significant influence on the share price of listed financial services companies in Nigeria while Level 3 fair value financial assets were found to be negatively and insignificantly influencing the share prices. Lastly, audit quality was found to be positively and significantly influencing the value relevance of fair value financial assets of listed financial services companies in Nigeria. The study recommends among others, the need for regulatory authorities to create an active market for financial instruments to fully achieve the fundamental objective of fair value and to limit the uncertainty and ambiguities around the application of level 3 fair value hierarchy. Also, investors should plan and allocate their investments to companies with lower information risk (i.e companies with lower level 3 fair value estimates) in making appropriate investment decisions relating to financial instruments such as stocks, bonds, and fixed interest deposit
DO AUDIT COMMITTEE AND BOARD ATTRIBUTES INFLUENCE ENVIRONMENTAL DISCLOSURE: AN EMPIRICAL INVESTIGATION OF LISTED FIRMS IN NIGERIA
No full textAbstract Corporate environmental practices have faced intense stakeholder scrutiny due to severe ecological concerns affecting local communities and global stakeholders. Using correlational design, this study investigates how audit committee and board of directors’ attributes impact on environmental disclosure among the Nigerian listed firms. A dataset of 95 listed Nigerian companies across diverse sectors was analyzed using regression analysis for the period of 2012-2022. Fixed effect regression results indicates that audit committee independence and board of directors’ nationality positively influence the environmental disclosure of the Nigerian listed firms. On the contrary, frequency of audit committee meetings has significant negative effect on environmental disclosure. This study’s outcome offer valuable insight for Nigerian regulatory bodies and policymakers to inform environmental reporting guidelines alongside financial reporting in annual reports. The study recommends among others that regulators such as Security and Exchange Commission should encourage firms in considering appointing expert foreign nationals to their board as evidenced that their presence can significantly impact environmental information disclosure, leveraging their diverse expertise and experience to enhance management’s handling of environmental issues
BOARD CHARACTERISTICS AND CORPORATE SOCIAL RESPONSIBILITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
No full textUnderstanding how board characteristics influence corporate social responsibility (CSR) remains a pressing concern for governance and sustainability in the banking sector. This study examined the impact of board characteristics measured by board size, board independence, and gender diversity on the CSR of listed deposit money banks in Nigeria. The research adopted a correlational research design and utilized secondary panel data spanning 2014 to 2023, with a population of 10 listed banks and a census sample of all. Data were sourced from publicly available annual reports and regulatory filings and analysed using simple multiple regression within a panel data framework. Findings reveal that board size, board independence, and gender diversity each have a statistically significant and positive influence on CSR expenditures. The study concludes that effective board composition especially larger, more independent, and gender-diverse boards enhances CSR engagement in the Nigerian banking context. It recommends that banks strengthen governance by expanding board size, ensuring a minimum 60% representation of independent directors, and increasing female participation to at least 30% in order to foster more ethical and socially responsible corporate behaviour
THE INTERPLAY OF FINANCIAL TECHNOLOGY, DIGITAL TRADE, AND ENVIRONMENTAL REGULATIONON SUSTAINABLE ECONOMIC GROWTH IN ADVANCED ECONOMIES
No full textThis study investigates the combined effects of fintech readiness, digital trade openness, mineral resource rents, and environmental policy stringency on economic growth across OECD countries from 2000 to 2023. Utilizing the Method of Moment Quantile Regression (MMQR), the analysis reveals heterogeneous impacts across the growthdistribution,wherefintechreadinessanddigitaltradeconsistentlypromotegrowth,whiledependenceon mineral rents tends to constrainit. Environmental policystringencyemerges as a significant positive moderator, indicating that stringent environmental regulations can support sustainable economic expansion without hindering development. These findings highlight the importance of integrating technological innovation, trade facilitation, resource management, and environmental governance in crafting growth policies. The study contributes to the literature on sustainable economic development and digital transformation by providing nuanced insights relevant to policymakers and stakeholders in advanced economies