FUDMA Journal of Accounting and Finance Research [FUJAFR]
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Impact of Discretionary Accrual Earnings Management on Firm Value of Listed Consumer Goods Firms in Nigeria
Full text linkThis study examined the impact of discretionary accrual earnings management on the firm value of listed consumer goods firms in Nigeria. The study adopted a longitudinal panel research design, selecting a sample of sixteen (16) firms through a purposive sampling technique from the population of twenty-one consumer goods firms listed in the Nigerian Exchange Group (NGX) as of 31st December 2022. Earnings management was proxied using the absolute value of discretionary accruals via a modified Jones model, while Tobin\u27s Q ratio served as the measure for firm value. Data spanning 2013 to 2022 was sourced from audited annual financial statements of the sampled firms. Various analytical methods, including descriptive analysis, correlation analysis, and multiple regression techniques, were employed to analyze the dataset. The results revealed that discretionary accrual earnings management has a positive and significant impact on the firm value of listed consumer goods firms in Nigeria. Considering these findings, the study recommends that policy makers should strengthen frameworks to detect and deter excessive or deceptive earnings management practices that could mislead investors and distort market perceptions. Therefore, effective frameworks are essential to ensure that earnings management practices adhere to ethical standards
Audit Committee Diligence and Gender Diversity as Catalysts for Scale Efficiency in Nigerian Manufacturing Firms
Full text linkThis study examined the impact of audit committee diligence and gender diversity on scale efficiency in Nigerian manufacturing firms. Audit committee diligence, measured by the frequency of meetings, reflects the committee\u27s commitment to ensuring effective oversight and operational efficiency. Gender diversity introduces diverse perspectives that enhance decision-making processes. Using a panel research approach with data from 50 listed Nigerian manufacturing firms over the period 2012–2022, the study employed panel regression models to analyze the relationship between audit committee attributes and scale efficiency, measured by scale efficiency based on turnover and assets. The results showed that audit committee diligence positively and significantly influenced scale efficiency based on assets, highlighting the importance of frequent and focused meetings in driving operational efficiency. However, diligence had an insignificant relationship with scale efficiency based on turnover, suggesting that its immediate impact on revenue-related efficiency may be limited. Conversely, audit committee gender diversity exhibited an insignificant relationship with both measures of scale efficiency, implying that gender diversity alone may not directly influence scale efficiency in the Nigerian context. The findings contribute to the growing literature on corporate governance by providing empirical evidence from an emerging economy. The study highlights the need for strengthening audit committee practices through enhanced training and promoting an inclusive governance environment that leverages diverse perspectives for better decision-making.
Keywords: Audit committee diligence, Gender diversity, Scale efficiency, Nigerian manufacturing firms
Board Diversity and Value of Listed Industrial Goods Firms in Nigeria: Does Audit Committee Independence Matter?
Full text linkThis study investigates the effect of board diversity specifically gender, nationality, and expertise on the firm value of listed industrial goods firms in Nigeria, with a focus on the moderating role of audit committee independence. Using panel data from 11 firms spanning 2014 to 2023, and employing panel regression analysis, the findings reveal that board gender diversity and board expertise significantly enhance firm value. Moreover, audit committee independence strengthens the positive effects of gender diversity and expertise on firm performance. However, board nationality diversity shows no significant direct or moderate influence on firm value. These results underscore the importance of inclusive and skilled boards, supported by independent audit oversight, in improving firm outcomes. The study suggests among others that the regulatory bodies such as the Financial Reporting Council (FRC) and the Nigerian Exchange Group (NGX) should enforce minimum female representation on boards to institutionalize the benefits of gender diversity
Corporate Governance Financial Expertise and Exceptional Performance of Quoted Non-Financial Firms in Nigeria
Full text linkThis study investigates the relationship between corporate governance, financial expertise, and the exceptional performance of quoted non-financial firms in Nigeria. The study utilizes secondary source panel data from 2005 to 2023 for 75 firms listed on the floor of the Nigerian Exchange Group (NGX). The results of the generalized methods of moments (GMM) regression indicated that all the variables of audit committee members with financial expertise (ACFE), board members with financial expertise (BFE), and CEOs with financial expertise (CEOFE) are positively significant with FPE. The study concludes that corporate governance financial expertise positively affects the exceptional performance of quoted non-financial firms in Nigeria. The study therefore recommends that management should maintain the current membership of the audit committee with financial expertise or consider increasing it to guarantee its effectiveness in improving the profitability of the firms, since ACFE has a positive and significant relationship with the exceptional performance of quoted non-financial companies in Nigeria
The Impact of Corporate Governance Attributes on Tax Planning of Listed Deposit Money Banks In Nigeria: Corporate Governance and Tax Planning
No full textThis study examines the impact of corporate governance attributes specifically (Board size, Board composition and Audit committee size) on tax planning peroxide by effective tax rate of listed deposit banks in Nigeria. The population of the study consist of all the listed deposit money banks in Nigeria while using purposive sampling technique selected 7 listed DMB’s for a period of fourteen years (2008-2021), the data were obtained from the annual report and account of the sampled banks for the period. Ordinary least square was used to analyse the data using stata version 14. The study reveals that board size is negatively significant with effective tax rate. However, the regression results of board composition and audit committee size indicates that independent directors on the board have positive and significant impact on tax planning. While result for leverage and return on owners’ equity indicate that the two variables have insignificant relationship on tax planning. The result also shows that firm size measured as natural log of total asset is significant but negatively related with the tax planning. This implies that DMB’s have not been properly utilizing their assets in influencing their tax planning. Based on the above findings, this paper recommends that listed DMB’s should device a way of increasing corporate tax planning. The findings are limited to DMB’s listed on the floor of Nigerian Stock Exchange
Social disclosure practices and financial performance: evidence from non-financial firms in Nigeria
Full text linkPurpose: Companies in developing nations, particularly Nigeria, have benefited financially at the expense of their workers by failing to meet their operational demands and properly disclosing this information in their annual reports. The aforementioned issues have caused public concern and awareness about the social issues of these firms. Thus, this study therefore investigates to what existence does social disclosure policy influence financial performance among selected non-financial firms in Nigeria and how does social community involvement influence financial performance among selected non-financial firm in Nigeria.
Methodology: The study adopted an ex-post facto research design, drawing data from annual reports and financial statements of listed manufacturing firms over the ten-year period. Descriptive statistics, Pearson correlation analysis, and ordinary least squares (OLS) regression were employed to analyze the data.
Results and conclusion: The finding of this study discovered that social disclosure policy and social community involvement have influence on financial performance among selected non-financial firms in Nigeria.
Implication of findings: Accordingly, this study suggests that non-financial firms prioritize implementing a meaningful social disclosure strategy that considers the requirements of significant stakeholders, such as employee welfare, workplace safety, and community development. These initiatives must be quantified, documented, and publicly disseminated in order to be as beneficial and pertinent as feasible
The Moderating effect of audit quality on the relationship between board attributes and tax avoidance of listed industrial goods firms in Nigeria
Full text linkThe study examines the moderating effect of audit quality on the relationship between board attributes and tax avoidance of listed industrial goods firms in Nigeria. Data for the study were sourced solely from the secondary sources extracted from annual reports and accounts of the sampled industrial goods firms in Nigeria. The sample size is 11 industrial goods firms out of the 13 industrial goods firms listed on the floor of Nigeria Exchange Group. Panel regression analysis was applied to analyse the data. The study reveals that board size and board independence exert positive and insignificant effects on the cash effective tax rate (CETR). It also finds that gender diversity and board financial expertise depict negative and significant effects on the CETR. The study further reveals positive and significant moderated effects of audit quality on the CETR. The paper recommends that industrial goods firms in Nigeria should conduct a comprehensive assessment of the board size in relation to the firms’ operational complexity and strategic needs and evaluate the effectiveness of board committees and subcommittees in managing tax related matters. Industrial goods firms in Nigeria should also strengthen the roles and influence of independent directors in strategic tax avoidance decisions to enhance objectivity, transparency and effectiveness of each director. Industrial goods firms and Financial Reporting Council of Nigeria (FRCN) should establish a structured nomination process that encourages the inclusion of qualified female directors in the board selection process and consider appointing directors with a strong background in taxation, finance, and accounting profession
Does board size, audit firm tenure, and audit firm size affect audit quality of listed companies in Nigeria?
Full text linkPurpose: The study examined the determinants of audit quality among listed oil and gas, agriculture, and natural resources firms in Nigeria by assessing the influence of board size, audit firm tenure, and audit firm size. The study was anchored on agency theory and resource dependency theory to explain how governance structures and auditor characteristics shape audit quality outcomes.
Methodology: An ex-post facto research design was adopted, using secondary data obtained from all 19 listed firms of the sectors under study in Nigeria over a ten-year period (2014–2023). The dataset was analyzed using Panel Generalized Least Squares (PGLS) regression to determine the extent to which board size, audit firm tenure, and audit firm size impact audit quality.
Results and Conclusion: The study shows that board size, audit firm tenure, and audit firm size each have positive and significant effects on audit quality. Larger boards enhance oversight, longer auditor–client relationships strengthen audit understanding, and larger audit firms provide superior expertise and resources. Overall, these factors are key determinants of audit quality in Nigeria’s oil and gas, agriculture, and natural resources sector.
Implication of Findings: The findings suggest that stronger governance structures—through adequately sized boards, optimal auditor tenure, and the use of reputable audit firms—can significantly improve audit quality. These insights support policy and regulatory efforts aimed at enhancing the credibility of financial reporting in Nigeria’s primary goods sector
Effect of responsibility accounting on financial and social performances of branch expansion of microfinance institutions in the CamCCUL network, Cameroon
Full text linkPurpose: Microfinance Institution (MFI) branch expansion plays a critical role in enabling these institutions to achieve double bottom line objectives. However, this expansion strategy has introduced some management challenges pointing to responsibility accounting (RA). This study seeks to investigate the effect of RA on the financial and social performance of MFIs in the CamCCUL network, Cameroon.
Methodology: The study adopted the quantitative research method using questionnaires to collect data from a sample of 86 MFIs selected through convenience and simple random techniques. Robust OLS regression was employed to analyse data.
Results and conclusion: Results indicate that for financial performance, assigning responsibilities and delegating authority (ARDA), allocating costs and revenues for controllability (ACRC) and establishing performance measurement targets (EPMT) were statistically insignificant while performance evaluation (PE) and performance incentive systems (PIS) were statistically significant. On social performance, ACRC, EPMT and PIS were statistically insignificant, whereas ARDA and PE were statistically significant. The study concludes that MFIs should pay rigorous attention to RA principles and integrate them into their strategic plans to ensure that accountability and transparency drive overall institutional performance. The study recommends that, MFIs should conduct periodic performance appraisals and use results for cost allocation, decision-making and promotion; incentive systems should be tied to measurable performance results to motivate staff towards congruency.
Implication of findings: The study has implications for policymakers to regulate and enforce RA implementation for business sustainability across all sectors and enable MFIs to enhance accountability and expansion complexity management as well as narrow the existing literature gap on RA in Cameroon
The Level of Compliance with AAOIFI Standards by Islamic Banks in UAE
Full text linkThe unprecedented growth in Islamic financial products and services and the emerging orientation that the conventional International Financial Reporting Standards (IFRS) are incompatible with Islamic beliefs and values. This led to the establishment of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). However, the actual practice and level of compliance with the AAOIFI standards among Islamic banks in the United Arab Emirates (UAE) are entirely unknown hitherto. Therefore, this study aims to measure the extent of compliance with AAOIFI standards by Islamic banks in the UAE. Via the extensive review of academic publications and document analysis of overarching AAOIFI standards, disclosure items were established and categorized into four: general corporate information, primary statements, accounting policies statements, and notes to the accounts. The 2018 financial statements of 7 Islamic banks in the UAE were evaluated to assess their level of compliance with the AAOIFI disclosure items using the unweighted disclosure index. The findings indicate that the level of compliance with AAOIFI on general corporate information was very high in all Islamic banks investigated, while the primary statements, accounting policies statements, and notes to the accounts recorded a low level of disclosure. This study contributes to the existing body of knowledge on the aspect of AAOIFI compliance among Islamic financial institutions, especially in the UAE, and enlightens the Islamic financial institutions on the areas of AAOIFI that need to be adequately adopted