FUDMA Journal of Accounting and Finance Research [FUJAFR]
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Effect of Lease Financing on the Financial Performance of Listed Consumer Goods Companies in Nigeria
Full text linkThis study examines the effect of lease financing on the performance of Listed Consumer Goods Companies in Nigeria. The ex-post factor research design was adopted with a sample of seven listed consumer goods companies who reported lease covering the period of implementation of IFRS 16, that is, from 2019-2022 was selected. Data were collected from secondary sources through the annual reports and accounts of the listed consumer goods companies in Nigeria. The study used pooled OLS (ordinary Leased Squares) to analyzed the data. The study used value of lease contract (right of use asset) to measure lease which is the independent variable and ROA as measure of financial performance. The findings showed that Lease finance showed a negative but significant effect on ROA of consumer goods companies in Nigeria. The study therefore recommends that Consumer goods companies should focus on improving their lease management practices to ensure efficient utilization of leased assets. This may involve implementing robust tracking systems, optimizing lease terms, and renegotiating lease agreements where necessary to better align with business objectives as it has shown negative effect on financial performance
Discretionary Accruals Earnings Management on Performance of Nigerian Listed Oil and Gas Companies
Full text linkThis study determines the impact of discretionary accruals earnings management on the financial performance of listed oil and gas companies in Nigeria. The study used panel data obtained from the annual reports and accounts of listed oil and Gas companies for a period of ten years (2013-2022). The dependent variable of the study is financial performance measured by return on assets (ROA), with leverage and liquidity as control variables. Panel regression was used to explore the effect and association of the dependent variable and two control variables (LEV and LIQ) with the independent variable discretionary accruals earnings management (DAEM), which were regressed using the EViews version 12 statistical package. The results obtained indicated the presence of earning management practices among the oil and gas managers. The managers manipulate the companies’ data in order to earn selfishly. The paper finally brings to the fore the modalities that the affected companies can take in order to stop the menace
Impact of Audit Market Concentration and Auditor Attributes on Audit Quality of Consumer Goods Firms in Nigeria
Full text linkThis study investigated the relationship between audit market concentration, auditor attributes, and audit quality of quoted consumer goods firms in Nigeria. A purposive sampling technique was used to select five (5) quoted consumer goods firms that consistently published their annual reports from 2012 to 2020. Secondary data were sourced from annual reports of the selected quoted consumer goods in Nigeria. Data collected were analyzed using the pooled regression least square estimation technique. The result of the study revealed that audit market concentration exerts a positive and significant effect on the audit quality of quoted consumer goods firms in Nigeria. The result also indicates that the auditor’s independence positively and significantly impacts audit quality. In contrast, the auditor’s tenure has an insignificant positive effect on the audit quality of quoted consumer goods firms in Nigeria. Based on these findings, this study concludes that audit market concentration and auditor attributes improve audit quality of consumer goods firms in Nigeria. The study, therefore, recommends that firms ensure frequent auditor rotation to limit the chances of auditor-client over-familiarity which will jeopardize independence and reduce audit quality
Human Resource Accounting and Share Price Performance Evidence from Listed Insurance Firms in Nigeria
Full text linkThis study investigates the impact of Human Resource Accounting (HRA) on share price performance among listed insurance firms in Nigeria. Specifically, the study examines the effects of human capital efficiency, structural capital efficiency, capital employed efficiency, and the value-added intellectual capital coefficient (VAIC) on share price performance. This research adopts ex-post facto and descriptive research designs, utilizing data from 13 insurance firms listed on the Nigerian Exchange Group from 2012 to 2021. Random effect regression model was employed to address statistical issues ensuring robust results, after controlling for multicollinearity and heteroscedasticity. The findings reveal that human capital efficiency and capital employed efficiency significantly enhance share price performance, highlighting the importance of these factors in driving market valuation. Conversely, VAIC shows a significant negative impact on share price performance, suggesting that not all aspects of intellectual capital positively influence market outcomes in the insurance sector. These results contribute to a deeper understanding of how human resource investments affect financial performance, particularly in the context of emerging markets like Nigeria. Based on these findings, this study recommends among others that insurance firms should prioritize investments in human capital development through targeted training and continuous professional development. This approach will enhance employee productivity and innovation, which in turn would positively influence share price performance and contribute to the overall financial health and market competitiveness of the firm
Assessing the Acceptability and Applicability of Accounting Software by Civil Society Organizations in Bauchi Metropolis
Full text linkThis paper examines the level of acceptability and applicability of accounting software’s by civil society organizations within Bauchi Metropolis. Civil society organizations/Non-governmental organizations support government effort and contribute to make life better for the people in their domain by complementing government efforts in improving the quality of living standards of the populace. In recent times, the issue of accountability and transparency have taken center stage in public discourse as to the management of funds and resources by CSOs officials. This issue calls for donors and stakeholders attention on the acceptability and applicability of accounting softtwares to manage their financial transactions in conformity to the international best practices. The population consists of 30 CSOs/NGOs operating within Bauchi Metropolis, Census sampling technique were adopted, primary data was used as questionnaires were distributed and retrieved with the help of research assistants, null hypotheses was rejected as the chi-square (X2) analysis shows the calculated chi-square Xis 7.322 greater than the tabulated chi-square X 3.841 at 5% significance level i.e X X.The findings shows that finance and accounts staffs including accountants do not show passion in accepting and applying accounting software to conduct financial transactions in their CSOs and still apply manual methods of recording financial transactions which do not conform to the best accounting ractice. The study conclude that there is lack of positive attitude on the part of staffs to accept and apply accounting software in to use in their CSOs/NGOs
Influence of Forensic Accounting on Litigation Support and Engagement in Nigeria
Full text linkThe research focused on the influence of forensic accounting on the objectivity of forensic accountant’s investigation and the Attorney’s judgment in litigation cases in Nigeria. The study was carried out using a descriptive survey design. The study population is the over 400 professionals and practitioners in Osogbo, Osun State which included deposit money banks, law firms, audit firms, higher education institutions as well as small and mid-sized industries. In determining the sample size, Solvin’s formula was used and 200 respondents were selected in the study while a technique of randomization and convenience sampling has been applied. For this study, primary data were used. Questionnaires have been employed as a tool for collecting data. The results of the study showed that forensic accounting (α = 0.293; p < 0.05) and (α = 0.243; p < 0.05) had positive and significant effect on the objectivity of forensic accountant’s investigation and the Attorney’s judgment in litigation cases in Nigeria respectively. The study concluded that the use of forensic accounting services in Nigeria is an effective way to obtain verifiable evidence and support for litigation that aids activities of Attorney’s in the process of prosecuting fraudsters and ensuring dispute resolution. The study recommends that management of firms in Nigeria should develop more interest in forensic accounting by recruiting more forensic accountants with good knowledge in investigative skills and litigation support services as part of their accounts and audit departments
Effect of Ownership Structure on Performance of Quoted Financial Firms in Nigeria
Full text linkThis study investigates the relationship between ownership structure and firm performance of quoted Nigerian financial firms in Nigeria. This study employs an Ex post facto research design, utilizing data extracted from annual reports of the financial firms listed on the Nigerian Exchange Group (NGX) between the years 2014 to 2023. The population of interest consists of 48 listed financial firms. Secondary data from the firms\u27 annual reports were collected and analyzed using fixed effect panel regression analysis as specified by Hausman test. The findings reveal significant positive effects of managerial ownership, institutional ownership, and ownership concentration on firm performance. These results align with established theories such as agency theory and stewardship theory, as well as previous empirical studies in the field of corporate governance and ownership structure. The study concludes that increasing managerial ownership can align the interests of managers with shareholders, leading to improved firm performance. Attracting institutional investors who bring expertise, monitoring capabilities, and long-term investment perspectives can also contribute to enhanced firm performance. Furthermore, careful management of ownership concentration can enhance monitoring and decision-making efficiency, align shareholder interests, and reduce agency costs. However, the study finds no significant impact of foreign ownership on firm performance in the Nigerian context. This suggests the need for further research to better understand the specific dynamics and potential implications of foreign ownership in the Nigerian financial industry, considering factors such as regulatory restrictions, cultural differences, and information asymmetry
Impact of dividend policy on financial performance of listed deposit money banks in Nigeria
No full textThis paper examines the effect of dividend policy on financial performance of listed deposit money banks in Nigeria. The data were collected from seven listed money deposit banks for a period of seven years from 2015 to 2021. The result indicates that dividend per share significantly and positively influenced the financial performance of listed deposit money banks in Nigeria. it also showed that firm size is negative and significantly related with firm financial performances. This result implies that larger firms are so reluctant about improving performance. On the other hand, the result of leverage reveals a positive significant relationship with financial performance. Thus, this finding is important to shareholders and potentials investors
Executive Compensation and Value of Listed Deposit Money Banks in Nigeria
Full text linkThe increasing failure of banks has made it important to seek for ways to enhance its value in order to attract investors and potential investors. To make this reality, scholars have argued from various quarters that the people who manage the banks must be adequately compensated if the desired value needs to be achieved. Therefore, the study examines the relationship between executive compensation and value of listed deposit money banks (DMB) in Nigeria. The study adopted correlational research design with balanced panel data of 14 listed banks which served as population of the study for the period of 2010-2021 using Generalized Least Square (GLS) regression as a tool of analysis. The study found that CEO Pay and Chairman’s compensation have positive effect on the value of listed banks, while the highest paid director exact negative influence on the banks’ value. This implies that the CEO Pay and Chairman’s compensation improves the value of banks. Therefore, it is recommended among others that the management of banks should increase the CEO pay and place more emphasis on performance as a basis of increased pay to guarantee continuous improvement in the value of the banks
Value Relevance of GRI Economic and Ethics/Integrity Disclosure among Listed Manufacturing Firms in Nigeria: The Role of Ownership Concentration
Full text linkoai:ojs2.fujafr.fudutsinma.edu.ng:article/1This study evaluates the value relevance of GRI Economic and Ethics/Integrity Disclosures among listed Manufacturing Firms in Nigeria. It also investigates the role of ownership concentration in influencing the value relevance of GRI disclosures. The study adopted the purposive sampling technique to select a sample of 43 listed Manufacturing Firms on the Nigerian Exchange Group (NGX) for the 8-year period from 2014–2021. The study used the Ohlson (1995) model to analyze the value relevance of GRI Economic and Ethics/Integrity Disclosures. The results of the study showed that GRI Economic Disclosure, Ethics/Integrity Disclosure and Ownership Concentration are value relevant in the Nigerian listed Manufacturing Firms. Further, the study found that ownership concentration has a significant moderating influence on the value relevance of GRI Economic and Ethics/Integrity Disclosures among listed Manufacturing Firms in Nigeria. The results of the study provide evidence that listed Manufacturing Firms should pay special attention to GRI Economic and Ethics/Integrity Disclosures in order to enhance firm value and investor decision-making. The study contributes to the extant literature by being the first to investigate the value relevance of GRI Economic and Ethics/Integrity Disclosures and the role of ownership concentration among listed Manufacturing Firms in Nigeria. The study recommends that listed Manufacturing Firms should respond to the GRI Economic and Ethics/Integrity Disclosure requirements in order to enhance firm value