FUDMA Journal of Accounting and Finance Research [FUJAFR]
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Effect of Corporate Attributes on Sustainability Reporting of Listed Non-financial Firms in Nigeria
Get PDFThe conventional accounting practice is predicated on the protection of overriding interests of wealthy capital providers. This is clearly demonstrated in the contents of general-purpose financial statements, which serves as a bastion of accountability and stewardship. This study examined the effect of corporate attributes on sustainability reporting of listed non-financial firms in Nigeria. The study measured corporate attributes with firms’ attributes (firm size, profitability, leverage, liquidity), board attributes (board size, board independence, board gender diversity, board financial expertise) and ownership attributes (foreign, managerial, institutional, ownership concentration) and sustainability reporting measured by sustainability disclosures in line with Global Reporting Initiative (GRI) standards. The study adopted ex-post facto research design relying on secondary data obtained from annual reports of the population, which comprised of 116 non-financial firms listed on the Nigeria Exchange Group (NGX) as at 31st December 2020 with sample size of 51 firms, covering the period of 2011 – 2020. The study employed the use of multiple regression panel model to analyze the data using E-view 10 statistical tool. According to the results of random effect regression, profitability, liquidity, leverage, institutional ownership, firm size, foreign ownership, board size and board financial expertise have positive and significant effect on sustainability reporting. Based on the findings, the study concluded that corporate attributes can effectively enhance the sustainability reporting of firms. Thus, the study recommended among others that regulators in financial reporting should monitor corporate attributes in firms closely as a measure of enhancing sustainability reporting of listed non-financial firms in Nigeria
Effect of Financial Regulations on Accountability of Some Selected Public Organizations in Nigeria
Get PDFThe Federal Government of Nigeria has implemented reforms to combat corruption and promote public accountability in public service. The Federal Government Financial Regulations aim to achieve this by promoting transparency and accountability. This study examines the impact of financial regulations on accountability, focusing on compliance with internal audit reviews and the enforcement of sanctions for breaches resulting in government losses. The study uses primary data from interviews with staff at the National Identity Management Commission (NIMC) and National Airspace Research and Development Agency (NASRDA) and quantitative data collection. Results show that strict compliance with internal audit reviews significantly improves accountability in the area, leading to public trust in financial transactions. Additionally, strict enforcement of sanctions on breaches resulting in government losses also enhances accountability. The study suggests regularly providing a detailed internal audit review time table to staff and unit heads for proper preparation. Prompt reporting of anomalies is crucial. Top leadership should outline consequences for non-observance and strengthen internal controls to ensure checks and balances in audit reviews. Lastly, the study suggests imposing stiffer sanctions on breaches causing government losses to deter erring staff and strictly based on financial regulations
Impact of Intellectual Capital on Financial Performance of Listed Oil and Gas Firms in Nigeria
Get PDFThis paper examines the impact of intellectual capital on financial performance of listed firms in Nigeria. To achieve this objective; quantitative research design was employed. Data were generated from the annual reports and accounts of the sampled listed oil and gas companies from 2016-2020. The period is chosen and believes to be adequate in providing insight on the inflationary trends which the industry experienced. Similarly, the period of five years selected is in line with the studies of Muhammad and Rashid, 2015 as well as Iyande, 2018. Intellectual Capital as independent variable was measured by its components (HCE, SCE and CEE) while financial performance being the dependent variable was measured by NPM and ROE. Regression technique was used as tools of data analysis and the findings establish that the independent variables (HCE, SCE and CEE) have significant positive impact on the oil and gas companies’ Financial Performance proxies by NPM and ROE. The regression results show R-square of 86.1% and 59.4% for NPM and ROE models respectively. This implies that the model is fit and the explanatory variables are properly selected and account for the substantial value of the corporate profitability. Hence, the paper recommends that listed oil and gas companies in Nigeria should improve their efforts to boost the value of their intellectual capital for its crucial impact on NPM and ROE. This can be achieved through maximization of market value created, intellectual capital return and more investment in intellectual capital components, particularly human, structural and relational/customer capital
Board Attributes, Risk Management Committee and Survival of Listed Manufacturing Firms in Nigeria
Get PDFThe dynamics and makeup of a company\u27s board play an important role in determining its success and overall survival. This is due to the crucial role boards play in shaping a company\u27s strategic decisions, risk management, and overall governance. The particular attributes of the board that support long-term company survival, however, are still unknown because research in this area produced contradictory results without taking into account conditions that can strengthen the correlations between the variables. Therefore, this study investigates the moderating effect of risk management committee on the relationship between board attributes and survival of listed manufacturing firms in Nigeria. The study utilized secondary data extracted from annual reports and accounts of 34 sampled firms for the period from 2011 to 2022. The Generalized Least Square (GLS) regression techniques were used for the analysis. The results show that while board independence and board size were negatively associated with survival, greater board expertise enhances firm survival. Similarly, findings reveal that the existence of a risk management committee (RMC) did not only significantly contribute to survival but also moderates the relationship between board attributes and survival of listed manufacturing firms in Nigeria. Thus, the study recommends, amongst others, that the shareholders of listed manufacturing firms in Nigeria should consider reducing the size of the boards to a more manageable and effective number since smaller boards can make decisions more efficiently and prevent conflicts arising from an overly large board
Determinants of Adoption of Computer Assisted Auditing Techniques: A Survey of Auditors in Kano State, Nigeria
Get PDFComputer assisted auditing techniques (CAATs) have been identified as a necessary and sufficient conditions for an effective and qualitative audit report. This study analyzed the determinants of adoption of computer assisted auditing techniques with focus on auditors practicing in Kano, Nigeria. The study adopted survey method where 125 auditors were sampled from seventeen audit firms through a multi-stage sampling technique. The data was analyzed using econometric methods (Ordered Logit Regression) in line with the Unified Theory of Acceptance and Use of Technology (UTAUT). Performance expectancy and effort expectancy were found to be statistically significant determinants of auditors’ total intention to CAATs adoption and usage. However, facilitating condition and social influence were not significant in explaining the auditor’s total intention to CAATs adoption and usage. The study recommends that, audit firms should invest in technological tools and train auditors on computer tools. Also, the regulatory bodies should consider computer proficiency as part of the regulatory checks. This adoption and usage of CAATs will help the auditors to produce an effective and qualitative audit report
Impact of CEO Ownership on Financial Performance: Evidence from Nigerian Listed Firms
Get PDFThis study investigates the impact of CEO ownership on financial performance among Nigerian listed firms from 2016 to 2022. The study population encompasses all the 157 companies listed on the Nigerian Exchange Group (NGX) as of January 2023. Employing census filtering criteria, a total of 94 companies qualifies as the sample for the study, contributing 658 firm-year observations over the seven years. Secondary data is extracted from the annual reports and accounts of the selected companies, covering the period from 2016 to 2022. The study utilized descriptive, correlation, and panel corrected standard error (PCSE) analyses to examine the data collected. The findings reveal a significant positive association between CEO ownership and financial performance, indicating that higher CEO ownership levels are associated with improved firm outcomes. This underscores the importance of aligning managerial incentives with shareholder interests to drive sustainable value creation. The results highlight the critical role of robust corporate governance mechanisms in fostering accountability and enhancing shareholder wealth within the Nigerian corporate landscape. To capitalize on these findings, policymakers, regulators, and stakeholders are urged to prioritize governance frameworks that promote CEO ownership and transparency. Moreover, future research directions are outlined, emphasizing the need for deeper exploration of the mechanisms underlying CEO ownership\u27s influence on financial performance and comparative studies across diverse emerging market contexts. Through these endeavors, this study contributes to advancing our understanding of corporate governance dynamics and informing evidence-based policy interventions tailored to the needs of evolving market environments
Investment Decision and Market Value of Nigerian Listed Deposit Money Banks
Get PDFThis study considered the influence of investment decision on the market value of Nigerian listed deposit money banks (DMBs). Ex-post facto research design was employed. Secondary sources were used to gather information on market value and investment decisions. These sources included the annual reports of the banks that were sampled from 2010 to 2021. Out of the total population of 14 listed banks as of December 31, 2021, twelve (12) listed DMBs were chosen using the purposive sample technique. For data analysis, panel regression, correlation, and descriptive were tools employed. The outcome stated that return on capital employed recorded positive and significant influence on the Tobin Q and the market share price of listed Nigerian DMBs. The implication of the results is that banks that are able to generate better return on the capital employed in their operation have higher tendency to attract higher valuation in the market. It was concluded that investment decision served as determinant factors that influence the market valuation of Nigerian Deposit Money Banks. The study recommends that strategies to increase investment portfolio should be a priority; and also continue efforts should be made to improve return on capital employed that can enhance market valuation
Corporate Governance Characteristics and Earnings Management of Quoted Non-Financial Firms in Nigeria
Get PDFThis study investigates the relationship between some corporate governance attributes and earnings management of listed firms in Nigeria. This study uses the correlational research design and purposively sampled secondarily sourced data over the period from 2005 to 2020 of 75 non-financial firms listed on the floor of the Nigerian Exchange Group (NXG). The Robust Least Squares Estimators results reveal that board independence (BODI) is positively significant with earnings management; board size (BODS board gender diversity (BGDIV) and audit committee size (ACS) are negatively significant with it while managerial ownership (MOWN); chief executive officer with military experience (CEOME) and number of foreign directors (NFODIR) are insignificant. While foreign income (FINCOME), year fixed effects (YDUM) and industry fixed effects (IDUM) dummies are negatively and statistically significant, the Big4 auditors is positively insignificant. The study concludes with some recommendations that management, among others, should maintain or increase the present level of board size, audit committee size and the number of females in the board since these variables deter management in managing earnings for the period under review
Financial Reporting Quality and Information Asymmetry: A Review of Empirical Literature
Get PDFThis paper reviewed empirical works conducted and published from 2008 to 2013 regarding impact of financial reporting quality on information asymmetry as implied by signaling theory. An integrative/critical review approach was used. Findings of the paper are that despite being mixed and varied, the results obtained by most of the studies carried out are in agreement with signaling argument, that is, sending high quality financial information (FRQ) trims down the level of information asymmetry between corporate firms and financial statements users. Also, in line with the summary of major findings, the paper concluded that signaling theory best explain the relationship between FRQ and IA and thus, engaging in FRQ will substantially reduce asymmetric information in capital markets and other economic dealings involving corporate firms and financial statements users. Based on the conclusions drawn, the paper suggested that corporate firms should be engaging in timely reporting of relevant information to users of their financial statements
Corporate Governance Attributes and Financial Performance of Listed Industrial Goods Companies in Nigeria
Get PDFThis study investigates the relationship between corporate governance attributes and the financial performance of listed industrial goods companies in Nigeria. The specific objectives of the study were to determine whether corporate governance attributes – board size, board composition, and board committee have any effect on the financial performance of listed industrial goods companies in Nigeria. An ex-post facto research design was used. The study used secondary data from the financial statements and annual reports of the quoted industrial goods companies for the relevant years under consideration (2018-2022). The study, which uses the panel least square regression technique, discovered that the return on assets of listed industrial goods companies in Nigeria is not significantly impacted by the size of the board. The make-up of the board significantly improves the return on assets of Nigerian-listed industrial goods businesses. However, it was discovered that the board committee had no appreciable favorable impact on the return on assets. The present study shows that the financial performance of listed industrial goods businesses in Nigeria is positively impacted by corporate governance. The study concluded that the regulatory body should keep improving regulations that reinforce the makeup of the board of directors based on its results