FUDMA Journal of Accounting and Finance Research [FUJAFR]
Not a member yet
162 research outputs found
Sort by
Analysis of the Impact of Key Macroeconomic Variables on Stock Market Development in Nigeria
Full text linkThe study investigates the impact of key macroeconomic variables on stock development in Nigeria. The macroeconomic variables investigated include money supply, inflation, interest rate, exchange rate, trade openness, and all share index from 1986 to 2019. The Augmented Dickey-Fuller and Phillips-Perron and autoregressive distributive lag (ARD) model. Based on the findings, the long-run relationship indicates that money supply has a positive and statistically significant impact on all share indices. Furthermore, the exchange rate has positive but statistically insignificant effects on all share indices. The interest rate indicates positive and statistically significant effects on all share indices. Trade openness indicates a positive but statistically insignificant effect on all share indexes in Nigeria. The inflation rate shows a negative and statistically insignificant effect on all share indices in Nigeria. Interestingly, the error correction term (ECT) met all its theoretical and statistical requirements in both sign and size. It measures the speed of adjustment towards equilibrium after the initial deviation is corrected. The ECT coefficient is -0.201711 and significant at 5%, which indicates that 20 % of the disequilibrium due to the shock in the previous years is adjusted back to the long-run equilibrium in the current year. Based on the findings, the current study recommends that regulatory authorities and policymakers should ensure general stability in money supply and exchange rates by promoting trade in the economy
Influence of Auditors Scepticism on Audit Quality: Evidence from Audit Firms in Nigeria
Full text linkThe influence of auditors’ scepticism on audit quality has been a subject of debate regarding the robustness of audit procedure and appropriateness of audit reports on the financial statements of their clients. The study investigated the influence of auditors’ attitudes on audit quality. The aim is to examine the influence of auditors’ scepticism on audit quality. The study proxies audit scepticism using Questioning Mindset (QM), Alertness to Red Flags (ARF), Critical Evaluation of Evidence (CEE), Independence of Thought (IT) and Persistence (P) as independent variables, while audit quality is proxied by Going Concern Opinion Issuance (GCOI). Using an ex-post facto research design, data for the study were obtained via questionnaire administered to a sample of 690 respondents (115 each from six geopolitical zones of Nigeria) comprising auditors (partners, senior managers and audit trainees) from 30 audit firms (5 each from the geopolitical zones). The study adopted Partial Least Square Structural Equation Modelling (PLS-SEM) for analysing the data. Findings revealed insignificant influence of predictors on GCOI. The study recommends that audit firms in Nigeria should build cultures that encourage questioning, scepticism, and integrity over client satisfaction and strengthen client evaluation and acceptance processes to avoid high-risk or overly influential clients
The Control Activities of Financial Institutions in Nigeria and Risk Assets Quality
Full text linkIn view of the persistent collapse of financial institutions in Nigeria, it became eminent to ascertain how control activities affect the risk assets quality of Nigerian financial sector. The study applied ex-post research design method and relied on secondary data spawned from yearly financial records spanning 2010-2023. The population of the study comprised all eleven (11) categories of financial institutions operating in Nigeria as of December 31, 2023, in line with the classifications provided by the Central Bank of Nigeria (CBN). A purposive sampling technique was applied to select institutions from four key categories: deposit money banks, non-interest banks, development banks, and merchant banks, resulting in a total of 42 institutions. For empirical analysis, the study adopted Feasible Generalized Least Squares (FGLS) estimation technique. The findings revealed that both Capital Adequacy Ratio (CAR) and Loan to Deposit Ratio (LDR) have a positive and insignificant influence on non-performing loans, while Loan to Assets Ratio (LTAR) was found to have a negative and not significant effect. In view of the findings, policy makers and financial institutions should exercise restraints in placing too much emphasis on CAR and LDR, and instead strengthen internal credit risk control, due diligence process and adherence to early warning signals. Furthermore, lending should be guided with a well-defined risk appetite and efficient recovery process
Effect of Technology Organization Environment Framework in Business Strategy on Decision Making of Small and Medium Enterprises in Lagos, Nigeria
Full text linkThis study examined effect of Technology Organization Environment (TOE) framework in business strategy on decision making of small and medium enterprises (SME) in Lagos-Nigeria. Using the TOE framework, the research explored how technological, organizational, and environmental factors influence business strategy. A quantitative approach was employed, with data collected from 350 SME managers through a structured questionnaire. The analysis using descriptive statistics and multiple linear regression revealed several key factors influencing the adoption of TOE framework. Operational efficiency and competitive advantage were identified as significant drivers of adoption of TOE. On the other hand, limited technical expertise, high implementation costs, and lack of awareness emerged as major barriers. The model demonstrated strong predictive power, capturing a substantial portion of the variance in data in technology-organization environment adoption. The findings underscored the need for targeted interventions, such as training programs, cost-effective tools, and awareness campaigns, to enhance adoption among SMEs. This study contributes to the literature by providing empirical evidence on the factors influencing TOE adoption in a developing economic context and offers practical recommendations for SMEs, policymakers, and stakeholders
The Impact of MSME Characteristics on Enhancing Voluntary Tax Compliance in Bayelsa State, Nigeria
Full text linkThe impact of Micro, Small, and Medium-Sized Enterprises\u27 (MSMEs\u27) attributes on voluntary tax compliance in Bayelsa State, Nigeria, is examined in this study. Data was gathered from 171 MSME managers using a cross-sectional survey approach and standardized questionnaire; 140 valid replies resulted in an 81.9% response rate. Using regression analysis and Spearman\u27s rank correlation, the study investigates the connections among sectoral differences, business size, ownership structure, profitability, and voluntary tax compliance. The results show that firm size and tax compliance have a substantial positive association (r = 0.821), suggesting that larger MSMEs are more likely to follow tax laws. Ownership structure and compliance show a moderate association (r = 0.600), indicating that companies with more owners are generally more financially accountable. On the other hand, sectoral differences have a poor connection (r = 0.218) with tax compliance, suggesting that compliance behaviour is not considerably impacted by the type of industry. Compliance and profitability have a positive correlation (r = 0.629), suggesting that more successful companies are better equipped to pay their taxes. In order to increase compliance rates, the report emphasizes the significance of creating a favourable tax administration regime for MSMEs through customized tax laws and instructional programs. In the end, these findings support economic stability and sustainable development by offering insightful information to stakeholders and policymakers looking forward to enhancing tax compliance and revenue collection in Nigeria\u27s MSME sector
Public Value Creation, Sustainability Accounting and Reporting by Nigerian Public Sector Organizations: Issues and Prospects
Full text linkSustainability accounting and reporting of public value delivered to citizens by the public sector has taken a central stage in transparency and good governance globally. Unfortunately, the delivery and reporting of value created by the Nigerian public sector are still issues of concern in the country. The study is exploratory research that examined the challenges of the accounting practice and reporting of public value created by the public sector in Nigeria. In the process of research, relevant literature on the subject matter and published articles obtained from the internet and library were reviewed. From the review, it was found that there was a lack of political will to deliver public value.Lack of involvement of citizens in public project delivery and lack of personnel with the requisite skills are some of the challenges of public value creation in the Nigerian public sector. The paper recommends, among others, that commitment of political leaders to create and deliver public value, involvement of citizens/stakeholders in the initiation and execution of public projects, training of personnel in the public sector on sustainability practice and reporting, and awareness creation on the importance/benefits of sustainability practice and reporting of value created as strategies to overcome the myriad of challenges of public value creation and sustainability reporting by the Nigerian public sector
Taxation and Corporate Performance of Quoted Oil and Gas Companies in Nigeria
Full text linkWhile taxation is claimed to be an indispensable means of revenue generation for the government to meet the expectations of its citizens in terms of the provision of social amenities, it is a means of spending from profits for corporate organisations, which will inevitably have a negligible effect on their profits. In line with the need to appraise how taxation influences corporate profitability, this study evaluates the influence of taxation on the corporate performance of 9 Oil and Gas companies quoted in Nigeria from 2008 to 2022. The analysis was based on random-effect regression as specified by the Breusch-Pagan Lagrangian Multiplier test. The findings reveal that companies’ income tax has a significant negative influence on corporate performance, whereas value-added tax has a significant positive influence on the corporate performance of the sampled Oil and Gas companies. This study recommends that company income tax should be strictly administered in line with ‘the ability to pay’ theory. This is because of the negative influence on the financial performance of the companies. Furthermore, companies should faithfully remit proceeds of value-added tax to the tax authority since it enhances their financial performance
Enterprise Risk Management and Financial Performance of Nigerian Deposit Money Banks (2014-2022)
Full text linkThis study investigates the effect of enterprise risk management on the financial performance of quoted deposit money banks in Nigeria from 2014 to 2022. The independent variable – enterprise risk management – was proxied by capital adequacy risk and non-performing loan risk, while the dependent variable – financial performance – was measured by return on assets. A sample of size of 10 DMB was utilised. The secondary data was sourced from the annual reports of the sampled deposit money banks for the nine (9) years studied. The panel data were diagnosed using descriptive statistics, the Pearson correlation matrix, the Shapiro-Wilk data normality test, the Ramsey RESET and the heteroskedasticity test. The hypotheses were tested with the use of the robust random-effects regression, and the result revealed that capital adequacy risk has a positive and insignificant effect, while non-performing loan risk has a significant negative effect on financial performance. The findings suggest that Nigerian banks should have a strong capital base and do all they can to minimise loan defaults for better financial performance. This study offers practical insights into how risk management practices directly influence performance in highly regulated and credit-risk-sensitive banking institutions in Nigeria
Effect of organized crime on institutional fraud risk management in Nigeria: evidence from Edo State Polytechnic, Usen, Edo State
Full text linkPurpose: This study assesses the effect of organized crime on institutional fraud risk management in Nigeria. The study examined how organized crime prevention, detection, and protection strategies influence fraud management practices.
Methodology: A total population of 594 staff and students was identified, from which 396 respondents were sampled using a stratified sampling technique, and 342 valid responses were analyzed. Data was collected through a structured Five-Point Likert Scale questionnaire and analyzed using SPSS.
Results and Conclusion: The results showed a moderate-to-strong positive relationship (R = 0.613) between organized crime management strategies and fraud management, with R² = 0.576. Prevention had a positive and significant effect, detection had a negative but significant effect, while protection was positive but insignificant. The study concludes that strengthening preventive and detection measures is crucial for effective fraud control in Nigeria.
Implication of findings: The implications of this research are significant for policymakers, institutional managers, and anti-fraud practitioners in Nigeria. The study recommends, amongst others, that corporate organisations should prioritise preventive measures over reactive responses to curb fraud effectively
Microcredit and poverty reduction: the role of entrepreneurial self-efficacy: empirical evidence from Kano, Northwest Nigeria
Full text linkPurpose: The African continent houses a greater percentage of the global poor. Despite the well-articulated Sustainable Development Goals (SDGs) the continent was projected to constitute the largest percentage of the world\u27s poor by 2030. The level of Africa’s poverty may not be divorced from its financial exclusion, as more than 80 percent of African households are excluded from formal financial services. The unbanked poor are exploited by informal financial service providers who effectively turn their customers into victims due to unfavorable loan terms. The establishment of several financial intervention programs was directed towards protecting the poor from informal money lenders\u27 inhumane exploitation that stifles the desire of the poor to engage in income-generating activities. Findings on the effectiveness of these intervention programs are inconsistent. The aim of this paper is to empirically investigate the influence of microcredit on poverty reduction in Kano State, Northwest, Nigeria, using Entrepreneurial Self-efficacy as a moderator.
Methodology: To achieve this, a model was developed and empirically tested using responses elicited with a structured questionnaire administered to 400 respondents drawn from eight microfinance banks (MFBs) using stratified sampling techniques.
Results and conclusion: The study found a positive association between microcredit and poverty reduction. Also, entrepreneurial self-efficacy moderates the relationship between microcredit and poverty reduction in the study area. The paper concluded that microcredit, though not a silver bullet, is a veritable tool for poverty reduction.
Implication of findings: The paper recommended additional commitment from government and NGOs in areas of microcredit provision as a tool for poverty reduction