FUDMA Journal of Accounting and Finance Research [FUJAFR]
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Audit Committee Effectiveness and Corporate Financial Performance in Listed Nigerian Manufacturing Firms
Full text linkCorporate governance is essential for financial stability and operational efficiency, with audit committees serving as a key oversight mechanism. This study examines the relationship between audit committee effectiveness and corporate financial performance, focusing on scale efficiency in Nigerian manufacturing firms. Using panel data from 49 listed manufacturing firms between 2012 and 2022, the study employs regression analysis to evaluate the impact of audit committee size and independence on scale efficiency. The findings reveal that audit committee size has a negative but insignificant effect on scale efficiency, suggesting that increasing committee size does not necessarily improve financial performance. Similarly, audit committee independence shows an insignificant relationship with scale efficiency, indicating that independence alone does not enhance operational efficiency. However, among the control variables, leverage exhibited a significant negative effect on scale efficiency, underscoring the influence of a firm’s financial structure on its operational performance. The study underscores the need for stronger governance enforcement and emphasizes that firms should prioritize expertise over structural attributes. Further research should explore additional governance factors influencing financial performance in Nigerian manufacturing firms
Technological Innovations and Corporate Performance of Deposit Money Banks in Nigeria
Full text linkTo remain competitive and profitable, deposit money banks need to design, develop, and adopt new processes, products, and technology that ensure greater efficiency and performance. Thus, this study investigates the relationship between technological innovations and corporate performance of deposit money banks in Nigeria. The specific objectives were to determine the effect of automated teller machines (ATM), point of sales (POS), mobile banking (MB), and internet banking (IB) on the corporate performance of deposit money banks in Nigeria measured by earnings per share (EPS). The total population of the study consists of the 33 deposit money banks licensed by the Central Bank of Nigeria (CBN) as of 31st December 2022. The study formulated four hypotheses and used ordinary least squares regression to analyze the data extracted from the annual publication of the Central Bank of Nigeria and audited reports and accounts of deposit money banks for the period 2012 to 2022. The study found that automated teller machines (ATMs), points of sale (POSs), and mobile banking (MB) have a significant and positive effect on earnings per share (EPS) of deposit money banks in Nigeria, while internet banking (IB) has an insignificant negative relationship with earnings per share (EPS) of deposit money banks in Nigeria. The study recommends, among others, that the management of deposit money banks in Nigeria should expand the number of ATM and POS outlets even as they expand their bank branches and minimize their investment in internet banking, as its operation does not contribute positively to corporate performance
Comparative analysis of timely loss recognition during local and international accounting standards regimes: Case of listed manufacturing firms in Nigeria
Full text linkThe study investigates the pattern of timely loss recognition among listed manufacturing firms in Nigeria before and after the implementation of the International Financial Reporting Standard (IFRS). This effort was made by the craving of the accounting standards’ setters to continue ascertaining the quality of accounting standards issued under IFRS and its implication on accounting information issued during the reporting regime. The study relied on ex post facto research, and secondary data covering a 7-year period before and a 7-year period after IFRS implementation were drawn from the annual reports of 17 purposively selected manufacturing firms listed on the Nigerian Exchange Group (NGX), using certain selection criteria. Results based on a panel regression test reveal higher timely recognition of losses during the IFRS reporting period than the period before IFRS implementation. The result of the interactive terms and timey losses also reveals the existence of earnings smoothing in the pre-IFRS period, which seems to have been informed by less timely loss recognition. Thus, the study concludes that more losses are recognized by conservative corporate managers during the IFRS reporting period based on this context. The findings have implications for the potential investors, lenders of excess liquidity, and standard setters, among others
Shareholders’ Preference for Corporate Renewable Energy Project Finance in Nigeria
No full textThis study explores shareholders RE preferences (technology, cost, availability, and capacity) as a determinant of RE project finance during energy transition. The data for the study were generated from a sample of 400 shareholders of firms listed in the Nigeria Exchange Group (NGX) through a questionnaire survey. The Kruskal-Wallis’ estimation techniques were deployed to analyze the data and measure the convergence of shareholder preferences towards RE projects. The results suggest that shareholders have divergent preferences on energy cost across different technology capacities. Similarly, the results suggest that shareholders have divergent preferences on durability across different energy technologies. However, the shareholders showed convergent preferences on availability of energy resources irrespective of energy technology. These results have implications for corporate REF because shareholders assume significant role in corporate investment decisions. These novel findings suggest that shareholder’s preference is a significant determinant of REF. Therefore, policymakers should consider these preferences as a guide in reassessing, evaluating and reviewing energy transition plans, particularly those aspects that affect private investment
Effect of external auditors’ attributes on financial reporting quality of listed insurance firms in Nigeria
Full text linkPurpose: The need for greater attention to the activities of insurance firms, as bankruptcy would not just affect the shareholders, customers, and employees alone but the economy in general. This study assessed the effect of audit attributes on the financial reporting quality of listed insurance firms in Nigeria.
Methodology: The sample of the study is 20 insurance firms listed in the Nigerian Exchange Group (NGX) out of the 23 insurance firms. The data for this study were secondary data sources, which were collected from published financial statements of the selected listed insurance firms for the period of 10 years, covering 2013-2022.
Results and conclusion: The study found that audit independence has a negative and insignificant effect on financial reporting quality. Also, the study found that audit competence has a positive and significant effect on financial reporting quality. The study concluded that the competence of auditors shows a positive significant effect on financial reporting quality; this indicates that competence is one of the factors that influence financial reporting quality even when not supported by other factors to effectively enhance FRQ.
Implication of findings: Based on the findings, the study recommended that regular training and certification programs should be organized for auditors to ensure they possess the necessary skills and knowledge, supported by strong regulatory oversight. Professional accounting bodies and regulators should collaborate to offer continuous professional development programs
Assessment of entrepreneurial innovation on sustainability of industrial leather clusters in Kano State
Full text linkPurpose: Entrepreneurial innovation is a major contributor to the growth and sustainability of business enterprises, which in turn boosts the economy. It has also been acknowledged by scholars and professionals that entrepreneurial innovation is a driver of business survival and sustainability. Thus, the study examined the effect of entrepreneurial innovation on the sustainability of industrial leather clusters in Kofar Wambai, Kano State.
Methodology: A cross-sectional survey design using primary data was adopted using a structured questionnaire. The unit of analysis is the artisans of industrial leather clusters in Kofar Wambai, Kano State. A simple random sampling technique was employed to select the sample size of eighty-six (86). To test the proposed hypothesis, the multiple regression analytical tool was employed.
Results and conclusion: The result of the analysis revealed a positive and significant effect of the independent variable, entrepreneurial innovation (process and product innovativeness), on the sustainability of industrial leather clusters in Kofar Wambai, Kano State.
Implication of findings: The study recommends artisans in Kofar Wambai adopt pursuing a concurrent, dual-focus innovation (process and product) strategy to maximize sustainability gain in Kofar Wambai industrial leather clusters of Kano state
Artificial Intelligence (AI) and Petroleum Profit Tax Administration in Nigeria Economy
Full text linkThis study examines the impact of Artificial Intelligence (AI) adoption on Petroleum Profit Tax (PPT) administration in Nigeria. The study looks into the level of AI deployment, the types of AI technologies now in use, their perceived efficacy, simplicity in usage, associated problems, and their impact on tax compliance and revenue collection. Data gathering was done with 98 individuals, who are officers in tax agencies, compliance officers, and AI professionals. Descriptive statistics and multiple regression analysis were used to assess the link between AI adoption and important tax outcomes. The findings showed that, while overall AI adoption is limited, techniques like machine learning, predictive analytics, and robotic process automation are becoming more popular. AI was discovered to greatly boost compliance efforts, improve the accuracy of tax reporting, and positively affect revenue predictions and audit results. The regression findings demonstrated that AI-powered data analytics and reporting systems had a statistically significant impact on PPT income production and tax compliance. However, constraints such as a lack of technical skills, aversion to change, and expensive implementation costs remain important obstacles. The study further discovered that when effectively applied and supported, AI will change tax administration. It suggests capacity building, enhanced infrastructure, data governance, and regulatory reforms to optimize the use of artificial intelligence in tax operations within Nigeria\u27s petroleum sector
Assessing the Viability of Microfinance Banks in Kebbi State, Nigeria
Full text linkThis study examined the impact of capital adequacy, asset quality, liquidity, and operational efficiency on Microfinance Banks (MFB) viability proxied by Return on Assets (ROA) in Kebbi State, Nigeria, employing quantitative research method and robust analytics. The study reveals mixed findings, as it found that Asset quality negatively impacted from non-performing loans underscores the importance of sound credit risk management, while liquidity\u27s positive role highlights the need for balanced short-term asset management. Operational efficiency shows the strongest positive relationship with survival (coefficient = 0.631, p-value = 0.040), highlighting that cost-effective MFBs are better positioned to withstand financial pressures and maintain sustainable operations. The findings further suggest that context-sensitive policies combining prudent regulation and operational support will be most effective in promoting MFB survival and their valuable role in local economic development
Monetary policy and the manufacturing sector in Nigeria
Full text linkPurpose: This study investigates how Nigeria’s manufacturing sector responds to key monetary policy measures. Specifically, it examines the extent to which the treasury bill rate (TBR), prime lending rate (PLR), inflation rate (INF), and exchange rate (EXR) influence manufacturing sector output (MFO).
Methodology: The study employed time series data obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin covering 2010–2023. Preliminary econometric procedures, including unit root tests and the Johansen cointegration technique, were used to determine the stationarity status and long-run relationships among the variables. Based on these outcomes, an error-correction framework was estimated to capture short- and long-run dynamics between monetary policy indicators and manufacturing sector output.
Results and conclusion: The findings reveal that monetary policy variables, specifically the exchange rate, treasury bill rate, inflation rate, and prime lending rate, do not exert a significant influence on Nigeria’s manufacturing output in either the medium or long run. The study concludes that the weak transmission of monetary policy to the real sector may stem from structural bottlenecks, policy inconsistencies, and an unfavourable operating environment that limit the responsiveness of manufacturers to monetary adjustments.
Implication of findings: The study suggests the need for the government to strengthen the regulatory framework by streamlining procedures, reducing bureaucratic delays, and lowering compliance costs. Enhancing transparency and ensuring stable, predictable policy implementation will improve the operating climate for manufacturers and support better monetary policy transmission to the sector
Board Gender Diversity and Corporate Social Responsibility: Evidence from Listed Healthcare Firms in Nigeria
Full text linkDespite growing global attention on gender diversity in corporate governance, the extent to which board gender equality influenced corporate social responsibility remained underexplored, particularly in emerging markets with weak institutional frameworks. This study examined the impact of board gender diversity on corporate social responsibility performance among listed healthcare firms in Nigeria from 2013 to 2023. Corporate social responsibility performance was the dependent variable while board gender diversity was the independent variable, with firm-specific controls including market capitalization, firm size, leverage, profitability and financial distress. The research design adopted was ex post facto, secondary data were utilized, and the sample comprised five listed healthcare firms, and robust regression analysis was employed to analyze the study. The findings revealed a significant positive relationship between board gender diversity and corporate social responsibility performance, reinforcing stakeholder and resource dependence theories, which suggest that diverse leadership enhances ethical decision-making and sustainability orientation. These results offer compelling policy implications, advocating for stronger corporate governance regulations that mandate gender diversity in boardrooms. The study also highlighted the need for firms to view gender diversity not merely as a compliance requirement but as a strategic advantage in fostering long-term sustainability