FUDMA Journal of Accounting and Finance Research [FUJAFR]
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CSR Compensation Cost and Firm Value in Nigeria: Mediating Effect of Liquidity, Moderating Effect of Firm Size, Firm Growth and Business Risk
Full text linkThis work ascertains the influence of the financial aspect of CSR compensation cost on firm value of consumer goods firms in Nigeria for the period 2019-2023. The population consists of the twenty listed consumer goods firms in the Nigerian Exchange Group as of 31st October 2020. Seven of the firms were sampled; secondary data was gathered from the firm’s annual reports for the period of five years. Linear regression was used with the aid of Statistical Package for Social Sciences software 26 to test the hypotheses. The result reveals that the financial aspect of CSR compensation cost has no constructive and substantial influence on Tobin’s q, the mediating effect of the financial aspect of CSR compensation cost has no constructive and substantial influence on liquidity, and the moderating effect of the financial aspect of CSR compensation cost has no constructive and substantial influence on firm size, firm growth, and business risk of the consumer goods firms. The study concludes that the financial aspect of CSR compensation cost has no influence on the firm’s value. The implication of the finding shows that the amount the firms invest in CSR activities for community and society sustainable development was not properly practised; that was why the firms’ financial aspect of CSR compensation costs has no constructive and substantial influence on the Tobin’s q, liquidity, firm size, firm growth and business risk of the firms
Impact of Country Macro Factors and Firm Specific Factors on Debt Capital Structure: Evidence from Non-Financial Firms in Nigeria
Full text linkThis study looks into how non-financial enterprises in Nigeria make decisions about their debt structures based on firm-specific and country-macro factors. The study uses secondary data from Nigerian non-financial companies that were listed between 2010 and 2024. The study employed a Panel OLS to analyze the collected data. The panel regression\u27s findings show how firm-specific factors (firm sales, profits, fixed assets, and tax) and macro factors (inflation, interest rates, currency rates, and gross domestic product growth) affect the debt capital structure of Nigeria\u27s non-financial companies. The findings show that whereas interest rates, taxes, and exchange rates are negatively correlated with debt capital structure, GDP growth rates, inflation rates, firm size, and profit are positively correlated. When making long-term funding decisions, the study advises company managers in the Nigerian sector to consider the potential effects of these macro and firm specific factors on their funding choices as well as their implications for the sector\u27s overall growth
Effect of Service Marketing Mix Strategy on Performance of Proprietary Patent Medicine Vendors (PPMVs); Moderating Role of Learning Competence
Full text linkThe success of MSMEs to the Nigerian economy is below expectation; the proprietary patent medicine vendor is not left out in terms of failure. Some scholars and professionals have attributed their failure to poor marketing mix strategy, and some attributed it to learning competence. Thus, this has prompted scholars and professionals to reexamine the determinants of MSMEs success. This study, therefore, examines the effect of service marketing-mix strategy on success of proprietary patent medicine vendors and incorporate learning competence as a moderator due to the inconsistence in the results of previous research on marketing mix strategy. A cross-sectional survey design using primary data was adopted for the study using structured questionnaire; and the unit of analysis is the owner/managers of patent medicine store in Zaria metropolis Kaduna state. The study employed simple random sampling technique to select the sample size of two hundred and forty-two (242) registered patent store. In order to test the proposed hypotheses of the study and to examine the relationships involving the moderating effects, both descriptive and inferential statistics were employed to analyze the data collected using Statistical Package for Social Science (SPSS) for window version 23 and Partial Least Squares (PLS) Structural Equation Modelling (SEM) path modelling using Smart PLS 3.2 software. The study revealed that learning competence moderates the relationship between service marketing mix strategy and performance. The study, therefore, recommends thatpatent medicine vendors should seek more knowledge in related fields for better performance
The Tax Audit Management, Tax Control Mechanisms, and the Performance of State Internal Revenue Services in South-West, Nigeria
No full textThe development of any nation is closely tied to its ability to generate and allocate revenue effectively, particularly for public infrastructure and services. In Nigeria, rising government expenditures and dwindling revenues have pushed state governments to explore strategies for improving their revenue base. Among the most critical of these strategies are efficient tax audit management and robust tax control mechanisms. Despite their importance, low tax compliance and high tax evasion continue to challenge the effectiveness of tax systems. This study examines the relationship between tax audit management, tax control mechanisms, and the performance of State Internal Revenue Services (SIRS) in South-West Nigeria. It specifically investigates how these two constructs impact SIRS performance across six states: Lagos, Ogun, Oyo, Osun, Ondo, and Ekiti. A cross-sectional survey design was employed, using structured questionnaires administered to 383 randomly selected respondents from a population of 8,771 management staff. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) to estimate the relationships among the study variables. The study concludes that tax audit management and tax controls enhance SIRS performance significantly, thereby enhancing efficiency and compliance. The study therefore recommends that tax authorities strengthen tax audit management practices by implementing more effective strategic audit plans, ensuring consistent case tracking, and maintaining audit independence through risk-based reviews. More focus and emphasis should be placed on back-duty audits, proper documentation, and structured compliance processes. SIRS should conduct regular evaluations, integrate risk management, and align controls with international standards
Leveraging Digital Accounting and Corporate Governance for Financial Sustainability of Firms in Nigeria
Full text linkThis study investigated the impact of digital accounting and corporate governance on the financial sustainability of firms in Nigeria. The research used secondary data from the financial statements of 50 listed firms across multiple sectors between 2014 and 2023 and employs a quantitative approach, incorporating descriptive statistics, correlation analysis, and panel regression models. The findings revealed that digital accounting, particularly cloud-based systems, significantly enhances financial transparency and sustainability. Effective corporate governance, especially executive compensation structures aligned with sustainability objectives, strengthens accountability and long-term financial stability. However, the adoption of artificial intelligence (AI) in accounting shows limited direct influence, indicating challenges related to infrastructure, skill gaps, and implementation. The study highlighted the need for firms to integrate digital accounting solutions, reinforce governance frameworks, and link executive incentives with sustainability targets to achieve financial stability. Policymakers should facilitate digital transformation through regulatory incentives and investment in digital infrastructure. Additionally, standardized sustainability reporting frameworks are recommended to enhance transparency and investor confidence. This research contributed to the literature by providing empirical evidence on the role of digital accounting and governance in financial sustainability within the Nigerian context. The research explored the necessity of integrating emerging financial technologies with governance reforms to promote long-term economic growth. The study concluded that fostering a robust digital accounting environment and strengthening governance practices are critical for enhancing corporate sustainability and financial resilience in Nigeria
Interaction Effect of Board Attributes on the Relationship between Environmental Disclosure and Market Value: Evidence from Listed manufacturing Firms in Nigeria.
Full text linkThis research work assessed the interacting effect of board attributes on the relationship between environmental disclosure and market value. The study made use of secondary data from the published annual reports and accounts of selected quoted manufacturing companies in Nigeria. The study made use of forty five (45) manufacturing quoted on the Nigerian Exchange Group (NGX) for ten (10) years covering the period 2013-2022. The study was anchored on the Legitimacy theory. Descriptive statistics and regression techniques were used to carry out data analysis. The result of the study indicated that there is a negative and insignificant relationship between environmental disclosure and market value and further revealed that board attributes significantly moderates the relationship between environmental disclosure and market value of the selected manufacturing companies listed on the NGX. The study recommends that varied board of directors with an understanding of the markets will promote creativity, decision-making, innovativeness, enhanced evaluation of additional alternatives that will boosted market value
Board Attributes and Audit Quality of Quoted Financial Firms in Nigeria
Full text linkThe reliability of accounting information, which heavily depends on the quality of financial Audit report, is crucial for users. The board of directors, appointed to protect shareholders\u27 interests, is legally empowered to oversee management and ensure high-quality audits of their operations. In this context, this study investigates the relationship between board attributes and audit quality among publicly traded financial firms in Nigeria from 2016 to 2022. The specific objectives are to analyze how board size, board independence and female directors on board relate to the engagement of Big Four audit firms, which represents audit quality. A sample size of 45 firms were selected through purposive sampling. Binary logistic regression was used to analyse the effect of board attributes on audit quality of listed financial firms in Nigeria. The results indicated that board size and significantly and positively affect audit quality, while board independence and female directors on the board have an insignificant effect on audit quality. The study recommends larger board sizes, more independent non-executive directors and more female directors to ensure high-quality audits in the Nigerian financial firms
Effect of firm complexity on corporate report readability of NGX30 firms
Full text linkPurpose: This study investigates the effect of firm complexity on the readability of the annual reports of the top 30 listed public firms by market capitalization in the Nigerian Exchange Group.
Methodology: The study employs a random effects panel regression analysis on a sample of 178 firm-year observations covering the period of 2012 to 2023. Readability is measured using the Fog index of readability, and firm complexity is operationalized through the number of geographic segments, growth potential, firm size, and firm age.
Results and Conclusion: Results from the analysis reveal that firms with a higher number of geographic segments and greater firm age exhibit a statistically significant relationship with a higher Fog index, indicating lower readability. In contrast, firms with higher growth potential and larger sizes are associated with significantly lower Fog index scores, suggesting that such firms produce more readable disclosures. These results lead to the conclusion that the effect of firm complexity on readability relies on the incentives to the firm.
Implication of findings: The implication is that firm complexity shapes readability in ways that reflect direct reputation and growth benefits to the firm, with the adverse effects of complexity being mitigated when such benefits are present. As such, recommendations are made for the creation of policies that address low readability where firms are not inherently motivated to produce readable reports
The Accounting ratios and share price of quoted consumer goods firms in Nigeria
No full textPurpose: This study examines the impact of accounting ratios on the stock prices of quoted consumer goods firms in Nigeria, providing insights for investors and stakeholders. The research uses financial reports of quoted consumer goods firms in Nigeria from 2013 to 2022, focusing on Dividend Per Share, Earnings Per Share, Returns on Assets, and Current Ratio.
Methodology: An ex-post-facto design was adopted, utilizing secondary data obtained from 15 out of 21 quoted consumer goods firms from NGX over ten years (2013-2022), being a purposeful sampling technique representing 71.43% of the population. Balanced panel data regression analysis and descriptive statistics were employed.
Results and conclusion: The findings show an R-squared value of 0.36, indicating that inflation, interest rates, earnings per share, current ratio, and return on assets account for approximately 36% of the variations in stock prices, while variables outside the model account for 64%.
Implication of findings: The study highlights the importance of considering both internal and external factors when making investment decisions and suggests that investors should look beyond accounting ratios to understand stock price movements
Cash Flow Management and Assets Growth of Listed Industrial Goods Firms in Nigeria
Full text linkThis study examined the effect of cash flow management on asset growth among listed industrial goods firms in Nigeria. Specifically, it evaluates how cash flow from operating, investing, and financing activities and cash flow per share contribute to asset growth. The multi-level mixed effect (MLME) regression analysis estimator was used to test the hypotheses. Adopting an ex post facto research design, this study evaluates a sample of fifteen industrial goods firms listed on the Nigerian Exchange Group, selected based on their continuous listing from 2018 to 2023 and the availability of their annual reports, where data were sourced. The descriptive and inferential statistical methods were used, with preliminary tests of normality and multicollinearity checks to guide the regression analysis. The results indicated that cash flow per share does not significantly influence asset growth, but the cash flow from operating, investing, and financing activities has positive influences on asset growth during the period under investigation. This study concludes that effectively managing investing, financing, and operating cash flow activities is essential for asset growth. Based on the findings, this study recommends that stakeholders, including investors, management, and policymakers, should prioritize strategies that enhance cash flow management. Industrial goods firms in Nigeria should focus on optimizing operational cash flow through improved revenue generation and cost management while leveraging financing opportunities to support asset growth. Additionally, prudent investment in productive assets should be given priority, which will further strengthen asset growth opportunities