FUDMA Journal of Accounting and Finance Research [FUJAFR]
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Value Added Tax and Economic Growth of Nigeria (2003-2022)
Full text linkThis study empirically examined the relationship between value added tax and economic growth of Nigeria. Time series data on Value Added Tax (VAT) revenue, Total (Federal Government) Revenue (TR), Total (Federal Government) Expenditure (TE) and Gross Domestic Product (GDP) from 2003 to 2022 sourced from the Central Bank of Nigeria (CBN) were analysed, using both simple regression analysis and descriptive statistical method. VAT was used as the independent variable while TR, TE and GDP were used as the dependent variables. Findings showed that VAT revenue accounts for a significant variation in TR, TE and GDP in Nigeria. A very significant and positive correlation also exist between VAT revenue and TE but that the contribution of VAT to TE cannot be directly traceable to any specific expenditure of government like health, education or payment of salaries. The study therefore recommends that government should use a certain percentage of VAT revenue to finance critical sectors of the economy like agriculture, power or health which have direct bearing on the citizens. This can be achieved by establishing a Value Added Tax Fund (VATFund) as is the case with Tertiary Education Trust Fund (TETFund) and other Trust Funds of government
The Moderating Effect of Vertical Agency Crisis on the Relationship Between Corporate Governance and Financial Performance in Nigeria
Full text linkThis study examines the moderating effect of vertical agency crises on the relationship between corporate governance mechanism and financial performance in Nigeria covering 2013 to 2022. To achieve this purpose, this study used precise proxies for the dependent, independent and moderator variables of interest. Based on a descriptive and ex-post facto research design, this study analyzed a set of panel data sourced from annual financial reports of eighteen (18) consumer goods firms drawn from a population of twenty-five (25) listed consumer goods firms in Nigeria. Mixed effect multi-level regression analysis estimator together with moderated regression analysis technique were employed to test the hypotheses after meeting necessary conditions for obtaining non-spurious least square regression estimates. The findings show that board ownership has a statistically significant relationship with financial performance, but board size, board independence and board gender diversity have insignificant relationship. Further, the findings from this study reveals among others that vertical agency crises have an insignificant moderating effect on the relationship between board independence and financial performance, the moderating effect is significantly positive in relation to board gender diversity for listed consumer goods firms in Nigeria . But for the variable of board size and board ownership, the moderating effect of vertical agency crises was seen to be statistically insignificant. Therefore, on the bases of the findings, this study suggests that managers should focus on mitigating vertical agency crises while concurrently strengthening board independence
Imports, Exports and Foreign Reserves in Nigeria: Exploring the Long and Short-Run Relationships from the Vector Error Correction Model (VECM) Approach
Full text linkThe imports of goods and services, a component of international trade, can boost economic progress when carried out on productive commodities. However, excessive imports of goods and services also stifle the growth of indigenous industries. Understanding the short- and long-run relationships between imports and other macroeconomic factors is necessary for planning by managers of the economy. This study examined the relationship between imports, exports, and foreign reserves in Nigeria for 10 years spanning from 2012 to 2021. Monthly time series data were tested for stationarity using the augmented Dickey-Fuller test, which showed that all the variables were integrated at order I (1). The Johansen co-integration test showed a stable long-run relationship between imports, exports, and foreign reserves. The regression estimates from the vector error correction model showed a long-run causal relationship (negative) between imports, exports, and foreign reserves. Furthermore, the foreign reserve has a significant short-run causal relationship with imports. Exports did not show any short-run causal relationship with imports. Both imports and foreign reserves do not have any causal relationship with exports in the short run. However, an insignificant causal relationship exists in the short run between exports and foreign reserves, while imports do not have any causal relationship with foreign reserves. The study recommends an optimum level of foreign reserve, which can be used to check the tendency of excessive importation, which is detrimental to the growth of local industries
Corporate Attributes and Earnings Management: Evidence from Listed Non-Financial Firms in Nigeria
Full text linkThe financial reporting practices of firms are usually influenced the certain attributes specific to such firms. The main objective of this study therefore, was to examine the effect of corporate attributes on earnings management practices of nonfinancial firms listed on the Nigerian Exchange Group for the period 2014 to 2023. The research design adopted for this study was ex post facto. Secondary data were used and the population of the study was 109 listed nonfinancial. Purposive sampling technique was adopted to select 70 companies as the sample size of this study. The Robust regression technique was used in analyzing the data and the statistical software employed was STATA 16. The results of the analysis revealed that firm age has significant negative effect on real earnings management; firm size has significant negative effect on real earnings management; and profitability has significant negative effect real earnings management of listed nonfinancial firms in Nigeria. Based on these findings, it was thus concluded that corporate attributes significantly influence earnings management practices of listed nonfinancial firms in Nigeria. It was therefore recommended among others Government and regulatory bodies should provide additional support and guidance to smaller firms to help them establish strong financial controls and reduce the possibility of earnings management
Contributions of Tax Revenue and Government Expenditure to Sustainable Development Goals in Nigeria
Full text linkThis study empirically examined the effect of tax revenue and government expenditure on sustainable development goals in Nigeria. The ex-post facto research design was adopted using time series data sourced from the Central Bank of Nigeria\u27s statistical bulletin and World Bank database. The study covered 22 years from 2001 to 2021. Descriptive and inferential statistical tools were used in analyzing the data after carrying out unit root tests on the stationarity of the series to avoid obtaining invalid and unauthentic regression estimates. The Vector Error Correction Model (VECM) was applied in analyzing the relationship. The study found that Tax Revenue (TR) exhibited a negative and significant effect on sustainable development goals, while Government expenditure (GEXP) indicated a positive and significant effect on Sustainable Development Goals (SDGIS) in the long run. Furthermore, the study revealed that in the short-run Tax Revenue (TR) and Government expenditure (GEXP) both had a negative effect on the SDGIS in Nigeria. There is need for government to develop strategies to broaden the tax base and bring more entities into the tax net while ensuring equitable contribution. They should also align budget allocations with SDG priorities to ensure tax revenue is directed sustainable development projects. Hence the study recommended that government should channel its resources towards closing up infrastructural deficits while increasing productive units that would enhance the economy and ensure optimal utilization of tax revenue towards sustainable developments in Nigeria especially in the achievement of the Sustainable development goals
A Study of Students Loan Procedure in Selected Countries for Effective Implementation of Nigeria Education Loan Fund (NELF)
Full text linkNigerian students’ loan board was created in 1972 to provide financial support to Nigerian students in different tertiary institutions. The Nigerian Government reactivated the students loan scheme by passing a bill in 2023. It is therefore, necessary to examine the loan procedures in other countries for better implementation in Nigeria. This work examined the loan procedures from five selected countries. The intention was to extract relevant information on best practices and weaknesses of students’ loan scheme in those countries for effective implementation of the Nigeria Education Loan Fund (NELF). The work was based on secondary data; thus, information was collected from articles in journals, Books, internet and other related publications. The study revealed that most students loan scheme in Africa are faced with several problems such as difficulties to create credible loan board, identifying right loan beneficiaries, sustainability, reliable database, instituting an effective and efficient loan disbursement and loan recovery. The work thus provides suggestions on how to strengthen Nigeria Education Loan fund from information extracted from the study
Impact of Human Resource Accounting on the Financial Performance of Deposit Money Banks in Nigeria
Full text linkThis study investigated the impact of human resource accounting on the financial performance of deposit money banks in Nigeria. Specifically, the study examined the impact of staff remuneration, staff training, and the cost of healthcare on the financial performance of Deposit Money banks in Nigeria. The study adopted the ex-post facto research design. Data were sourced from annual published accounts of Deposit Money Banks listed on the Nigerian Stock Exchange for the period 2018-2022. Descriptive statistics and correlation were used in the analysis of the data. Panel analysis was further used to test the hypotheses at the 5% level of significance. Findings from the investigation revealed that staff remuneration and the cost of health care and safety have no significant effects on EPS, while the cost of staff training has a significant effect on EPS of the sampled listed deposit money banks. The study, therefore, recommended the need for staff remuneration to be improved so that banks’ staff can put in their best to achieve better performance
An Assessment of Public Sector Accounting in Kano State: Issues, Challenges and Way Forward
Full text linkThis study examines the assessment of public sector accounting in Kano State, highlighting the key issues, challenges, and potential solutions for improving its effectiveness. This study identifies persistent problems, including an inadequate financial management system, a lack of skilled personnel, delays in financial reporting, and weak enforcement of regulations. A descriptive survey research design was adopted to source data using a structured questionnaire. The target population of the study is made up of fifty (50) respondents, which include public sector accountants, financial officers, and auditors. The self-developed questionnaire using a 4-point Likert scale was used. The instrument was validated by two experts. The reliability coefficient of 0.81 was obtained. Fifty questionnaires were developed and administered, out of which 44 were filed and returned, which makes 88%. It was concluded that inadequate financial reporting and a lack of skilled personnel are the key issues of the Kano state public sector. The study recommends, among others, that the state government should adopt and implement International Public Sector Accounting Standards (IPSAS), moving from cash to accrual-based accounting. This ensures a more comprehensive and transparent representation of the state’s financial position
Dynamics of Micro and Small Enterprises Performance in Nigeria: The Effect of Internal Motivation
Full text linkTo increase the credibility of a results in quantitative investigation, the instrument used in data collection is the most crucial part of the study. However, to get a good result of validity and reliability, researchers need to design and conduct a proper pilot test. The aim of pilot test is to evaluate the level of validity and reliability on the research instrument. To achieve this, a sample of the questionnaire was distributed to experts in the field of management, specifically academicians to make useful comments and inputs on the suitability of the items adapted to measure the constructs. Additionally, the survey method was used to gather response through 50 usable questionnaires administered to micro and small business owner-managers in Kano, the largest commercial center in northern Nigeria, stratified random sampling was applied for data collection. The data was analyzed using SPSS V20. Findings reveal evidence of reliability of the instrument, indicating that all the items are found to be reliable as the Cronbach’s alpha values ranges from 0.62 to 0.87
The Moderating Effect of Tax Knowledge on the Relationship between Tax Rates and Tax Compliance of MSMES in Nigeria
Full text linkFindings from prior studies have confirmed the inconsistencies and weak relationship that exists between tax rates and tax compliance. This study, therefore, tested the strength of the relationship between tax rates and tax compliance of MSMEs by introducing tax knowledge as the moderating variable. From 500 questionnaires administered, 325 were collected and from data cleansing 304 respondents were tested. Stratified and proportional sampling techniques were used in selecting the samples. The study found that tax knowledge moderated the relationship that exists between the tax rates and tax compliance of MSMEs in Nigeria. Also, the study found that tax rates and tax knowledge have a significant effect on the tax compliance of MSMEs in Nigeria. Tax literacy is important in improving the basic tax education of the citizens and trust in government. The study, therefore, recommended that the government should include taxation in the curriculum of elementary classes in Nigeria