FUDMA Journal of Accounting and Finance Research [FUJAFR]
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Impact of financial statements information on market share price of listed insurance firms in Nigeria
Full text linkIn emerging economies, there is an issue of relevant information for investors’ decision. Therefore, this study is carried out to determine the value relevance of financial statements information on Market Share Price of Nigerian listed insurance firms as at 31st December, 2022. Positivism methodology was adopted and as such, ex-post facto design was employed. Consequently, secondary data was used for this research work, obtained from the published annual reports and accounts of the selected insurance firms. The Panel data regression was used to analyze the data. The study found that both dividend per share and solvency margin ratio have positive and significant impact on market price per share (p-value > 5% level of significance). On the other hand, book value per share and earnings per share were found to have insignificant impact on market price per share (p-value > 5% level of significance). The study concludes that dividend per share and solvency margin ratio influenced market price per share of the selected companies in Nigeria and thus recommends that listed insurance companies should do more towards generating adequate profit that will enable payment of dividend to investors and to pay insurers their probable claims whenever the need arises
Block Chain Technology and the New Wave of Accounting Practices
Full text linkBlock chain offers a new and secure way to process and store financial and non-financial information that is easily accessible to users. This paper utilizes a conceptual approach in examining the link between block chain technology and the new wave of accounting practices. With the growing interconnectedness of business transactions, development of block chain technology, has no doubt redefined accounting practices, setting and reforming new standards from the conventional norms. The use of block chain technology has altered the accounting and auditing space in the global architecture, bringing into fore, new patterns, innovations and developments in the field of accounting. Invariably, accounting practices would need to accommodate and embrace this digital money evolvement in its conventional standards in order to meet up with the ever increasing, demanding, evolving and competitive global accounting architecture. The study concludes that there is a consensus on the need to review and redirect the orientation of traditional accounting practices by adopting, accommodating, integrating and harmonizing block chain technology and its by-products, cryptocurrencies into current development in accounting practices and reports. Furthermore, the prospect of accounting practice has become broadened, defining and integrating new limits with block chain technology. This, without doubt, is creating a more harmonized accounting practice in the global professional space
Audit and Board Committee Expertise and Financial Statement Fraud among Listed Oil and Gas Firms in Nigeria
Full text linkFinancial statement fraud is the intentional falsification of financial information in order to defraud investors, creditor or other stakeholders. This study focused on the influence of audit and board committee expertise on financial statement fraud among Oil and Gas firms in Nigeria. The sample consist of seven (7) oil and gas companies listed on the Nigerian stock exchange group (NGX) over a period of 2013-2022, the study used panel regression. Financial statement fraud used as Dependent Variable is measured using the Beneish M-score model, while the independent variable was audit Committee Expertise and Board Committee Expertise using Accounting/Financial background. Findings show that an insignificant association exists between audit committee expertise, the composition of the board and financial statement fraud. This research suggests that regulatory bodies and industry association persist in their efforts to endorse sound corporate governance practices and addressing the challenging associated with board committee expertise
Tax Administration Practices and Compliance: Evidence from Kwara State, Nigeria
Full text linkThis study examines tax administration practices and their impact on tax compliance in Kwara State, Nigeria. Employing a cross-sectional quantitative survey design, the research utilized stratified random sampling to select 641 stakeholders from the Kwara State Internal Revenue Service (KWIRS). Data collection was conducted via questionnaires, with analysis performed using Partial Least Squares Structural Equation Modeling. The results reveal that both tax enforcement strategies and taxpayer services have significant positive effects on compliance. These findings underscore the importance of robust enforcement mechanisms and high-quality taxpayer services in fostering a compliant tax environment. Additionally, the study highlights the need for effective communication and support for tax policies to achieve desired outcomes. The research concludes that improving enforcement strategies, enhancing taxpayer services, and ensuring proper implementation and communication of tax policies are crucial for promoting tax compliance in Kwara State. The study recommends increased tax audits, improved taxpayer services, taxpayer education, and collaboration with other government agencies to enhance the overall effectiveness of tax administration. This study contributes to the existing literature on tax administration and compliance, particularly within the context of developing economies, and offers valuable insights for policymakers and tax administrators in formulating strategies to enhance tax compliance and improve revenue generation
Merger, Acquisitions and Firm Value among Deposit Money Banks in Nigeria: A review of literature
Full text linkThe most frequent issues that come up during capital reconstruction include, without a doubt, overpaying for a company\u27s value, mergers, and acquisitions. Despite these problems, this study reviewed an empirical analysis of mergers, acquisitions, and company value among Nigerian DMBs as a result of capital reconstruction. This study reviewed at least 10 pieces of literature from previous studies from which conclusions and recommendations were drawn. Thus, in accordance with the content analysis, this study draws the conclusion that, although mergers and acquisitions are complex transactions that can be challenging to complete successfully, deposit money banks can use them as a highly useful instrument to meet their strategic objectives. Therefore, this study recommends that before proceeding with any M&A transaction, deposit money banks should thoroughly consider the advantages and disadvantages of doing so
Financial Development and Income Inequality in Nigeria: Testing the Financial Kuznets Curve Hypothesis
Full text linkThis study aims to investigate the link between financial development and income inequality in Nigeria, considering the potential existence of a financial Kuznets curve in Nigeria from 1986 to 2022. The study uses datasets from the World Bank and International Monetary Fund Database. It employs the Augmented Dickey-Fuller (ADF), Phillips-Perron (PP), Zivot-Andrews (ZA), ARDL bounds testing approach, and the Toda-Yamamoto causality test to determine the direction of causality between the two variables. The study finds evidence of an inverted U-shaped relationship between financial development and income inequality, potentially supporting the Financial Kuznets curve hypothesis in Nigeria. Additionally, the results of the Toda-Yamamoto causality test show a unidirectional causality running from financial development to income inequality. The findings have significant implications for economic development and social stability in Nigeria, emphasizing the need for targeted policies to mitigate the potential adverse effects of financial development on income inequality. This study fills a gap in existing research by examining the financial Kuznets curve in Nigeria and accounting for structural breaks, thus contributing valuable insights to the ongoing debate on finance and inequality
Perceptions of Nigerian Tax Officers and Stakeholders on the Adoption of Artificial Intelligence in Tax Risk Management.
No full textThe Nigerian tax system faces substantial hurdles, including tax evasion, avoidance, and non-compliance, resulting in significant revenue losses. To combat these problems, this study examines the potential of adopting artificial intelligence (AI) in Nigerian tax risk management, centered on its ability to improve tax compliance, minimize risk, and enhance revenue collection. A quantitative approach was used, and survey research was compiled on the perceptions of tax officers, taxpayers, and tax consultants on the proposed adoption of AI in the tax industry. The results reveal that tax officers are generally confident in using AI-driven tax risk management tools, perceiving them as improving audit accuracy and increasing audit efficiency. However, concerns regarding adequate training and support were raised. Taxpayers demonstrated moderate awareness of AI-driven tax risk management, with mixed perceptions about its impact on tax compliance, privacy, transparency, and trust. Consultants were optimistic about AI-driven tax risk management\u27s effectiveness, impact, and enhancement of the overall tax system but highlighted concerns about resource adequacy and training needs. The study\u27s findings provide valuable insights into the perceptions of Nigerian tax officers, taxpayers, and tax consultants on adopting AI in tax risk management, contributing to developing effective strategies for improving tax compliance and revenue collection in Nigeria
Effect of Audit Firm Characteristics on Audit Quality of Quoted Deposit Money Banks in Nigeria
Full text linkThis study investigates how the characteristics of audit firms are associated with audit quality in deposit money banks situated in Nigeria. The core explanatory variables employed or adopted were audit fees, audit tenure, and audit rotation on audit quality. The study adopted an ex-post factor research design. The population of the study consists of twelve (12) quoted deposit money banks on the Nigerian Exchange Group (NGX) as of 31st December, 2022, and twelve (12) banks were taken as the sample size using census sampling technique. The study period is from 2013 to 2022. The data were collected from the annual reports and accounts of the selected banks. Data collected were analyzed using descriptive and inferential statistics, and the hypotheses were tested using feasible generalized least squares regression analysis. The empirical findings revealed that audit fees and audit rotation have a positive and significant effect on audit quality, while audit tenure has a negative and significant effect on audit quality. On the basis of the findings, the study concludes that audit fees and audit rotation are important ingredients in achieving good audit quality. Establishing rotation programs with auditing should be implemented by all organizations seeking better planned undertakings of tasks regarding finance. The study recommended that banks should make use of standard audit firms like the Big 4 so as to get better audit quality, and there should be a good policy for audit rotation for the banks in order to achieve better audit quality
Corporate Attributes and Risk Management Disclosure of Listed Insurance Companies in Nigeria
Full text linkDisclosure of risk management practices by firms enhances transparency, thus giving shareholders’ more confidence and lowering their uncertainty about future cash flows. This study therefore examined the effects of corporate attributes on risk management disclosures of listed insurance firms in Nigeria from 2013 to 2022. Firm size, firm profitability and firm leverage were the measures of corporate attributes employed in this study while risk management disclosure was the dependent variable. The research design adopted for this study was ex post facto and twenty-three listed insurance firms constituted the population of the study. Purposive sampling technique was employed to select eight listed insurance firms and secondary used were analysed using marginal logistic regression. The statistical package employed was STATA 16. From the analysis, it was found out that firm size, firm profitability and firm leverage have significant effect on risk management disclosure of listed insurance firms in Nigeria. Thus, it was concluded that some firm specific attributes can enhance risk management disclosures of listed insurance firms in Nigeria. Based on these findings, the study recommended that the management of insurance firms in Nigeria should strive to increase their level of profitability as more profitable firms have the incentives to engage in risk management and disclosure practices
Developing Shariah-Compliant Products for Islamic Banking Market in Nigeria: Can Bay’u Al-Inah (Buy-Back Sale) be Experimented?
Full text linkThe uniqueness of Islamic banking system is in the shariah-compliant products designed to serve the market. Among the products, is the controversial bay’u al-‘inah whose acceptability remains a subject of debate among shariah experts. As Islamic banking market is still evolving in Nigeria, it becomes imperative to analyze the potentials of bay’u al-inah’s adoption. This study therefore examined bay’u al-inah product with the objective of establishing whether the product could be adopted to improve market share of Islamic banks. Data were collected with a structured questionnaire which was used to obtain data from customers of Jaiz bank and Lotus bank in Kwara State. Six Hundred (600) copies of questionnaire were administered to respondents. Ordered Logistic Regression was conducted for the data analysis. The study found that bay’u al-inah personal financing (Coeff =0.51, p<0.05), home financing (Coeff =0.82, p<0.05), and working capital financing (Coeff =0.16, p<0.05),) have positive and significant relationship with market share which was measured with number of customers’ accounts. It was concluded based on the findings that, bay’u al-inah has great potentials for attracting more customers to Islamic banks and boosting the market share of Islamic banks in Kwara State, Nigeria. the study recommends that, subject to the assessment and approval of shariah committee of experts, bay’u al-inah be adopted by Islamic banks in Kwara State and Nigeria as whole