Malete Journal of Accounting and Finance
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TAX MANAGEMENT PRACTICES AND PERFORMANCE OF STATE INTERNAL REVENUE SERVICES IN SOUTHWEST, NIGERIA: MODERATING ROLE OF INFORMATION TECHNOLOGY ADOPTION
Full text linkDespite reforms in Nigeria\u27s tax system, the performance of State Internal Revenue Services (SIRS) remains suboptimal, largely due to ineffective tax management practices and limited technological integration, resulting in low revenue generation. Given these issues, this study investigates the moderating role of information technology (IT) adoption on the relationship between tax management practices and the performance of SIRS in South-West Nigeria. The study aimed to examine both the direct and interaction effects of tax management and IT on institutional performance. A cross-sectional survey design was employed, targeting a population of 8,142 staff across Lagos, Ogun, and Oyo States. A sample size of 381 was determined using Taro Yamane statistical formula and Morgan’s table and selected through proportionate stratified random sampling. Data were collected using structured questionnaires and analyzed using Covariance-Based Structural Equation Modeling (CB-SEM) and Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that tax management practices have a statistically significant positive effect on performance (β = 0.471, p < 0.001), as does IT adoption (β = 0.392, p < 0.001). However, the moderating effect of IT on the relationship between tax management and performance was statistically insignificant (β = 0.041, p = 0.287). The study concludes that while both tax practices and IT adoption independently improve SIRS performance, their interaction does not produce an additional significant effect under current conditions. The study recommends that SIRSs should continue flourishing investments in staff training, IT infrastructure, and administrative alignment to strengthen institutional capacity and improve their tax administration efficiencies
CYBERCRIME AND FORENSIC EXAMINATION IN NIGERIA: HOW RELEVANT IS THE DETERENT THEORY
Full text linkCybercrime has emerged as a profound threat to Nigeria’s economic security, undermining financial stability, investor confidence, and long-term development prospects. This study investigates the dynamic relationship between rising cybercrime activities and the resilience of Nigeria’s economy between 2014 and 2024. Using secondary data synthesized into six structured tables, the analysis explores financial losses, institutional vulnerabilities, and the broader economic implications of cyber insecurity. The findings reveal a persistent increase in cyber-related crimes, with attendant costs to the banking sector, foreign investment inflows, and national revenue generation. Institutional Theory provides the theoretical lens, emphasizing how weak institutional capacity, fragmented regulatory frameworks, and inadequate enforcement mechanisms have enabled cybercrime to flourish despite existing policies. The study concludes that cybercrime is not merely a law enforcement issue but a systemic economic threat requiring multidimensional responses. Strengthening institutional frameworks, embedding cybersecurity in economic development strategies, and fostering collaborative digital resilience among state and non-state actors are recommended. By situating cybercrime within the broader context of economic security, the paper offers a critical contribution to policy and scholarship, highlighting both the challenges and opportunities for securing Nigeria’s digital economy
BALANCING ACCURACY AND INTERPRETABILITY IN CREDIT RATING MODELS: A COMPARATIVE ANALYSIS OF STATISTICAL AND MACHINE LEARNING METHODS IN NIGERIA
Full text linkCredit rating remains one of the most critical mechanisms in financial markets, serving as a benchmark for investment decisions, borrowing costs, and regulatory compliance. This study investigates the predictive capacity of machine learning and traditional statistical methods for corporate credit rating in Nigeria, an emerging economy where reliable credit risk assessment remains central to financial stability and capital allocation. Adopting an explanatory research design, the study utilizes firm-level panel data from a purposive sample of 89 publicly listed companies operating across manufacturing, financial, and service sectors over the period 2015–2023. Using data from 89 companies across three major sectors, the study evaluates the performance of six models, including logistic regression, support vector machines, random forest, XGBoost, decision trees, and k-nearest neighbours, based on classification accuracy, sensitivity, specificity, precision, and Matthews correlation coefficient. Empirical results reveal that while advanced machine learning algorithms such as random forest and XGBoost perform competitively, logistic regression demonstrates consistent interpretability and regulatory suitability, particularly when applied to capital adequacy and profitability indicators. Sensitivity analyses and post-hoc Tukey HSD tests suggest that differences across models are not always statistically significant, underscoring the role of data quality and multidimensional indicators in determining predictive success. The study concludes that hybrid credit-rating frameworks that integrate interpretable statistical models with machine learning techniques offer the most practical balance between transparency and predictive power. It recommends that regulators and financial institutions in Nigeria prioritize data enrichment strategies, encourage explainable modeling approaches, and incorporate alternative data sources to enhance corporate credit assessment and support financial stability
AUDIT ASSURANCE AND MITIGATION OF FINANCIAL STATEMENTS AMBIGUITIES: AN EXPLORATORY RESEARCH
Full text linkFinancial statements of an enterprise are reports that provide information about the performance of a business useful for decision making by stakeholders. Unfortunately, the statements are often plagued with vagueness due to ambiguities. The study examined the causes of these ambiguities and explored ways they (ambiguities) could be mitigated. Relevant literature on the subject matter available from published articles available on the internet and in the library was reviewed. From the review, it was found that factors such as lack of clarity in disclosures, inconsistent application of accounting policy, use of jargon or technical terms, estimates in financial statements that require management judgment, subjectivity in valuation of items and inclusion of related party transactions to be the causes of ambiguities in financial statements. The study concluded though these ambiguities pose difficulties to users of financial statements, they can be reduced to the barest minimum. The study therefore recommended transparency in disclosure, avoidance of technical languages/terms and consistent application of accounting policy as measures that would mitigate the ambiguities capable of promoting trust and confidence of stakeholders in financial reports of enterprises
REVISITING THE DETERMINANTS OF FINANCIAL INCLUSION IN THE DIGITAL ERA: EVIDENCE FROM LATIN AMERICAN COUNTRIES
Full text linkThe advent of the Internet, coupled with rapid adoption of smartphones has accelerated the use of digital banking, compelling financial institutions worldwide to integrate digital innovation into their product offerings. However, this adoption has not translated into a proportional increase in financial inclusion among Latin American countries. This study investigates the relationship between digital banking, digital infrastructure, and financial inclusion in Latin America, using data from 2017 and 2021. The study employed descriptive statistics, correlation analysis and Granger causality tests to analyze the data. Purposive sampling techniques was used to seven (7) Latin American which include Brazil, Colombia, Costa Rica, Ecuador, Paraguay, Peru, and Uruguay. The results reveal that financial inclusion is positively correlated with digital payment usage (r = 0.838, p < 0.05), online purchases (r = 0.842, p < 0.05), online bill payment (r = 0.779, p < 0.05), and internet usage (r = 0.795, p < 0.05), all statistically significant at the 5% level. However, mobile subscriptions exhibited a weak and statistically insignificant correlation (r = 0.175, p > 0.05). Granger causality analysis confirmed a bidirectional causality between financial inclusion and all digital indicators, showing a mutually reinforcing relationship. This study concludes that digital payment usage, online purchases, online bill payment, mobile subscriptions and internet usage can explain financial inclusion in Latin America. This study, therefore, recommends that policymakers should implement policies that aimed at reducing the cost of internet access, particularly in rural and underserved areas. These will not only bridge the digital divide but also expand access to formal financial services in Latin America
ACCESS TO FINANCE AND FINANCIAL PERFORMANCE OF SMEs IN PHARMACEUTICAL BUSINESS IN KWARA STATE, NIGERIA
Full text linkGlobally, small and medium-sized Enterprises (SMEs) are essential catalysts for economic expansion, fostering innovation, generating employment, and promoting community development. SMEs are critical to the pharmaceutical industry because they guarantee access to necessary medications, support healthcare systems, and boost the economy. This study, therefore, investigates the effect of access to finance on the financial performance of SMEs in pharmaceutical business in Kwara State, Nigeria. Using a survey research approach, data were collected from 140 registered SMEs in pharmaceutical business through structured questionnaires. Descriptive statistics and ordered logistic regression were employed to analyze the data. The findings revealed that microfinance lending (P=0.000) and informal microcredit (P=0.021) significantly enhanced financial performance indicators such as revenue growth and return on investment. In contrast, government support programs through the Central Bank of Nigeria (CBN) (P=0.294) showed no significant impact. The research findings indicate that the financial performance of small and medium-sized pharmaceutical businesses in Kwara State, Nigeria, is considerably enhanced by timely and reasonably priced financing from microfinance institutions, and unofficial microcredit sources. However, persistent macroeconomic and institutional issues continue to be significant barriers. The study recommends that pharmaceutical SMEs should implement cost-saving measures, explore local sourcing options, and adopt pricing strategies to maintain competitiveness in the market. It also advocates for enhanced financial literacy, the adoption of digital lending platforms, and strengthened security measures to address systemic barriers and improve financial performance across the State and Nigeria at large
DETERMINANTS OF CORPORATE CASH HOLDINGS IN QUOTED MANUFACTURING FIRMS IN NIGERIA
Full text linkTo guarantee operational effectiveness and reduce financial risks, manufacturing companies require sufficient cash reserves. However, establishing the ideal cash holding level and its determinants can be difficult and lead to financial inefficiencies. This study investigated the factors that influence corporate cash holdings of manufacturing businesses in Nigeria, with a particular emphasis on important firm-specific elements such as capital expenditures, firm size, leverage, profitability, liquidity, and expansion potential. The study employed an ex-post facto research design and gathered data from financial records and yearly reports of a purposive sample of twenty-eight (28) manufacturing companies listed on the Nigerian Exchange from 2013 to 2023. The study used the Panel Generalised Method of Moments (GMM), correlation, and descriptive statistics to look into how these factors affect how much cash a company keeps on hand. The results of the GMM showed that cash holdings are significantly correlated negatively with capital expenditure (β=-0.073 at 1%), financial leverage (β=-0.0001at 1%), and profitability (β=-0.0007 at 1%), whereas firm size (β=0.035 at 1%) and liquidity (β=0.058 at 1%) have a significant positive association with corporate cash holdings. However, growth opportunities (β=-0.0001) showed a negative but negligible influence. Consequently, the study concluded that capital expenditure, financial leverage, profitability, liquidity and firm size are important factors determining the amount of cash and cash equivalents that listed manufacturing companies hold in Nigeria. The study then recommended that firms should optimise their cash holding policies by striking a balance between the expense of holding too much idle cash and the requirement for liquidity
MICRO-FINANCE ANALYTICS AND CHALLENGES OF FINANCIAL INCLUSION AMONG UNDERSERVED POPULATION IN OYO STATE OF NIGERIA
Full text linkDespite various global efforts to close the financial gap, millions of individuals and small business in rural communities remain excluded from formal financial system due to limited access, financial illiteracy and systemic inefficiencies. The study investigates the role of microfinance analytics in solving challenges of financial inclusion among underserved populations in Iseyin area of oyo state, Nigeria. The research employed survey research method. A population of one thousand (1,000) individuals from underserved rural community of Iseyin in Oyo state of Nigeria. A stratified random sampling of microfinancing clients was used to select three hundred (300) participants comprising of existing and potential clients as well as stakeholders. Data was collected through structured questionnaire. Analytical tools such as descriptive statistic and ordinary least square method were used to analyse the data. Findings revealed that Microfinance analytics significantly enhance financial inclusion by improving risk assessment, adapting financial products to clients needs and help optimize resources allocation. The study concludes that micro-finance analytics is a transformative tool for addressing financial exclusion. To maximise its impact, the study recommended the Integration of lightweight’s micro-finance analytics into MFIs loan processing workflow and make it the default decision support tool. These would include piloting a cloud based analytic engine, using the dashboard during clients’ interview and setting clear Key performance index (KPI). The expected outcome of the implementation is that it would increase financial inclusion and high portfolio quality is maintained
CORPORATE GOVERNANCE AND COMPANY’S VALUE: MODERATING ROLE OF ENTERPRISE RISK DISCLOSURE AMONG LISTED BANKS IN INDONESIA
Full text linkBanking cases in Indonesia are often colored by various cases, ranging from those involving theft of customer funds, corruption, embezzlement, and fraud, most of which are carried out by individuals and bank officials themselves. This is contrary to the concept of a bank that guarantees a sense of security and trust to its customers. This research seeks to evaluate the impact of effective corporate governance on company value, using corporate risk management disclosure as a moderating variable. This study employs a quantitative research approach using a census technique. The research sample included 43 banking firms listed on the Indonesia Stock Exchange from 2019 to 2023. The results of this study indicate that good corporate governance has a coefficient value of -582.98 with a p-value of 0.6276, this indicates an insignificant negative effect on company value. Company value is not determined by the good corporate governance rating represented by the composite value. In this case, there is asymmetric information between the principal and the agent, where information regarding the implementation of good corporate governance tends not to be utilized or not used by external parties and other interested parties in making investment decisions. Then, Enterprise risk management disclosure cannot moderate the effect of good corporate governance on company value. indicated by a coefficient value of 5.83 and a p-value of 0.6438. The wider the ERM information disclosed, the company value will decrease, this is because the breadth of information disclosed by the company about ERM management is perceived as negative news (bad news) by investors because information related to risks disclosed in the financial statements has not been fully followed by complete information related to how the company anticipates or mitigates these risks