Malete Journal of Accounting and Finance
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INDEPENDENCE AND FINANCIAL EXPERTISE OF AUDIT COMMITTEE ON VOLUNTARY DISCLOSURE OF DEPOSIT MONEY BANKS IN NIGERIA
Full text linkThe recurrent collapse of financial institutions has engendered a lack of public confidence in the quality of financial and non-financial information disclosed by the management of listed Deposit Money Banks (DMB’s) in Nigeria. Voluntary disclosure practice especially in the Nigerian banking industry has been adjudged unsatisfactory and contributes to the lack of public confidence in financial information in Nigeria. Hence, this study investigates empirically the factors that influence the voluntary disclosure practices of listed Deposit Money Banks in Nigeria. The specific objectives of the study are to: investigate the magnitude to which audit committee composition affect voluntary disclosure practices of listed DMBs in Nigeri; and examine the extent to which audit committee independence influences voluntary disclosure practices of listed DMB’s in Nigeria using the Ex-post facto research design. Secondary data was employed to extract information from the annual reports of the twelve listed deposit money banks for eleven years, from 2008 to 2018., 2008 marked two years after the Central Bank of Nigeria CBN’s ₦25bn recapitalisation policy which made Nigerian banks more financially sound through mergers and acquisition. 2018 was also the latest year to which the annual reports of these banks were made available for public access. The information derived from the eleven years was statistically analysed using the Generalized Linear Regression. The result shows that audit committee composition does not significantly influence disclosure practices of listed DMBs in Nigeria (z=0.372, p>0.05) and audit committee independence constitutes a significant influence on the voluntary disclosure practice of listed DBMs in Nigeria (z=3.069, p-value < 0.01). The study therefore concludes that the presence of members with accounting and finance background on the audit committee does not influence the disclosure practice of listed DMBs as the inclusion of non- executive directors proved otherwise. The study therefore recommends that government and regulatory agencies should mandate the addition of accounting experts on the board of audit committees rather than the openness of financial expertise covering all fields of management stated in the Nigerian code of Corporate Governance (2016)
ENVIRONMENTAL INFORMATION DISCLOSURE AND FIRM VALUE OF LISTED MANUFACTURING COMPANIES IN NIGERIA
Full text linkIn recent times, firms’ neglect of their environmental and social responsibilities has become a matter of concern. Their activities are often aimed at making profit in line with the identified problem. The study examined environmental information disclosure and firm value of listed manufacturing companies in the Nigerian Stock Exchange Group (NSE). From a population of 56 listed manufacturing firms, a sample size of forty-eight (48) manufacturing firms was determined based on companies with complete information for all six (6) financial years studied. Random sampling technique was used to select amongst the secondary data which was sourced for from the audited annual financial reports of the sampled companies for the period of 2014 to 2019. The result of the study revealed that disclosures of emission and waste disclosure exhibit positive and significant impact on firm value; disclosures of biodiversity exhibits inverse and significant impact on firm value; and disclosures of compliance to environmental laws exhibits inverse significant impact on firm value at 5% error term. Based on the result, the study concludes that compliance with environmental laws and emissions disclosure
CONTINGENCY FACTORS AND MANAGEMENT ACCOUNTING PRACTICES OF LISTED MANUFACTURING FIRMS IN LAGOS STATE
Full text linkGiven the critical roles of management accounting information in supporting managerial functions, its usage, to optimize organizations values, must be aligned with firm’s characteristics or contingencies. The extent to which firms’ contingency factors are being considered in the choice of management accounting practices is the focus of this study. Specifically, this research investigated the variation in management accounting practice as explained by Perceived Environmental Uncertainty (PEU), firms age, discipline of management. Cross-sectional research design was employed to collect surveyed data from randomly selected 327 senior management staff of manufacturing companies in Lagos. The obtained data through closed-ended questionnaire was analyzed using descriptive statistics (proportion and measure of central tendency) and inferential statistics (multiple regression analysis) to estimate predictors. The results revealed findings that PEU (β = 0.387 ˂ 0.05), discipline of management (β = 0.257 ˂ 0.05) and firms’ age (β = 0.431 ˂ 0.05) significantly influence the level of at which management accounting techniques are put to use in generation information to perform various functions. On the basis of reported findings, the conclusions were: firms that are perceiving high level of environmental uncertainty make use of management accounting technique more often as well firms that have spent longer years in the business. Similarly, top management that have qualifications in management-related courses extensively make use of management accounting techniques. Given this conclusion, the study recommends that as level of uncertainty in environment increase firms should generate more accounting information to monitor the environment. It is important for management that as firms are growing older, extensive use of management accounting should be encouraged to effectively manage complexity inherent in firm’s expansion and finally, management should try to acquired more managerial skills to improve the optimum use of management accounting technique
CORPORATE SOCIAL RESPONSIBILITY AND ORGANIZATIONAL PERFORMANCE: EVIDENCE FROM NIGERIAN BANKS
Full text linkCorporate Social Responsibility (CRS) is a driving tool for success and a crucial component of organizational performance. The study examines the influence of CSR on the performance of selected Nigerian banks. Purposive sampling technique was used to select 50 Nigerian branch managers; 10 each from Zenith bank, Guaranty Trust bank, First bank, Access bank, and United bank for Africa respectively to constitute the study sample. A structured closed ended questionnaire was also designed; copies of which were administered to solicit opinions from the sampled population of the study. Data analysis was performed with the aid of descriptive statistics, factor analysis, and linear regression. The study established that Nigerian bank managers recognized the importance of CSR and the need to perform their obligations to the stakeholders, both internal and external as well as society at large. The study also confirmed that adoption of CSR by Nigerian banks was influenced by the demands and expectations of other stakeholders as a source of competitive advantage and to comply with government policies. Subsequently, the study recommended that CSR is a strategic tool that should be adopted by Nigerian banks as social obligation to to the shareholders and the host community among others in the course of operating their legitimate businesses
EFFECTS OF SELECTED MACROECONOMIC FACTORS ON STOCK RETURN IN THE NIGERIAN STOCK MARKET (1998-2019)
Full text linkThe nexus between stock return and macroeconomic indicators have been a debatable phenomenon for a long time. It has also be one of the major issues for domestic and foreign investors in building efficient and optimum stock portfolio in the capital market. However, the unstable macroeconomic indicators adversely affect the level of stock return in the Nigerian capital market. Against this background, this study investigates the effect of macroeconomic factors on stock return in the Nigerian capital market. The study employed secondary data obtained from Nigeria Stock Exchange (NSE) fact book and Central Bank of Nigeria (CBN) statistical bulletin within the period of 1998 to 2019. The data obtained was subjected to Autoregressive Distribution Lag (ARDL) method of analysis. Findings revealed that money supply and aggregate industrial production positively and significantly affect stock return with co-efficient and P-value at (β=0.466098, P<0.05; β=0.213141, P<0.05) while exchange and inflation rates negatively affect stock return in the Nigerian stock exchange market with co-efficient and P-value at (β=-0.009285, P<0.05; β=-0.028260, P<0.05) respectively. The study concludes that macroeconomic factors significantly affect stock return in the Nigerian stock market at both the short run and long run. The study recommends that the Central Bank of Nigeria should employ deflationary fiscal policy and Adaptive Stabilization Method of Exchange Rate policy in order to reduce variance between actual and expected stock returns in the Nigerian Stock Market
IMPACT OF ENTREPRENEURSHIP EDUCATION ON POLYTECHNIC STUDENTS’ INCLINATION TO ENTREPRENEURIAL PRACTICE IN NIGERIA
Full text linkIn Nigeria, entrepreneurship education in higher institutions of learning was introduced with the aim of inculcating entrepreneurial skills and attitudes in students to motivate them to take up entrepreneurship as a career. However, despite the introduction of entrepreneurship education as a core course in these institutions, the aspirations for white collar jobs by graduates continues which has resulted in the persistent increase in the rate of unemployment. This study examined the impact of entrepreneurship education on polytechnic student’s inclination to entrepreneurial practice, with special reference to Kaduna Polytechnic, Kaduna State. The study used survey research design and primary data were collected using questionnaire. Data collected were analysed using Minitab version 16.0. The study found that students with knowledge of entrepreneurship are more inclined to entrepreneurial practice, with male students more inclined to becoming entrepreneurs than female students. Therefore, the study recommended that students be given more exposure to entrepreneurship education in order to develop the entrepreneurial knowledge and skills to reduce graduate unemployment in Nigeria
RELATIONSHIP BETWEEN PRIVATE DOMESTIC INVESTMENT AND ECONOMIC GROWTH IN NIGERIA (1986-2018): AUTO-REGRESSIVE DISTRIBUTED LAG APPROACH
Full text linkA constant increase in domestic investment has been widely acknowledged as determinant of economic growth. Unfortunately since 1986 till 2018, Nigeria has been recording decline in the domestic investment, a situation that needs urgent attention. This calls for a re-examination of the effect of private domestic investment on economic growth in Nigeria, spanning 1986 to 2018. Upon the threshold of new classical theory of investment, economic growth was proxied by real gross domestic product, while private domestic investment was proxied by gross capital fixed formation. The study incorporated other investment measures like foreign direct investment and public investment into the model, while inflation and exchange rate were taken as control variables. Secondary data was sourced from CBN statistical bulletin of various editions and was estimated using autoregressive distributed lag bound test and its coefficients. The study revealed that private domestic investment and economic growth moves in a long run. It also found that in the short run, GFCF has a negative and significant effect on economic growth, CPCS and EXR have negative and insignificant effects on economic growth, while FDI and INF have positive and insignificant effects on economic growth. In the long run, GFCF has significant and positive effects on economic growth, CPCS, GCE, EXR and INF have positive and insignificant effects on economic growth while FDI has a negative and significant effect on economic growth. The study therefore concluded that private domestic investment has a significant positive effect on economic growth in Nigeria, and all other components of investment positively impacted on economic growth except foreign direct investment. Therefore, the study recommends among others that, government should provide an enabling environment for the private sector to function in order to contribute towards achieving increase in economic growth in Nigeria. The study further recommends policies and strategies that would enhance financial sector development in order to enhance the capacity of Nigerian capital market and banking sector towards providing and allocating necessary funds through accumulated savings for investment needed to achieve sustainable economic growth in Nigeria
INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARD (IPSAS 24): ITS EFFECT ON PUBLIC SECTOR BUDGET PERFORMANCE IN KWARA STATE, NIGERIA
Full text linkThe reliability of public sector financial information is enhanced through an efficient and transparent financial reporting system. The objective of this study was to investigate the effects of International Public Sector Accounting Standard (IPSAS) compliance on Budget Performance in Nigeria. The targeted population were 50 made up of all 24 members of the Kwara State House of Assembly and 26 Controllers of finance in the state. The sample size for the study was 45 which was arrived at using Kredjcie & Morgan (1970). The survey method of research design was adopted and a well-structured questionnaire designed in four-point Likert-Scale was administered to respondents. The data were analyzed using mean scores and the hypotheses were tested with One Sample T-test. The findings indicated that the level of compliance with disclosures to an extent complied with IPSASs 24 requirements and that IPSAS 24 requirement does have significant impact on budget performance in Kwara State Public Service. The study concluded that the level of compliance with disclosures to an extent complied with IPSAS 24 requirements and therefore recommended that government should continuously train all officers responsible for the implementation of IPSAS and budget implementation so as to update them on the new standards issued by IPSAS Boar
CORPORATE GOVERNANCE PRACTICES AND EFFECT OF CULTURE OF CEO SUCCESSION PLAN ON BANKS’ FINANCIAL PERFORMANCE IN NIGERIA
Full text linkIn recent time, good corporate governance has been adjudged to be a basis for the outstanding financial performance of banks in developed and developing economies and this is evident in pre and post consolidation era of Nigerian banks. As such, this study examined the effect of corporate governance on bank’s performance. The study made use of secondary data from Annual reports of Nigerian Banks quoted on Nigeria Stock exchange and harnessed the views of directors and managers of these banks by means carefully designed questionnaire. The study use adopted ex-post facto survey research design and stratified random sampling method was adopted thereby choosing13 out of the entire 22 quoted banks on the stock exchange in Nigeria. The statistical tools used included cross tabulations, mean and correlation analysis. The results showed that CEO succession plan (CSP) has significant effect on financial performance (at P< 0.05). It was discovered that annual strategic retreat (ASR) has significant effect on the bank’s financial performance (at P< 0.05). Study concluded that there is significant level of compliance by the Nigerian banks to the corporate governance code. Study therefore, recommend that banks are encouraged to improve on their level of transparency and financial disclosure in order to be able to enhance their financial performance
EFFECT OF PUBLIC DEBT ON ECONOMIC GROWTH IN NIGERIA
Full text linkPublic debt is a critical tool for governments to fund their spending, particularly when it is difficult to raise taxes and reduce public expenditure. However, this process has left most governments with massive outstanding debts, hence, the need to examine the effect of public debt on economic growth in Nigeria. The study employed secondary data, which was sourced from Central Bank of Nigeria Statistical bulletin over a period of 33 years from 1987 to 2020. The study adopted expost facto research design. The study also employed the Autoregressive distributive lag (ARDL). The result of the study revealed that external debt is a positive determinant of economic growth in Nigeria with a p-value of 0.0255. The study also revealed that domestic debt is a negative significant determinant of economic growth in Nigeria with a coefficient value of 0.0005. The study concludes that public debt has significant effect on economic growth in Nigeria. The study therefore recommends that government of Nigeria should make more use of external debt than domestic debt because of the low interest of external debt to domestic debt which will help in reducing the debt burden