Malete Journal of Accounting and Finance
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ECONOMIC AND INSTITUTIONAL DETERMINANTS OF INTERNATIONAL TOURISM DEMAND IN THE ECOWAS REGION
Get PDFThis study examines the economic and institutional determinants of international tourism demand in the Economic Community of West African States (ECOWAS) region. The study employs a static panel regression model using annual data between the years 2000 and 2015 across all countries in the West African region. The empirical result suggests that real effective exchange rate, level of corruption, income of international tourists, relative price of tourism and insecurity have a significant impact on the level of tourism demand in the ECOWAS region at 1%,10%,1%,1% and 5% significant level respectively. The signs of the parameters of the variables show that income and political instability have positive impact on the tourism demand while relative price, corruption and insecurity have negative impact on the tourism demand in the region. The study recommends government, authorities in charge of crime prevention (security agencies) and other key players (both private and public) to team up and map out plans to tackle terrorism and insecurity in the West African region; the region should consider adopting single currency to stabilize prices; and ensure effective communication is maintained so that tourists are adequately informed about dangerous zones
CREDIT RISK MANAGEMENT AND PROFITABILITY OF DEPOSIT MONEY BANKS IN NIGERIA
Get PDFBanks in all climes are primarily faced with problem of credit risk whenever they mediate between the surplus and the deficit units of the economy. This study examined the impact of credit risk management on the profitability of deposit money banks in Nigeria. Specifically, this study evaluated the impact of credit risk management on return on assets, return on equity, and net operating income of deposit money banks in Nigeria. This study adopted an ex post facto research design. Nineteen listed deposit money banks as at December 31, 2018 form the population of this study out of which a sample of fifteen banks were selected based on complete availability of data from 2007-2018. Data obtained was subjected to fixed and random effects regression estimations for the various models in this study using the Hausman test. Findings revealed that: (i) loan-value ratio and loan-deposit ratio significantly impacted on return on assets of deposit money banks, while non-performing loan ratio, bank size, and log of total loans did not significantly impact on return on assets of deposit money banks in Nigeria; (ii) total loans significantly affected return on equity of deposit money banks, while loan-value ratio, loan-deposit ratio, bank size, and non-performing loans did not significantly affect return on equity of deposit money banks in Nigeria; and (iii) bank size, non-performing loan, and total loans were found to significantly affect net operating income of deposit money banks in Nigeria, while loan-value ratio, and loan-deposit ratio did not significantly exert on net operating income of deposit money banks in Nigeria. The study therefore, concluded that loan-value ratio, loan-deposit ratio, value of total loans, bank size, and non-performing loans influence banks profitability in Nigeria, and recommended that proper attention be paid to these variables in order to increase the profitability of deposit money banks in Nigeria
WORKING CAPITAL AND PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN KWARA STATE, NIGERIA
Get PDFSmall and medium scale enterprises are the engine room of any nation’s development, yet, this sector is bedeviled by several constraints including poor working capital management practices which continue to mar its developmental objectives. Hence, this study evaluates the impact of working capital management on the performance of small and medium scale enterprises in Kwara State, Nigeria. The study was carried out using primary data which was obtained through the administration of copies of questionnaire to owners and senior management staff of small and medium scale enterprises in Kwara state. The data were analysed using descriptive statistics, structural equation model and ordered logit regression. The findings of the study reveal that frequently used working capital are personal savings, profit from the business operations, bank loans and account payable. The study also reveals that cash management practices significantly impact on the performance of small and medium scale enterprises in Kwara state with a coefficient value of 1.575421 at a 1% significance level while account receivables practices also significantly impact on the performance of small and medium scale enterprises in Kwara state, with a coefficient value of .6241527 at 5% significant level. It was further revealed from the study that inventory management practices are a significant determinant of performance of small and medium scale enterprises in Kwara state with a coefficient value of 3754485 at a 5% significance level. Finally, it was revealed that account payable practices are significant determinants of performance of small and medium scale enterprises in Kwara state with a coefficient value of .5051616 at a 5% significance level. The study concluded that working capital management significantly influences the performance of small and medium scale enterprises in Kwara state. Based on the findings, it is suggested that management of SMEs should pay attention on reducing the number of day’s accounts receivable and inventories to a reasonable minimum to generate enough profitability for owners and shareholders
DO DECISION-MAKING PROFESSIONALS COMMIT THE SUNK-COST FALLACY?
Get PDFDecision-making professionals, such as economists, accountants and business majors, are usually taught the general economic principle that when evaluating the costs of a decision, the decision maker should consider only those costs that are actually incurred as a result of making that decision, and that sunk costs should be ignored. However, there has been considerable anecdotal evidence that many of these decision-making professionals honour sunk costs in their decisions. Some studies have provided evidence in support of the anecdotal evidence while some have refuted the evidence. In order to shed more light on this topic, this paper, therefore, examines whether these decision-making professionals too are adversely influenced by sunk costs when making their decisions. By carrying out proportion tests on 156 respondents and estimating a binary logit model for two decision-making vignettes, this study found that the selected professional decision makers committed the sunk cost fallacy, and that the amount (or size) of the sunk cost was a major significant determinant of the susceptibility to sunk-cost fallacy. The study also found that the proportion of professional decision makers who committed the fallacy differed according to the nature of the decision. These findings suggest that having background knowledge about sunk cost does not preclude individuals from committing the fallacy and that susceptibility of a decision maker to sunk-cost fallacy depends on the nature of the decision being made
BUSINESS INCUBATORS AS CATALYST FOR ENTREPRENEURIAL PROCESS DEVELOPMENT IN OYO AND EKITI STATES, NIGERIA
Get PDFThe study sought to examine business incubators as catalyst for entrepreneurial process development in Oyo and Ekiti States. The high rate of entrepreneurial failure rate in developing countries is motivation for this investigation to explore the relationship between business incubators and entrepreneurial process development in the target states. The population is made up of three hundred and forty-six (346) respondents made-up of technology incubators and staff of entrepreneurial start-ups and the sample of 186 was drawn from graduated residence incubates and technology incubator employees using Taro Yamane sample size calculation formula. The sampling approach employed was multistage sampling procedure through the use of purposive, stratified and simple random sampling technique to pick out respondents. Simple linear and correlation coefficient were used to test the hypotheses. The results confirmed that the impact of business incubators is a right predictor for entrepreneurial process development in Oyo and Ekiti States. The study concluded that business incubators are catalysts and essential tools for promoting entrepreneurial process development in Oyo and Ekiti states in South West Nigeria. The study recommends that authorities should intensify effort in equipping all TIC facilities in the country for better results and for incubates to seize the opportunity to increase their overall performance through the support services provided to them through business incubator
CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE: EVIDENCE FROM NIGERIAN LISTED INDIGENOUS OIL AND GAS FIRMS
Get PDFThe combination of equity capital and debt capital forms the capital structure of an enterprise which in achieving firms’ objective is the utmost aspect of managerial and financial decisions. It has the ability of manipulating the operating, non-financial and financial performances of a firm as well as risk exposure due to returns payable to the provider of capital in the form of interest and dividend. Hence, this study takes a look at how the capital structure impacts on the financial performance of listed indigenous oil and gas firms in Nigeria. The study adopted an ex-post facto research design and data was extracted from annual reports of the eight (8) sampled firms for periods of 2009 to 2018. The data was analyzed using panel data regression technique to examine the extent of the impact of the independent variables on the dependent variables. The study revealed that at 0.05 significant level, Short-term Debt (STD) and Equity (EQ) have a positive and significant impact on the financial performance of listed oil and gas firms in Nigeria in terms of Return on Assets (ROA) and Return on Equity (ROE) while Long-term Debt (LTD) had a negative significant impact on the financial performance in terms of Return on Assets (ROA) and Return on Equity (ROE) of listed indigenous oil and gas firms in Nigeria. Thus, the study concluded that capital structure has a positive impact on the financial performance of listed indigenous oil and gas firms in Nigeria. Therefore the study recommended that indigenous oil and gas firms in Nigeria should adopt a short term capital for short term financing to avoid the problem of over-capitalization, which will, in turn, lead to drop in the financial performance and a long term debt should be used to implement the capital projects to avoid the problem of over-trading by oil and gas firms in Nigeria because long term debt contribute less to financial performance
STRUCTURAL CAPITAL MANAGEMENT AND PERFORMANCE OF PUBLIC UNIVERSITIES IN NIGERIA
Get PDFOrganizational function, processes and information technology networks are essential frameworks that provide the tools for retaining, packaging, reinforcing, and transferring knowledge in Nigerian public universities. These influence the performance of universities globally and locally in terms of knowledge generated through transmitting and conducting relevant research that translate into impactful innovation and development of the society. The fast eroding culture of exchange programs, processes and information technology networks of Nigerian public universities had resulted to poor performance. This is evident with close to near bottom position in the global universities ranking, lack of commitment by the government evidenced with low budgetary allocation to the Nigerian education sector which had affected quality of teaching, research output, and quality of service to the society. Therefore, the present study examines the effect of structural capital on the performance of public universities in Nigeria. This study employed cross-sectional survey research design with a total population of eight thousand, five hundred and eighty-nine (8,589). The sample size of 382 was selected out of which 95% responded. Data was collected using semi-structured questionnaire. The data was analyzed using descriptive and OLS regression analysis. The result of analysis revealed that structural capital is significantly related with research and teaching performance but insignificant with community performance. The study concluded that proper management of structural capital of Nigerian public universities promotes research performance and has potentials of improving the teaching performance of the universities. Therefore, the study recommends that university administrators and other stakeholders should create more awareness on the potentials of efficiently managing structural capital of their universities and emphasis should be placed on policies that will improve the quality and relevance of researches in Nigerian public universities. The study also recommends that Nigerian public universities should improve on policies of appointment of academic staff so as to employ qualified personnel
IMPACT OF GOVERNANCE AND ECONOMIC FACTORS ON INFORMAL EMPLOYMENT IN WEST AFRICA
Get PDFUnderstanding the drivers of informal employment would go a long way in addressing such problems as underdevelopment, poverty, and unemployment. Therefore, this study investigates the impact of governance and economic factors on informal employment in West Africa. The governance factors considered are control of corruption, government effectiveness, quality of governance, regulatory quality, rule of law, political stability and absence of violence as well as voice and accountability, while the economic factors are income per capita, unemployment rate, tax burden, inflation rate, and household spending. The neo-liberal model is the theoretical framework underlying the study. Using panel dataset collected on 16 West African countries for the period of 2010-2020, the study estimated the fixed and random effects regressions of the model. The results show that quality of governance, unemployment rate, per capita income and urban population all had a negative impact on informal employment. Therefore, quality of governance, unemployment rate, per capita income and urban population negatively influence the proliferation of informal employment. Hence, policymakers should focus on improving the quality of governance, reducing the unemployment rate, increasing the income per capita, and controlling the urban population in order to discourage informality in West Africa
TAX FAIRNESS, PERCEIVED CORRUPTION AND TAX ADMINISTRATION IN NIGERIA
Get PDFoai:ojs2.majaf.com.ng:article/1Globally, perceived unfairness and corruption in tax administration cause taxpayers to be apathetic about their tax obligations, leading to tax evasion. It is against this background that this study investigated the extent to which tax fairness moderated by perceived corruption influence tax administration in Nigeria. The study employed survey method to collect and analyse quantitative data from randomly and purposefully sampled 3,800 FIRS management staff and registered corporate taxpayers at the FIRS zonal offices. Quantitative data were analysed using partial least square – structural equation modelling (PLS-SEM). The findings revealed that there was positive and significant relationship between tax fairness and tax administration in Nigeria (β = 0.096, 2.284, p < 0.05) and positive moderating influence of perceived corruption on the relationship between Tax Fairness and Tax Administration in Nigeria (β = -0.061, t = 2.284, p < 0.05). The study therefore concluded that tax fairness and perceived corruption are good predictors of tax administration in Nigeria. The study recommended that equity, justice and fairness should be exhibited in tax administration and government should further take its fight against corrupt practices vis-à-vis taxpayers and tax revenue generating agencies in Nigeria. 
EFFECT OF ORGANISATIONAL DYNAMICS ON ACCOUNTING PRACTICES OF LISTED DEPOSIT MONEY BANKS (DMBs) IN NIGERIA
Get PDFAccounting scandals and financial irregularities have always been conducted to achieve numerous objectives which however become cancerous issues truncating the survival of firms. The nature and level of damage arising from accounting scandals and financial irregularities differ based on individual firm characteristics. Hence, this study examined the effect of organisational dynamics on accounting practices of listed deposit money banks in Nigeria. This study adopts ex-post facto research design and data was sourced from 13 out of 14 listed deposit money banks as at 2018. The generalised moment model regression model technique was used and the result showed that profitability has positive significant effect on accounting practice of deposit money in Nigeria; foreign listing has no significant effect on accounting practice of deposit money banks in Nigeria; and, leverage has positive significant effect on accounting practice of deposit money banks in Nigeria. The study concluded that organisation dynamics contributes significantly to accounting practice of deposit money banks in Nigeria. The study therefore recommended that profitability decision should be considered more by Nigerian deposit money bank in order to reduce accounting practice and to measure board performance