Malete Journal of Accounting and Finance
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ORGANISATIONAL STRATEGY AND MODERATING EFFECT OF PERFORMANCE MEASUREMENT SYSTEM ON PERFORMANCE OF NIGERIAN LISTED MANUFACTURING FIRMS
No full textMeasuring performance of manufacturing firms is essential to enable stakeholders and interested/potential investors to evaluate the general and specific actions of firms and how they perform over time. Performance measurement is said to be critical for efficient business management and thus, when selecting measurement system, organisations seem to be mostly dependant on certain designs for effective and efficient organisational operations. This study examined the influence of organisational strategy on organisational performance, as well as the moderating effect of performance measurement system between strategy and organisational performance. Organisation performance was proxy with financial and non-financial performance. This study was premised on the assumption that proper strategies by organisations enhance performance (financial and non-financial) and that the performance measurement system of organisations significantly moderates the relationships between organisational strategy and organisation performance. Based on these assumptions, this study employed the contingency theory and formulated 4 study objectives:(i) examine the impact of organisational strategy on Performance Measurement System; (ii)determine the relationship between organisational strategy and financial performance (iii) evaluate how organisational strategy influences non-financial performance and; (iv) investigate the moderating effect of Performance Measurement System on financial and non-financial performance. Data was collected through a self-administered survey of 168 respondents purposefully selected from thirty-seven listed manufacturing firms in Lagos, Nigeria, and analysis was done using PLS-SEM. The target respondents were accountants, auditors and managers of respective organisations. The main finding of this study showed that organisational strategy significantly influenced performance measurement system, financial and non-financial performance. Moreover, performance measurement system significantly moderates the relationship between organisational strategy and financial performance. Based on the empirical findings and the results of this study, it is recommended that management of manufacturing firms should maintain a good strategic position in order to achieve organisational objectives and stakeholders’ expectations
FIRM-SPECIFIC CHARACTERISTICS, MARKET RISKS AND ASSET QUALITY OF DEPOSIT MONEY BANKS IN NIGERIA
Get PDFThe decline in asset quality stimulates the interest to investigate the effect of firm-specific characteristics and asset quality of Deposit Money Banks (DMBs) in Nigeria. Hence, this study examined the asset quality of these banks from firm-specific characteristics and market risks dimension. Secondary data was adopted for this study and the data for the firm-specific characteristics was extracted from the audited financial statements of the sixteen selected quoted DMBs in Nigeria as at December 2018. The data for the market risk variables was extracted from the Central Bank of Nigeria website and the World Development Index. Static panel regression was employed as the estimation technique. Results showed that diversification, capital adequacy, profitability and leverage are the bank-specific factors that determine asset quality. Inflation and financial crisis are the market risks variables that have a significant effect on DMBs’ asset quality. Based on these findings, the study concluded that diversification, profitability, capital adequacy, leverage, inflation and financial crisis are the major drivers of bank’s asset quality in Nigeria. In line with the findings, the study recommended that banks should strive to maintain the prudential threshold for capital adequacy as this will help them absorb shocks and withstand losses that may arise in the reasonable cause of doing business. Also, the regulatory authorities (CBN) should strive to reduce the high inflationary trend in the countr
IMPACT OF GENDER DIVERSITY ON TAX COMPLIANCE OF NON-FINANCIAL LISTED COMPANIES IN NIGERIA
Get PDFThis study examines the impact of gender diversity on tax compliance of non-financial listed companies in Nigeria. This study employs explanatory sequential design of mixed method to analyse and interpret the quantitative and qualitative data set. 68 out of 116 non-financial listed companies from 2004 to 2018 were selected as the final sample based on data availability while qualitative data was obtained through semi structured interviews on 17 corporate governance agents (Board of Directors; Key Executive Management; Partners of the big four audit companies; Academic Scholars; Regulators; Tax Consultants; and Shareholders). A Generalised Least Squares Regression and Discourse analysis were used to analyse the quantitative and qualitative data respectively. The combined GLS results (Wald Chi squares) indicates that gender diversity (ꞵ=0.0140; P<0.05) has a statistically significant impact on tax compliance. Majority of the respondents subscribed to the idea that having adequate women with knowledge, experience and pedigree will promote the positive tax compliance of listed firms in Nigeria. The study concludes that gender diversity has a significant impact on tax compliance. The study recommends that the FRCN should strengthen the existing code of corporate governance to provide for the appointment of at least, 30% of women of integrity, sufficient knowledge and adequate experience on the board of listed firms in Nigeria in order to achieve tax compliance
IMPACT OF FORENSIC ACCOUNTING SERVICES ON PREVENTING AND DETECTING FRAUD IN NIGERIAN DEPOSIT MONEY BANKS
Get PDFThe internal control system of any organisation determines how prone such an organisation will be to fraudulent practices. The operations of Nigerian Deposit Money Banks (NDMBs) is highly multifaceted, hence, requires sophisticated technology which in turn requires technology-driven expertise to design a sound internal control that will detect and prevent fraud in such system. This paper looked into how forensic accounting services impact on the internal control system in preventing and detecting frauds in Nigerian Deposit Money Banks (NDMBs).The studied sample was 210 representing the entire professional accounting / core staff working at the head office of theNDMBs listed on the Nigerian Stock Exchange (NSE) as at December, 2018. Krejcie and Morgan (1970) simplified sample size decision table were used to derive our sample size of 136. Multiple regression analysis and T-test was used to analyze the data while the respondents’ responses to the questionnaires were selected using purposive sampling technique. The study revealed that forensic accounting services have a significant impact on preventing and detecting fraud in Nigerian DMBs. The study concluded that forensic accountant can be used to design sound internal control system that will prevent and detect frauds in Nigerian Deposit Money Banks. The study therefore recommended that NDMBs should engage/ employ the services of forensic accountant to fortify their internal control system against fraud
CORPORATE ATTRIBUTES AND FIRMS’ DISCLOSURE OF CORPORATE SOCIAL RESPONSIBILITY: AN INSIGHT INTO NIGERIAN LISTED COMPANIES
Get PDFThe financial reports that incorporate economic, social, environmental and governance information raised a global concern in the recent times due to its shortcomings weaknesses on the conventional financial reports. The disclosure of corporate social responsibility will not only enhance stakeholder’s decisions but might be crucial to the survival of the business organisation. The disclosure of performance of the organisation should be evaluated in terms of the economic (profit), social (people) and the environment (planet factors). Based on this, effort is required towards making the disclosure of corporate social responsibility not voluntary but mandatory worldwide. Therefore, this study investigates the relationship between corporate attributes and firms’ disclosure of corporate social responsibility in Nigerian listed companies. Out of the one hundred and seventy-seven (177) total population of companies listed in Nigeria between 2016 and 2020, a sample of one hundred and twenty-two (122) companies were randomly selected and analysed with the use of ordinary least square regression techniques. The result of the fixed effect estimation showed that firm size and profitability had a positive and significant relationship with firms’ disclosures of corporate responsibility at 5 % level while leverage has negative and insignificant relationship with firms’ disclosure of corporate social responsibility in Nigerian listed companies. Hence, the study recommends to the stakeholders of the Nigerian listed companies that they should encourage the management of their companies to invest more on the size of the company and profitability because of their positive impact on enhancing disclosure of corporate social responsibility that would enhance their decision making. In addition, leverage should not be encouraged because it would reduce the disclosure of Nigerian listed companies’ corporate social responsibility
CAUSAL RELATIONSHIP AMONGST CORPORATE LONG-TERM FINANCING DECISIONS: EMPIRICAL EVIDENCE OF LISTED NIGERIAN MANUFACTURING FIRMS
Get PDFConsidering the effects of the COVID-19 pandemic amongst other present global economic challenges on the growing Nigerian manufacturing firms, this study is conducted to offer useful information to corporate executives and economic policy makers on the importance of the relationship between a firm’s investment, financing and dividend payout choices (the corporate long-term financial decisions). Specifically, this study sought to ascertain if and how a firm’s capital investment, finance and dividend payout decisions inform one another. To make the study eclectic, Agency theory of corporate and financial management and the Panel Granger’s causality model were adopted as the study’s theoretical frameworks. To achieve the aim of this study, a sample of 35 stratifiedly selected Nigerian manufacturing firms on the Nigerian Stock Exchange (NSE) between the periods of 1990-2020 (30 years) were examined, in the quest to fill sectoral and periodical gaps found in the extant empirical studies. The adopted methodology is quantitative and it is anchored on statistical and Panel Granger’s causality techniques. The trio of capital investment, financing and dividend payout is the study’s dependent and controllable variables, which are measured by the sampled firms’ fixed assets; addition of equities and debts; and the declared dividend payments for the periods covered respectively. The data employed were of unbalanced panel that is purely secondary. In all, the study revealed through the conducted Granger’s causality test that a bi-directional type of causation exists between the trio of capital investment, financing and dividend payout decisions. And based on this empirical evidence, the study concludes that a firm’s capital investment, its finance and dividend payout decisions causal relates and influence one another. Following this conclusion, the study recommends to concerned corporate and governmental decision makers that at all times the multiplier implications surrounding any of the three examined long-term financing decisions (i.e. capital investment, finance and dividend payout) on one another, and their joint effects on the firm’s, sectoral and economic stability, especially when seeking competitive edge and growth should be considere
RISK MANAGEMENT AND BANK PROFITABILITY: EVIDENCE FROM NIGERIAN DEPOSIT MONEY BANKS
Get PDFRisk management issues in the banking sector do not only have greater impact on bank profitability but also on national economic growth and the general business development. The bank’s motivation for risk management comes from those risks which can lead to underperformance. This study seeks to assess the impact of risk management on banks profitability in Nigeria. To achieve this, the study covered 6 years ranging from 2012-2017. Also, twelve deposit money banks were chosen as sample from the whole Nigeria DMBs. Audited annual financial statements of the selected banks for the years were used in obtaining data for the purpose of this research. The independent variable which is Risk Management is proxied as Non-Performing Loan Ratio (NPLR), Capital Adequacy Ratio (CAR) and Loan-to-Deposit (LTD) while the dependent variable which is profitability was measured as return on assets (ROA). Using panel random effects regression, the results revealed that non-performing loan ratio has a negative effect and it is statistically significant at 5% on banks profitability, and Loan-to-Deposit ratio is also statistically significant at 5% and have positive effects on banks’ profitability while capital adequacy ratio is insignificant. The study concluded that risk management in terms of non-performing loan ratio and loan-to-deposit ratio has significant effect on banks’ profitability. The study therefore recommended that the banks’ management should do more in the area of controlling the rate at which subprime loans are given out, in order to mitigate the risk of future loss on non-performing loan. Also, banks should further implement more policies that support increased lending to customers, especially the more credit worthy ones, in order to increase returns and performance
EXCHANGE RATE VOLATILITY AND STOCK MARKET DEVELOPMENT: AN EMPIRICAL EVIDENCE FROM NIGERIA
Get PDFRecent evidence suggests that stock markets experience shift in volatility which can affect development of such markets. This study re-examines exchange rate volatility and stock market development in Nigeria using annual data from 1985-2020. The study employed multivariate regression analysis as well as granger causality test to model the variables. Results show that exchange rate volatility has a significant negative impact on stock market capitalization and volume of transactions on the stock market. Essentially, exchange rate volatility has significant weak negative correlation with stock market capitalization and stock market volume of transactions. It is observed that there is no causality between exchange rate volatility and the four stock market indicators investigated. The study concludes that the effect of exchange rate volatility on stock market development in Nigeria is negative. Hence, the study recommends that dollarization of stock market transactions and operations in the Nigerian stock market should be discouraged
IMPACT OF MANAGEMENT CONTROL SYSTEM ON THE QUALITY OF TEACHING IN NIGERIAN PUBLIC UNIVERSITIES
Get PDFQuality of teaching of a given institute of learning can be linked to effective use of management control techniques by the management. Given the persistent report of poor quality of teaching in Nigerian Public Universities, despite the existence of management control system, this study examined the effects of management control system on the quality of teaching of federal universities in south western Nigeria The study adopts a mixed method research design (Quantitative and Qualitative). Questionnaire was used to obtain data from 231 respondents that are selected through multistage sampling technique for quantitative while 5 respondents purposively selected for qualitative data. Data were analysed using PLS-SEM while the Qualitative data also analysed thematically with NVIVO. Result control has positive effect on the universities performance with P-value 0.000, and β = 0.737 on teaching performance. Action control is significantly related to universities performance with P-value 0,001 and β= 0.593 for teaching performance. Personnel control (β = 0.011; t = 0.247; p > 0.05), also, found positively and significantly affect the quality of teaching in south-western public universities, Nigeria. The study therefore concluded that management control system is an essential tool for performance attainment through the teaching quality in Nigeria public universities. The study recommended that the universities should intensify efforts on effectiveness of the management control system, while the government should increase the funding and appraise the regulations in attempt improve the performanc
FIRM’S CHARACTERISTICS AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED PHARMACEUTICAL COMPANIES IN NIGERIA
Get PDFThe global financial crises that have shaken the global financial industry between 2007-2008 have given birth to several problems and worries about the quality of financial reporting worldwide. The manipulation of earnings has the effect of reducing the quality of reported financial data, which distorts the relationship between reported earnings and stock returns and makes it more difficult to allocate resources effectively. Thus, the purpose of this study is to examine how firm characteristics affect earnings management in the listed pharmaceutical sector of Nigeria. Using an ex-post facto study design, data was collected from yearly reports of specific pharmaceutical sectors in Nigeria from 2012 to 2021. The population of this study consists of all listed pharmaceutical companies on the floor of the Nigeria Stock Exchange as at 31st December, 2021. There are eleven (11) listed pharmaceutical companies in Nigeria. Due to unavailability of data five (5) companies are used for the sample size of this study. Multiple regression analysis was used to assess the data, and the findings at showed 5% level of significant that, board independence and audit quality have a major influence on the earnings management of the pharmaceutical industry in Nigeria. The results show that firm characteristics in Nigeria\u27s listed pharmaceutical sectors significantly influence earnings management. This study concluded that characteristics of the firms had a major impact on the management of earnings for the listed pharmaceutical industries in Nigeria. The study recommends that investors in listed pharmaceutical companies in Nigeria should always be on the lookout for the potential for more real activity earnings management before arriving at their investment decisions