Malete Journal of Accounting and Finance
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BUDGET USE AND PERFORMANCE OF MANUFACTURING SMALL AND MEDIUM ENTERPRISES (SMEs) IN LAGOS STATE, NIGERIA
Get PDFThe absence of budgets in the operations of SMEs often leads to their poor performance. SMEs ought to maintain proper budget, the lack of which may lead the businesses to remain small, stagnant and even close down in some cases. Consequently, this study seeks to examine the impact of budget use on the performance of SMEs. To achieve this main objective, specific objectives were developed with respect to: investigate the extent to which diagnostic budget use influences performance of manufacturing SMEs and examine the effect of interactive budget use on performance. The study employed cross-sectional research design to address empirical questions developed for the study. The population of the study was 46,652 managers (Managing Director, Account Manager, Human Resources Manager and Production/operation Manager) of manufacturing SMEs operating in Lagos State out of which 397 were randomly selected. The primary data were sourced from field survey through the administration of questionnaire. Data were sourced through a structured questionnaire from the selected 397 managers. Analysis was based on both descriptive and inferential techniques. The descriptive analysis was based on techniques such as graphs and tables, while the inferential analysis was done by PLS-SEM techniques to test all the hypotheses. However, the results of the analysis reveal that both diagnostic and interactive budget use have a positive significant relationship with performance of Manufacturing SMEs in Lagos State at (β = 0.148, t = 1.75, p < 0.10 ) at 1% level of significant and (β = 0.199, t = 2.75, p < 0.01) respectively. However, the use of budget diagnostically and interactively goes a long way to influence the performance of manufacturing SMEs in Lagos State. Consequently, the study recommends that manufacturing SMEs in Lagos State should have budgets to provide motivation and direction for managers to achieve their organizational goals and to contribute to a significant increase in managers’ organizational commitment due to greater flexibility regarding dialogue and respect for subordinates’ contribution
NEXUS OF TREASURY SINGLE ACCOUNT AND FINANCIAL ACCOUNTABILITY IN OYO STATE, NIGERIA
Get PDFThe establishment of Treasury Single Account reduced proliferation of accounts of ministries, departments and agencies which in turn encouraged financial accountability among government organs in Oyo state. It is on this note that this study investigated how treasury single account aided financial accountability in the public sector of Oyo state. This was achieved using survey research design and the study population was made up of sampled staff of MDAs in Oyo state. Primary data was collected through the administration of questionnaires. The result of the hypotheses tested showed that three out of the four formulated hypotheses were significantly related to financial accountability except for unification of government revenue that has no significant effect. Thus, indicating that treasury single account goes a long way in aiding financial accountability. This study thus recommends that operational challenges, financial control and operational efficiency are key predictors of financial accountability in the public sector of Oyo state
INFLUENCE OF INTEGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM (IFMIS) ON THE PERFORMANCE OF GOVERNMENT ENTITIES IN NIGERIA
Get PDFPublic Sector Performance has been a contemporary discourse among researchers in Nigeria. Despite the formidable regulatory and institutional frameworks put in place to strengthen public sector finance management in Nigeria, the domain continues to struggle with huge financial management infractions that are not in tune with the norms as well as international best practices thereby resulting to performance failure. The main objective of this study was to investigate the influence of Integrated Financial Management information System (IFMIS) on performance of government entities’ in Nigeria. The research design deployed was descriptive and inferential mixed research design using a purposive sampling technique. The study population was 1504 comprises of selected top and middle level pool officers in the Accountant-General for the Federation office on grade level 13 to 17. The study’s primary data source sample size was 306 using Krejcie and Morgan, (1970) while the interview sample size was also 3 (three). Primary data was collected using questionnaire and interview while Partial Least Square was used to analyse the quantitative data and Thematic/NVIVO was used to analyse the Qualitative data. Finding from the quantitative analysis shows that a positive statistically significant relationship exist between the two variables as the path model coefficient results indicates that IFMIS is significantly related to both financial (β = 0.466; p< 0.05) and non-financial performance of government entities’ with (β = 0.490; p< 0.001). Finding from the qualitative analysis corroborated with the quantitative findings, its results however, indicates existence of various challenges ranging from infrastructures deficient as well as capacity building issues for IFMIS operators; The study therefore concludes that IFMIS significantly influence both financial and non- financial performance of government entities with limitations of various challenges. The study recommends therefore, that government should endeavour to provide strong Information Technology (IT) infrastructure and the right capacity building of the operators as it is expected to increase the level of performance in entities’, and assist in providing more meaningful information for decision making process
BOARD CHARACTERISTICS AND REAL EARNINGS MANAGEMENT AMONG LISTED NON-FINANCIAL FIRMS IN NIGERIA
Get PDFHigh expectations for earnings are put on companies, yet earnings management distorts how well those companies perform. Hence, this study examined the impact of board characteristics on real earnings management among listed non-financial companies in Nigeria. The study used a sample of 72 listed non-financial companies in Nigeria, covering the period of 2008-2020 on an unbalanced basis. The study was conducted over four (4) samples, vis-à-vis, the pre- and post-review of code of corporate governance and pre- and post-adoption of IFRS. The study employed the generalized method of moment (GMM) to estimate its empirical models. The findings from the estimation exercise revealed that board size reduces abnormal cash flows and abnormal production costs real earnings management after the review of code of corporate governance and adoption of IFRS but CEO duality promote real earnings management. Board independence was also found to reduce real earnings management while the number of meetings held by the board is ineffective in reduce earnings management. The study concluded that board characteristics are vital corporate governance mechanisms for reducing earnings management in Nigeria. It therefore recommended that an optimal size of board members as well as their independence should be emphasized for effective reduction in earnings management
EFFICACY OF TAX PAYERS’ PERCEPTION ON TAX COMPLIANCE LEVEL AMONG SMEs IN ILORIN METROPOLIS
Get PDFNigeria’s tax compliance rate is significantly low compared to other countries especially given the weak revenue administration capacity to deal with evasion and lack of data mainly around the informal sectors as tax payers do not trust the government to channel tax revenue for its intended purposes. Hence, this study sought to examine the efficacy of taxpayer’s perception on tax compliance level among the Small and Medium Enterprises in Ilorin metropolis of Kwara State. A purposive sampling method was adopted to select the sample of respondents that serve as the fair representation of the population under study. A closed ended questionnaire was used for data collection while analyses was done through descriptive as well as inferential statistics with Statistical Package for the Social Science (SPSS). The formulated hypotheses were tested using regression and correlation analysis. The X-ray of the findings shows a positives statistically significant relationship between an efficient educational service provision and tax compliance level. Equally, a positive and statistically significant relationship also exists between health service provision and tax compliance level. The reported coefficient from the correlation result however revealed that there was no statistical significant relationship between the characteristics of taxpayer’s perception and tax compliance level among the population under study. The study recommends among many other that government should ensure an efficient utilization of tax revenue with a view of influencing the perception of taxpayer’s towards tax compliance level
IMPACT OF COVID-19 PANDEMIC ON STOCK PRICE VOLATILITY OF SUB-SECTOR INDICES IN THE NIGERIAN STOCK EXCHANGE
Get PDFStock market volatility influences investor’s participation in the stock market of any nation. The global pandemic created a lot of uncertainty about future of the economy, especially among developing stock market, like the Nigerian stock market. The emergence of COVID-19 pandemic impacted different sectors of Nigeria\u27s economy in diverse ways and this affected investor’s confidence in the Nigeria stock market. This study investigated the impact of COVID-19 pandemic on the sub-sector indices in the Nigeria stock exchange market. The study employed ex-post facto research design to determine the impact of COVID-19 infection rates and COVID-19 death rates on stock price volatility of sub-sector indices in the Nigeria stock exchange market, within the period of 2nd March 2020 to 28th February, 2022. The study employed GARCH and DCC-GARCH and found that COVID-19 pandemic (infection and death rates) had significant effect on the volatility of sub-sector indices in the Nigeria stock market, and that there was significant volatility transmission among the sub-sector indices of the Nigerian stock market during the COVID-19 pandemic period. The study recommends that policy makers should provide support to companies that were badly hit during the pandemic, and also encouraged portfolio managers to understand the nature of risk attached to stocks selected to be in portfolio of their investors and be aware of best way to mitigate adverse risk effect
FIRM ATTRIBUTES AND PROFIT MANIPULATION AGGREGATE AMONG QUOTED NIGERIAN INDUSTRIAL COMPANIES
Get PDFEvidence has shown that earnings management (EM) is an endemic problem present in virtually all countries of the world. Most importantly, the effect of firm attributes on EM activities cannot be over-emphasized. Therefore, this study investigated the effect of firm attributes on EM practices. The study adopted ex-post facto design. Published facts were collected from the financial statements of 56 purposively selected quoted industrial organisations in Nigeria from 2003 to 2020 to achieve this objective. The secondary data obtained were subjected to panel data regression. The results of the investigation revealed that: capital intensity had increasing and cogent effect on earnings management aggregate (EMA) of listed Nigerian non-financial firms (coefficient = 1.0516, t-value = 8.2931 and p-value < 0.05); leverage had increasing and cogent effect on profit manipulation aggregate of listed Nigerian industrial companies (coefficient = 0.0098, t-value = 2.0366, p-value < 0.05); and profitability had decreasing and cogent influence on EMA of listed Nigerian industrial companies (coefficient = -0.4826, t-value = -2.7380, p-value < 0.05). The investigation concluded that firm attributes systematically affected the EM of the selected Nigerian companies. This research recommended that firms should address their debt structure, because leverage exhibited significant relationship with the earnings management
IMPACT OF SELECTED FIRM-SPECIFIC CHARACTERISTICS ON FINANCIAL PERFORMANCE OF NIGERIAN LISTED INSURANCE USING CARAMELS FRAMEWORK
Get PDFInsurance sub-sector of financial services serve as the backbone of economic growth through efficient resource allocation, reduction of business risks and spread of financial risk. However, the overall financial performance of Nigerian insurance industry is low evidenced with pitiable penetration rate and contribution to Gross Domestic Product of Nigeria. This has been attributed to appalling influences of firms’ specific characteristics such age, size, leverage and tangibility among others. Therefore, this study evaluates the impact of firm specific characteristics on financial performance of Nigeria listed insurance companies. The study employed Expost-facto research design. Population of the study include all the 22 listed insurance companies in Nigeria from 2012 to 2021. Secondary data gathered from annual reports was analysed with descriptive and inferential statistics. The descriptive statistics showed that the data are normally distributed and there is existence auto-correlation. The results of Serially Correlated Disturbance Random Effects revealed that three out of the four firm-specific characteristics employed in this study were statistically significant with CARAMELS financial performance indicator. The study concludes that age and leverage status of listed insurance companies in Nigeria significantly and positively influences asset quality while size of listed insurance companies significantly and positively influences the capital adequacy, management efficiency and solvency. Therefore, the study recommends that management of listed insurance companies should invest more of their capital obtained through external long-term sources on asset in order to achieve capital adequacy, management efficiency and solvency status of listed insurance companies in Nigeria
TAXPAYERS’ AWARENESS, TAX PENALTIES AND TAX ADMINISTRATION IN NIGERIA
Get PDFDiscourse on tax administration in terms of taxpayers’ awareness and tax penalty is germane because governments at all levels depend on revenue generated through taxation to drive their programmes. It is against this background that this study empirically evaluated the influence of taxpayers’ awareness and tax penalties on tax administration in Nigeria. Cross-sectional survey design was used for the study. The population for the study comprised all registered corporate taxpayers in the six geopolitical zones of Nigeria. A total of one hundred and fifty (150) corporate taxpayers whose tax files are domiciled in North-Central and South-West FIRS zonal offices were selected as sample for this study. The selection of the sample size was based on stratified random sampling method; copies of questionnaire were therefore distributed to the selected respondents. Quantitative data obtained were analysed using partial least square – structural equation modelling (PLS-SEM).The findings revealed that there was positive and significant relationship between taxpayers’ awareness and tax administration in Nigeria (β = 0.050, t=1.532, p < 0.05) and positive influence of tax penalties on tax administration in Nigeria (β = 0.075, t = 1.984, p < 0.05). The study therefore concluded that taxpayers’ awareness and tax penalties are good predictors of tax administration in Nigeria. The study recommended that FIRS should further embark on strong campaign on the need for corporate taxpayers to fulfill their tax obligations to enable government to finance public expenditures. Tax penalties should also be strengthened to serve as deterrent mechanism against noncompliance by embarking on regular tax audit to minimize tax defaults.  
CORRUPTION, GOVERNMENT SPENDING AND ECONOMIC GROWTH IN SELECTED ECOWAS COUNTRIES
Get PDFThis study investigated the impact of corruption and government spending on the growth of economies in selected ECOWAS countries using dynamic panel econometric procedures. Data covering 2005-2018 was sourced from World Development Indicator (WDI) and Transparency International and subjected to panel unit root tests and Panel Auto-Regressive Distributed Lag (PARDL) estimations. Findings reveal a positive but insignificant effect of corruption on the growth of the economies in the short run, while in the long run the impact is negative and statistically significant. Also, government spending and gross capital formation positively contributed to the growth of the economies in the long run but the effect of openness to international trade is negative. This study recommends that the governments of ECOWAS countries should holistically tackle corruption and re-orientate citizens on the societal value of hard work and integrity as against getting wealth at all cost, especially through public service. Also, the judiciary system should genuinely promote equity and justice without partiality. Also, expansionary fiscal policy should be engaged especially in the time of recession. The governments in ECOWAS countries should focus on capital projects and investments. Funds should be channelled towards improving infrastructure, creating employment opportunities through empowerment programmes, while openness to trade among ECOWAS countries should be treated with cautio