Malete Journal of Accounting and Finance
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VALUE RELEVANCE OF INTELLECTUAL CAPITAL DISCLOSURE OF CONSUMER GOODS FIRMS IN NIGERIA
Full text linkSeparation of a firm’s ownership and management and the resulting information asymmetry haveled to investors and shareholders needing value-relevant information about factors influencing theeconomic development and success of a company. This study examined the value relevance ofintellectual capital disclosure of the listed consumer goods firms in Nigeria. Data were collectedfrom one hundred and seventy financial years (seventeen firms in Nigeria from 2013-2022) out oftwenty-one firms to test the value relevance of intellectual capital disclosure of firms in Nigeria.The study analysed the data by means of descriptive statistics to provide summary statistics for thevariables. Similarly, the study employed Robust Ordinary Least Square regressions to test thestudy hypotheses using STATA software. The regression results revealed that human capitaldisclosure, structural capital disclosure and the overall intellectual capital disclosure havesignificant positive impact on firm value measured by share price. The result however, showedthat relational capital disclosure is not value relevant for the firms. This study therefore concludesthat intellectual capital disclosure is value relevant for the firms and recommends that firms inconsumers goods sector should provide more information on intellectual capital voluntarily sinceit is value relevant for decision making, which will ultimately lead to competitive advantage andfuture cash flows
EFFECT OF CASH MANAGEMENT ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Full text linkDeposit Money Banks (DMBs) rely on optimal liquidity to safeguard deposits and invest in profitable ventures, maintaining stakeholders\u27 confidence. However, declining depositor trust, inadequate capital and liquidity, and regulatory sanctions can lead to financial distress and potential insolvency. This calls for investigating the factors influencing DMBs\u27 liquidity and capital adequacy and their impact on banking stability and sustainability. This study examined the effect of cash management on the financial performance of listed deposit money banks in Nigeria for 2013-2022. It adopted an ex-post facto research design with a population and sample size of 14 and 10 DMBs using the judgmental sampling technique; the data were descriptively and inferentially analyzed using regression analysis. Using Panel Ordinary Least Square (OLS) regression as a data estimation technique, the result of the study showed that cash management has a significant effect on return on assets (p-value=0.02629<0.05) and return on equity (p-value=0.01929<0.05). Based on the results, the study concluded that cash management significantly affects the financial performance of listed deposit money banks in Nigeria. The study recommended that deposit money bank management should implement advanced cash flow forecasting models and liquidity management techniques to optimize the allocation of cash reserves and maximize investment returns while ensuring liquidity adequac
FINANCIAL INCLUSION, INSTITUTIONAL QUALITY, AND POVERTY REDUCTION IN NIGERIA
Full text linkPoverty alleviation remains a global challenge and at the fore front of the economic development of developing economies like Nigeria. Although it has been established in literature that financial inclusion is crucial for poverty reduction, few studies have examined the role of institutional quality as an important determinant of poverty reduction. Hence, this study examines institutional quality and financial inclusion on poverty reduction in Nigeria. The paper is anchored on the Capability Approach and adopts the Human Development Index (HDI) as a proxy for poverty reduction as it measures basic human capabilities. With time series data from 1987 to 2022 the VECM is employed as the estimation technique given the established long-run relationship obtained from the ARDL bounds test cointegration technique. Findings reveal that in the short run, financial inclusion and institutional quality are statistically significant and positive for poverty reduction. In the long run, however, these relationships become insignificant. This study, therefore, elucidates on the opposing directions of financial inclusion and poverty alleviation in the country with institutional quality also shown to be vital. Consequently, financial inclusion and institutional quality are found to be necessary, but insufficient conditions for poverty reduction. Hence, while financial inclusion and good institutions are important in the short run, long-term poverty alleviation strategies must be comprehensive and multi-sectoral in approach to complement, consolidate, and sustain the poverty reduction potentials of financial inclusion and high-quality institutions
VALUE RELEVANCE OF FAIR VALUE HIERARCHY INFORMATION OF NIGERIAN NON-FINANCIAL FIRMS
Full text linkSwitch from Statement of Accounting Standard (SAS) to the International Financial ReportingStandards (IFRS) in Nigeria requires reporting entities to mark-to-market financial assets andliabilities and to recognise holding gains and losses as items of other comprehensive income.The objective of this study is to examine the value relevance of fair value hierarchy information.A total of 205 annual firm-year observations of non-financial firms listed in the NigerianExchange Group (NGX) spanning 2018 to 2022 was used. The result of multiple regressionindicates that fair value gains and losses measured based on Level 1 and Level 2 were valuerelevant, but Level 3 inputs was not. This suggests that investors valued holding gains andlosses quoted in an active market (Level 1) and indirect observable inputs (Level 2). Noevidence to suggest that investors are using unobservable inputs (internally generated, Level3). It is therefore recommended that reporting entities should ensure best disclosure practicerelating to financial assets and liabilities to enhance reliability of subjective accountingearnings
CARBON EMISSIONS, RENEWABLE ENERGY AND STOCK MARKET PERFORMANCE IN AFRICA
Full text linkThis study examined the moderating role of renewable energy on the relationship between carbon emission and stock market performance in Africa. The study used secondary data and it is sourced from World Bank Development Indicator database for the period of 2000 to 2022. The descriptive statistics was used to describe the feature of the data and Panel VAR used as the estimating technique. It was found in the short run, that carbon emission and renewable energy have negative and insignificant effect on stock market performance in African. However, the interaction between the carbon emission and renewable energy has negative but insignificant effect on stock market performance. The introduction of the moderating term has reduced the negative effect of of carbon emission on stock market performance. However, the joint effect of carbon emission, renewable energy and the interaction between carbon emission and renewable energy can predict the stock market performance in Africa. It was concluded that there is no short run causality or influence running from carbon emission to stock market performance in the selected African countries. Thus, governments must invest in programs that enhance and promote renewable energy in African countries
DIVIDEND POLICY AND MARKET VALUE OF NIGERIAN LISTED DEPOSIT MONEY BANKS
Full text linkThe two obvious choices involving amount the bank need for investments as well as for dividends distribution have been an issue. In most regulations, dividend payment had been withheld in order to satisfy investment decision as if it is not essential. Therefore, this study investigated dividend policy’s influence on listed Nigerian deposit money banks’ market value. An ex post facto research design was utilised while a purposive sampling approach was applied to select 12 banks out of the total population of 14 banks that were listed consistently with available data within the period of examination. Detailed information as regards market value (Tobin Q and share price) as well as dividend policy (dividend payout, dividend per share, dividend yield) of Nigerian listed banks was obtained from their annual reports together with accounts that were made public between 2011 and 2022 as well as Nigerian Exchange Group Fact Book, 2022. Data collected were analysed using descriptive (mean, median, standard deviation) and inferential statistics (correlation and panel data estimation). The outcomes reveal that dividend policy represented by dividend payout had positive and significant influence on the market value. This suggested that paying dividend regularly to the shareholders led to high market value. This study concluded that dividend policy influence market value of listed deposit money banks in Nigeria. It was recommended that bank management should pay attractive dividend regularly to their respective shareholder. Also, there should be regulation as to paying dividend regularly
AN ASSESSMENT OF STATE AND CRISIS OF LEGITIMACY IN DEMOCRACY: A FOCUS ON THE FOURTH REPUBLIC
Full text linkThe state is a creation of the people through the social contract. However, the Nigerian state seems to have been hijacked by a few, who use the authority inherent to serve and protect their interests. When the leadership fails to reflect the needs and aspirations of the society, it suffers the crisis of legitimacy whereby the people no longer recognize and accept the authority of the state. The hijack of the Nigerian state has led to increased poverty, poor standard of living, insecurity, brain drain and consequentially slowed development. This research sought to explore the causes of the crisis of legitimacy in Nigeria. The research employed the quantitative research methodology, whereby a semi structured questionnaire was distributed to assess the causes and impact of the crisis of legitimacy. The research with a sample size of 100 respondents found out that crisis of legitimacy is because of bad governance. The paper concluded that the political heist by the elite few has caused the state to neglect the interest of the populace in favour of the few elite. More so, lack of accountability and transparency were the major factors that allowed for corruption to thrive; therefore the paper recommended the enshrinement of bureaucratic processes in politics to ensure adequate accountability and transparency
STRATEGIC MANAGEMENT ACCOUNTING, DIGITALIZATION OF ACCOUNTING PRACTICES AND PERFORMANCE AMONG CONSUMER GOODS FIRMS IN LAGOS STATE
Full text linkModern management accounting practices have posed challenges for global manufacturing companies, particularly in the transition from traditional to strategic methods. This transition has been notably deficient among numerous consumer goods firms in Nigeria, where the absence of effective strategic costing practices has led to significant issues such as cost inefficiency, competitive disadvantage, and ineffective decision-making. Recognizing the significance of technological advancement for growth and competitiveness, this study investigated the impact of strategic management accounting and digitalization of accounting practices on the performance of consumer goods companies in Lagos. The research methodology employed a survey research design, sampling 161 management employees from 45 consumer goods companies in Lagos as of January 2023. The research utilized partial least square structural equation modelling to analyse primary data. Results highlighted significant impacts on Consumer goods performance from strategic costing practices and the digitalization of accounting methods. Both strategic costing practices and digitalization displayed positive and noteworthy effects on performance, reflected by t-values of 0.213 and 0.218, along with respective p-values of 0.037 and 0.023. However, strategic customer accounting practices exhibited an insignificant impact on performance, evident through a t-value of 1.345 and a p-value of 0.179 at a 5% significance level. The study concludes that strategic costing and digitalizing accounting methods highly influence and benefit and consumer goods firms’ performance, unlike strategic customer accounting. The study recommends that the implementation and integration of effective strategic costing methodologies and digitalization initiatives to further propel the growth and competitiveness of these companies in Lagos Stat
FIRM CHARACTERISTICS AND DISCRETIONARY CASH FLOW IN LISTED OIL AND GAS FIRMS IN NIGERIA
Full text linkThe increasing prevalence of earnings management in Nigerian companies indicates that thispractice is quickly becoming a significant issue for stakeholders. Discrepancies in accounting dataare concerning, and the poor quality of financial reporting and accounting data is leading togrowing doubts about the accuracy and usefulness of the information provided in financial reports.Consequently, this study focused on the relationship between firm characteristics anddiscretionary cash flow in listed oil and gas firms in Nigeria. A longitudinal research approachwas employed on a population comprising of the 12 oil and gas companies that were listed as ofthe last quarter of 2021 on the Nigerian Exchange Group (NGX). The study adopted secondarydata from the 2002–2021 annual reports of oil and gas companies listed on the Nigerian ExchangeGroup while the Pooled Ordinary Least Square (OLS) regression analysis was deployed as themethod of data analysis. The findings revealed that discretionary cash flow and the firmcharacteristics of oil and gas firms have a negative significant relationship. Based on the abovefindings, this study concluded that an abundance of operating cash flow lessens the propensity toparticipate in earnings management. The study therefore recommended that companies listed onthe Nigerian Exchange Group (NGX) should abide by the governance reforms already in place inthe nation, such as sufficient assessment, investigation, and scrutiny of the company\u27s financialstatement and sufficient protocols for the early identification of earnings management practices
AUDIT COMMITTEE CHARACTERISTICS AND EARNINGS MANAGEMENT AMONG LISTED DEPOSIT MONEY BANKS IN NIGERIA
Full text linkUnethical financial reporting practice may be linked to audit committee characteristics; hence this study investigated the impact of audit committee characteristics on earnings management among listed deposit money banks in Nigeria. The study adopted an ex-post facto research design, with the population comprising twenty-four (24) deposit money banks listed on the Nigerian Exchange Group as of December 31, 2022. However, nine banks were selected for the study based on data availability. Data from audited annual reports of the sampled banks spanning from 2015 to 2022 were used for analysis. The data underwent relevant preliminary tests before beinganalyzed using a Robust Fixed Effect Regression Model. Empirical findings revealed that audit committee independence (ACIA) and audit committee financial expertise (ACFA) have substantial positive and negative impact on earnings management (EMA) respectively, while the impact of audit committee size (ACSA) was observed to be positive and insignificant. It is concluded that audit committee size (ACSA) and audit committee independence (ACIA) are not likely to reduce earnings management practice (EMA), whereas possession of adequate financial expertise by members of audit committee will possibly reduce cases of aggressive earnings management. Hence, it is advised to prioritize financial expertise when selecting members for audit committees, as this is expected to help mitigate and decrease earnings management practice