Malete Journal of Accounting and Finance
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EFFECT OF DEBT FINANCING ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Full text linkThis study examined the effect of debt financing on financial performance of listed deposit money bank in Nigeria. One of the most important topics in corporate finance is how debt financing affects the financial performance of Nigerian listed deposit money banks. These banks are financial intermediaries, and their stability, profitability, and expansion depend on having a balanced capital structure. Debt financing presents certain risks and expenses associated with financial hardship, interest commitments, and liquidity limits, even though it is advantageous for leveraging profits and optimizing tax shielding. Determining the ideal leverage for these institutions requires an understanding of how debt levels affect performance indicators like return on equity (ROE), return on assets (ROA), and net interest margin. This study adopted ex-post facto research design. Twenty-two deposit money banks made up the of the twenty-two deposit money banks that made up the research population, 13 listed were selected for sampling. Secondary data were utilized, by extracting relevant data from financial statement for a period ranging for a ten years period (2014 – 2023). The findings revealed that debt financing takes a significant effect on debt has high significant effect on ROA (P = 0.000010< 0.05 and ROE (P= 0.002586<.05 on Nigeria listed deposit money banks. The conclusion of the study states that, effect of debt financing on financial performance is significant on listed deposit money banks in Nigeria. It thus recommended that DMBs should focus on optimizing prudent debt financing practices to effectively manage their loan to deposit ratios. Also, banks should strategically use debt to enhance asset utilization and profitability
EFFECT OF LIQUIDITY MANAGEMENT ON THE FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA
Full text linkInsolvency and bankruptcy have been the bane of many consumer goods companies CGCs due to frequent challenges such as slow inventory turnover, inefficient collection processes, and poor trade credit policies in consumer goods companies which have been negatively impacting cash flow, liquidity management, and customer payment behavior, thus resulting in bad debt and financial crisis. This research investigates the effects of liquidity management on the financial performance of listed consumer goods companies (CGCs) employing an expost-facto research design. All 21 listed consumer goods companies make up the population; fifteen of these were specifically selected using a judgmental sampling technique for reasons based on their capital bases, their readiness of data for ten years (2014–2023), and their listing on the NGX. Secondary data were used to analyze the financial accounts of the listed consumer goods companies. The panel OLS was the data analysis technique employed. The results revealed that liquidity management significantly affects ROA (p = 0.000000) and ROE (p = 0.000000) at a 1% significant level. The study concluded that liquidity management has a significant effect on consumer goods sectors in Nigeria. Therefore, it recommended that consumer goods companies invest in strategies that can increase profitability without significantly compromising liquidity
CORPORATE GOVERNANCE AND PUBLIC SECTOR PERFORMANCE IN NORTH CENTRAL NIGERIA
Full text linkThe persistent inefficiency of public sector performance in Nigeria has impeded the nation\u27s progress and the effective provision of public services. Notwithstanding several initiatives to enhance governance in public institutions, challenges such as insufficient accountability, inadequate transparency, and suboptimal service delivery remain prevalent. These difficulties require in-depth investigation to reveal the influence of corporate governance on public sector performance. This study aims to evaluate the impact of corporate governance on numerous attributes of public sector performance, including efficiency, effectiveness, service delivery quality, accountability, and transparency in Nigeria. The study employs a quantitative methodology, applying multiple regression analysis to evaluate the correlation between corporate governance and public sector performance, while ANOVA is utilized to ascertain the significance of these correlations. The results indicate a robust positive association between corporate governance and the performance of the public sector. Corporate governance accounted for 57.6% of the variance in public sector efficiency (R² = 0.576), 57.7% in effectiveness (R² = 0.577), 66.6% in quality of service delivery (R² = 0.666), 45.9% in accountability (R² = 0.459), and 47.0% in transparency (R² = 0.470). The study indicates that effective corporate governance is vital for improving the performance of public sector institutions in Nigeria. It advises public sector agencies to establish comprehensive governance frameworks, conduct frequent performance evaluations, and use worldwide best practices to improve transparency, accountability, and service delivery. These would not only enhance the efficiency of the public sector but also contribute to the broader socio-economic landscape
AUTOMATED ACCOUNTING PRACTICES IN CAMEROONIAN ACCOUNTING FIRMS: A QUALITATIVE STUDY OF ATTITUDE AND ADOPTION
Full text linkThis research is motivated by growing strength of artificial intelligence particularly automation of accounting practices in the world at large and Cameroonian accounting firms, in particular. This has led to a growing threat of change which has an impact on the accountant’s professional role and attitude. The purpose of the study is to examine the impact of automation on accountants’ practices in accounting firms. The qualitative research method is used and the data was collected through semi-structured interviews. Interpretation of the interviews was through thematic analysis method. 12 accountants make up the study sample from a population of 35 accountants in the city of Douala, Littoral region of Cameroon. The study finds that the automation of accounting process is more efficient and beneficial. However, it has increased the risks of faults, loss of control and jobs, a change in the employment structure, skills, and competence. The attitudes of the accountant are positive towards automation but the fear of loss of jobs and obsolete IT skills are present. The study concludes that automated accounting practices is efficient and effective and has a significant impact on accountants. It therefore recommends that accountants should be ready to adapt to the current trends, develop interdisciplinary skills in education and competence. Also, firms should put control measures and regulatory policies in place to prevent excessive use of automation
BEYOND ENERGY: THE ROLE OF COLONIAL LEGACY IN THE EFFECT OF INSTITUTIONAL QUALITY ON RENEWABLE ENERGY CONSUMPTION IN WEST AFRICA
Full text linkA stable institutional framework and colonial legacy are essential for ensuring environmental quality and economic growth. However, recent studies have overlooked these critical factors despite their significance. This study, therefore, explored the impact of institutional quality on renewable energy consumption in West Africa from 1990 to 2023 with a novel incorporation of the influence of colonial legacy. Using data from the World Bank’s World Development Indicator, this study utilised the Pooled Mean Group technique. The study found that in the long run, GDP per capita, carbon dioxide emissions and urbanisation had a significant negative impact on renewable energy consumption whereas technology, institutional quality, and the interaction of institution with colonial legacy had a significant positive impact on renewable energy consumption. The study concludes that technology, institutional quality and the interaction of institution with colonial legacy exert a positive effect on renewable energy consumption while GDP per capita, carbon dioxide emissions and urbanisation exert a negative effect on renewable energy consumption. Hence, to achieve sustainable development, the study recommends that policymakers prioritise institutional stability while leveraging technological advancements to promote renewable energy production. Policymakers and international organisations should consider the unique historical and institutional context of West African countries when designing renewable energy policies and programmes
EFFECT OF BOARD STRUCTURE ON CORPORATE SOCIAL AND ENVIRONMENTAL SUSTAINABILITY PERFORMANCE OF LISTED NIGERIAN OIL AND GAS FIRMS
Full text linkEmpirical review has established a paucity of research around board structure and sustainability performance, especially in Nigeria. This study, therefore, explored grey areas in the literature regarding board structure and sustainability performance. The panel data generalized least squares (random effect) method was used to analyse data sourced from annual reports, sustainability reports of selected oil and gas firms listed on the floor of the Nigeria Exchange from 2012 to 2022 and CSRHub database. The results revealed that board independence and board gender diversity positively but insignificantly affect social performance; meanwhile, board sustainability committee and board nationality diversity positively and significantly affect social performance. Also, the study found that Board independence positively and insignificantly affect environmental performance; meanwhile, board gender diversity, board nationality diversity and board sustainability committee positively and significantly affect environmental performance. This study recommends that oil and gas firms adopt the principles of increasing independence, increasing gender and nationality diversity, and incorporating sustainability committees to improve social and environmental sustainability performanc
DETERMINANTS OF CORPORATE TAX AGGRESSIVENESS IN NIGERIAN DEPOSIT MONEY BANKS
Full text linkThe profit mɑking motives of business enterprise ɑnd the quest to meet up with shɑreholderexpectɑtion especially in banking industry hɑs resulted in ɑmong other ɑctivities in the firm totɑx ɑvoidɑnce meɑsures. This is being cɑrried out to reduce corporɑte tɑx liɑbility ɑnd increɑseprofit for the yeɑr ɑvɑilɑble for ɑppropriɑtion into reserves ɑnd dividends. The study, therefore,evɑluɑtes the determinɑnts of tɑx ɑggressiveness in deposit money bɑnks in Nigeriɑ Ex-postfɑctoreseɑrch design wɑs ɑdopted for the study. Dɑtɑ extrɑcted from the finɑnciɑl stɑtementsof deposit money bɑnks form 2012-2022 were subjected to descriptive ɑnd inferentiɑl stɑtistics.Peɑrson correlɑtion wɑs done producing the correlɑtion mɑtrix of the study. Diɑgnostic testswere equɑlly cɑrried out such ɑs ShɑpiroWilk Test for normɑlity, Vɑriɑnce Inflɑtion Fɑctor(VIF) for multicollineɑrity test, Breusch-Pɑgɑn / Cook-Weisberg test for heteroskedɑsticity,Breusch ɑnd Pɑgɑn Lɑgrɑngiɑn multiplier test for rɑndom effects, ɑnd Hɑusmɑn SpecificɑtionTest to determine ɑppropriɑte estimɑtion technique between fixed ɑnd rɑndom effect model.Result of Rɑndom effect robust regression is suggestive thɑt firm size ɑnd firm ɑge hɑs negɑtiveand effect on book tɑx difference with correlation coefficient of -.0000185 and p-value of .0003while return on ɑsset hɑs positive but non-significɑnt effect on book tɑx difference of depositmoney bɑnks of Nigeriɑ for the period under study havingcorelation coefficient of .3546 andp-value of 1.116. The study concludes that the explanatory variables (firm size, ROA and firmage) do not significantly affect tax aggressiveness of deposit money banks in Nigeria.The studyrecommends thɑt Tɑx ɑuthorities should closely monitor bɑnks with increɑsing profitɑbility(ROA) ɑs there is tendency for increɑse in ɑggressive tɑx ɑctivities to reduce their tɑxliɑbilities. Tɑx ɑuthorities should closely monitor bɑnks with increɑsing profitɑbility (ROA) ɑsthere is tendency for increɑse in ɑggressive tɑx ɑctivities to reduce their tɑx liɑbilities. Also,the study shows reduction in tɑx ɑggressiveness ɑs ɑge increɑses, then efforts of tɑx ɑuthoritiesshould be concentrɑted on young firms while trying to curb tɑx prɑctices ɑmong deposit moneybɑnks in Nigeriɑ
INTERNAL AUDIT EFFICIENCY AND PUBLIC SECTOR PERFORMANCE: A STUDY OF SELECTED MDAs IN KWARA STATE
Full text linkThe challenges of preventing corrupt practices, the necessity for the advancement of goodgovernance, and the need for the assurance of accountability and transparency necessitated soundinternal audit practice. Thus, this study investigated the impact of internal audit on theeffectiveness of public sector in Kwara State. A descriptive survey design was used for the studybecause of the characteristics of the population. The target population of the study was 102 senioraudit staff from which a Sample size of 81 respondents were selected namely, Kwara StateUniversity, Federal Civil Service Commission, Ministry of Finance, General Hospital Ilorin, andMinistry of Housing and Urban Development. Primary data was sourced through theadministration of well-structured questionnaire using five-points Likert scale to measure thequestion items. Simple Linear Regression was used for the data analysis with the aid of StatisticalPackage for Social Sciences (SPSS) version 23.0 and the results revealed that 93.9% increase inpublic sector management (β=0.939, t0.05>1.645), caused a unit change in internal audit efficiency(IAE) of the selected case study. Also, a change in internal audit procedures caused about 87.2%increase in public sector assets (β=0.872, t0.05>1.645). Further finding revealed that a unit changein internal audit support (IAS) caused about 79.4% increase in public sector managementeffectiveness (β=0.872, t0.05>1.645) at 5% level of significant. The study concluded that internalaudit demonstrated effectiveness in safeguarding public sector assets, enhancing service delivery,and promoting financial accountability. The study, therefore, recommended that public sectormanagement should continue to strengthen the internal audit system departments, ensuring theyhave the resources and autonomy needed to carry out their duties effectively
DETERMINANTS OF CORPORATE GOVERNANCE REPORTING AMONG LISTED NON-FINANCIAL FIRMS IN NIGERIA
Full text linkOne of the major problems encountered by investors in developing economies is the issue ofcorporate governance disclosure which could lead to potential business failures as investors mightlose confidence in a company. This study examines the determinants of corporate governancereporting in among listed non-financial firms in Nigeria. Specifically, the study investigates theextent to which various corporate governance indices (board independence, CEO duality andgender diversity) influence corporate governance reporting among listed non-financial firms inNigeria. The population consists of all the one hundred and fourteen (114) listed non-financialfirms in Nigeria. Panel data were obtained from the annual reports and accounts of the sampled(23) firms using judgmental sampling technique for the period of 2012 to 2020. An ex-post factoresearch design was used and the data were analyzed using binary logistic regression technique.Findings from the study revealed that board independence and CEO duality showed a positive andsignificant impact on corporate governance disclosure of listed non-financial companies inNigeria (with p-value of 0.081 and 0.022 respectively) while gender diversity appear statisticallyinsignificant (with p-value of 0.427). The study concluded that board independence and CEOduality significantly and positively determines the extent of corporate governance reporting inNigerian listed non-financial firms. It is therefore recommended that in making a decision on whatthe composition of the board should be, companies should not only focus on the numerical strengthof the board but also look critically at the independence of the board in order to improve theircorporate disclosure
AUDIT COMMITTEE ATTRIBUTES AND ENVIRONMENTAL DISCLOSURE PRACTICES: EVIDENCE FROM LISTED NIGERIA INDUSTRIAL GOODS FIRMS
Full text linkIn Nigeria’s industrial goods sector, environmental disclosures are essential for promoting corporate transparency and addressing stakeholders concern about sustainability. Audit committees as part of corporate governance structures are expected to influence the quality and constituency of these disclosures. This study examined the effect of audit committee attributes on environmental disclosure practices of Nigerian listed industrial goods firms. The population of the study cis the 13 industrial goods firms listed on the Nigeria Exchange Group (NGX) out of which 11 were purposively selected as the sample size based on availability of data. The study periods covered year 2011 to 2022. Descriptive statistics, correlation and panel regression analysis were utilized to analyze the data gathered for this study. Findings from this study revealed that audit committee meeting and audit committee size does not have any statistically significant effect on environmental disclosures (EVD) whereas audit committee independence (ACI) was found to have a significant positive effect on EVD evidenced with coefficient of 17.608. This implies that only ACI was found to have a notable impact on EVD. The study concludes that audit committees’ attributes in terms of audit independence can improve the disclosure of environmental practices. Thus, this study recommends that firms should ensure that audit committees (AC) should comprise entirely of independent members who do not have any financial or personal ties to management. Firms should also provide AC with specialized training in environmental issues and reporting standards