International Journal of Accounting, Management, and Economic Review
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DIGITAL PAYMENTS SYSTEM AND BANK FINANCIAL STABILITY IN EMERGING ECONOMIES: EVIDENCE FROM NIGERIA
Get PDFThis current study examined the association of digital payment systems with the financial stability of listed commercial banks in Nigeria, in which the capital adequacy ratio (CAR) is used as the proxy to financial stability. The study uses ex-post facto design by using secondary data on industry-level obtained from the Nigeria Deposit Insurance Corporation (CAR) and the Central Bank of Nigeria (POS, ATM, and web-based transaction volumes) spanning through years 2012 to 2023. The sample comprised of 13 commercial banks listed on the Nigerian Exchange Group. The diagnostics based on unit-root and bounds co-integration indicated that there was no long-run equilibrium, hence the use of an autoregressive distributed lag (ARDL) specification. The empirical results show that web-based transactions critically and positively affect CAR (T -stat = 3.8116; p<0.05). This implication means that digital banking channels create financial stability through mobilizing deposits, restraining the cost of operation, and increasing internal levels of capital, which strengthens the loss-absorbing capacity of banks. Conversely, both ATM and POS transaction effects on financial stability are positive but not statistically significant, which means that not all digital payment modalities have the same degree of stability benefits. Based on this, in the sampled Nigerian banks, the data would suggest focusing on the secure and reliable web-based payment infrastructure to enjoy greater benefits of financial stability as opposed to the expansion of the ATM/POS networks
FINANCIAL LITERACY AND ACCESSIBILITY TO ENTREPRENEURIAL LOANS BY MICRO-ENTREPRENEURS IN RWANDA: SOCIAL COHESION AS MODERATOR
Get PDFMost economic activities thrive within strong and amicable social connections to give impetus to targeted successes of micro-entrepreneurs. This study establishes the moderating effect of social cohesion in the relationship between financial literacy and accessibility to entrepreneurial loans by micro entrepreneurs in Rwanda between 2019-2024. On a population of 416 businesses and sample of 200, the study adopted cross sectional design combined with analytical and descriptive approach, using survey (5point likert scale) to collect data and AMOS to establish the moderating effect of social cohesion. The results revealed a positive significant moderating effect of social cohesion between financial literacy and accessibility to entrepreneurial loans by micro entrepreneurs (β = 0.351, t = 1.652, p<0.0001). According to the SEM results, financial literacy and the availability of financing for entrepreneurship are significantly and favourably correlated (β = 0.463, t = 2.356, p<0.0001). Social cohesion and access to entrepreneurial loans showed that there is a significant and positive association between social cohesion and access to entrepreneurial loans (r = 0.407, p ⩽0.01) and social cohesiveness had a significant interaction impact in the relationship between financial literacy and the ability to obtain loans for entrepreneurship (β = 0.236, t = 1.777, p<0.0001). Subsequently, social cohesion partially boosts financial literacy to promote accessibility to entrepreneurial loans. Additionally, both financial literacy and social cohesion exhibit significant impacts on accessibility to entrepreneurial loans by micro businesses in Rwanda. The study concludes that financial literacy and access to entrepreneurial financing are significantly and positively correlated, confirming that higher financial literacy enhances Rwandan micro business owners’ ability to secure loans. It also finds that social cohesion positively influences access to entrepreneurial loans and significantly moderates the relationship between financial literacy and loan accessibility, indicating that strong social ties further strengthen the positive impact of financial literacy on entrepreneurs’ borrowing capacity.The study recommends that governments, especially in Rwanda, establish national financial literacy centers and integrate financial education into school curricula to build lifelong money management skills and help micro-entrepreneurs make informed financial decisions, avoid costly loans, and improve financial discipline
ECONOMIC GROWTH UNDER DIVERSE POLITICAL REGIMES: A DYNAMIC PANEL DATA APPROACH
Get PDFThis study analyses the relationship between political regimes and economic growth in six African and six European countries from 1999 to 2023, using a System GMM framework. Africa and Europe are compared to capture contrasting levels of institutional maturity, democratic consolidation, and macroeconomic stability, allowing the analysis to assess how regime effects vary across stages of development. The results show democratic governance positively correlates with growth in both regions. However, the marginal growth return from democratic reforms is significantly higher in Africa (0.384) than in Europe (0.118), indicating institutional improvements yield greater dividends in less mature settings. Growth persistence is stronger in Europe, reflecting developed economies\u27 structural stability. African growth is more volatile and sensitive to institutional change. While investment is a universal growth driver, it yields higher returns in Africa. Conversely, macroeconomic and demographic factors specifically high inflation and rapid population growth act as significant constraints only in the African sample, remaining largely insignificant in Europe. These findings validate New Institutional and Endogenous Growth theories, emphasizing that democracy and investment are vital but their effectiveness is highly context-dependent. The study advocates for tailored development strategies, rejecting one-size-fits-all prescriptions in favour of policies sensitive to each nation’s institutional and structural conditions
WORKING CAPITAL MANAGEMENT AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Get PDFThis study examined the impact of working capital management on the financial performance of listed industrial goods firms in Nigeria. Secondary data were collected from the annual reports and accounts of the sampled firms. The study covered a period of ten years (2014-2023). The population consisted of 13 industrial goods firms listed on the Nigerian Exchange Group as of December 31, 2023. Ten of these listed companies were used as samples. The study employed an ex-post facto research design; an ordinary least squares (OLS) regression was used for data analysis. Findings from hypothesis testing indicate that there is a significant relationship between working capital management and financial performance. This suggests that profitability in industrial goods firms is significantly influenced by working capital components, and vice versa. The study concluded that for operational success and survival, industrial goods firms should not compromise on efficient and effective working capital management. It is recommended that these firms adopt more restrictive trade credit policies for customers with shorter payment periods, which will shorten accounts receivable days, reduce bad debts, and increase sales. Additionally, companies should closely monitor their payables and adapt as macroeconomic conditions change to ensure performance remains viable, improve liquidity, and reduce over-reliance on high-interest loans for daily operations
MODELLING FINANCIAL LITERACY AS MODERATOR FOR ENVIRONMENTAL TURBULENCE INTENSITY AND SMALL BUSINESS SURVIVAL IN LAGOS STATE
Get PDFSound knowledge of financial literacy coupled with opportunities explore from environmental turbulence intensity and diversifying the threat from the business environment play major role in small business survival across the globe. Though, lack of financial literacy and poor management of environmental turbulence intensity hindered survival of small businesses in Nigeria. Thus, the study investigates moderating influence of financial literacy with environmental turbulence intensity on small business survival in Lagos State. Quantitative approach via survey research design, Cochran (1997) formula sample size and Partial Least Square 3.0 as a statistical tool were employed to investigate the problem as well as used Partial Least Square 3.0 as a statistical tool. Findings revealed that financial literacy moderated with environmental turbulence intensity had negative and insignificantly influenced on small business survival in Lagos State. The study concluded that financial literacy moderated with environmental turbulence intensity adversely affect small business survival due to Nigeria environmental turbulence pressure and high level of financial illiteracy among small business investors. Thus, the study recommended that small business owners in Nigeria should take utmost cognizance of environmental turbulence intensity and fully equip themselves with knowledge of financial structure of sourcing funds and getting sound investment in their small business decision model so as to achieve small businesses survival in Lagos State
INTELLECTUAL CAPITAL AND FINANCIAL OUTCOMES OF LISTED OIL AND GAS FIRMS IN NIGERIA
Get PDFThis research investigates the connection between various components of intellectual capital namely human, structural, and physical capital and the financial performance of Nigerian oil and gas firms listed on the Nigerian Exchange. The study\u27s population consisted of eight oil and gas companies listed as of December 31, 2023. An ex-post facto research approach was employed, with a selection process that narrowed the sample to five companies through filtration sampling. This was done to ensure the inclusion of firms with complete data from their annual reports and financial statements spanning a decade (2014-2023). Data analysis was conducted using a robust random-effects regression model in STATA 13.0. The findings indicate that physical and human capital do not have a statistically significant influence on return on assets (with P-values of 0.958 and 0.682, respectively). Conversely, structural capital shows a positive and significant effect on return on assets among the sampled companies (P-value = 0.001). The study concludes that investing in physical and human capital may not necessarily translate into improved financial outcomes, whereas enhancing structural capital is likely to have a beneficial impact. Based on these results, it is advised that industry operators should carefully evaluate and strategically invest in their intellectual capital components human, structural, and physical before making financial commitments
ENVIRONMENTAL ACCOUNTING AND FIRM PERFORMANCE OF LISTED FAST-MOVING CONSUMER GOODS IN NIGERIA
Get PDFThe pressure mounting on fast-moving consumer goods (FMCG) companies in Nigeria includes increasing non-biodegradable packaging waste, lack of skills in operation regarding sustainability, high staff turnover caused by poor provision of green training, and increasing community suspicion concerning perceived insincere philanthropic operations with mounting regulatory and consumer pressures on genuine corporate social responsibility (CSR), all of which threatens long-term performance and social legitimacy. This paper explores how environmental accounting, which is operationalised by pollution cost, training cost, and donation, affects firm performance, measured by quality of CSR disclosure. Based on the ex-post facto research design, secondary data were obtained through annual reports and sustainability statements of five purposively chosen listed FMCG companies on the Nigerian Exchange Group (NGX) during the 2019-2024 period, which provided 30 balanced panel observations. The panel correction standard errors multiple regression was performed using STATA 13, accounting for firm size. Findings indicate that there is a significant positive correlation between pollution cost and CSR performance (6.129, p-value = 0.012), training cost has a negative and significant effect on CSR performance (-2.117, p-value = 0.046), and a non-significant effect of donation on CSR performance (0.102, p-value = 0.284), this means that the model explains 43.1 per cent of Based on the Stakeholder Theory, the research is able to find that only proactive, stakeholder-responsive environmental investments, especially pollution mitigation, cause significant CSR outcomes, whereas misaligned training and symbolic donations undermine performance credibility. One of the major recommendations is that to strengthen the CSR legitimacy and sustainable firm performance, FMCG firms should prioritise the investments in pollution control strategically, redesign the sustainability-orientated training according to the GRI standards, and turn the donations into the shared-value initiatives
POST-PANDEMIC CORPORATE GOVERNANCE IN EMERGING MARKETS: AN ACCOUNTING AND ESG PERSPECTIVE
Get PDFWith an emphasis on how businesses adjust to new opportunities and challenges, this study examines the future of corporate governance in emerging nations in the wake of the COVID-19 pandemic. Key findings show important trends using a mixed methods approach that includes quantitative surveys and qualitative interviews with 150 accounting and governance professionals from Southeast Asia, Latin America, Eastern Europe, and Africa. A noteworthy trend toward sustainable company practices is indicated by the 78% of respondents who believe that Environmental, Social, and Governance (ESG) disclosures are becoming more and more significant. Overall, the study shows that although emerging markets have particular governance issues, there is a strong commitment to incorporating ESG principles and using technology to increase accountability and transparency. The results provide practical advice for businesses looking to improve their governance structures and support long-term economic expansion in the wake of the pandemic
BOARD CHARACTERISTICS AND ESG DISCLOSURE: A COMPARATIVE PANEL STUDY OF MANUFACTURING FIRMS IN NIGERIA, GHANA, AND SOUTH AFRICA
Get PDFThe study examined the effect of board characteristics on ESG (Environmental, Social, and Governance) disclosure among listed manufacturing firms in Nigeria, Ghana, and South Africa between 2012 and 2023. Specifically, it assessed the influence of board gender diversity, board size, firm size, and firm age on the level of ESG disclosure, using a robust panel regression approach. The research employed both fixed and random effects models, selected based on diagnostic tests such as the Hausman specification test and Breusch-Pagan LM test. Secondary data were extracted from the annual reports of manufacturing firms listed on the stock exchanges of the three countries. The results revealed that board size had a statistically significant and positive impact on ESG disclosure in all models, while board gender diversity only showed significance in Ghana. Firm size and firm age were also positively associated with ESG disclosure but varied in significance across countries. The findings indicated that board composition plays a critical role in driving sustainability transparency, though contextual factors may moderate the strength of this relationship. Model diagnostics confirmed the suitability of the panel data models and the robustness of the estimations. Based on these findings, the study recommended that regulatory authorities in Africa promote optimal board sizes and enhance board diversity through strategic inclusion policies. Country-specific governance frameworks should incorporate sustainability metrics, while firms are encouraged to adopt ESG disclosure practices that go beyond compliance and contribute to long-term value creation
MORAL HAZARD AND INSTITUTIONAL FRAMEWORKS: STUDY OF SYSTEMICALLY IMPORTANT BANKS IN NIGERIA
No full textThis study explores the phenomenon of moral hazard in the Nigerian banking sector, focusing on five (5) designated systemically important banks (SIBs). The study examines how implicit government guarantees, weak regulatory oversight, and limited competition have incentivised moral hazard in SIBs from 2013 to 2021. Using an exploratory research method, the study gathered empirical data and employed content analysis to assess the potential consequences of moral hazard in the Nigerian banking sector. The study found that moral hazardleads to financial instability, inefficient credit allocation, and diminished public trust. The study recommends that CBN should move away from the ‘comply or explain’ principle to proactively strengthen its regulatory oversight to prevent banks from engaging in reckless lending behaviour, AMCON should be scrapped to stop the bailout function it carries out, which serves as a source of moral hazard and CBN to enforce banks to comply with provisions of corporate governance codes for prudent lending decisions to align with the best interests of shareholders and stakeholders. Additionally, erring CEOs found guilty of reckless behaviour be arraigned and prosecuted