International Journal of Accounting, Management, and Economic Review
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IMPACT OF ECONOMIC UNCERTAINTIES ON FINANCIAL REPORTING QUALITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Get PDFThis study examines the impact of economic uncertainties on the financial reporting quality of listed deposit money banks in Nigeria, with a specific focus on accounting conservatism as a measure of financial reporting quality. Economic uncertainties, characterized by fluctuations in macroeconomic variables; GDP growth rate, inflation rate and exchange rates pose significant challenges to financial reporting quality. This study employs the ex-post facto research design, 10 banks were randomly selected, analysing the secondary panel data from 2014 to 2023 (10 years) to assess the relationship between economic uncertainties and accounting conservatism. The multiple regression technique was employed to analyse the secondary data. The findings indicate that only GDP has significant relationship with conservatism in financial reporting, highlighting the need for regulatory frameworks to mitigate the adverse effects of economic volatility on financial transparency and accountability
AUDIT QUALITY, GOVERNANCE MECHANISMS, AND THE FINANCIAL PERFORMANCE OF NIGERIAN DEPOSIT MONEY BANKS
Get PDFThe present study aims to investigate the direct influence of audit quality and corporate governance mechanisms on listed Deposit Money Banks financial performance in Nigeria. It is driven by continued challenges of financial transparency, independence of auditors and quality of governance in Nigerian banks despite several regulatory reforms. The sample consists of 11 banks from the year 2014 to 2024 (a balanced panel of 121 observations). The financial performance was measured with Return on Assets (ROA). Audit quality was measured by Big-4 affiliation, audit fees, non-audit fee ratio, auditor tenure and the specific auditor specialization; whereas governance mechanisms were board independence, audit committee independence and audit committee expertise. Panel regression estimation was used in the analysis with robustness checks, such as fixed effects and random effects model and Driscoll–Kraay standard error correction. The findings reveal that audit fees, independence and expertise of the audit committee have a significant positive impact on ROA indicating higher monitoring quality and better reporting credibility. On the other hand, non-audit fee ratio and leverage negatively and significantly affect ROA, indicating that risk level may increase and auditor independence gets eroded. The findings of this study suggest that improving audit committee quality, restricting non-audit services procurement and enhancing audit effort are all crucial for better outcomes of financial performance in the Nigerian banking sector
FINTECH ADOPTION AND FINANCIAL INCLUSION: EVIDENCE FROM SUB-SAHARAN AFRICA
Get PDFFinancial inclusion remains a persistent development challenge in Sub-Saharan Africa (SSA), where access to formal financial services is limited despite rapid digitalization. Although FinTech innovations are widely promoted as a solution, empirical evidence on their effectiveness across SSA remains fragmented and often descriptive. This study addresses this gap by examining the impact of FinTech adoption on financial inclusion using panel data from 2010 to 2023 across 30 SSA countries. Financial inclusion is measured through account ownership, mobile money usage, and digital payment adoption, while FinTech adoption is proxied by mobile subscriptions, mobile money transactions, and registered accounts. Employing fixed and random effects estimations complemented by System GMM, the study mitigates endogeneity and unobserved heterogeneity. The results reveal that FinTech adoption significantly enhances financial inclusion, particularly through mobile money transactions, while regulatory quality and internet penetration strengthen this relationship. The findings extend the Technology Acceptance Model by providing causal evidence from a cross-country perspective and offer policy insights for building inclusive, digitally enabled financial systems in SSA
FAIR VALUE ACCOUNTING AND EARNINGS QUALITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Get PDFThis paper assesses the influence of fair value accounting on the earnings quality (Earnings variability)of deposit money banks in Nigeria with a focus on post- COVID period. Specifically, the study objectives include to examine the effect of fair value gains or loss through income profit or loss and fair value gains or loss through other comprehensive income on earnings variability of listed deposit money banks in Nigeria. The study employed ex –post facto research design through census sampling technique and obtained secondary data from annual reports and accounts of seven (7) deposit money banks quoted on the Nigerian Exchange Group,which are categorized as Tier 1 as at April 26, 2024. The study covered the period from 2020 to 2024. Fair value accounting was proxied as fair value net gains through the income statement and fair value net gains through other comprehensive income with firm size as a control variable. Earnings quality was represented by earnings variability. Our findings shows that FVTIS does not significantly impact earnings variability but FVTOCI was found to significantly impact earnings variability while the combined effect of FVTIS with FVTOCI showed the similar result. The study conclude that FVTOCI showed noteworthy influence on earnings fluctuations of the sampled Tier 1 banks with the recommendation that standards regulators should revise accounting standards relating to FVTIS and DMBs should also enhance transparency in reporting FVTOCI in their financial reports. Future researchers may consider thesame study across non-financial sectors, thefinancial sector,which includes smaller and regional banks
IMPACT OF FINANCIAL TECHNOLOGY (FINTECH) INVESTMENT ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Get PDFThe rapid integration of financial technology (fintech) into banking operations has transformed the global financial services landscape. Yet, the specific impact of fintech investments on the financial performance of Nigerian banks remains underexplored. This study examines how two categories of fintech investment, operational expenditure (FintechOpex) and capital expenditure (FintechCapex) affect Net Interest Margin (NIM) and Return on Assets (ROA) across twelve Nigerian commercial banks over the period 2014-2023. Using panel data techniques, we estimate Pooled Ordinary Least Squares (POLS), Fixed Effects (FEM), and Random Effects (REM) models, and apply the Breusch Pagan test for heteroskedasticity and the Hausman test for model choice. The Fixed Effects specification emerges as the most reliable. The findings of the study show that FintechOpex has no statistically significant impact on either NIM or ROA, suggesting that short-term fintech spending does not immediately boost bank performance. In contrast, FintechCapex exerts a significant, positive influence on both performance measures, indicating that longer-term fintech investments drive tangible financial gains. The results of the study further revealed that higher liquidity correlates positively with both NIM and ROA. By distinguishing between FintechOpex and FintechCapex, this study refines the theoretical framework for evaluating fintech investments in banking. The results of the study show the importance of prioritizing capitalized fintech projects, restructuring operational budgets, integrating predictive analytics in lending, and leveraging digital tools for liquidity management
THE ROLE OF RELIGIOUS LEADERS IN PROMOTING ISLAMIC INSURANCE (TAKAFUL) IN NORTHERN NIGERIA
Get PDFIslamic insurance, or Takaful, presents a Sharia-compliant alternative to conventional insurance by emphasizing cooperation and ethical financial principles. Despite its alignment with Islamic values, Takaful adoption remains limited in Northern Nigeria due to low awareness and prevalent misconceptions. This conceptual paper investigates the influential role of religious leaders, including Imams and Islamic scholars, in promoting Takaful within the socio-religious context of Northern Nigeria. Utilizing the Theory of Planned Behavior and Diffusion of Innovations, the study explores how religious leaders shape attitudes, social norms, and trust towards Takaful products. The paper synthesizes existing empirical findings and proposes strategic recommendations such as integrating Takaful education into sermons, issuing fatwas, and leveraging media platforms to enhance community engagement. The findings highlight religious leaders as critical agents in fostering Takaful adoption and advancing financial inclusion in Northern Nigeria, thereby contributing to the broader discourse on Islamic finance and socio-religious influences on economic behavior
EFFECTS OF AUDIT PROCESS QUALITY AND MONITORING ON PUBLIC SECTOR ACCOUNTABILITY: EVIDENCE FROM SELECTED GOVERNMENT AGENCIES IN NIGERIA
Get PDFThis study examines the effects of audit process quality and monitoring on public sector accountability in Nigeria, with evidence drawn from selected government agencies. The study aims to evaluate how three key components, Audit Planning Procedures (APP), Audit Process Risk Management (APRM), and Audit Quality Review (AQR), influence financial, social, and administrative accountability within Nigeria’s public sector. A survey research design was adopted, and data were collected from 276 auditors in the Office of the Auditor-General for the Federation (OAuGF) using a stratified random sampling technique. Analytical procedures employed Partial Least Squares Structural Equation Modelling (PLS-SEM) to assess both measurement and structural models. Findings revealed that all three components of audit process quality significantly enhance public sector accountability, jointly explaining 52.5% of its variance (R² = 0.525). Among them, Audit Process Risk Management (β = 0.364, p < 0.01) exerted the strongest influence, followed by Audit Quality Review (β = 0.259, p < 0.01) and Audit Planning Procedures (β = 0.223, p < 0.01). Disaggregated results showed that APRM and AQR most strongly affect financial accountability, while APP demonstrates the highest impact on administrative accountability. The study concludes that improving the quality of audit processes, through risk-based auditing, structured planning, and continuous quality review is essential for enhancing transparency and fiscal discipline in Nigeria’s public institutions. The study recommended among others, that the Office of the Auditor-General of the Federation and State Auditors-General should develop and implement comprehensive risk assessment frameworks to identify high-risk areas within public institutions and allocate audit resources effectively
INSTITUTIONAL OWNERSHIP, CORPORATE CHARACTERISTICS AND LEVERAGE RATIO OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA
Get PDFThe study investigates the effect of institutional ownership and corporate characteristics on the leverage ratio of consumer goods companies in Nigeria. The objective is to explore the impact of institutional ownership and corporate characteristics on the leverage ratio from 2013 to 2022. The study employed secondary data from the annual reports and the Nigeria Stock Exchange (NSE) fact books within the period of the study. The Generalized Least Squares Regression Technique for data analysis was employed. The research employs a random and fixed effects regression model to analyze the relationship. The findings suggest that profitability and managerial ownership of the explanatory variables are statistically and significantly influencing the explained variable proxied by debt to total capital. On the other hand, institutional ownership and firm size of the explanatory variables do not significantly influence the leverage ratio. Managerial ownership and Firm profitability have a significant impact on debt to total capital at 1% and 5% level, respectively, while institutional ownership and firm size have an insignificant impact on the leverage ratio. It is concluded that firm profitability and managerial ownership mechanisms are good variables that impact on leverage ratio. The study, therefore, recommends, among others, that profitability and high-growth firms should rely more on internal financing and align their operational characteristic and risk profiles to maintain financial flexibility and sustainable growth
EFFECT OF WORKING CAPITAL MANAGEMENT PRACTICE ON THE FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS IN NIGERIA
Get PDFThis research investigates the effect of working capital management (WCM) on the financial performance (FP) of manufacturing companies in Nigeria. Effective WCM promotes liquidity, solvency, profitability, and overall operational efficiency, making it a critical aspect of organisational financial strategy. It plays a key role in enhancing firm performance, supporting industrial expansion, and driving economic growth. The objective of this study is to explore the link between WCM practices and financial performance indicators. Manufacturing firms, as vital drivers of Nigeria’s economic advancement, often face challenges in managing their working capital efficiently. The study focuses on Nigerian manufacturing companies listed on the Nigerian Exchange Group over ten years (2014-2023). Using panel data and panel multiple regression analysis, the study examines how key WCM components like accounts payable, accounts receivable, and cash conversion cycle relate to financial performance measure such as return on assets (ROA). Findings reveal that all components of working capital management significantly influence financial performance. This research contributes to the existing body of knowledge by offering sector-specific evidence on the role of WCM in enhancing financial performance in Nigeria’s manufacturing sector. The study recommends that manufacturing companies strengthen liquidity management through effective coordination of receivables, payables, and cash conversion cycle. The findings have implications for financial managers, policymakers, and investors aiming to promote efficiency and sustainability in Nigeria’s manufacturing industry. 
FIRMS\u27 CHARACTERISTICS AND SHARE PRICES OF LISTED OIL AND GAS FIRMS IN NIGERIA
Get PDFThis research explored how various firm attributes affect the share prices of publicly traded oil and gas companies in Nigeria. The study employed an ex-post facto research design. The population comprised eight oil and gas firms listed on the Nigerian Stock Exchange as of December 31, 2023, with a sample of five companies selected through purposive sampling. Data were gathered from annual financial reports and the Nigerian Stock Exchange Fact Book. Utilizing regression analysis, the results indicated that firm growth (p = 0.006), profitability (p = 0.000), and asset tangibility (p = 0.051) all have a positive impact on share prices. The regression model accounted for 52.8% of the variance in share prices (R² = 0.528). Hypothesis testing rejected the null hypotheses for firm growth and profitability, suggesting they are significant predictors, while asset tangibility was marginally significant at the 5% level. Overall, the findings demonstrate that firm growth and profitability are primary factors influencing share valuation, with asset tangibility also contributing, albeit to a lesser extent. The study concludes that firm-specific characteristics play a crucial role in shaping the market valuation of oil and gas companies in Nigeria, providing meaningful insights for investors, regulators, and industry stakeholders