International Journal of Accounting, Management, and Economic Review
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EFFECT OF DEBT FINANCING ON VALUE OF LISTED MANUFACTURING FIRMS IN NIGERIA
Get PDFThe study examined the effect of debt financing on the value of listed manufacturing firms in Nigeria between (2015-2024). It employed an ex post facto research design, using secondary data from the published annual reports of manufacturing firms listed on the Nigerian Exchange Group. The population consisted of 34 manufacturing firms as of 31st December 2024, from which a sample of 20 firms was drawn through purposive sampling based on the completeness of their financial records, consistency in annual reporting, and uninterrupted listing throughout the study window. Generalized least squares regression was used for the analysis, supported by descriptive statistics and diagnostic checks covering heteroskedasticity and multicollinearity. The results show that the debt ratio has a negative and significant effect on firm value (β = –0.1458, p = 0.005), indicating that high leverage reduces market performance. In contrast, the debt-to-equity ratio has a positive and significant influence (β = 0.2576, p < 0.001), suggesting that a balanced mix of debt and equity enhances value. The debt-to-capital ratio is positive but statistically insignificant (β = 0.0777, p = 0.315). Firm size has a strong positive effect on value (β = 0.1322, p < 0.001). The study concluded that maintaining a moderate debt structure enhances firm value, while excessive borrowing diminishes it. It is recommended that Nigerian manufacturing firms should adopt prudent capital structure strategies, strengthen financial management systems, and leverage firm size advantages to enhance competitiveness and sustain long-term growth
NON-CURRENT ASSETS AND CORPORATE TAXATION OF LISTED OIL AND GAS COMPANIES IN NIGERIA
Get PDFThis study examined the relationship between non-current asset intensity, tangible non-current asset intensity, intangible non-current asset intensity and cash effective tax rate among listed oil and gas firms in Nigeria. Using robust regression techniques to address heteroskedasticity, the findings reveal that none of the asset intensity measures have a significant effect on cash effective tax rate at the 5% level. While tangible non-current asset intensity exhibited a negative relationship with cash effective tax rate, the effect was not statistically significant, suggesting that depreciation-related tax benefits are not strong enough to substantially reduce tax burdens. Similarly, intangible asset intensity does not significantly influence tax rates, indicating that tax incentives for intangible assets are either limited or ineffective within the Nigerian regulatory framework. These findings highlight the importance of industry-specific tax policies, particularly in the capital-intensive oil and gas sector, where tax advantages linked to asset composition may be moderated by regulatory constraints. The study contributes to corporate tax literature by providing empirical insights into the taxation implications of asset composition in an emerging economy
FINANCIAL LEVERAGE AND FIRM PERFORMANCE OF LISTED OIL AND GAS COMPANIES IN NIGERIA: THE MODERATING ROLE OF BOARD GENDER DIVERSITY
Get PDFThe financial performance of Nigeria’s oil and gas firms has remained inconsistent due to persistent leverage challenges and weak governance structures. This study examined the effect of financial leverage on firm performance with board gender diversity as a moderating variable among listed oil and gas companies in Nigeria. Employing an ex-post facto research design, secondary data were extracted from the audited annual reports of five listed oil and gas firms spanning 2012-2023. The study utilized panel regression analysis with descriptive statistics, correlation matrix, diagnostic tests, and both fixed and random effects estimations guided by the Hausman test. Financial leverage was measured using Debt-to-Equity Ratio (DER) and Interest Coverage Ratio (ICR), while firm performance was proxied by Return on Assets (ROA) and board gender diversity represented the moderating variable. The results revealed that DER had a negative and significant effect on ROA, whereas ICR exerted a positive and significant influence. Board gender diversity showed a positive relationship with financial performance and significantly moderated both leverage performance relationships. The study concluded that inclusive governance and prudent leverage management enhance profitability. It recommends optimizing capital structure, enforcing gender-diverse board policies, and integrating women into financial decision-making to strengthen firm sustainability
LEVERAGE DECISIONS AND BANKS’ PROFITABILITY: EVIDENCE FROM THE NIGERIAN BANKING SECTOR
Get PDFLeverage decisions create a critical challenge for banks’ profitability in the Nigerian banking sector, as undue reliance on debt financing intensifies financial risk and instability, while insufficient leverage limits returns. The relevance of financial leverage lies in the tax deductibility associated with debt, as it allows firms to deduct interest payments before paying tax. An ex-post facto research design was adopted. Secondary data from 25 deposit money banks were used from 2004 to 2023. Building on this concept, the study examined the impact of leverage decisions on the performance of commercial banks in Nigeria, acknowledging that bank profitability is crucial for financial stability and economic development. The Pooled Ordinary Least Squares (POLS) Regression technique and descriptive statistics were employed. The regression results revealed that leverage decisions had a positive impact on bank returns, with a 1% increase in leverage decisions leading to a 0.3143% (β = 0.3143, p < 0.001) increase in bank profitability. Furthermore, the findings revealed that the ratio of Equity to Total Assets (EQTA) and the ratio of Long-term Debt to Total Assets (LTDTA) have a significant negative effect on Return on Assets (ROA), while the ratio of Equity to Total Debt (EQTD) has a positive but insignificant effect on ROA. This result implies that Bank managers should adopt strategic leverage decisions as part of financial planning to enhance returns. Policymakers and bank regulators should design policies that encourage banks to enhance their capital structure, complementing debt and equity to maximize returns without compromising financial stability
EFFECT OF FREE CASH FLOW ON EARNINGS MANAGEMENT OF LISTED CONSUMER GOODS FIRMS IN NIGERIA: THE MODERATING ROLE OF FINANCIAL LEVERAGE
Get PDFThis paper examines the moderating effect of financial leverage on the connection between free cash flow and earnings management of listed consumer goods firms in Nigeria. The study adopted an ex post facto research design and analyzed a balanced panel of 19 firms (N = 19, T = 10; 190 firm-year observations) utilizing firm annual reports for the years 2015–2024. Tthe dynamic System Generalized Method of Moments (System-GMM) estimator was employed as a technique of data analysis. The validity of instruments and the specification of the model were tested using the Arellano–Bond tests: AR (1) = 0.002, AR(2) = 0.364, Hansen J-test p = 0.243, and Wald χ² = 118.42 (p < 0.01). The study findings indicate free cash flow has a positive significant effect on earnings management. In addition, the interaction of financial leverage significantly and negatively affect earnings management. The study suggests that consumer goods firms in Nigeria improve their reporting credibility by strengthening debt covenants and governance mechanisms related to leverage
EMERGING TECHNOLOGIES AND TAX ADMINISTRATION IN THE DIGITAL AGE: CURRENT PRACTICES AND PROSPECTS
Get PDFNigeria has implemented several digital reforms in tax administration, yet challenges such as low compliance, revenue leakages, and limited integration of advanced digital tools persist. This study explores the current use and future prospects of emerging technologies (Artificial Intelligence (AI), Big Data Analytics, and Blockchain) in the Nigerian tax administration. The study adopts an exploratory research approach based on secondary data sourced from academic publications, government reports, and tax authority documents. The findings indicate that digital platforms such as TaxPro-Max and various state e-tax systems have improved taxpayer registration, return filing, and electronic payment processes. However, the application of AI for predictive audit selection and the use of blockchain for secure data sharing remain underdeveloped. The study highlights the need for capacity building among tax officials, stronger legal frameworks for data governance, and investment in digital infrastructure. These findings underscore the importance of expanding technological integration to enhance efficiency, increase compliance, and reduce administrative bottlenecks in Nigeria’s tax system
THE IMPACT OF CLIMATE VARIABLES ON KEY FINANCIAL MARKET INDICATORS IN NIGERIA: AN ARDL APPROACH
Get PDFThis study investigates the macro-financial effects of climate change on investment performance in Nigeria, focusing on the interaction between key climate variables, rainfall, temperature, and carbon emissions, and financial indicators such as Treasury Bill Rate (TBR), Stock Market Index (SMI), and Bond Yield (BOY). Using the Autoregressive Distributed Lag (ARDL) model on a 34-year time series, the study examines both short- and long-run relationships between climate and financial variables. The results reveal that rainfall exerts a statistically significant negative effect on TBR in both the short and long run, suggesting that extreme rainfall events influence short-term liquidity and monetary dynamics. However, temperature, carbon emissions, and inflation exhibit no significant impact on SMI or BOY, indicating limited climate sensitivity in long-term capital markets. The findings underscore the partial responsiveness of Nigeria’s financial system to climate variability and point to weak environmental signal integration. The study concludes that Nigerian financial markets remain in the early stages of climate-risk pricing and recommends that regulatory institutions such as the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) deepen climate-finance research, strengthen data infrastructure, and integrate climate disclosures into financial reporting to improve market resilience
EVALUATION OF THE IMPACT OF NON-GOVERNMENTAL ORGANIZATIONS (NGOS) ON RURAL DEVELOPMENT IN JABA LOCAL GOVERNMENT AREA OF KADUNA STATE
Get PDFThe study is titled evaluation of the impact of non-governmental organizations (NGOs) on rural development in Jaba Local Government Area of Kaduna state. The impacts of Non-Governmental Organizations on rural development in general are enormous and inexhaustible, and its activities cut across all sphere of human endeavors. In this regard, more is expected to be put in place by the growing number of NGOs in Nigeria, for the overall well-being of the society. This partnership agenda must be anchored on the fact that NGO will continue to play very important roles in rural development but these roles would vary and their success would be partly dependent on policies of government. Socio-economic development must therefore be conceived as a shared responsibility. In this context, the primary role of NGOs is to mobilize people and their resources at local, national and community levels to support self-sustained development especially at the rural areas. The major development contributions they play in Jaba Local Government Area of Kaduna State varied in capacity. They plan and implement development programs on a limited scale, mobilize local resources and initiative, act as catalysts, enables or innovators, mediate in relations between government and the people, support and partner with government in providing local and rural development programs, act as agents of information and facilitate development, education, training and professionalization, as seen in some rural areas in Jaba local government area of Kaduna State. Data for this study were source through both primary and secondary sources of data collection. The data collected were analyzed objectively. The study found out that NGOs had contributed immensely to rural development in various aspects of lives in Jaba Local Government Area of Kaduna. The paper concluded that NGOs significantly impacted rural development in Jaba Local Government Area of Kaduna by supplementing government efforts in providing essential services, empowering local communities, and advocating for social change in the study. The paper recommended among many that Non-governmental organizations activities should be encourage by all a sundry due to its impact on rural development and NGOs presence should continue to be strengthen because its remain the backbone for rural development in Jaba Local Government Area
STAKEHOLDER ECOSYSTEM AND CORPORATE SOCIAL DISCLOSURE AMONG NON-FINANCIAL FIRMS IN LAGOS STATE, NIGERIA
Get PDFThe alarming rate of social disclosure practices across the globe have becoming great concern. This arose as a result of high level of production activities which resulted to negative impact on the employee, immediate communities and other stakeholders. Consequently, stakeholders agitate for discovery of this information in the annual report and account. Despite, the regulation through Global Reporting Initiative (GRI)there still cases of not disclosing the information. Given this bases, this study therefore investigate stakeholder ecosystem and social disclosure among non-financial firms while the secondary objective is to examine the impact of operational stakeholders on corporate social disclosure; investigate the impact of strategy stakeholders on corporate social disclosure; investigate the influence of primary stakeholders on corporate social disclosure; investigate the impact of strategy stakeholders on corporate social disclosure. The study used survey research design; data was extracted from sample size of 294 representing the entire non-financial firms. Survey research design was used in this due to the nature information required in this study. The result of the findings showed active stakeholders have a negative and statistically insignificant impact on corporate social disclosures (coefficient: -0.038, p-value: 0.554); strategy stakeholders 0.109 and P value is 0.089 on corporate social disclosure among listed non-financial firms in Lagos state, Nigeria; In the light of primary stakeholders, the result indicated that (coefficient: -0.096, p-value: 0.002) while environmental advocacy showed that negative but insignificant impact (coefficient: -0.034, p-value: 0.643). Therefore, the study concludes that operational stakeholder insignificantly influences social disclosures practices; strategic stakeholders have significantly influence corporate social disclosures among non-financial firms; Primary stakeholders have a significant negative impact and Environmental advocacy stakeholders show a negative, statistically insignificant impact. Based on these findings, the study recommends targeted interventions through established policy that will enhances company’s corporate social disclosure practices, including formalizing employee engagement channels, strengthening regulatory standards, structurally and developing universal, firm-centric capacity building programs to improve the eminence and reliability of corporate social reporting in non-financial firms in Lagos state, Nigeria
EFFECT OF TAX AUDIT AND INVESTIGATION ON TAX COMPLIANCEIN BAUCHI STATE, NIGERIA
Get PDFDue to the low tax compliance Nigeria, the federal government has come up with a tax reform to be implemented in January 2026 with a view to combatensure increase in tax compliance among taxpayers in Nigeria.Therefore, this paper aims toinvestigate the extent to which tax audit and tax investigation influence tax compliance among taxpayers in Bauchi State.This research is underpinned by Police-man theory that support tax audit and investigation and classical theory of tax compliance supporting tax compliance.Furthermore, to achieve thestudy’s objective, survey research design was employed through the utilization of a well-structured questionnaire. Samples of 255 responses from selected tax officials of Bauchi State Internal Revenue Services (BIRS) were used. Multiple Regression Analysis technique was applied in the analysis of data collected. Findings from the study revealed that both tax audits and tax investigationshave positive and significantinfluence on tax compliance among taxpayers in Bauchi state. It is therefore recommended that, Bauchi State Internal Revenue Services should strengthen its tax audit and tax investigation departments through on-the job continuous training for staffas well as technology driven systems. Moreover, effective deterrence measures such as stiff progressive penalties should be instituted against tax defaulters