| 1 |
Author(s):
Chibuike Camillus Ugo, Celestine Anayo Egbuhuzor.
Page No : 1-13
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Effect of Cashflow Management on Financial Performance: Evidence from the Pharmaceutical Industry in Nigeria
Abstract
Cashflow management is vital to the sustenance of the firm’s liquidity and proper cash flow management help the firm to actualize its set out objectives. Therefore, this study examined the effect of cash flow management on financial performance: Evidence from the pharmaceutical industry in Nigeria. The ex post facto research design was adopted for the study with a population of ten (10) listed pharmaceutical companies in Nigeria as listed by the Nigerian Exchange Group in 2021. Data were retrieved from the annual reports of the selected listed pharmaceutical companies for the period 2011 to 2020. Multiple regression analysis and the Pairwise Granger Causality tests were used to analyze the data gathered with the aid of EViews10 statistical software. The study revealed a positive and insignificant effect of operating activities on liquidity. Also, it revealed a positive and insignificant effect of investing activities on liquidity. And finally, it revealed a negative but significant effect of financing activities on the liquidity of listed pharmaceutical companies in Nigeria. Therefore, it was recommended that listed pharmaceutical companies in Nigeria should be encouraged to build a reasonable cash flow control strategy that will bring efficiency to the firm, thereby enhancing the firm financial performance. Also, pharmaceutical companies should re-evaluate their cash flow management strategies in order to enable them to generate enough cash sufficient to meet their investing activities.
| 2 |
Author(s):
Gift O. Eke (Ph.D).
Page No : 14-34
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Board Attributes and Corporate Governance Soundness in Listed Oil and Gas Companies in Nigeria
Abstract
This study investigated the association between board attributes and corporate governance soundness in listed oil and gas companies in Nigeria. The study adopted the ex post facto research design since it was a secondary data research. The twelve (12) oil and gas companies listed on the Nigerian stock exchange between 2010 and 2018 constituted the population of the study. A census of the entire population was done since the population was small. Content analysis was used to extract data required for the study from the audited financial statements of the listed oil and gas companies that were sampled. Analysis of data was done using descriptive statistics and the hypothesis postulated was tested using correlation and multiple regression statistics. The study revealed that there is no significant association between board attributes and corporate governance soundness in listed oil and gas companies in Nigeria given the weak average coefficient of correlation of 36.8 percent. The study further revealed that board attributes influence corporate governance soundness by only 14.5 percent. Given the findings of the study, it is concluded that board attributes (board independence, board size and board meetings) correlate positively, albeit insignificantly, with corporate governance soundness. One of the recommendations made was that the board of directors of listed oil and gas companies in Nigeria should continually rally round, and be committed to involving, the various stakeholders in corporate governance in the governance process.
| 3 |
Author(s):
Oyakegha Ekiyeghazi Samuel, Arepo Lookman Adeniyi.
Page No : 33-44
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Monetary Policy and Private Sector Performance in Nigeria (1995-2020)
Abstract
The study examines the impact of monetary policy on private sector performance in Nigeria; for the period 1995-2019. Secondary data were used and collected from the Central Bank of Nigeria Statistical Bulletin. The study used Private Sector Output is proxy for Private Sector performance and employed as the dependent variable; whereas, broad money supply, liquidity rate and Credit Ratio respectively were used as the explanatory variables to measure monetary policy. Hypotheses were formulated and tested using time series econometric techniques. The study revealed a significant effect of credit ratio on private sector output in Nigeria. Liquidity ratio had a significant effect on private sector output in Nigeria. Broad money supply had a significant effect on private sector output in Nigeria. Hence, there is a long-run equilibrium effect on monetary policy and the private sector economy in Nigeria; and, the result confirms that about 73% short-run adjustment speed from long-run disequilibrium. The coefficient of determination indicated that about 65% of the variations in private sector led- economy can be explained by changes in monetary policy variables. The study concluded that monetary policy had impacted significantly on private sector growth in Nigeria. The study recommended that strong macroeconomic policies should be employed to maintain and stabilize the economy. CBN should lay down strict prudential guidelines to stabilize and strengthen the private sector led-economy. Government and policy makers should formulate policies that will increase the flow of investable funds and improves the capacity of private economy.
| 4 |
Author(s):
Stanley Chika Nwaogu, Ifeanyichukwu Valentine Nwafor, Raphael Oshiobugie Sado.
Page No : 45-58
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Examining the Variation Between the Conventional and Contemporary Valuation of Residential Investment Properties in Lagos
Abstract
Due to the interplay between the forces of demand and supply in the determination of residential property investment valuation, there is continuous increase in rental value and rent review pattern and as such, conventional valuation of residential property investment has become inappropriate as it cannot handle the problems of rental values, rental growth, impact of inflation and rent review pattern experienced in the Nigerian property market. The objectives were to determine the annual rental growth rate pattern for residential properties from 2014–2020 and ascertain the level of variation in the use of conventional and contemporary investment methods in determining the value of such real estate assets in Lagos State, Nigeria. Appropriate descriptive approach was adopted and the result showed that rental values increased within the period, rental growth followed a similar trend, rent review pattern was mostly three years, and practitioners were aware of discounted cash flow. Valuation results revealed 6.67% variation for discounted cash flow, 0% for real value model and 25% rational approach. The use of a constant income annuity in perpetuity for conventional investment method of valuation as a single income stream would result in erroneous valuation as conventional technique relies fully on comparable evidence. The contemporary techniques on the other hand integrate property as part of the larger investment community which enables estate valuers to make qualitative market valuation where there is no comparable evidence. This study therefore recommends that contemporary valuation techniques are appropriate in the market valuation of residential property investments, particularly in the market valuation of reversionary freehold.
| 5 |
Author(s):
Temuhale Julius, Odom Desmond Uwakwe.
Page No : 59-81
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Public Debt and the Nigerian Economic Development (1990 – 2019)
Abstract
The huge infrastructure deficit in Nigeria underscores the need for capital mobilization required to finance activities and ensure sustainable growth and development. This study examined the effect of public debt on the economic development of Nigeria covering the period 1990-2019. Domestic public debt, External public debt, Total public debt, and public debt servicing represented independent variables. Per capita income was the dependent variable. Ex post facto research design was adopted for the study. Data was sourced from the Central Bank of Nigeria Statistical Bulletin and Globaleconomy.com. The study used Augmented Dickey-Fuller (ADF) unit root test to test for the stationarity of the variables while the Johansen cointegration test was used to establish that a long-run relationship exists among the variables. Ordinary Least squares (OLS) and Error Correction Model (ECM)) were the tools used for analysis. Results showed that domestic debt and external debts each has a negative and statistically significant effect on per capita income while total public debt and public debt servicing showed a positive and statistically significant effect on per capita income respectively. Based on the findings, the study concluded that neither external debt nor domestic debt has been able to singly spur economic development while total public debt which is the combination of domestic and external public debt positively drive economic growth, thereby, improving the per capita income of the citizens in Nigeria.
