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Author(s):
Editor in Chief.
Page No :
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African Journal of Accounting and Financial Research, Volume 7 Issue 1, Cover Page
Abstract
African Journal of Accounting and Financial Research, Volume 7 Issue 1, Cover Page
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Author(s):
Ejinkonye Remigius Chinwoke, Nwosu Samuel N., Ibecheole Onyekachi Chikamnele, Zakari Muhammed Uloghobui, Momodu Zuriat Mansur, Usman Abdulmalik.
Page No : 1-12
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Fiscal Policy and Unemployment Nexus in Nigeria: An Empirical Analysis (1990–2021)
Abstract
This study assessed the fiscal policy and unemployment nexus in Nigeria using time series data covering 1990 to 2021. Economic downturn, poor living standard, inadequate employment generation and increasing unemployment rate are sources of concern and worry. Job creation seems not to be getting the needed attention in the scheme of economic policies in Nigeria. The proxies for fiscal policy were: government capital expenditure (GCE), government revenue expenditure (GRE), government external debt (GED) and government total revenue (GTR), while that for unemployment was the unemployment rate. Specifically, this sought to examine the nexus between GCE and unemployment rate, GRE and unemployment rate, GED and unemployment rate, and GTR and unemployment rate. The ex-post-facto research design was used while the hypotheses were tested at 5% significance level. The time series data obtained from the Central Bank of Nigeria statistical bulletin was analyzed using the OLS technique. The test results showed that: GCE had a coefficient of 3.84 and a probability of 0.9893; GRE had -0.000481 coefficient and a probability of 0.6365; GED had 0.000584 coefficient and a probability of 0.1292 while GTR had 0.002070 coefficient and a probability of 0.0000. The probability f-statistic value of 0.000000 showed that proxies for fiscal policy are jointly significant to the unemployment rate. The adjusted R2 and Durbin-Watson values were 86% and 1.798125 respectively. It was recommended that the federal government should: (1) apply her capital expenditure properly and direct it to sectors that will help create more jobs and reduce unemployment rate, (2) make her recurrent expenditure to be supportive of the various government infrastructures, (3) drastically reduce her growing and high debt profile without commensurate job opportunities, (4) use her revenue to drive the economy instead of being applied on non-productive, white elephant projects or misappropriated.
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Author(s):
Rosemary Peter Mwandu, Hamida Msofe, Tunu Mwiru, Pilly Marwa.
Page No : 13-22
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The Influence of Capital Structure on Corporate Effective Tax Rates of Listed Firms in Tanzania
Abstract
This study examines the relationship between capital structure and corporate effective tax rates using data from 25 randomly selected listed firms on the Dar es Salaam Stock Exchange over a ten-year span (2013–2022). We employed a random fixed effect panel regression model while controlling for firm-specific variables such as size, profitability, age, and growth. The study reveals a significant and negative relationship between capital structure and effective tax rates, implying that firms utilising higher debt financing tend to experience lower effective tax rates. Additionally, firm size and profitability exhibit a significant relationship with capital structure. These findings hold significant implications for Tanzanian businesses, suggesting that they may enhance tax efficiency through strategic capital structure decisions. For policymakers, the results provide empirical insights on potential tax policy reforms, potentially fostering a more favourable business environment in Tanzania. This research contributes empirical evidence on the financial and tax dynamics of listed firms in Tanzania.
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Author(s):
Adebowale OGUNSOLA (Ph.D.), Jamiu Alabere ABDULRASHEED.
Page No : 23-34
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Factors Affecting Share Performance of Quoted Deposit Money Banks in Nigeria
Abstract
The study examined the factors affecting share performance of quoted deposit money banks in Nigeria. The study adopted ex-post facto research design, and the population of the study consisted of all deposit money banks quoted in Nigeria as at 31st December, 2022. However, nine (9) banks were selected as sample size using a judgmental sampling technique. Data for the study were obtained from the annual reports and accounts of the nine (9) deposit money banks for the period of 10 years ranging from 2013-2022. The study used the OLS regression model as a technique of data analysis. The study found that earnings per share has a significant positive effect on market price per share. Meanwhile, dividend per share and price earnings ratio have an insignificant positive effect on market price per share, while book value per share has an insignificant negative effect on market price per share of quoted deposit money banks in Nigeria. The study recommends that corporate organizations, particularly corporate companies, should develop and implement strategies that will help improve their earnings per share, dividend per share and price earnings ratio in order to increase their share performance in the market.
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Author(s):
Oluwatosin Adejoke Osanyinbola.
Page No : 35-48
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An Analysis of Empirical Applicability of Auditing in a Cloud Environment in Nigeria
Abstract
This study examined an empirical analysis of auditing in a cloud accounting environment in Nigeria: prospects and challenges. The research design used in the study was a survey method. The technique made sure the researcher could describe a sizable population at a specific time by gathering data from the chosen sample at that time. The population of the study consists of the staff of selected audit and accounting companies in Abuja. The staff is made up of two hundred and eighty-seven (287) persons. The sample size of 164 respondents was derived using Cochran statistics. Frequency tables and percentages were adopted to analyze the demographic characteristics of the respondents and leading research questions while the independent sample t-analysis was adopted to test the hypotheses of the study. The major findings of the study are that there are no significant problems with auditing in a cloud accounting environment in Nigeria and there are significant prospects with auditing in a cloud accounting environment in Nigeria. It is therefore the recommendation of the study that for more benefits of cloud computing to be more harnessed, internet services should be adequately provided, and this should be supported by training and retraining of staff in the usage of information systems.
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Author(s):
Bello Isiaka Dada (Ph.D.).
Page No : 49-65
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Sustainable Development Goals Reporting by Listed Companies in an Emerging Economy-Evidence from Nigeria
Abstract
Sustainable development goals (SDGs) have become a global agenda in recent years shaping both national and corporate institutions. At the mid-way point to 2030, the Sustainable Development Goals (SDGs) are in deep trouble. Corporate institutions are required to partner with governments in achieving the goals. The inclusion of SDGs in corporate disclosure will further enhance the quality of financial reporting and spur business leaders into action. This study explores the current state of SDG reporting by publicly listed companies in Nigeria given that the literature in this area is few. The research design was ex-facto using content analysis of annual report of listed manufacturing and construction companies constituting a sample of thirty-four companies using ten of the seventeen sustainable development goals. The manufacturing sector scored 44 of a possible 124 representing 35% with only 9 companies making a good disclosure of SDGs. Only 1 company is the clear leader of the 3 listed in the construction sector. We conclude that corporate listed companies have a lot to do in reporting these important development goals. This study contributes to accounting literature in corporate reporting and how SDG issues are addressed in corporate information. We recommend that the regulatory agency for financial reporting, professional accounting associations, and the Stock Exchange takes necessary step to develop framework, train, and enforce compliance to improved reporting of activities on social development goals. Government should engage business leaders to commit to accelerate business actions and reporting to achieve the SDGs by 2030.
Keywords: Disclosure theories, Reporting, Sustainable development, Sustainable development goals, Sustainability reporting.
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Author(s):
Simon P. Tsekpo, Wahua Lawrence, Akinsete T. Reuben, Mkombo A. Lameck, Anderson P. Douglas.
Page No : 66-92
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Governance Dynamics and Capitalisation of Banking Sectors in Anglophone West African Countries
Abstract
The commencement of the African Continental Free Trade Area (AfCFTA) has re-echoed the need for more in-depth empirical investigations on the nexus between governance dynamics and capitalisation of banking sectors in Anglophone West African countries. The Economic Community of West African States (ECOWAS) is a major player in African continental trade in terms of large market, abundant natural resources, and relative peace and stability. Institutional-stakeholder theory underpinned this quantitative-parametric study which made use of secondary data from Gambia, Ghana, Nigeria, and Sierra Leone within 2001 to 2020. Liberia was excluded from the study due to incomplete data. Governance is the independent variable with two facets: internal dynamics (board effectiveness and management efficiency), and external dynamics (rule of law quality, quality of political and financial systems). Deposit interest rate and passage of time are the control variables. Capitalisation of banking sectors is the dependent variable. Descriptively, the studied banking sectors have weak but positive operating outlooks with Ghana outperforming others (followed by Gambia, Sierra Leone and Nigeria). The work re-established that no single governance model is a ‘fit-for-all’ as the country-wise findings are different. Results of the multivariate general linear model show that: political system has significant positive effect on the aggregate capitalisation of studied banking sectors; board effectiveness, management efficiency, and financial system have significant negative effects on the aggregate capitalisation of sampled banking sectors. The study established the relevance of institutional-stakeholder theory and the importance of controlling corruption. The need for synergy among the studied banking sectors cannot be ignored as further studies could cover other economies and economic groups.
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Author(s):
OTUEDON Ajueyitse Martins Ph.D, OGODOGUN College.
Page No : 93-100
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Taxation and Socio-Economic Development in Nigeria
Abstract
The study examined the linkage between taxation and socio-economic development in Nigeria. The study employed a descriptive research design using secondary data collected from various issues of the Central Bank of Nigeria, Planning, Research and Statistics Department, National Bureau of Statistics and Federal Inland Revenue Service bulletins. The study focused on a five year time series study from 2017 – 2021. The study was anchored on the socio-political theory of taxation and the study methodology involved the review of extant literature on two groups of taxes: oil and non-oil taxes and how they are used to bring about socio-economic development proxied by GDP expenditure at constant purchase prices. The review revealed that tax revenue had positive relationships with socio-economic development, but they are grossly inadequate to meet up with GDP expenditures. The study concluded that tax revenues are under generated in relation to crude sales. It was recommended that among others that the government should engage in a complete re-organization of tax administrative machinery to reduce poor documentation of tax receipts, incidence of tax evasion and avoidance to the barest minimum to improve tax revenue and bring more taxpayers into the tax radial in order to enhance socio-economic development.
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Author(s):
Ogwuma Mike Madubuike, Okonkwo Ikeotuonye Victor (Prof.), Adigwe Kanayo Patrick (Prof.), Nwabeke Elizabeth Chidinma.
Page No : 101-118
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Sovereign Wealth Funds and Nigeria’s Economy (2012–2021)
Abstract
This study examined how Nigeria’s sovereign wealth funds has related to the economy: 2012-2021. The sovereign wealth fund is designed to build a savings base for the Nigerian people, enhancing the development of Nigeria’s infrastructure, and providing stabilization support in times of economic stress, somehow stabilizing the local currency value. It seems that the sovereign wealth funds of Nigeria is not yet growing sustainably. Thus, this work seeks to ascertain how the sovereign wealth fund has related to economic growth of Nigeria. The study made use of secondary data sourced from the Central Bank of Nigeria and the Nigerian Sovereign Investment Authority. Using descriptive and scooping methods, the study showed that the total assets value of the Sovereign Wealth Fund (SWF) authority, the total assets value of the SWF group consolidated, the net profit of the SWF authority and the net profit of the SWF group consolidated have not reasonably influenced the economic growth of Nigeria. The work recommends amongst others that the government should be consistent in transferring excess crude oil revenue to the Fund; strategic partnership with investors with superior business intelligence is required; and the SWF Authority must promote accountability and transparency in the management of thefunds.
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Author(s):
Michael Iorlaha, Tarsue Asema, Amity Agi Ijuwo.
Page No : 119-131
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Maximizing Revenue Generation Through Effective Tax Policies for Sustainable Economic Development in Nigeria; A Conceptual Review
Abstract
This paper focused on the imperative of maximizing revenue generation in Nigeria through the implementation of effective tax policies. In a nation characterized by diverse economic sectors and challenges such as tax evasion and a significant informal economy, the need for strategic fiscal policies is paramount. This paper explores the multifaceted approach to effective taxation, including broadening the tax base, simplifying the tax system, and utilizing technology for efficient tax collection. Drawing on progressive taxation, incentives for strategic sectors and ensuring transparency, the paper advocates for policies that not only increase revenue but also promote economic stability and social equity. The importance of reducing dependence on oil revenue, enhancing compliance, and encouraging investments is highlighted. In conclusion, it stresses that effective tax policies are integral to Nigeria's economic stability, providing funding for critical sectors such as education and healthcare. The paper emphasizes the significance of these policies in reducing income inequality, fostering entrepreneurship, and creating a conducive environment for business growth. As a recommendation, the paper suggests that policymakers prioritize the implementation of these strategies, invest in modern tax administration technologies, and foster collaboration between government agencies and the private sector. These measures can pave the way for a financially robust Nigeria, ensuring sustainable development and an improved quality of life for its citizens.
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Author(s):
BELLO Abdulrasheed, ABDULLAHI Aminu.
Page No : 132-151
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Sustainability Reporting and Financial Performance of Listed Consumer and Industrial Goods Companies in Nigeria: A Comparative Analysis
Abstract
The study compares Sustainability Reporting (SR) and Financial Performance of listed Consumer and Industrial Goods Companies. Financial reports from 14 Consumer and 8 Industrial Goods Companies from 2012-2021 were used. Descriptive and Two-step System GMM were used for analysis. The study found that Consumer Goods Companies are more Socially transparent than Industrial Goods Companies. Consumer Goods Companies disclose less environmental information than Industrial Goods Companies. Both sectors exhibit transparency in reporting economic sustainability information. Importantly, the study found no significant SR effect on these Industries' Financial Performance proxies of ROE and EVA. To help firms in both industries generate consistent and comparable SR disclosures by giving explicit content and presentation guidance, Nigerian Exchange Limited should adopt industry-specific SR guidelines. Also, Sustainability activities should be linked to company strategy, as alignment boosts performance by boosting operational efficiency, risk reduction, and market expansion.
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Author(s):
Michael Iorlaha, Justin Iorakpen Iorun, Amity Agi Ijuwo.
Page No : 152-163
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Innovative Approaches in Tax Enforcement and Tax Compliance for Sustainable Economic Development in Nigeria; A Conceptual Review
Abstract
This paper delves into a conceptual review of the vital role of innovative approaches in tax enforcement and compliance for achieving sustainable economic development in Nigeria. Amidst evolving global economic landscapes, the integration of cutting-edge technologies such as blockchain, data analytics, digital platforms, and real-time reporting has emerged as a powerful catalyst for transforming the nation's tax system. These innovations have significantly streamlined tax processes, facilitating easier tax compliance for individuals and businesses. They have also fostered transparency and trust within the tax system by ensuring secure and tamper-proof tax records and enhancing voluntary compliance. The implementation of these innovative strategies presents a unique opportunity to bolster Nigeria's revenue collection, thereby contributing to sustainable economic development by funding critical public services, infrastructure projects, and socio-economic development initiatives. The paper concludes that the adoption of innovative approaches in tax enforcement is pivotal for sustainable economic development in Nigeria. By promoting compliance and transparency, these technologies contribute to a robust and reliable revenue base essential for funding public services and infrastructure projects. This paper, therefore, recommends investment in digital Infrastructure, implementation of real-time reporting and data analytics, utilisation of data analytics and artificial intelligence and leverage on mobile payment systems.
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Author(s):
Akadi Omolara, Olaoye Festus (Ph.D.).
Page No : 164-186
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The Impact of Cloud Based Accounting System on the Performance of Selected Deposit Money Banks in Nigeria
Abstract
The purpose of this study was to evaluate the performance of money deposit institutions in Nigeria with respect to the cloud-based accounting system. Nonetheless, survey research was used as the methodology for this investigation. The study's population consisted of 38 deposit money banks in Nigeria, and 34 sample institutions were chosen by Taro Yamene. Only 20 banks were chosen since several were difficult to get to because of distance and red tape. Each bank received 15 questionnaires, totaling 300 copies, 279 of which were fully completed and easily accessible for usage. The structured questionnaire served as the study's major source of data.. Simple tables were used for descriptive analysis, while ordinary least squares (OLS) and analysis of variance (ANOVA) were used for inferential analysis. The Cronbach's Alpha test of reliability was used to test the data. The findings showed that R was 56.20%, indicating a very robust model; additionally, 55.70% of R Square demonstrated that all variance in deposit money banks' performance can be attributed to the cloud-based accounting system. The study found that the performance of Nigerian deposit money banks and the cloud-based accounting system are positively correlated.
