| 1 |
Author(s):
Abasiofon Inimfon Ubokudom, Eno Gregory Ukpong, Nkanikpo Ibok (Prof.).
Page No : 1-15
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Accounting Perspective of Corporate Social Responsibility: Implications on Banks’ Cost of Capital.
Abstract
The disclosure practices of firms may send strong signals to investors thus influencing their perceptions of the company’s risk and ethical standing and this potentially affect the company’s cost of capital. This study therefore examined the effect of corporate social responsibility disclosures on cost of equity of listed deposit money banks in Nigeria. The research design adopted for this study was ex post facto and secondary data were used. The population of this study consisted of 13 deposit money banks and the sample size of this study was 11 purposively selected banks. The ordinary least square regression analysis was employed in analyzing the data and the statistical package employed was E-views version 14. The findings of this study revealed that customer disclosures have a significant positive effect on cost of equity; environmental responsibility disclosures have a positive but not statistically significant effect on the cost of equity while indigenous venture support disclosures have a significant negative effect on the cost of equity of listed deposit money banks in Nigeria. Based on the above findings, it was concluded that corporate social responsibility disclosures have a significant effect on cost of equity of listed deposit banks in Nigeria. It was therefore recommended among others that management of deposit money banks should actively seek opportunities to engage with and support local entrepreneurs and transparently disclose these practices as investors are attracted to sustainable and ecofriendly firms thus reducing their risk premium in cost of capital.
| 2 |
Author(s):
Sowunmi Bolanle Musiliu, Sunday Mlanga (Prof.), Anderson Emmanuel Oriakpono (Ph.D.).
Page No : 16-35
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Distributed Ledger Technology and Financial Reporting Integrity in Nigerian Quoted Banks: A Study on Error Reduction and Enhanced Transparency.
Abstract
This study investigated the effect of distributed ledger technology (DLT) factors on eliminating financial reporting errors (FREs) in quoted Nigerian banks. Using an exploratory survey design, data was collected from 300 employees of 14 quoted banks involved in financial reporting. DLT factors of public, private, hybrid, and blockchain were examined as independent variables affecting the dependent variable of FRE elimination. Descriptive analysis showed all DLT types were perceived as highly effective for error reduction. Correlation analysis revealed strong positive relationships between DLT factors and FRE mitigation. Regression modeling found hybrid DLT had the largest impact on error elimination, followed by private, public, and blockchain DLT. Together, the DLT factors explained 98.1% of the variance in FRE reduction. The results statistically established the significant positive effects of DLT factors on eliminating prevalent FREs like principle, omission, entry, disclosure, and reversal errors. Key contributions include providing robust empirical evidence that leveraging DLT, especially hybrid DLT, can eliminate common financial reporting errors in Nigerian banks. The pioneering study expands conceptualizations, theories, and literature regarding DLT's potential to comprehensively transform financial reporting accuracy. It offers important implications for policy, practice, and research on regulating, adopting, and studying DLT solutions to address persistent financial statement errors undermining stakeholder trust in Nigeria's banking sector. The study concludes by strongly recommending for policy and in practice the regulation, and full adoption DLT for elimination of FREs in Nigeria.
| 3 |
Author(s):
Usman Gana, Yusuf Abdullahi Temitope, Emeka Joshua Chukwuemeka.
Page No : 36-49
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Agricultural Financing and Agricultural Output in Nigeria: An ARDL Approach.
Abstract
This study analyzes the impact of agricultural financing on agricultural output in Nigeria from 1991 to 2022. Employing an Autoregressive Distributed Lag (ARDL) model, the research examines the effects of government capital expenditure, commercial bank credit schemes, and the agricultural credit guarantee scheme (ACGS) on agricultural output.
The findings indicate that both government capital expenditure and ACGS positively and significantly influence agricultural output in both the short and long run. Commercial bank credit schemes also have a positive and significant impact, although some studies report this effect as positive but not statistically significant. The study highlights the crucial role of financial support in boosting agricultural productivity and offers policy recommendations to improve agricultural financing mechanisms. These include increasing government investment, enhancing credit schemes, and strengthening the ACGS to ensure sustainable agricultural growth and economic development in Nigeria.
| 4 |
Author(s):
Ayoade Olumayowa Vincent, Odufisan Bukunola, Adedire Joshua Oluwasayo.
Page No : 50-61
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Monetary Policy and the Financial Performance of Listed Consumer Goods Firms in Nigeria.
Abstract
This study assesses the impact of monetary policy on the financial performance of the listed consumer goods firms in Nigeria. The study uses purposive sampling technique and elimination method to determine the considered listed consumer goods firms in Nigeria over a period of 2012-2023 and analyzed the impact of monetary policy variables of interest rates and inflation rate on the financial performance of these firms, measured by earnings per share as the indicator. Regression analysis was used to analyze the data. The results specifically show that changes in interest rate has a positive significant influence on the financial performance of listed consumer good firms while changes in inflation rate have no significant influence on the financial performance of listed consumer goods firms. The study recommends implementation of interest rate policies by the monetary authority that will balance stability and economic growth knowing the positive impact on the financial performance of the consumer goods firms.
| 5 |
Author(s):
Awogbemi Clement Adeyeye, Gimba Toro, Ezekiel Dauda Daschen, Osama Caleb Kehinde.
Page No : 62-76
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Effect of Financial Leverage on Financial Performance of Listed Industrial Firms in Nigeria.
Abstract
The research explores how the use of financial leverage impacts the financial performance of listed industrial companies in Nigeria from 2018-2022. To assess financial leverage, it utilized total debt to asset ratio and interest coverage ratio as proxies, while gross profit margin was used as a measure of financial performance. The data was analyzed using panel data, which included information from the individual financial statements of the listed industrial companies. The dataset consisted of thirteen (13) industrial companies listed on the Nigerian Stock Exchange Group (NGX). The research utilized a panel regression model to determine the main relationship between financial leverage and gross profit margin. The result shows that total debt to asset ratio had a positive significant effect on gross profit margin of listed industrial firms in Nigeria, while, interest coverage ratio had negative significant effect on gross profit margin of listed industrial firms in Nigeria. The management of the industrial firms should employ more sustainable debt financing to critical areas of firm’s investment for asset expansion, in order to gross profit and financial performance of the firm. The study also recommends that industrial firms in Nigeria should consider debt with lower percentage of interest coverage. This will minimize its capital cost and reduce the risk of default on loan payments and help financial manager to improve the financial performance of the firm.
| 6 |
Author(s):
Akadi Omolara Victoria, Olaoye Clement Olatunji.
Page No : 77-91
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Taxpayers’ Identification Number and Revenue Generation in the Southwest Region of Nigeria.
Abstract
The introduction of Tax Identification Number (TIN) is to ensure strict compliance of tax laws and stimulate increase in revenue generation. In a bid to assess the effectiveness of TIN in southwest region of Nigeria, this study investigated the effect of taxpayers’ identification number on revenue generation. Secondary data was used and it was captured from the State Board of Internal Revenue and statistical year book of federal bureau of statistics for 20 years, spanning from 2003 to 2022. Purposive sampling technique was used to select all the 6 states in the southwest of Nigeria. Descriptively, mean, standard deviation, minimum value and maximum value were used to describe the variables of the study. This was followed by correlation matrix, paired sampled t-test, panel regression which covers pooled Ordinary Least Square (OLS), fixed effect estimation, random effect estimation. It was discovered that tax identification number and total expenditure have a positive and significant effect on internally generated revenue to the tune of 0.5856(p=0.000<0.05) for tax identification number and 0.4279(p=0.001<0.05) for total expenditure. It was established that the adoption of taxpayer identification number engendered rapid improvement in the capacity of the state to generate revenue internally. Thus, the government, through the tax authorities, should work out modalities such tax education, strict penalties, and simple and transparent tax procedures to ensure that all taxable entity collect identification number which might, in turn, stimulate increase in revenue generation.
| 7 |
Author(s):
Akpan Dorathy Christopher, Akwa Ubong Monday, Ekpo Anietie Sunday, Thompson Kubiat Samuel, Mfondie Moses Umoh.
Page No : 92-108
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Hedge Accounting Disclosures and Sustainable Growth of Listed Deposit Money Banks in Nigeria.
Abstract
The primary problem facing listed deposit money banks in Nigeria is their struggle to achieve sustainable growth in a volatile economic environment. This study investigated the impact of hedge accounting disclosures on the sustainable growth of these banks, focusing on commodity hedge disclosure, interest rate hedge disclosure, and foreign exchange rate disclosure, while controlling for market capitalization. Using an ex post facto research design, the study analyzed secondary data from 11 selected banks over a period of 10 years from 2014 to 2023. The method of data analysis was random effect regression technique. The findings revealed that commodity hedge disclosure (COMD) and interest rate hedge disclosure (INTD) have significant positive effects on the sustainable growth rates of listed deposit money banks in Nigeria. Conversely, foreign exchange rate disclosure (FEXD) has a significant negative effect on sustainable growth, indicating that high levels of foreign exchange risk exposure, when disclosed, may reduce investor confidence and perceived stability. The study concluded that hedge accounting disclosures significantly impact sustainable growth of listed deposit money banks in Nigeria. It recommended the management of listed deposit money banks in Nigeria should enhance commodity and interest rate hedge disclosures to improve the quality of foreign exchange risk communication.
| 8 |
Author(s):
Timinepere Ogele Court, Okubokeme Derek Opudu.
Page No : 109-122
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Multiple Personal Income Taxes and Financial Well-Being of Employees in Tertiary Institutions.
Abstract
This study aimed to interrogate the relationship between multiple personal income taxes and public workers’ financial wellbeing. The paper therefore examined the relationships between pay as you earns, Bayelsa Health Insurance Scheme, Education Trust Funds and worker’s disposable income as proxies for objective financial wellbeing in (the public) tertiary institutions of Bayelsa State. The study adopted a quantitative design, and data were collected through the Salary Structure of teaching and non-teaching staff from Bayelsa State owned University of Africa and Niger Delta University in Nigeria. The data were analyzed by applying simple regression and correlation analysis. The findings revealed that there was a positive significant relationship between multiple personal income taxes and workers’ financial wellbeing in Bayelsa State tertiary institutions. However, at the entity level, the Bayelsa Health Insurance Scheme (BHIS) variable had a positive substantial impact on workers’ financial wellbeing; whilst, Pay as You Earn (PAYE) has a negative significant effect on workers’ financial wellbeing. Whereas Education Trust Funds (EDTF) variable had an inverse non-significant association with workers’ financial wellbeing in Bayelsa State. Therefore, we recommend a fair and equitable tax policy framework to sustain adequate pay for public servants and reduce employees’ turnover in the state.
| 9 |
Author(s):
Quazi Nuruzzaman.
Page No : 123-139
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Factors Influencing Dividend Payout Policy: An Investigation of Food and Allied Companies Listed on the Dhaka Stock Exchange Limited.
Abstract
The main objective of the study is to identify if there is a relationship between a numbers of company selected factors such as Profitability, Liquidity, Size, Growth, Leverage and Taxation of Food and Allied Companies Listed in Dhaka Stock Exchange and the companies’ dividend payout ratio which is used as a proxy of dividend payout policy. A sample of seven companies have been taken from Food and Allied Companies listed in DSE following a purposive sampling technique. To meet the objective of this research, ten year financial data from 2011-2020 of listed food and allied companies is used and examined to determine the impact of selected variables on dividend payout. Random effect regression model was used as suggested by the result of hausman test to test the relationship between dividend determinants and dividend payout. Results indicate that among the independent variables Size and Profitability significantly impact the dividend payout policy but in terms of robustness of the model, Liquidity, Size and profitability significantly impact the dividend payout policy of Food and Allied companies listed in DSE. Taking into consideration these findings, it can be said that firms having higher profitability are most likely to pay more dividends. Firms with higher liquidity, growth, size, leverage and taxation pay fewer dividends and vice versa.
| 10 |
Author(s):
Odogu Terry Keme Zuode (Ph.D.).
Page No : 140-151
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The Emerging Industrial Revolution and the Future of the Accountant in Nigeria.
Abstract
The study was inspired by the concern for the next industrial revolution of artificial general intelligence with respect to the career of the accountant, given the continuous and increasing automation of the accounting process and systems in the current industrial revolution. Consequently, the study adopted an expost facto design to fathom the career fortune of the human accountant in the emerging industrial era of artificial general intelligence, using ten years personnel cost and net assets data, from the annual accounts and reports of the 7 deposits money banks in Nigeria that had international authorization, as at 31st December, 2022. Linear regression analysis result from SPSS 20.0 disclosed that the effect of the deployment of artificial intelligence on the career of the accountant in the current industrial era is statistically low and insignificant. Accordingly, the study predictively concludes that the technological agenda of the emerging industrial revolution will not impair the job fortune of the accountant. However, the study recommends that, accounting practitioners should proactively develop themselves with relevant soft skills, and deep learning, python and big data programmes in readiness for effective machine collaboration and synthesis, in the emerging industrial era..
| 11 |
Author(s):
Odogu Terry Keme Zuode (Ph.D.).
Page No : 152-168
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Artificial Intelligence and Cyber Security: Implications for E-Trans and E-Accounting in Emerging Economies.
Abstract
This study was motivated by the increasing and seemingly unstoppable nature of cybercrimes and the perceived effect on data safety and reliability in accounting practice. Consequently, this study is poised to ascertain the relationship between artificial intelligence driven electronic transactions and data loss, theft and manipulation; as well as to ascertain the effect of artificial intelligence based electronic accounting on data safety and reliability. It adopted survey design to obtain primary data from a sample of 492 professional accountants comprising ACAs, FCAs, CNAs, and FCNAs in the South-south geo-political zone of Nigeria, through questionnaire. Analysis of variance and regression analysis from SPSS test results disclosed a significant nexus between artificial intelligence driven electronic transactions and data loss, theft and manipulation. The test results also revealed that the adoption and recognition of artificial intelligence based electronic accounting significantly affect the safety and reliability of financial data. Accordingly, this study concludes that, financial data from artificial intelligence driven electronic transactions are significantly susceptible to data loss, theft and manipulation, and that the adoption and recognition of artificial intelligence based electronic accounting impairs the security and reliability of financial data. Consequently, this study recommends that, firms should be watchful and employ adequate trust management and web security measures and mechanisms in adopting and recognizing artificial intelligence related electronic transactions and accounting. This study further recommends that, artificial intelligence technology inventors and engineers should shift focus towards a redefinition, re-engineering and reshaping of artificial intelligence technologies and platforms that can be easily governed and safely benefit users.
| 12 |
Author(s):
Temisan Eguando.
Page No : 169-184
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Forensic Investigation Dynamics and Financial Reporting Fraud Beverage Companies in Nigeria.
Abstract
Financial reporting fraud remains a significant challenge in many industries worldwide, including the Beverage sector. This type of fraud involves the intentional misrepresentation of financial information by companies to deceive stakeholders, manipulate financial results, and enhance the perceived financial health of the organization. This study examined forensic investigation dynamics and financial reporting fraud beverage companies in Nigeria. The research design adopted in the study is the survey research design. Data was collected through the distribution of questionnaire. Method of data analysis adopted is the linear regression with the adoption of Ordinary Least Squares (OLS) techniques. The major findings of the study are; benchmarking technique has a significant effect on financial reporting fraud in beverage companies in Nigeria, exception reporting technique has a significant effect on financial reporting fraud in beverage companies in Nigeria and the risk assessment technique has no significant effect on financial reporting fraud in beverage companies in Nigeria. The study concludes that forensic investigations have a profound impact on detecting, addressing, and preventing fraud in financial statements. By uncovering fraudulent activities, enhancing the accuracy of financial reporting, and strengthening internal controls, forensic investigations help organizations maintain the integrity of their financial statements. It is therefore the recommendation of the study beverage companies should focus on training and developing their employees to effectively use benchmarking forensic tools and techniques. Regular training programs and workshops can keep staff updated on the latest developments in forensic accounting and fraud detection.
KEYWORDS: Forensic, benchmarking reporting, exceptional reporting, risk assessment.
| 13 |
Author(s):
Olukole Abidemi Omolayo, Bello Abass Oyeshola, Ishola Joseph Olaniyi.
Page No : 185-202
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Financial Inclusion and Organizational Performance: Evidence from Micro-Finance Banks in Lagos State.
Abstract
Micro-finance banks play sound contribution to economic growth and development as well as enhanced employment creation. The study aimed to determine the effects of financial inclusion measures: savings, affordable credits and financial advice on micro-finance banks performance measures (financial and operational) in Lagos state, Nigeria. Survey research design was adopted and the use of multi-regression method of analysis was employed to analyse the generated data. The sample size was 386 and sampling technique adopted was convenience method. The field data generated were normalized, valid and reliable for this study. Findings revealed that financial inclusion measures like savings, affordable credits and financial advice significantly enhance both financial and operational performances of micro-finance in Lagos state with F-statistics (2, 343) = 120.241, p = 0.001 (p<0.05) and F-statistics (2, 343) = 211.814, p = 0.003 (p<0.05) respectively. The study concluded that financial inclusion measures like savings, affordable credits and financial advice improve micro-finance banks performance via financial and operational in Lagos state, Nigeria. Thus, the study recommended that micro-finance banks policy makers, management should embrace financial inclusion measures such as savings, affordable credits and financial advice in order to enhance financial and operational of micro-finance performance in Lagos state.
| 14 |
Author(s):
Oke Theophilus Adelowo, Solomon Ibrahim Audu.
Page No : 203-217
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Impact of Internal Controls on the Liquidity Performance of Listed Companies in Nigeria.
Abstract
The study sought to determine the impact of internal control systems on liquidity performance of listed companies on the Nigeria Securities Exchange (NSE). To achieve the objective of this study, the research specifically looked at the following objectives, several number of internal controls such as, risk management, Compliance, Internal communication and board independence and on the other hand the selected entities examine on long- and short-term solvency to properly assessed the impact of internal control on liquidity performance of companies listed on NGX. The study adopted the ex-post factor research design. The population chosen for this study was the top 10 listed companies on the NGX based on their capitalization on the exchange floor. The study used a sample of 5 years annual report of each entity as this make the total population to be 19. The sample was drawn using stratified random sampling technique. The study relied on secondary data majorly the annual report of each company alongside their audited financial statements. The Secondary data was extracted from audited annual reports, publications, and document analysis. Data analysis used both descriptive statistics, diagnostic statistics and inferential statistics. Frequency tables were prepared, averages determined and tests of hypothesis like ANOVA, chi-square, correlation and regression analysis were done. The data was analyzed using statistical package for social scientists (SPSS) computer software version 21.0. The results and findings concluded that there was no significant association between internal control and liquidity performance and recommends that internal control should be improved to further enhance the liquidity performance of companies quoted in Nigeria Securities Exchange.
