| 1 |
Author(s):
Abubakar Sadiq Saleh (PhD), Umar Abbas Ibrahim (Ph.D).
Page No : 1-11
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Effectiveness of Debt Indicators on Performance of Sub-Saharan African Economies: A Selected Review
Abstract
Debt management strategy encompass much more than debts and how they were accumulated. Government debt management is the method of putting in place and effecting a strategy for transparently managing the government’s debt with the main objective of meeting the government’s financing needs; the costs and risks involved and any other debt management goals the government may have set. Such goals include evolving and preserving an efficient market for government securities. Many works thus tend to focus on debt and the crisis that ensued as a result but few or none of these works looked at the aspect of debt management that is required to guide the economic policy and decision makers in articulating far reaching decisions on how government should borrow and to what extent. In addition, questions such as the right source of finance and the maturity and composition of the instruments providing such are equally important in managing debt. These important aspects of debt management are crucial in managing government debts in the sub-Saharan Africa but conspicuously absent in both public and academic discussions in the region for some time. This work examines the relationship between the debt ratio of a country and the maturity of its debt; and between extent of indebtedness and the level of a country’s capital market development. By use of the regression models and analysis this work attempted to determine the stated relationships.
| 2 |
Author(s):
Professor Owolabi Sunday Ajao (Ph.D), Dr. Adegbie Folajimi Festus (Ph.D), Ogan Tamunokonbia Promise.
Page No : 12-24
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Investment in Corporate Social Responsibility and Performance of Quoted Manufacturing Firms in Nigeria
Abstract
As a result of the dynamic and competitive global economy, which has consequence on performance, firms have embraced investment in corporate social responsibility as a corporate governance tool. This study investigated the impact of investment in corporate social responsibility on performance of quoted manufacturing firms in Nigeria. The study adopted the ex-post facto research design. A sample of twenty firms was selected from a population of fifty manufacturing firms quoted in the Nigerian Stock Exchange (NSE) as at 31st December, 2017. The sample was drawn using three sampling techniques – stratified, proportionate and random sampling technique. The data covering a period of ten years from 2008 to 2017 were sourced from published annual financial reports of the firms selected. The validity and reliability of the data was based on the statutory audit of all the financial statement by qualified auditors and approved by the regulatory authorities. The study adopted descriptive and inferential statistics for data analysis. The study revealed that investment in CSR has a positive and significant impact on employee productivity (Adj. R2 = 0.3726; F-value = 6.6414; p-value = 0.0074). It further revealed that investment in CSR has positive but insignificant impact on profitability (Adj. R2= -0.0181; F-value=0.8304; p-value = 0.4528). The study concluded that manufacturing firms in Nigeria do not view investment in CSR as a strategic tool to improve performance but employed to achieve other corporate objective(s). The study recommended that manufacturing firms in Nigeria should not treat investment in CSR as an optional activity rather it should be integrated as a long-term business strategy.
| 3 |
Author(s):
Odewole Olabisi Bolarinwa (Ph.D), Professor Akintoye Rufus Ishola (Ph.D), Professor Salawu Rafiu Oyesola (Ph.D), Dr. Adegbie Folajimi Festus (Ph.D).
Page No : 25-43
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Environmental Sustainability and Stakeholder’s Value of Listed Manufacturing Companies in Nigeria
Abstract
The paper addressed a major gap in the environmental sustainability literature, as pointed out by the dearth of studies examining stakeholders’ interest particularly in the developing countries. Presently, there is a high demand in the environmental accounting literature emphasizing the importance of paying attention to the stakeholder group. This paper investigates the effect of environmental sustainability on stakeholders’ value of listed manufacturing companies in Nigeria. The study employed survey research method. The instrument used in gathering the primary data was the questionnaire, which was designed in a five-point Likert scale format. 40 listed manufacturing companies were selected for this study; Four hundred (400) copies of questionnaires were purposively administered on the respondents, three hundred and twenty-six (326) copies of questionnaires were completed and returned. The theoretical framework was hinged on stakeholder theory and accountability theory which talked about the relationship between stakeholders and organisations and the need to be accountable. Results gotten from the statistical analysis showed that environmental sustainability has negative non-significant effect on management & employees’ value, negative and significant effect on shareholders’ value, community residents’ value and government/ regulatory agencies’ value. The study recommended that organisations should incorporate stakeholders’ interest in their day to day activities. Furthermore, financial statements should go beyond monetary environmental information to include non-monetary environmental information.
| 4 |
Author(s):
Mohammed Ndaliman Abubakar.
Page No : 44-52
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Impact of Financial Literacy on Profitability of Small Scale Enterprises in Nigeria
Abstract
This research work examined the impact of financial literacy on profitability of small-scale enterprises in Karu, Abuja. The study aimed to analyze whether the level of adoption of financial literacy in record keeping of small-scale enterprises (SSEs) has significant impact on financial performance. A review of related literature was carried out to examine the extent of work done in the field. A carefully structured questionnaire was used to collect data on the level of adoption of financial literacy and also a financial literacy test. A sample of one hundred and fourty eight (148) respondents was used to carry out the study, which encompasses the different strata frequency and percentages used to analyzed data while one-way analysis of variance (ANOVA at 5% level of significance was used in the analysis of the research data. The result shows that the level of adoption of financial literacy by small scale enterprises in Karu is low and that utilization of financial records significantly influences their profitability. It however, found that there is statistically significant relationship between financial literacy and profitability of SSEs in Karu due to the relevance of this study to economic and national development. The study recommends that SSEs should adopt financial literacy in order to improve their profits.
| 5 |
Author(s):
Job-Olatunji Kehinde Asamu, Bakare Muyideen Olawale, Ajibare Adedayo Oluyemi.
Page No : 53-67
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Human Resource Accounting and Disclosure: An Evolving Indicator of Performance in Selected Nigerian Stock Exchange Listed Manufacturing Companies
Abstract
This paper aims to study the reporting and disclosure of the human resource asset of manufacturing companies enlisted on the Nigerian Stock Exchange (NSE) and the extent to which such reporting affects the financial and operational performances of the selected manufacturing companies. To achieve this, the discourse attempts to specifically study the application of human resource as a vital asset which requires adequate reporting by listed companies as well as evaluate the positive or negative implications such reporting has on the performances of the companies. The study adopted ex-post-facto research design. Secondary data were collected and analyzed using descriptive and inferential statistics. Data were collected from the financial statements of ten (10) manufacturing companies which participate in stock trading transactions of the NSE regularly. The financial statements data were analysed using profitability for operational performance and leverage for financial performance of the ten (10) listed firms. Findings of the study reveal that the profitability of manufacturing firms have significant influence on operational performance while financial leverage indicates that there was a positive relationship between the variables i.e. an increase or decrease in financial leverage will have great effects on financial performance. The study concludes from its findings that adequate remuneration and incentives have significant relationship with operational and financial performance. The study therefore recommends that manufacturing firms should report all expenditure or investments incurred on human resource ranging from recruitment processes, remuneration, cost of training and development to incentives packages in their annual report. This will increase the value and relevance of the information content of their financial statements and hence improve the firm productivity likewise impact positively on the share price of the firm. It was also recommended that there should be an effective system of communicating employee benefits to the organization staff.
| 6 |
Author(s):
Nyor Agnes Ibenre, Mustapha Lateef Olumide (Ph.D), Nyor Ngutor (Ph.D), Nyor Terzungwe (Ph.D), Tahuid Suleiman (Ph.D).
Page No : 68-76
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Audit Fees and Timeliness of Audit Report of Listed Industrial Firms in Nigeria
Abstract
This study examined effect of audit fees on timeliness of audit report of listed industrial firms in Nigeria. Population of the study comprised of all the 14 listed industrial firms on the floor of the Nigerian Stock Exchange (NSE). A purposive sampling technique was used to arrive at a sample size of thirteen (13) based on the availability of data. The research used secondary sources of data collection covering a period of seven (7) years from 2012 to2018.The dependent variable is timeliness (TML) while the independent variable is Audit fees (AUDFEE). Multiple regression analysis with Random Effects Model was employed to analyze data. The panel data result which was estimated through the use of Ordinary Least Square (OLS) method showed that AUDFEE is statistically significant hence, have significant effect on audit report timeliness. The study concludes among others that companies pay auditors less, they will ensure prompt release of audit report as auditors tend to spend less time for auditing when given lesser fees and in return provide audited annual reports and accounts within a shorter time frame. It is therefore recommended that, to ensure timeliness of audit report in Nigeria, regulatory and enforcement agencies ought to investigate audit delay and articulate policies that would put in force compliance with the timely release of audited annual reports and accounts.
| 7 |
Author(s):
Olowo Samson Oluwole (Ph.D), Anisere-Hammed Raimi Adekunle, Adewole Aliu Olusola.
Page No : 77-84
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Effect of Tax Incentives on the Growth and Development of Manufacturing Firms in Nigeria
Abstract
The study examined the effect of tax incentives on the growth and development of Manufacturing firms in Nigeria. The study employed ex-post facto research design. Data on corporate income tax incentives, capital allowance incentives, custom duty incentives, excise tax incentives and return on asset were secondarily sourced from financial statement of account from 2013 to 2018. The data were analysed using ordinary least square of multiple regression technique through E-view 9.0. Based on the analysis of the study, the results revealed that corporate income tax incentives (P = 0.00 < 0.05) has positive and significant effect on return on asset; capital allowance incentives (P = 0.00 < 0.05) has positive and significant effect on return on asset; custom duty incentives (P =0.00 < 0.05) has positive and significant effect on return on asset, excise tax incentives (P =0.00 < 0.05) has positive and significant effect on return on asset in Nigeria. The study concluded from findings of the study that tax incentives on the growth and development of Manufacturing firms in Nigeria. The study recommended the need for the government to conduct cost benefit analyses in order to ensure that the goals of granting such incentives are achieved.
| 8 |
Author(s):
Eleazer Fianko Ofei, Carl-Reindolph Asante, Mark Andoh – Owusu.
Page No : 85-100
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Assessing the Effects of Internal Control Environment and Control Activities on Financial Performance of Banks in Ghana
Abstract
The purpose of this study was to examine the effects of internal control environment and control activities on bank performance in Ghana. A sample of 154 respondents selected from 5 banks, the study adopted the quantitative research approach, data collected was analyzed using inferential statistical methods such as correlations and regression analysis. The study found that that there was a fairly strong significant correlation between internal control environment and control activities. It was further observed that there was no significant effect of internal control environment and control activities on the financial performance of banks in Ghana. The study recommends that the management of banks should strengthen the control environment and control activities, by reviewing the existing policies and procedures adopted by the banks in safeguarding assets and properties, there is also the need to continuously review the existing control policies, procedures and activities performed to ensure that they have not outlived their usefulness.
| 9 |
Author(s):
Emmanuel Isaac John, Vincent N. Ezeabasili (PhD).
Page No : 101-114
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Money Supply and Stock Market Performance in Nigeria, South Africa and Ghana
Abstract
The study examined the effect of money supply on stock market performance in Nigeria, South Africa and Ghana using data from 1986 to 2018. The data were sourced from World Bank (World Development Indicators 2018), Central Bank of Nigeria Statistical Bulletin 2018, Johannesburg Stock Exchange Market Statistics 2018, and Ghana Stock Exchange Reports (various issues up to 2018). The study employed a simple regression model for each of the studied countries with stock market index as the dependent variable and money supply as the independent variable. Apart from the preliminary tests, Johansen Cointegration Test, Error Correction Model and Granger Causality Test were applied in the study. The results of the analyses revealed the existence of a long-run relationship between money supply and stock market performance in Nigeria, South Africa and Ghana. Also, the results showed a unidirectional causal relationship running from stock market performance to money supply in the three economies studied. As such, the study concluded that it is stock market performance that influences money supply more, rather than money supply affecting stock market performance in Nigeria, South Africa and Ghana. Thus, the study recommended that monetary authorities in Nigeria, South Africa and Ghana should focus their attention more on the effect of stock market performance on money supply in their economy, rather than the effect of money supply on stock market performance.
