| 1 |
Author(s):
Ezuma Smart Chinedu.
Page No : 1-12
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Capital Structure and Financial Performance of Listed Pharmaceutical Companies in Nigeria
Abstract
This study investigated the relationship between capital structure and financial performance of listed pharmaceutical companies in Nigeria from 2013–2017. 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 2013–2017. Multiple regression analysis was used to analyze the data gathered with the aid of Stata12 statistical software. The study revealed a positive and significant relationship between equity capital and profit before tax of listed pharmaceutical companies in Nigeria. It also revealed the existence of a positive and significant relationship between equity capital and return on assets of listed pharmaceutical companies in Nigeria. Therefore, it was recommended that the management of listed pharmaceutical companies in Nigeria should pay more attention to equity capital because it is a major determinant in enhancing profit before tax, and that equity capital should be encouraged so as to boast return of assets of listed pharmaceutical companies in Nigeria.
| 2 |
Author(s):
James Ese Ighoroje, Osevwe-Okoroyibo Elizabeth Eloho.
Page No : 13-31
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Financial Market Operations and Economic Growth of Nigeria: An Empirical Insight
Abstract
This paper investigated the efficacy of financial (money and capital) market operations on economic growth in Nigeria from 2008 to 2020. The study considered the post global financial crises periods. The regressor is financial market operations measured by market capitalization, All-share-index and turnover ratio, and the money market operations (most especially treasury bills, commercial papers, and bankers’ acceptance). Meanwhile, the regressand is economic growth measured by RGDP. Data for the study was sourced from the Central Bank of Nigeria (CBN) statistical bulletin (2020). Meanwhile, the study patterned after the ordinary least square (OLS) methodology using E-Views 9.0. The study reported that both market capitalization (MCA) and treasury bills (TBL) had a positive significant effect on the growth of the Nigerian economy. However, both All-share-index (ASI) and Bankers’ Acceptance (BAA) had adverse significant effects on the growth of the Nigerian economy. Meanwhile, both commercial papers and turnover ratio had a positive insignificant effect on RGDP. Hence, the study concludes that market capitalization (MCA) and treasury bills (TBL) are instrumental to the growth of the Nigerian economy. As such, the capital market regulators should sustain the current market capitalization by encouraging more foreign investors to participate in the market, maintain state-of-the-art technology like electronic fund clearance, automated trading and settlement practices, and eliminate physical transfer of shares. Lastly, the current treasury bill rate should be sustained if the Nigerian economy must experience growth.
| 3 |
Author(s):
Foluso Isaac Ajayi, Adebayo John Oloyede, Taiwo Olarinre Oluwaleye.
Page No : 32-47
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Cryptocurrency Shock and Exchange Rate Behaviour in Nigeria
Abstract
This study examined the relationship between cryptocurrency shocks and exchange rate behaviour in Nigeria. Selected cryptocurrencies for the study are Bitcoin, Ethereum, Litecoin, Ripple and Binance coin which are the most traded cryptocurrencies in Nigeria. Augmented Dickey-Fuller (ADF), Johansen Cointegration and Vector Autoregressive (VAR) tests were used to analyze the monthly data of exchange rate and selected cryptocurrencies for four years (45 months). The result of the cointegration test revealed the existence of a long-run relationship among the variables. ECM result showed that about 6% of the short-run disequilibrium are being corrected and integrated into the long-run equilibrium relationship. In addition, the Variance Decomposition result showed that Ripple has the highest variations to exchange rate in the short and long runs. The present value of exchange rate adjusts slightly to changes in cryptocurrency. Ripple and Bitcoin have the highest shocks on the exchange rate. Therefore, monetary authorities should give adequate attention to cryptocurrency transactions and make policy decisions on how to reduce the prevailing high exchange rate in Nigeria by integrating crypto transactions in their systems. Transaction in cryptocurrency is still at the early stage, especially in Nigeria; only five years data can be gotten on commonly traded cryptocurrencies in Nigeria. This is a limitation to the study in terms of the number of cryptocurrencies used in the study. More cryptocurrencies can be included in future studies.
| 4 |
Author(s):
Adebola Abass Jabar, Adebowale Ogunsola.
Page No : 48-60
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Analytical Review of E-Commerce Business Models
Abstract
E-commerce has continued to evolve since its introduction. E-commerce operates through various platforms and its impact cuts across every aspect of business operations. Business owners/managers seeking to adopt e-commerce platforms for their business transactions need to be abreast of appropriate e-commerce business models that fit into their business operations. The applicability of e-commerce business models was reviewed. The study highlighted the e-commerce business models that exist and the transaction flow within each business model. E-commerce transactions and their applicability to business, customers and society were reviewed. The review revealed that e-commerce has changed the way of delivering products as consumers can transact 24 hours a day, from almost any location. It was concluded that the prospect of e-commerce is very high in emerging economies like Nigeria although its adoption is still at the basic stage. It is recommended that business owners/managers should procure quality devices and gadgets that will enhance efficiency in e-commerce transactions while users of e-commerce platforms are to take necessary precautions when using the platforms.
| 5 |
Author(s):
Chibuike Camillus Ugo.
Page No : 61-72
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Corporate Governance and Earnings Quality of Selected Manufacturing Companies in Nigeria
Abstract
The need to improve on earnings quality is a problem that corporate regulators strive to resolve through the establishment of various mechanisms. This study investigated the relationship between corporate governance and earnings quality of selected manufacturing companies in Nigeria. Specifically, the study examined the relationship between board of directors’ independence, internal audit quality, auditor independence and accrual quality value relevance of selected manufacturing companies in Nigeria. The ex-post facto research design was utilized while 65 selected manufacturing firms between 2008 to 2017 were used as the population. The published fact-books of companies were obtained from the Nigeria Stock Exchange. The entire 65 companies were used as the sample size for the study. The Ordinary Least Square method of regression analysis was employed to test the hypotheses through E-view 10 version software. The results revealed a positive and insignificant relationship between board of directors’ independence and accrual quality of selected manufacturing companies in Nigeria, and a positive and significant relationship between internal audit quality and accrual quality of selected manufacturing companies in Nigeria. Finally, the study revealed a positive and insignificant relationship between auditor independence and accrual quality of selected manufacturing companies in Nigeria. The study recommended that investors and managers of selected manufacturing companies that are viewed to be founded on company statute should never rely solely on the existence of non-executive board of directors to monitor and improve the quality of accruals, since in real life it may be near impossible to find board of directors that are truly “independent”. Also, company auditors saddled with the responsibility of the “policeman” and reviewing corporate financial records should collaborate with other corporate regulatory bodies, such as Financial Reporting Council of Nigeria and Security and Exchange Commission, to ensure that internal audit functions become legally independent and driven for improvement in accrual quality. Finally, professional accounting bodies in Nigeria such as Institute of Chartered Accountants of Nigeria (ICAN) and Association of National Accountants of Nigeria (ANAN), whose members belong to the big 4 audit firms in Nigeria, should advice corporate bodies in Nigeria to train and retrain their accounting staff, so as to place more reliance on them rather than on the external accounting firms. This is because the auditor independence which is related to the external environment cannot alone guarantee quality in reported accruals.
| 6 |
Author(s):
Appah Ebimobowei (Ph.D, FCA), Onowu Joseph Uche, Audu Adamu Jibrin, Tonye Young Arney.
Page No : 73-92
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Audit Firm Attributes and External Auditors’ Switching Behaviour of Insurance Companies in Nigeria
Abstract
Auditor replacement has been a critical issue in research to be solved in order to enhance the quality of audit reports. This study investigated the nexus between audit firm characteristics and external auditors’ switching behaviour of insurance companies in Nigeria. The specific objectives include the relationship between audit delay, audit tenure, audit fees, audit client size and audit firm size on audit switching. The study employed ex post facto and correlational research designs with a population of forty-seven (47) insurance companies. The study used the Taro Yamene formula to determine the sample size of forty-two (42) insurance companies and data was collected from the financial reports of sampled companies. The secondary data obtained from the annual reports were analysed using univariate, bivariate and multivariate analysis. The multiple regression analysis revealed that audit delay negatively and significantly impacts on audit switching of listed insurance companies in Nigeria; audit tenure negatively and significantly impacts on audit switching of listed insurance companies in Nigeria; audit fees positively and significantly impact on audit switching of listed insurance companies in Nigeria; audit client size negatively and insignificantly impact on audit switching of listed insurance companies in Nigeria; audit firm size positively and significantly influence external auditor switching of listed in insurance firms in Nigeria. On the basis of the findings, the study concluded that audit firm characteristics influence the level of external auditor switching of listed insurance companies in Nigeria. Hence, the study recommended amongst others, that companies should conduct proper short and long term effects of audit delay, audit tenure, audit fees, audit client size and audit firm size on external auditors replacement before selection and engagement of new auditor because each wrong decision might affect audit quality. The implication of this study was to improve the research on the relevance of external auditors’ switching because of the decision of the firms in defining audit firm services and audit quality.
| 7 |
Author(s):
Okwor Emmanuel Ejimkonye, Nkama Nkama Orji, Agbachi Vincent Onyeneke, Aduba Paul Nnamdi, Ezeoha Patrick Ogbu.
Page No : 93-107
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The Impact of Selected Monetary Policy Instruments on Nigerian Banking Industry Credit to the Private Sector, 1981-2021
Abstract
This study examined the impact of selected monetary policy instruments on credit to the private sector in Nigeria. The study applied an auto-regressive distributed lag model (ARDL) for analysis of the data covering the period of 1981 to 2021. Data for the study were collected from the Central Bank of Nigeria (CBN) statistical bulletin. The objectives of the study were to: analyze the impact of monetary policy rate on credit to the private sector in Nigeria, examine the impact of liquidity ratio on the private sector credit in Nigeria. Liquidity ratio (LIQ) had a positive but statistically non-significant impact on credit to the private sector. Monetary policy rate (MPR) had a negative but statistically non-significant impact on credit to the private sector. The study recommends that the government needs to benchmark best practices in monetary policy development from those economies that are more advanced in order to develop better monetary control policies that can improve the performance of the banking industry for rapid economic growth and development.
