Responsiveness of Biological Assets to Board size, Firm size, and Firms’ age of Agricultural Firms in Nigeria (Published)
This study examined the responsiveness of biological assets to board size, firm size and firm age of quoted Agricultural firms in Nigeria. The specific objectives were to examine the effect of board size, firm size, and firm age on the biological assets of quoted Agricultural firms in Nigeria. An ex-post facto research design was used which made use of secondary panel data drawn from annual reports and accounts of the sampled firms for a period of ten (10) years, 2011-2020. Panel least squares were applied in the test of hypotheses. The result of the analysis showed that board size, firm size and firm age have an insignificant effect on biological assets. The implication is that none of the three variables can predict the increase or decrease in biological assets of agricultural firms in Nigeria. The study recommends that agricultural firms should maintain a robust board size so that they can continue to reap the benefits of the two good heads theory. Efforts should be made to ensure continuous firm growth because of the positive link it has with biological assets. Firms are encouraged to continuously effect changes in both assets and other activities that may be affected by the age of the firm. Management should maintain current innovations in the industry to attract new investors, boost productivity and enhance shareholders’ funds.
Citation: Nnajieze E.I., Igwe A.O., Nwabuisi A.O. (2022) Responsiveness of Biological Assets to Board size, Firm size, and Firms’ age of Agricultural Firms in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 11, pp.36-51
Keywords: Board size, Leverage, Liquidity, Profitability, biological assets, firm age, firm size, nigeria agricultural sector
Audit Committee Characteristics and Financial Performance: A study of Listed Non-Financial Companies in Nigeria (Published)
This study examines the impact of audit committee characteristics (AC) on financial performance of listed non-financial companies in Nigeria from 2013-2020. A sample of seventy-six (76) companies listed as non-financial was drawn from the population of one hundred and thirteen (113) companies. Audited annual reports and accounts were used for data extraction. The analysis was done using descriptive statistics and multiple regressions. Explanatory research designed was adopted in the study to find out the impact of AC on financial performance. Variables used include AC proxy by ACIND, ACS and ACM as the proxies for independent variable and financial performances’ accounting and market based measures proxy by EPS and Tobin’s Q was used as the dependent variable. Robustness tests such as multicollonearity test, heteroscedasticity test, normality test and hausman specification test were conducted to validate the results. The study revealed that there is negative significant relationship ACIND and EPS, TQ and ACS has a significant relationship with EPS positively while a negative with TQ and lastly, ACM reported a positive significant relationship with EPS and a positive but not significant with TQ of listed Non-financial companies in Nigeria during the study period. Based the on the findings of the study, the study recommends that the management of the listed non-financial companies in Nigeria should ensure that AC should be made more effective by ensuring that members are made up of independent non-executive directors and the size of the AC should be optimal and lastly ensure that AC meetings are to be tailored towards relevant issues that enhance financial performance of the firm.
Keywords: Audit Committee, Board size, EPS, Tobin's Q, firm leverage, firm size
Environmental Disclosure and Financial Performance of Listed Non-Financial Companies in Nigeria (Published)
Citation: Junaidu Muhammad Kurawa and Kabiru Shuaibu (2022)Environmental Disclosure and Financial Performance of Listed Non-Financial Companies in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 2, pp.31-51
This study examines the influence of environmental disclosure (ED) on financial performance of listed non-financial companies in Nigeria from 2013-2020. A sample of seventy-six (76) companies listed as non-financial was drawn from the population of one hundred and thirteen (113) companies. Audited annual reports and accounts were used for data extraction. The analysis was done using descriptive statistics and multiple regressions. Explanatory research designed was adopted in the study to find out the influence of ED on financial performance. Variables used include the ED measured using ordinal coding scheme based on GRI guidelines (G4) focusing on environmental prevention expenditure disclosure(EN40), Waste disposal, emission treatment and remediation cost disclosure (EN41), Prevention and environmental management cost disclosure (EN 41) used as proxies for independent variable and financial performances’ accounting and market based measures proxy by earnings per share and Tobin’s Q was used as the dependent variable. Robustness tests such as multicollonearity test, heteroscedasticity test, normality test and Hausman specification test were conducted to validate the results. The study revealed that there is positive significant relationship between EPED, WDCD, PMCD and EPS while negative with TQ of listed Nigerian non-financial companies. The study therefore, recommends that the management of listed non-financial companies in Nigeria should create awareness on the importance of EPED, WDCD, PMCD and the other benefit that can be derived by a company and investors as a result of engaging in environmental activities as this may create good relationship between the company and the environment and consequently will improve financial performance. And also professional accounting bodies in Nigeria like the ICAN and the ANAN should key into introducing environmental and sustainability reporting into their mandatory professional education programs as this is a contemporary issue in accounting development this will help accountants to be trained on environmental accounting and reporting.
Keywords: Board size, EPS, Environmental Disclosure, Tobin's Q, firm leverage, firm size
Do Drivers of Corporate Governance Influence shareholder Value (Published)
This study examines effect of drivers of corporate governance on shareholder value. Data from annual financial reports of listed manufacturing companies in Nigeria were analysed and tested using panel dynamic ordinary least square model and panel unit root tests. Most variables used as proxies for shareholder value responded positively to variations in audit independence while there is a non-significant effect of audit independence on all variables used as proxies for shareholder value. Board independence has a positive and non-significant effect on shareholder value whereas board size and audit size negatively and non-significantly affect shareholder value. The study further reveals that audit size, board size and board independence have negative and non-significant impact on the economic value added which represents the market value of shareholder assets. Only audit independence has a positive and non-significant impact on economic value added. Corporate governance drivers are efficacious but do not influence shareholder value significantly.
Keywords: Audit Committee, Board size, Corporate Governance, Environment, Independence, Shareholder value
Corporate Governance and Audit Quality in Nigeria: Evidence from the Banking Industry (Published)
This study examined the relationship between corporate governance and the quality of auditor’s report with evidence from the Nigerian Banking Industry. The research design adopted for this study is the ex-post facto as the research relied on historic data. Eleven (11) deposit money banks quoted on the Nigerian Stocks Exchange were sampled. In testing our hypothesis, the correlation analysis was applied to a dataset covering seven (7) years from 2007 to 2014 that is the post-corporate governance period. Analysis suggests that while board composition has a negative and insignificant relationship with audit quality, separation of the roles of the CEO from that of the chairman of the board, board size, and composition of the audit committee has positive and significant relationship with audit quality. Furthermore, findings also show that ownership concentration has a positive but insignificant relationship with audit quality. Findings also show that the strength of the positive linear relationship between the separation of the roles of the CEO from that of the chairman of the board and the audit quality is as high as 0.702377 or 70.23% followed by the relationship between board size and audit quality which stood at 0.452896 or 45.28%. However, the study thus concludes that effective corporate governance arises out of responsible and simultaneous vigilant actions by the managers, the board of Directors, shareholders and auditors. Good financial Reporting from the external auditors is an important building block of corporate governance because the information provided to the shareholders has to be optimal in terms of cost and benefits. The study also recommends that the relationship between management and shareholders have to be characterized by transparency and fairness.
Keywords: Audit Quality, Board Composition, Board size, Corporate Governance, Nigeria
CORPORATE GOVERNANCE AND AUDIT DELAY IN NIGERIAN QUOTED COMPANIES (Published)
The objective of this study is to examine the determinants of audit report timeliness in Nigeria. Specifically, the study examines the effect of company size, profitability, complexity and audit firm type on audit report timeliness. The cross-sectional research design was adopted with an extensive reliance on secondary data. The data was source from annual reports of manufacturing companies quoted on the floor of the Nigerian stock exchange for 2010-2012. The ordinary least squares (OLS) regression technique was utilized as the method of data analysis. The finding of the study shows the following; (i) A significant relationship exist between board size and Audit report lag (ii) A significant relationship exists between board independence and Audit report lag (iii) A non-significant relationship exists between audit firm type and Audit report lag. It was also discovered that the time lag prescribed by the regulatory bodies are usually too much thus encouraging companies to engage in the act of delaying their financial statements. The recommendation is that in achieving the objective of making the financial statements readily available for making timely decisions, the Nigerian stock exchange, securities and exchange commission, the Financial Reporting council, the Central Bank of Nigeria and other regulatory bodies should put in place measures to ensure strict compliance with the laid down rules and regulations.
Keywords: Audit Report lag, Board independence, Board size