Accounting Information Disclosure and Dividend Payout of Listed Pharmaceutical Firm in Nigeria (Published)
This study analyzed the accounting information disclosure and dividend payout of listed pharmaceutical firm in Nigeria from 2016 to 2021. The specific objectives were to: Examine the effect of earnings per share on dividend payout of listed pharmaceutical firm in Nigeria; Assess the effect of Net Profit Margin on dividend payout of listed pharmaceutical firm in Nigeria; Evaluate the effect of stock price on dividend payout of listed pharmaceutical firm in Nigeria The following independent variables were used: earning per share, net profit margin and stock price while dividend payout policy was used as the dependent variables. Secondary sources of data were employed; the relevant data were obtained from the financial report of the selected firms. Panel Least Square (OLS) method was used in analyzing the data. The result revealed that Earnings per share have significant effect on dividend payout of listed pharmaceutical firm in Nigeria. It was found that Net Profit Margin has no significant effect on dividend payout of listed pharmaceutical firm in Nigeria It was found that Stock price has significant effect on dividend payout of listed pharmaceutical firm in Nigeria. The researcher recommends that Shareholders always consider the dividends as a source of income as the board should ensure a stable price ratio. The accounting information generated should be readily available for potential investors’ decision making. The qualities of financial information which include timeliness, clarity, relevance and accessibility of the information should be a guide in providing financial information.
Citation: Odoemelam, E.P.,and Obiora, F. (2023) Accounting Information Disclosure and Dividend Payout of Listed Pharmaceutical Firm in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.11, No. 2, pp.62-83
Keywords: Dividend payout, Earnings per share, Net Profit Margin, Stock Price
Effect of Environmental Cost on Performances of Quoted Firms in Sub-Saharan Africa, 2007-2016 (Published)
The study examined the effect of environmental costs on performances of quoted firms in Sub Saharan Africa. The study adopted longitudinal/panel ex-post facto research design and random sampling technique while quantitative secondary data covering 2007 to 2016 were obtained for sixty-four extractive and industrial firms quoted in the Stock Exchanges of four Sub-Sahara African countries namely South Africa, Nigeria, Ghana and Tanzania. The models for the study were estimated using Ordinary least square regression (OLS) built on panel data analysis. In the regional level analysis as well as in South Africa and Nigeria specific country analyses, the study revealed that environmental costs represented by employee health and safety, waste management and community development costs have no significant effect on return on capital employed, earnings per share and return on equity. The study showed that in Ghana, the predictor variables demonstrated significant effect on return on capital employed and return on equity while only waste management cost has significant effect on return on capital employed and return on equity in Tanzania. The implication of the preponderance of the findings, save for the aforementioned exceptions in Ghana and Tanzania, is that quoted firms in the region are yet to adequately indulge in environmental responsibility or their environmental engagements are not adequately captured and disclosed to the extent that can cause significant swings in the measures of firm performance. The implication of the exceptions found in Ghana and Tanzania is that of comparative improvement in environmental responsibilities, compliances and disclosures by quoted firms in the two countries. The study recommended among other things that firms in Sub Saharan Africa should give greater attention to environmental responsibility, cost recognition, classification and disclosures in the annual, integrated and sustainability reports.
Keywords: Earnings per share, Performance, Return on Equity, Waste Management, capital employed, community development costs, employee health and safety, environmental costs
Capital Structure and Earnings per Shares in Listed Conglomerates in Nigeria (Published)
This research work studied the effect of capital structure on earnings per shares of listed conglomerate firms in Nigeria. The objective of the study was to examine the effect of between Capital Structure and Earnings per Share of Conglomerate Firms in Nigeria. The secondary data are obtained from annual reports of companies, relevant literatures and Nigerian Stock Exchange Fact Books. The multiple regression analysis i.e Ordinary least square (OLS) was used to test the relationship between Capital Structure Indicators; Ratio of Total Debt to Equity (TDE), Ratio of Short Term Debt to Total Assets (STDTA) and Ratio of Long term Debt to Total Assets (LTDTA) and Firms’ financial performance indicator; Earnings per Shares (EPS). The result shows that all Capital Structure indicators have significant impact on the performance of firms. The study concluded that a well configured capital structure management function plays a vital role on the level of profitability of the conglomerate firms. The study then recommends that Nigerian firms should try to match their high market performance with real activities that can help make the market performance reflect on their internal growth and accounting performance.
Keywords: Capital Structure, Earnings per share, Total Assets, conglomerates, total debt.
Accounting Manipulations and Firms Financial Performance: Evidence from Nigeria (Published)
The study examined accounting manipulations using timing of assets (independent variable) and firm’s financial performance (dependent variable) using Return on assets, Return on Equity and Earnings per share based on Secondary data obtained from Nigeria stock exchange and tries to ascertain whether firms use TAT to manipulate financial results .TATs were subjected to Hausmann test and also regressed against performance variable.. Findings indicate that TAT have significant relationships with ROA, ROE and EPS implying it could be used for accounting manipulations. The Study confirmed a positive relationship of TAT with ROA and EPS and we conclude that an increase in TAT increases ROA and EPS. Conversely, TAT also has a negative relationship with ROE confirming that a decrease in TAT increases ROE and vice versa. Managers can deploy TAT for economic or accounting manipulation incentives. Study confirm Managers can use TAT to smooth earnings, for bonus compensation, for debt covenants and for political costs reasons in line with the various hypothesis stated in the theoretical framework. However, this finding draws out the inherent disadvantage of the historical cost convention and supports market value as a basis for valuation of assets. We recommend regulators overhaul of corporate governance mechanisms, amendment of CAMA 2004 Act, internal audit empowerment and audit committees extensive attention to Timing of assets sales to prevent usage for manipulative activities
Keywords: Earnings per share, Returns On Asset, Returns on Equity, Timing of Asset Sales
Working Capital Management and Financial Performance: Evidence from Manufacturing Companies in Nigeria (Published)
The study examines the impact of working capital management on financial performance of manufacturing companies in Nigeria. The study employed multiple regressions in analyzing the data sourced from the published financial statement of the firms under the study. A significant outcome of the study is that Average Payment Period and Average Collection Period impacts on both Earnings per share and Return on capital employed. The implication is that efficient management of working capital will improve the financial performance of the manufacturing firms, hence the study recommends that professionals should be hired by these firm to ensure proper management of stock to avoid stock out. Conclusively, the study has shown that good management of working capital will keep manufacturing firms a float.
Keywords: Average Collection Period, Average Payment Period, Earnings per share, Return on Capital Employed