Waste Accounting and Market Value of Listed Manufacturing Companies in Nigeria: The Moderating Effect of CEO Academic Qualification (Published)
Unsustainable business practices and inefficient waste management and disclosure practices have made investors to lose confidence which leads to dwindling market prices of these companies. The main objective of this study was to examine the moderating role of CEO academic qualification on the effect of waste accounting on market value of listed manufacturing companies in Nigeria. The research design adopted for the study was ex post facto, secondary data were employed and purposive sampling technique was adopted to select 29 out of 62 listed manufacturing companies. The panel least square regression analysis was used to analyse the data and the statistical package employed was STATA version 17. The results from the analysis revealed that carbon disclosures (coeff. = 10.544[0.042]) have significant positive effect on earnings multiple; effluent and water disclosures (coeff. = -2.488[0.621]) have no significant effect on earnings multiple; waste recycling disclosures (coeff. = 7.730[0.129]) have no significant effect on earnings multiple; CEO academic qualification strengthens the relationship between waste accounting disclosures and market value of listed manufacturing companies in Nigeria. It was thus concluded that investors value firms that are environmentally responsible in terms of their waste management and disclosure practices with CEO academic qualification significantly strengthening this effect. Based on these findings it was recommended among others that manufacturing companies should integrate waste recycling disclosures into annual reports or sustainability reports with verifiable metrics as this may help attract environmentally conscious investors and further boost their market values.
Keywords: CEO qualification, Earnings yield, Market Value, acrbon emission disclosure, waste accounting, waste recycling disclosure
Faithful Representation of Accounting Information and Financial Performance of Quoted Banks in Nigeria (Published)
The study examined faithful representation of accounting information and financial performance of quoted banks in Nigeria using secondary data obtained from Nigeria stock exchange spanning from 2007 to 2016. Price to earnings ratio- PER and Earnings yield-ENY were selected as financial performance proxies while absolute discretionary accruals (ABSDA) was used as a measure of faithful representation of accounting information. ABSDA was subjected to Hausman test and also regressed against performance variable. Findings indicate that ABSDA is negatively correlated with PER but positively correlated with ENY. The study also confirmed a significant negative effect of ABSDA on PER and ENY implying that the more intense the practice of accounting information manipulation through the use of absolute discretionary accruals is, the greater the adverse effects on price earnings ratio and earnings yield. This is because it introduces bias which hurts the neutrality of accounting information (SFAC 8, 2010). We recommend that regulators should increase scrutiny or constraints over accounting discretion and flexibilities allowed by accounting standard to curtail distortions by financial statement preparers in order to eliminate earnings manipulation and achieve high level of faithful representation.
Keywords: Accounting Information Quality, Earnings yield, Faithful representation, Financial Performance, Nigerian Banks, Price/ earnings ratio