Credit Risk and Financial Performance of Deposit Money Banks in Nigeria: Moderating Role of Risk Management Committee (Published)

The global financial crisis of 2008 and the economic dislocation that followed the emergence of COVID 19 adversely affected financial institutions leading to debt crisis in the Nigerian banking sector. Despite the risk management framework within the banking sector, credit still remains a crucial factor in comparison to other driving factors in the bank, due to its attendant risk and the effect on the economy. This study examined the risk management committee’s role on the effect of credit risk on financial performance of 13 deposit money banks in Nigeria from 2012 to 2021. Finance distress theory was adopted for the study. The study adopted census sampling technique. Regression model used to analyze the panel data. The multiple regression result revealed that credit risk has a negative and significant effect on financial performance. The moderating role of risk management committee revealed that credit risk has a positive and significant impact on financial performance of deposit money banks in Nigeria. The study recommends that DMBs in Nigeria should continue improving on their risk management policies to enable good credit facility procedures to borrowers, also the board of directors should actively participate in managing the credit facilities to customers.

 

Keywords: Credit risk, Deposit Money Banks, Financial Performance, Nigeria, Risk Management

Credit Risk Management and Financial Performance of Commercial in DRC (Published)

This study had two specific objectives which are:  Establish the effect of credit risk management on performance of commercial banks in DRC. And to identify the most healthiness Commercial banks in DRC. In this study we have responded to two questions:  Is there a relationship between the credit risk management and the performance of Commercial banks in DRC? What’s the healthiness commercial bank in DRC? After analysis we concluded that the credit risk management has not any impact with the financial performance of commercial banks in DRC and the best commercial bank in DRC was BCDC during the time covered by this study

Citation : Duniamastaki Jean (2022) Credit Risk Management and Financial Performance of Commercial in DRC, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 10, pp.34-54

Keywords: Commercial Banks, Credit, DRC, Financial Performance, Risk

Corporate Social Responsibility Accounting and Financial Performance of Breweries in Nigeria (Published)

The study aimed to investigate corporate social responsibility accounting and performance of breweries in Nigeria. The study adopted a library research which entails a review of both conceptual and empirical literatures which formed the basis for drawing up conclusion by the researcher, after a careful review of the literatures. Surveys of empirical studies revealed that consensus have not been reached on the relationship between corporate social responsibility accounting and the performance of breweries companies in Nigeria. While many researchers found a significant relationship between corporate social responsibility accounting and the performance of breweries companies in Nigeria, other found an insignificant relationship between corporate social responsibility accounting and financial performance, hence it can be concluded that investigations into the relationship between corporate social responsibility accounting and financial performance are inconclusive and requires more empirical studies. In line with the findings, the study recommended that government as well as regulatory authorities of corporate organizations should make the issue of corporate social responsibility accounting mandatory/compulsory for the entire listed companies in Nigeria in general and the brewery companies in particular. This will compel the brewery companies to give back to the society in which they operate and polluted by the activities of their operations.

 Citation: Obembe, Olalekan J.; Jacob Martins Siga; Edheku, Ochuko Joy (2022) Corporate Social Responsibility Accounting and Financial Performance of Breweries in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 9, pp.58-70

Keywords: Corporate Social Responsibility, Financial Performance, Operations, brewery companies, corporate organizations

Lease Financing and Financial Performance of Listed Manufacturing Companies in Nigeria (Published)

This study examined the effect of lease financing on the financial performance of listed manufacturing companies. The study relied on secondary data which covered the period of 2011 to 2021. It was established from findings that financial lease create positive effect on financial performance of companies through the creation of opportunities to use capital intensive assets in production activities. However, the insignificant effect of lease financing in the study suggests the underutilisation of leasing financing options by manufacturing companies. It was recommended that lease financial should be extensively explore by manufacturing companies. In addition, companies should endeavor to maintain appropriate balance between different source of financing, investment opportunities and performance.

Citation:  Ayobami  Ayoola Aremo and Yemisi Oluwafunmilayo Ayorinde (2022) Lease Financing and Financial Performance of Listed Manufacturing Companies in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 6, pp.1-8

Keywords: Financial Performance, Nigeria, lease financing, listed manufacturing companies

Sustainability Reporting Compliance and Financial Performance of Companies Listed On the Nigeria Stock Exchange (Published)

Citation: Lawrence, M. (2022) ‘sustainability reporting and financial performance of companies listed in the Nigeria Stock Exchange’, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 5, pp.25-73

Sustainability reporting is currently a contemporary issue in accounting studies. This study examines the impact of sustainability reporting compliance on the financial performance of listed firms in Nigeria. Secondary data was collected from annual reports of a sample of fifty seven companies listed on the Nigerian Stock Exchange. Simple disclosure index was used to score sustainability reporting Compliance using Economic (ECM), Environmental (EVM) Social (SOC) and Governance (GOV) disclosures in the annual reports of the sampled firms based on Nigeria Stock Exchange (NSE) Sustainability Reporting Guideline. The firms’ financial performance was evaluated based on Net Profit Margin (NPM) and Return on Capital Employed (ROCE). Using least square panel data analysis, the results show that listed companies in Nigeria have significantly complied with the sustainability disclosure guideline. The aggregate average sustainability Reporting Compliance (SRC) by all the firms examined was 75%. It was also found that there is a significant association between sustainability Reporting Compliance and Net Profit Margin (NPM) as well as Return on Capital Employed (ROCE). It is recommended that companies, both local and international should adopt sustainability in their day-to-day policies to be legitimate in their daily activities on the planet and also enjoy better financial performance. There should also be legislative backing for sustainability reporting compliance to enable companies comply and there is need for uniformity in sustainability framework since the subject is an evolving one.

Keywords: Financial Performance, sustainability guidelines, sustainability reporting

Long Term Debt Financing and Firm Financial Performance in Nigerian Listed Firms (Published)

Citation: Meshack,  I., Owa F., Nwadialor, E., Chiedu C. O. (2022)  Long Term Debt Financing and Firm Financial Performance in Nigerian Listed Firms, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 4, pp.52-62

The study examines long term debt financing and financial performance of listed manufacturing firms in Nigeria. This study employed an ex-post facto research design. The sample used for the research consists of 75 non-financial firms listed on the Nigerian Exchange Group. The time period covering is from 2010-2019. The panel regression is employed for the inferential analysis. On the overall, the study finding reveals that LTDE has significant positive impact on ROE but insignificant in relation to TOBINQ while LTDA has a significant negative impact on ROE as well as with Tobin q. The study recommends the need for firms to engaged long term debt productively and reduce the agency cost that accompanies debt financing such as the opportunity for managerial opportunism and inefficient use of debts due to their long maturity characteristic.

 

Keywords: Financial Performance, Long Term debt, Panel regression

Transparency Index as a Preface to Support Financial Reports Transparency and to Increase Shareholder Protection Level (Published)

Purpose: The study aims to display negative effects on users of financial reports because of the lack of level of financial reports transparency, which makes it imperative to support the level of transparency of financial reports through organizing Voluntary disclosure using a proposed Transparency Index in order to meet the needs of financial reports users from information. The study also deals with trying to determine the nature of relationship between the level of transparency of the financial report and the financial performance and the level of shareholder protection in the Egyptian Exchange.Methodology: To verify the validity of the study hypotheses, the we conducted the Experimental Study through applying it to the Egyptian Exchange Index companies EGX50 after excluding the Financial Institutions through examining the financial statements, the attached Notes, the Board of Directors report, the governance report and the sustainability report for the EGX50 index companies for a period of three years 2016, 2017, 2018.Practical Results: The study sample presented in the forty-one companies listed in the Egyptian Exchange EGX50 index after excluding financial institutions from the index’s companies. The Experimental Study examined the financial statements, the attached Notes, the Board of Directors report, the governance report and the sustainability report for a period of three years 2016, 2017, 2018. After examination it was found that the average level of the Transparency Index in the financial reports for the whole years of study reaches 62.2%, which is a low rate indicating that the EGX50 index’s companies represent low transparency companies. In addition, it was found that the average level of the shareholder protection index in the EGX50 index companies reaches 58%. The foregoing confirms the need to support both the level of transparency and the level of shareholder protection through the application of the proposed Transparency Index. it has been concluded that the Transparency Index has a meaningful impact on both Tobin’s Q (financial performance) (the relationship between them is positive) and also on the stockholders’ protection Index (SPI) (the relationship between them is positive). Authenticity/ Value: The study deals with one of the most important study issues related to measure transparency level of financial reports in the Egyptian Exchange and determines the impact of supporting transparency level on financial performance as well as on supporting protection level of shareholders, The research also extends to suggest transparency index that allows providing most of information needs of users of financial reports according to the aforementioned. In many studies, the importance of research becomes evident In the context of the limited accounting research related to assessing the level of transparency of financial reports at Egyptian Exchange and indicating the positive effects on both the financial performance and the levels of shareholder protection resulting from supporting the level of transparency of financial reports, this is what the authors believe can represent a contribution to the debate about levels of transparency and shareholder protection in the Egyptian Exchange.

Keywords: Financial Performance, Transparency, Voluntary Disclosure, stockholders’ protection., transparency index

Income Smoothing and Financial Performance of Tier 11 Commercial Banks in Kenya (Published)

The most commonly used Income smoothing practices are attributed to bad corporate governance. Bank managers and bank accountants use strategies that seek to erode profit mechanisms that amount to severe consequences for the entire banking and finance industry. Therefore the purpose of this study was to determine the effect of income smoothing practices on financial performance of Tier II commercial banks in Kenya. The study was based on information theory, agency theory and positive accounting theory. This study adopted an exploratory research design in explaining the relationship between the independent and dependent variables. The target population for the study included10 CBK licensed tier II commercial banks in Kenya where 40 respondents were included:  purposive sampling technique was used to select Finance managers, internal auditors and accountants. The researcher obtained sample from all the 10 tier II commercial banks in their head offices in Nairobi, Kenya. Primary data was collected using a structured Questionnaire while complimentary data was collected from published financial statements from CBK Supervisory reports. The data was analyzed using the Statistical Package for Social Sciences (SPSS) version 20, by use of both descriptive and inferential statistics. The study results revealed that Income Smoothing had an insignificant coefficient of 0.296 with the Financial Performance of tier II commercial banks in Kenya.. According to the findings, exclusion of liabilities activities are the source of funds for the banks. Based on these findings, the study recommended that watchdogs of the accounting practices need to exercise strict oversight on the extent to which Commercial bank adopt income smoothing issues. The study findings would form a timely and solid foundation that the banking industry pundits and policy makers would base most of their policy priorities in responding to the volatile accounting situation in Kenya today. 

Keywords: Financial Performance, Income Smoothing, Kenya, tier ii commercial banks

Effect of Inventory Management on Financial Performance: Evidence From the Saudi Manufacturing Company: Case Study (Published)

During this recent period of time, the world has witnessed a severe financial crisis that has affected many international companies and economies that had planned their production rates on the basis of marketing forecasts that were prepared just before the global crisis. This study explores the relationship between inventory control and the financial performance of a particular company through the use of a case study approach. It also examines factors that draw back the process of inventory control. The results showed that the profitability of a company has a significant relationship with inventory management, and this suggests that if the management of inventory is done effectively, it ensures more profitability, while poor management translates to a poor financial performance.

Keywords: Financial Performance, Inventory Management, manufacturing company

Board Diversity as Moderator on Firm Characteristics and Financial Performance of Listed Conglomerate Companies in Nigeria (Published)

Financial performance of companies has attracted a lot of attention globally from financial experts and management of firms as a result of 2008 global financial crisis and the failure of major companies.  Prior studies on the effect of firm characteristics on financial performance have reported mixed and contradictory results suggesting the existence of certain factors that have not been factored in modeling the relationship. It is against this backdrop that this study examined the effects of firm characteristics on financial performance of listed conglomerate firms in Nigeria in the presence of board diversity. The population of the study consists of six (6) listed conglomerate firms in Nigeria as at 31st December 2017. The six (6) firms were selected to form the sample of the study for the period of eleven years (2007-2017). The census sampling technique was adopted for the study. Secondary data was extracted from the annual report and accounts of the sampled companies A multiple regression analysis was used to test the null hypotheses of the study. The Hausman test indicated random effect model as the appropriate model for the study. The results of study show that leverage has negative and significant effect on return on asset, while firm size and operating expense revealed an insignificant positive effect on return on asset. The sales growth shows a negative and insignificant effect on the return on asset. For model two, it also documented that foreign director positively and significantly moderates the relationship between leverage and sales growth to financial performance of the listed conglomerate firms in Nigeria. It is recommended among others that the management of conglomerate firms in Nigeria should make it mandatory to have an average of 32% of their board members as foreign directors. Also reduce their debt structure to avoid high cost of operation

Keywords: Financial Performance, Nigeria, board diversity, conglomerate companies, firm characteristics