Impact of Philanthropic Corporate Social Responsibility on Firm Value of Deposit Money Banks in Nigeria (Published)
This study examines the impact of Philanthropic Social Responsibility on firm value of listed Deposit Money Banks (DMBs) in Nigeria. The study was motivated by conflicting findings by researchers on the relationship between Philanthropic Social Responsibility and firm value. The study used the correlational and ex-post facto research designs. The secondary data were extracted from the annual report and accounts of the 11 listed Deposit Money Banks by the Security and Exchange Commission of Nigeria as at 31st December 2021. Data collected was analysed using Regression analysis statistical tool with the aid of STATA analytical package. Findings from the analysis revealed that philanthropic Social Responsibility has significant positive relationship with the firm value of deposit money banks (DMB’s) in Nigeria. In view of the finding the study recommended that Management of deposit money banks (DMBs) listed in Nigeria should give more emphasis on philanthropic Responsibility. The is because of the positive role it’s play in improving the value of the firm.
Keywords: Corporate Social Responsibility, Deposit Money Banks, Firm Value, philanthropic social responsibility
Corporate Governance Characteristics and Firm Value of Deposit Money Banks in Nigeria (Published)
The degree of corporate and market procedures, lack transparency, distortions and poor corporate practices which results in corporate failures and abysmal corporate financial performance negatively influence corporate objectives. Hence, this study investigated the effects of corporate governance mechanism on the value of deposit money banks in Nigeria. The study population consisted of all deposit money banks and Taro Yamene method of sample size determination was applied. The secondary data for the study was from the published financial statements of sampled banks for the period after validity and reliability test of data. The data obtained was tested using univariate, bivariate and multivariate analysis. The result from the multiple regression result disclosed that board independence, board size, ownership structure, gender diversity and board meeting positively and significantly influences the value of deposit money banks in Nigeria. The study concluded that corporate governance attributes positively and significantly affects the value of deposit money banks in Nigeria. The study made several recommendations amongst others that board sizes should be enhanced as this allows for the appropriate combination of directors. A large board increases the chance of directors having appropriate knowledge, skill and networks. The knowledge, skill and networks of directors may increase the financial performance of an organization. Also deposit money banks in Nigeria should have non-executive directors who act as professional advisers to ensure that competition among insiders encourages measures consistent with maximization of shareholder value.
Keywords: Board independence, Board size, Firm Value, Gender diversity
Effect of Integrated Reporting on Firm Value of Listed Companies in Kenya (Published)
The aim of this paper was to evaluate potential benefits of the Integrated Reporting <IR> on listed firms at NSE. The study draws on stakeholders, legitimacy and agency theories to analyze the effects of <IR> on firm value. The study hypothesizes that there are positive associations between firm value and integrated reporting. The study used content analysis procedures to examine the extent of <IR> in annual reports (2015-2019) of 56 listed firms on NSE. The study developed proxies for Integrated Reporting index based on IIRC framework. The study used panel data regression to establish the association between the <IR> and firm value. The study found that <IR> affect firm value (using TQ measure) and had no significant effect on firm value (using ROA). It also showed that <IR> is positively related to ROA and negatively related to TQ among listed companies in Kenya. The findings also shows that firms that implement <IR> Framework have higher values with respect to ROA. This finding indicate that high value firms tend to embrace <IR> framework that is consistent with the prior studies unlike low value firms. However, the result shows that the most forthcoming companies in terms of <IR> have inferior firm value with respect to TQ compared to firms that had not embraced <IR>. Integrated reporting rate of adoption was low, but grew steadily from 9% (5 out of 56) in 2015 to 41% (23 out of 56) in 2019. This indicates that <IR> is gaining prominent and is the future of corporate disclosure. The study is limited to emerging countries like Kenya on the effect of <IR> on firm value. The finding is helpful to policy maker and prepares of corporate reports to establish the benefits of <IR> and embrace the integrated thinking of all aspect of business.
Citation: Robert O. Opanyi and Dominic A. Omare (2022) Effect of Integrated Reporting on Firm Value of Listed Companies in Kenya, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 7, pp.31-54
Keywords: Firm Value, integrated reporting, listed firms on NSE
Corporate Sustainability Efficiency and Firm Value. A Study of Nigeria’s Deposit Money Banks (Published)
Concerns about climate change, and environmental sustainability have brought to the public fore the need for corporate organizations to incorporate sustainability information in their reports. This study was carried out to examine the relationship between corporate sustainability efficiency and market value of listed Deposit Money Banks in Nigeria. The population of the study consist of all listed DMBs in Nigeria. Data for the study were obtained from published financial reports for the period 2017 to 2020. Findings of the study showed that social, economic and environmental efficiency practices have a significant positive effect on market values of listed DMBs in Nigeria. The study also finds a positive but not significant relationship of bank complexity with market value of DMBs and recommends amongst others that DMBs should intensify efforts to ensure adequate attention is given to sustainability efficiency practices to attract higher stock market values.
Citation: Akprorien, Olum Fidelis, Otuya, Sunday, & Archibong, Etim Archibong (2022) Corporate Sustainability Efficiency and Firm Value. A Study of Nigeria’s Deposit Money Banks, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 6, pp.19-30
Keywords: Economic, Environmental, Firm Value, Social, Sustainability, corporate efficiency
Sustainability Disclosures and Market Value of Firms in Emerging Economy (Published)
This study investigates how overall sustainability disclosures and it’s disaggregate dimensions of environment, social and governance affect market value of firms in Nigeria as an emerging economy using company’s’ specific disclosures. Tobins Q were used to proxy firm market value. The study selected 93 out of 120 non-financial firms listed on the Nigerian Stock Exchange as at 2015. Ex Post Facto research design was adopted and the secondary data was collected from annual reports of sampled firms from 2006 to 2015 through content analysis. The data were analysed with descriptive statistics, correlation analysis, principal component analysis while pooled ordinary least squares regression was employed to test formulated hypotheses. The analysis showed that overall sustainability disclosures have significant positive effects on firm value. When treated individually, environmental sustainability disclosures and corporate governance disclosures have a significant positive effect on market value of firm. The study also reveal that social sustainability disclosures have negative and insignificant effect on market value of firm. Based on these findings, the study recommended among other that companies should foster greater sustainability and long-term value creation by integrating sustainability metrics into their reporting model and strategy. Firms in Nigeria should adopt and disclose environmental friendly policies since it potray their commitment towards achieving the goal of sustainable development.
Keywords: Corporate Governance, Environmental Disclosure, Firm Value, Social Disclosures, Sustainability Disclosures
THE EFFECT OF COMMODITY PRICE CHANGES ON FIRM VALUE: STUDY OF FOOD AND DRINKS SERVICE INDUSTRY IN NIGERIA (Published)
This paper examines the effect of commodity price changes on firms’ value in the food and beverage industry in Nigeria given the frequent changes in the prices of raw materials and inflation. Using the descriptive survey research design, the study focused on secondary data obtained from the annual reports of 11 firms registered on the stock exchange, whose records provided the information required for the study. Revenue, cost of sales, and stock price were computed in order to represent company price of commodity from 2009 to 2013; while firm value comprises Earnings per Share, Earnings before Interests and Taxes and Total Assets. Findings indicate, a significant positive relationship between commodity price and firm value (p<0.05); a joint relationship between revenue, cost of sales, stock price and firm value (p=0.000); a positive slope (B= 0.221) suggesting that an increase in commodity price between 2009 and 2013, led to a proportional increase in firm value. This implies that due attention has to be paid to the issue of raw material sourcing and pricing in Nigeria. Conclusively, price fluctuation, no matter how little or much, will directly impact the price of raw materials and production of goods and services. Government and management of these industries need to pre-empt raw material price fluctuations in order to have a stable and progressive returns from investment. Arbitrary pricing of products is detrimental to progressive firm performance where market is competitive
Keywords: Firm Value, Performance, Price fluctuations, Relationship
Financial Ratios and Firm’s Value in Bahrain Bourse (Review Completed - Accepted)
This paper attempts to measure how financial ratios explain the firms’ value through price earnings ratio or market to book ratio in the Bahrain Bourse. All listed companies in Bahrain Bourse, with the exception of the closed ones, are used over the period of 1995 to 2013. Using all the main categories in financial ratios such as profitability, liquidity, efficiency and debt, the paper founds that return on assets (ROA) is the most determinant factor in explaining the market value followed by financial leverage and beta. Furthermore, the findings revealed that size of the firm also has a significant effect on the market value. Size of the firm is measured through total assets and Tobin’s Q ratio. In this respect, investors perceive different signals from small firms compared to large ones, and from growth firms compared to no-growth firms. On the sector analysis, it is found that ROA is the main determinant factor for explaining the value of the firm
Keywords: : Bahrain Bourse, Financial Ratios, Firm Value, Size and Sector Effect, Tobin's Q