European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals


Effect of Corporate Governance on the Earnings Management of Listed Manufacturing Firms in Nigeria (Published)

The study examined the effect of corporate governance on the earnings management of listed manufacturing companies in Nigeria. The specific objectives of the study were to investigatethe effect of board size, board gender diversity, board independence, audit committee size, and ownership structure onEarnings Management of Listed Manufacturing Companies in Nigeria. Ex-post facto research design was adopted while panel data was collected a sample of 19 consumer goods companies listed on Nigerian Stock Exchange.The Generalised Least Square Regression Model aided by STATA 14.2 statistical package as used to estimate the effect of corporate governance on the earnings management of listed manufacturing companies in Nigeria.The study found that board size had negative and no significant effect on earnings managementof listed manufacturing companies in Nigeria;board gender diversity hadnegative and no significant effect on earnings management of listed manufacturing companies in Nigeria; board independence had positive and no significant effect on earnings managementof listed manufacturing companies in Nigeria, audit committee size had positive and no significant effect on earning managementof listed manufacturing companies in Nigeria and ownership structure hadnegative and significant effect on earnings managementof listed manufacturing companies in Nigeria.The implications of the findings are that, the size of the firm’s corporate board does not influence the volatility in discretionary accruals within the period studied and moreso, the presence of female board members does not determine the earnings manipulation in the firms significantly.The study concluded that increase in the number of independent directors reduces the occurrence of earnings manipulation and the number of directors that make up the audit committee does not affect earnings policy of manufacturing firms.This affirms that directors’ holding many shares can influence the occurrence of earnings manipulation. The study recommended that board composition should include a greater proportion of independent outside directors with corporate experience. Independent directors’ ratio to the total board size should be more to allow unbiased decisions on the financial statements.

Keywords: Accruals, Corporate Governance, Earnings Management, Firms, Manufacturing

Sectoral Loans and Bank Performance in Nigeria (Published)

The study examined the effect of Sectoral loans on commercial banks performance in Nigeria using time series spanned data over a period, 1990-2018. Secondary data were sourced from the central bank of Nigeria statistical bulletin 2018. Hypotheses were formulated and tested using Augmented Dickey-Fuller, co-integration, and the error correction mechanism tests. Specifically, the sectors looked into in this study are Agriculture/forestry, manufacturing, and mining/Quary sector respectively, while interest rate was included as control variable. The result indicates that agriculture, manufacturing, and mining sectors have linear and insignificant effect on bank performance proxied by return on asset; while interest rate has negative effect on bank performance for the period under review. Furthermore, Johansen co-integration test result indicates the existence of four cointegrating long run relationship among variables selected in this study. It is proffered that Government should strengthen institutions that are charged with the responsibility of granting loans and advances to agriculture sector because of its associated benefit not only to the banks but the economy at large. The bank of industry (Boi) and the central bank of Nigeria should as a matter of urgency create enabling business environment for manufacturing companies to access cheap funds so as to enhance business growth and innovations. Interest rate for agriculture, manufacturing and mining sector should be reduced to a single digit so as to encourage these sectors to grow.

Keywords: Agricultural, Commercial Bank, Manufacturing, Mining, sectoral loans

Assessing the Relationship between Diversification of Non-Oil Export Product and Economic Growth in Nigeria. (Published)

The study investigates the relationship between diversification of non-oil export products and economic growth in Nigeria from 1981 and 2014. The study examines the significant role of non-oil export product on real economic growth which the previous studies might have ignored and the aggregate non-oil exports product data used by them might bias their conclusions. In achieving the objectives of the study, Ordinary Least Square Methods involving Error correction mechanism, co-integration, over-parametization and parsimonious were adopted. Johansen Co integration test reveals that the variables are cointegrated which confirms the existence of long-run equilibrium relationship between the variables. Thus, this suggests that all the variables tend to move together in the long run. The study reveals that the there is significant relationship between diversification of non-oil export and economic growth in Nigeria during the period. This was evident in the study that the policies on non-oil products during the period in Nigerian do not sufficiently encourage non-oil export, thus reduce their contributions to growth. This is because the study reveals that agricultural and manufacturing components of non-oil export has positive and significant relationship with economic growth while solid minerals components has negative and insignificant relationship with economic growth in Nigeria. This study therefore recommend that government should enforce non-oil export policies towards resuscitating the failing non-oil export industry. The study among other things encourages the government to strengthen the legislative and supervisory framework of the non-oil products in Nigeria and diversify the economy to ensure maximum contributions from all faces of the subsectors to economic growth of Nigeria.

Keywords: Agricultural, Manufacturing, Non-Oil Export, Solid Mineral., economic growth


This study examines the impact of effective credit policy on liquidity of manufacturing companies in Nigeria. Credit policy from this perspective was viewed from the angle of controlling or regulating credit sales. The study looked into the problems of non-monitoring and the non-review of the credit policy of organizations as a cause of the liquidity problems associated with credit sales. The study centered mainly on the effects of each of the individual components of credit period, the cash discount and the collection period on an organization’s liquidity. Also to ascertained the type of effects that a company’s credit policy has on its liquidity. The study involved a survey of four manufacturing companies which include Unilever Nigeria PLC, Cadbury Nigeria PLC, Nestle Nigeria PLC and Nigerian Bottling Company PLC. The Annual Reports and Accounts of year 2007-2011 of the selected companies as well as a questionnaire were subjected to statistical analysis. Analysis of variance (ANOVA) and regression analysis were used in the hypothesis testing. The study revealed that when a company’s credit policy is favourable, liquidity is at a desirable level. And also, that manufacturing companies do not monitor and review their credit policy regularly and as a result the allowance of cash discounts could not be minimized as much as expected. We therefore recommended that companies should consider their mission, the nature of business and business environment before setting up a credit policy.

Keywords: Credit Policy, Impact, Liquidity, Manufacturing

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