Nigeria

Audit Committee and Audit Report Lag: Moderating Role of Ownership Concentration of Listed Consumer Goods Firms in Nigeria (Published)

This study examines the moderating role of ownership concentration on the effect of audit characteristics on audit report lag of listed consumer goods firms in Nigeria. The ex-post facto research design was adopted, secondary data was extracted from annual reports and accounts of listed consumer goods firms in Nigeria. The population of the study is twenty-one (21) and the sample size consist of fifteen (15) for ten years (2012-2021). Six (6) companies were flitter out from the study due the technical suspension by NXG during the period of study. Census sample techniques were adopted. PCSEs regression model was employed as technique of data analysis. The findings of the study revealed that the Audit Committee Size (ACS) and Audit Committee Meeting have a positive and significant effect on Audit Report Lag (ARL). Also, the Audit Committee Financial Expertise (ACFE) revealed a positive and insignificant effect on Audit Report Lag (ARL), while the Audit Committee Independence is established to have a negative and insignificant effect on Audit Report Lag (ARL). However, with consideration of moderating role ownership concentration, the Audit Committee Size (ACS) and Audit Committee Meeting (ACM) is found to have significant negative effect on Audit Report Lag (ARL), while the Audit Committee Financial Expertise and Audit Committee Independence are found to have a positive and insignificant effect on Audit Report Lag (ARL). The study concludes that ownership concentration moderates the effect of audit committee on Audit Report Lag. The study recommended that the management of the study firms should continue to sustain the frequency of meetings and size or numbers of the committee in their respective audit committee since the two committee have been empirically proven to have significantly reduced the timeframe of reporting their financial reports.

Keywords: Audit Committee, Audit Report lag, Consumer goods firms, Nigeria, Ownership concentration

Effect of Prospect Factor and Herding Effect on Individual Investment Performance in Nigeria: Moderating Role of Financial Literacy (Published)

Investors exhibit irrational behavior when making an investment decision. The decision-making process itself is considered to be a cognitive process, as the investors have to make a decision based on various alternatives available to them. Prior studies had shown that the investors’ decision-making was adversely affected by the various behavioral factors. This study was carried forward to identify the moderating role of financial literacy (FL) on the effect of prospect factor (PF) and herding effect (HE) on investment performance. The population of study was 3,706 and the sample size was the active investors resident in Kaduna metropolitan within the first quarter of 2023. Thus, 460 structured questionnaires were administered and 349 were returned valid. A convenient sampling technique was adopted in this study, and a primary data was collected from the respondents using both the online Google form and self-administered questionnaire with the help of research assistants. A 7-point Likert-type scale ranging from ‘1’ “Extremely Agree” to ‘7’ “Extremely Disagree” was employed. Smart-PLS 4 and SPSS 20 version was used to analyses the data and explained the demographic characteristics of the individual respectively. Findings from this study revealed that prospect factor and financial literacy have positive and significant influence on individual investment performance, while the herding effect is found to have a negative and insignificant influence on individual investment performance. Furthermore, the moderating role of financial literacy revealed that prospect factor and herding effect have an insignificant negative effect on individual investment performance. The study recommends that individual investors should have high levels of financial literacy. It has been empirically proven that FL help investors make better investment decision, in addition to satisfaction in their investment performance. Also, the investors should maintain the use of prospect behavioral biases when making investment decision as it has improved investment performance.

Keywords: Financial literacy, Nigeria, herding effect, investment performance, prospect factor

Scholastic Analysis of the Impact of Digital Technologies on the Accountancy Profession in Nigeria (Published)

The study investigated the effect of digital technologies adoption in the accounting profession. It surveyed the perspectives of experts on the impacts of digital technologies on the accounting profession. The impacts on skills, tasks and work environment as well as the challenges of adoption of digital technologies by accountants in Nigeria were studied. The descriptive survey was used for the study. 127 certified accounting experts in Akwa Ibom State were sampled for the survey. The researcher developed instrument titled “Digital technologies and Accounting Professionals Questionnaire” was used for data collection. The study made use of primary data. Accounting experts were interviewed and questionnaire administered to ascertain their opinion on the penetration, impacts and potential effects of digital technologies on the accounting profession. The instrument was validated by three experts in the Department of accounting, Akwa Ibom State University. Thereafter, the instrument was trial tested for reliability using the test retest method on 20 respondents. The data collated was tested through Pearson product moment correlation, which gave a value of .88. this was deemed good enough and the instrument was then deemed fit for the study. Frequencies and descriptive statistics were used for answering the research questions while simple linear regression was used to test the hypothesis at a 0.05 level of significance. Findings of the study showed that the digital technologies impacting the accounting professions are artificial intelligence, enterprise resource planning, internet of things (IoT), blockchain technology, cloud accounting technology and big data analysis. It was also established that digital technology adoption has a significant positive effect on the changes in the accountancy profession in Nigeria. Also, emerging digital technologies adoption will significantly predict the nature of skills in the accountancy profession in Nigeria. it was recommended that in order to keep adding value for the company, accountants need to developed new skills and acquire new knowledge regarding the use of artificial intelligence and other digital solutions in modern business environment. There is highlighted the need of all employees (including accountants) for development of critical thinking and problem solving, high level of adaptability, flexibility and interpersonal interaction; it is required to learn continuously.

Keywords: Accountancy, Nigeria, Profession, digital technologies, scholastic analysis

Green Accounting Practices and Shareholders’ Value of Listed Consumer Goods Companies in Nigeria (Published)

The severity of environmental degradation has its adverse impact on the quality of lives. Measures are being taken both at the national and international level to reduce and mitigate its impact on the environment, social, economic, and political sphere. This study investigated the effect of green accounting practices on shareholders’ value in Nigeria by drawing samples from listed consumer goods firms on the floor of the Nigerian Exchange Group from 2012 to 2021. Ex post facto design was used, secondary data were employed and least square dummy variable regression was used in analyzing the data. A sample size of 20 companies were determined using Tato Yamane formula and these companies were selected using simple random sampling technique. Green accounting being the dependent variable was proxied by biodiversity disclosure, emission disclosure, waste disclosure, water & effluents disclosure, and compliance to environmental laws & regulations disclosure. The dependent variable of this study was shareholders’ value proxied by shareholders’ value added (SHVA). The result showed that biodiversity disclosure and compliance to environmental laws disclosures have a positive significant effect on shareholders’ value added; water & effluents disclosures have a positive significant effect on shareholders’ value added of listed consumer goods firms in Nigeria during the period under study. It was thus concluded that green accounting practices have significant effect on shareholders’ value added of manufacturing companies in Nigeria. Therefore, it was recommended among others that compliance to green accounting practices should be made mandatory for all companies because standard green accounting disclosures are signals to all stakeholders that the companies are ‘green’ and eco- friendly companies and this in turn boost shareholders value.

Keywords: Companies, Nigeria, green accounting practices, listed consumer goods, shareholders’ value

Effect of Corporate Governance on Financial Performance of Quoted Commercial Banks in Nigeria (Published)

This study investigates the impact of corporate governance on the financial performance of Nigeria’s publicly traded commercial banks. The objective of this study is to determine if board size, board female gender, and board independence have effect on the financial performance of quoted commercial banks in Nigeria. Five (5) quoted commercial banks in Nigeria was examined, ranging from the years 2011 to 2020. Secondary data was used and obtained from the bank’s annual reports published in Nigeria Exchange Group. Cross-Sectional research design was used, and the method of data analysis used was panel multiple regression. Findings revealed  that board independence has a significant impact on financial performance ( return on assets) of quoted commercial banks in Nigeria but  shows  negative  relationship with financial performance  ( return on  assets)  of  quoted commercial banks, study further revealed that board size has a negative relationship with  bank’s financial performance (return on assets) but has  significant value  on  the  financial performance (return on assets) , findings also  revealed that at least two female board members were represented in every corporate organization studied,  female board membership has a positive relationship with banks’ financial performance (Return on Assets), but shows  insignificant value on financial performance (return on assets). The study concluded and recommended that, despite some of the independent variables shows insignificant values, Board independent, Board size, Board female gender mechanisms continue to be a critical component of corporate governance in achieving any organization’s objectives, financial or otherwise.

Citation: Orumwense E.K. and Orumwense O. (2023) Effect of Corporate Governance on Financial Performance of Quoted Commercial Banks in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.11, No. 4, pp.1-14

 

Keywords: Banks’, Board Composition, Corporate, Governance, Nigeria, financial crisis

Board Size And Retained Earnings of Deposit Money Banks in Nigeria (Published)

The study examined board size and retained earnings of deposit money banks in Nigeria. The objective of the study was to ascertain the relationship between board size and retained earnings of deposit money banks in Nigeria. The study adopted an ex-post-facto research design, covering the period between 2010 and 2019. Secondary data were extracted from the annual reports and accounts of sampled deposit money banks in Nigeria. Total assets, total deposits, statutory reserves, and number of branches, were the control variables of the study. Multiple regression and covariance analysis were used for data analysis. The covariance analysis revealed that total asset (p-value < 0.05), total deposit (p-value < 0.05), and number of branches (p-value < 0.05) have a strong and positive relationship with retained earnings (80% approx., 78% approx., 64% approx. respectively). Statutory reserve (p-value < 0.05) and board size (p-value < 0.05) have a strong and negative relationship with retained earnings of deposit money banks in Nigeria with the following coefficients Statutory reserve 73% and board size 53% approx. The findings imply that as a total asset, total deposits, and the number of branches are increasing, the banks’ retained earnings also increase significantly and vice versa. On the other hand, as statutory reserve and board size are increasing, banks’ retained earnings decrease significantly. Hence, these variables can be used to predict and make decisions on retained earnings of deposit money banks in Nigeria. The study, therefore, recommends that deposit money banks in Nigeria should keep a small or moderate board size since an increase in board size affects their retained earnings negatively.

Keywords: Board size, Deposit Money Banks, Nigeria, Total Asset, number of branches, retained earnings, statutory reserve, total deposit

Impact of Treasury Single Account On Public Finance Management in Nigeria: Pre and Post Implementation Analysis (Published)

This study examined the impact of Treasury Single Account (TSA) on the public finance management in Nigeria. The study investigated how the implementation of TSA in Nigeria affected revenue collection, public cash management, federation account allocation and corruption control in Nigeria. The paper used secondary data collected from Central Bank of Nigeria statistical bulletin and transparency international from 2010-2014 (pre adoption period) to 2015-2019 (post-adoption period). T-test statistical technique was employed to analyze the data. The findings of the study revealed that TSA has a negative and insignificant effect on government revenue, public cash management, federal account allocation, as well as corruption control in Nigeria. The study recommends that government should strengthen the system of implementation of TSA in Nigeria and all resources of leakages to total government revenue should be investigated forensically and such loopholes filled. Moreover, government should devise other means of cash management and reduce so much reliance on TSA implementation.

Citation: Iloeje J.B., and Okwo I.M. (2022) Impact of Treasury Single Account On Public Finance Management in Nigeria: Pre and Post Implementation Analysis, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 12, pp.62-75

Keywords: Nigeria, Revenue, corruption control, economic growth, federation account allocation, public cash management, treasury single account

Responsiveness of Operational Performance to Liquid Asset Management of Industrial Goods Firms in Nigeria (Published)

The study examined the responsiveness of operational performance to liquid asset management of industrial goods firms in Nigeria. inventory, cash and cash equivalents, and account receivables formed the independent variables of the study. While profit for the year was used to measure operational performance. The study adopted an ex-post-facto research design, covering the period between 2011 and 2020. Secondary data were extracted from annual reports and accounts of sampled industrial goods firms listed on Nigeria Exchange Plc. Multiple regression techniques (fixed-effect model) was used for the data analysis. In line with the specific objectives of the study which was to ascertain the effect of inventory, cash and cash equivalents, and account receivables on profit for the year of industrial goods firms in Nigeria, it was revealed that inventory and cash and cash equivalents have a negative and significant effect on profit for the year of industrial goods firms in Nigeria. Account receivables have a positive and insignificant effect on profit for the year of industrial goods firms in Nigeria. This implies that non of the independent variables have a significant effect on the operational performance of industrial goods firms in Nigeria. It is recommended therefore that industrial goods firms should strive to reduce the rate at which they sell their inventory at a loss. They should devise a means to resist sell pressures caused by importations. The government should also help in protecting the firms within these industries by placing importation embargos on industrial goods. Industrial goods firms should reduce the amount of cash and cash equivalents they hold. They should strive to reduce the idle cash at their disposal. Such cash should be invested into the business that will yield good returns. They should always strive to increase their account receivables because of the positive effect it has on operational performance.

Citation: Mbah, A. U &  Okwo I  M. (2022) Responsiveness of Operational Performance to Liquid Asset Management of Industrial Goods Firms in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 12, pp.14-28

Keywords: Inventory., Nigeria, Profit for the year, account receivables, cash and cash equivalents

Liquidity Management and Gross Earnings of Insurance Firms in Nigeria (Published)

The study appraised liquidity management and gross earnings of insurance firms in Nigeria. During the Covid-19 period, insurance firms were faced with the financial responsibility of indemnifying the numerous risks suffered by policy holders. To do so effectively, they need to be liquid enough so as to meet such indemnity demands as at when due. This affects their investment. Hence the study examines liquidity and gross earnings of insurance firms in Nigeria. Current ratio, cash ratio, and operating cash flow ratio is the independent variables of the study, while the dependent variable is profit for the year. The study adopted an ex-post-facto research design, covering the period between 2011 and 2020. Secondary data were extracted from the annual report and accounts of the sampled insurance companies. The correlation technique was used for the data analysis. In line with the specific objectives of the study which was to examine the relationship between current ratio, cash ratio, and operating cash flow ratio and profit for the year of insurance firms in Nigeria, it was revealed that current ratio has a positive and strong relationship with profit for the year of firms in Nigeria insurance subsector. Cash ratio has a negative and weak relationship with profit for the year of firms in Nigeria insurance subsector. The operating cash flow ratio has a positive and weak relationship with profit for the year of firms in the Nigeria insurance subsector. This implies that an increase in current ratio results in a significant increase in profit for the year of insurance firms in Nigeria. It is recommended therefore that insurance firms in Nigeria should strive to improve their current ratio. They can do this by reducing the personal draw on the business and by reducing the personal drawings on the business. They should reduce their propensity to hold cash. They should balance the trade-off between cash holding and profitable investment. They should make profitable investments and ensure that their liabilities are settled on time. Insurance firms should devise strategies to improve the cash they generate from operating activities. They can do this by improving their inventory, introducing electronic payments, etc.

Keywords: Liquidity Management, Nigeria, Profit for the year, cash ratio, current ratio, insurance firms, operating cash flow ratio, shareholders’ value

Internal Audit Practices and Financial Performance of Construction Companies in Nigeria (Published)

This study was carried out with the aim to examine internal audit practices and financial performance of construction companies in Nigeria. In order to actualize the objectives of the study, various literature and theoretical issues was discussed. The instrument used for the purpose of this research was gathered through primary source. The researcher administered a total of two hundred (200) questionnaires to respondents, out of which one hundred and eighty-eight (188) was retrieved and was used for the presentation and analyses. The hypotheses were tested using Ordinary Least Square (OLS) regression technique. The findings from analysis revealed among other things that there is a positive and significant relationship between size of the internal audit, experience of the internal audit, qualification of the internal audit and Financial Performance. The study also revealed that there is a positive and insignificant relationship between independence of internal audit and Financial Performance. In line with the findings, we recommend that the internal auditor should have maximum independence from the industry they work in. The internal audit activities must be positioned in such a way that it may obtain cooperation from industry that is being audited that have free, unrestricted access to all functions, records, property and personnel including those charged with governance.

Citation: Jacob, M.S., Edheku, O.J., and Obembe, O.J. (2022) Internal Audit Practices and Financial Performance of Construction Companies in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 11, pp.87-103

Keywords: Companies, Construction, Financial Performance, Nigeria, internal audit practices