Nigeria

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

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

Global Ethical Consideration and Accounting Practices in Nigeria (Published)

The poor culture of accounting practices in Nigeria, as well as manipulation of financial statements have attracted the attention of scholars’ overtime to question the role of global ethics on accounting practices in Nigeria. In view of this, the main objective of this study dealt on the conceptual review of global ethical consideration and accounting practices in Nigeria. The study employed a review of literature by past researchers on the discourse. In conclusion, the study found that in Nigeria the culture of accounting promotes creative accounting practices, income smoothing and window dressing. Based on the findings, the study recommended that culture should be given adequate consideration in enforcement of global ethical rules and regulation among practicing accountants in Nigeria. Furthermore, professional bodies like Institute of Chartered Accountants of Nigeria ICAN, Association of National Accountants of Nigeria and financial reporting council of Nigeria. Should work in concensus in order to comply effectively with IFRS and global ethical rules and regulations.

Citation: Ifeoma Kate Nonyelum Maduka, Lateef Olamide Mustapha; Blessing Ogechi Ajunwa (2022) Global Ethical Consideration and Accounting Practices in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 9, pp.36-57

 

Keywords: Culture, Nigeria, accounting practices, creative accounting, ethical considerate global ethics

Illicit Financial Flows and Economic Growth: Moderating Role of Economic and Financial Crime Commission in Nigeria (Published)

Despite the efforts of Economic and Financial Crime Commission (EFCC) at curbing illicit financial flows and related problems, the magnitude of the challenges experienced overwhelms her implementation capacities. This therefore necessitate this study by analysing the effect of illicit financial flows on economic growth in Nigeria. The data for study were extracted from the report of EFCC and Central Bank of Nigeria (CBN) statistical bulletins from the period of 2010 to 2019. The study data was based on secondary sources. A purposive sample technique was adopted for the study. Based on the OLS regression model, findings of the study revealed that illicit financial flow and convicted secured by EFCC have a positive and insignificant influence on economic growth. It is therefore, recommended that EFCC should increase the effort in prosecuting and secured convictions of offenders, because will strongly reduce illicit financial flow in Nigeria.

Citation: Abdulrasheed Bawa and Joseph Ogwiji (2022)  Illicit Financial Flows and Economic Growth: Moderating Role of Economic and Financial Crime Commission in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 9, pp.24-35

Keywords: EFCC, Illicit financial flows, Nigeria, economic growth

IFRS Adoption and Financial Reporting Quality in Nigeria: A Conceptual Approach (Published)

The adoption of International Financial Reporting Standards (IFRSs) in different countries of the world have become a contemporary issue particularly with regard to the reliability of financial reports. The conceptual and empirical examination of the IFRS adoption and financial reporting quality across different sectors and countries. The study established that some studies used positive approach and some used positive paradigm. Studies used either of primary or secondary source of data, while some used mixed approach. The study found that IFRS adoption are determined by comparing the parameters concerned between pre and post IFRS regimes in given jurisdictions. The review concept and empirical evidences of IFRS adoption and financial reporting quality from many countries reveals that economic consequences of IFRS adoption significantly differ across jurisdictions though its impact has been reported to be positive in majority of studies. Also, few studies report indifferent and negative effects of IFRS adoption on financial reporting quality. The study found that it is argued that IFRS is more financial position focused. It is also observed that the impact of mandatory adoption of IFRS tends to be greater disputed than that caused by voluntary IFRS adoption. In addition, IFRS adoption are found to supersede many other domestic financial reporting standards such as Statement of Accounting Standard (SAS) in Nigeria.

Keywords: Financial Reporting Quality., IFRS adoption, Nigeria, SAS

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

Internal Control System and Fraud Prevention of Quoted Financial Services Firms in Nigeria: A Smart PLS-SEM Approach (Published)

Fraud prevention involves the integration of all efforts that may be used to reduce or limit the opportunities to commit fraud in an organization. It is tool for protecting the collapse of business activities and it is widely use in the corporate world to manage business challenges. The internal control system is use manage risk and to prevent fraud and errors in order to prevent business losses and liquidation of business. On this basis, the study seeks to examine the effect of internal control system on fraud prevention of financial services firms in Nigeria. The population is 284 respondents from the listed financial services firms in Nigeria. A cluster sampling technique was adopted for the study. The data was sources through the primary sources and a structure questionnaire were administered to the respondents through the use of five-point Liker scale system, and the SMART-PLS-3-SEM was used to analyze the fitness of the data and test the research hypothesis. A constructive reliability and validity, the discriminant validity measure and cross loadings were used to test the fitness of the model. Path coefficient, predictive relevance of exogenous. Findings from the study revealed that control environment and monitoring were found to have a positive and significant effect on fraud prevention, while the information and communication has a negative and significant effect on fraud prevention. Risk assessment show an insignificant positive effect on fraud prevention while control activities is negative and insignificant effect on fraud prevention of the listed financial services firms in Nigeria. In conclusion, the study found that internal control system has a significant influence on fraud prevention. It is recommended among others that the management of financial services firms should maintain the used in control environment, monitoring system because they play a greater in effect on fraud prevention. Also, regulator agency such as CBN, EFCC and ICPC should develop an internal control framework and policy that will guide the financial services firm in Nigeria.

Keywords: Financial Services, Fraud Prevention, Internal control, Nigeria

Board Structure and Accounting Conservatism in Listed Non-Financial Firms in Nigeria (Published)

The study examines the impact of board structure on accounting conservatism in listed non-financial firms in Nigeria. The longitudinal research design was adopted and the study covered the period from 2010-2019. study period, there are 75 quoted non-financial firms in the Nigerian Exchange Group classification and these will constitute the sample.  In this study, secondary data, by way of annual reports and accounts of the sampled companies in Nigeria and some relevant Nigerian Exchange Group fact books were used to collect data. The effect of corporate governance structure on accounting conservatism was analysed using panel regression. This study employed descriptive statistical methods and includes descriptive techniques such as the mean, standard deviation, range, frequency distribution. More importantly, the random effects (RE) and fixed effects (FE) regression as estimated. The findings of the study reveals that Board size (BDS) has a significant impact on accounting conservatism particularly for Market to book (MTB) and income statement based indicators of accounting conservatism. Also, Board independence (BDIND) has a significant impact on accounting conservatism and this is persistent across all three measures of accounting conservatism used in the study. Board gender diversity (BGD) has a significant impact on accounting conservatism particularly, for accrual based indicators. Hence the study recommends the need for corporate boards to reflect and represent all significant stakeholder interests so that board decisions will not be skewed unhealthily. Therefore, the study recommends for the presence of more independent directors in corporate boards. The study recommends the need for an increase in the level of gender diversity in corporate boards. The study recommends that there is need for shareholders to look closely in order to monitor the practices of management.

Citation: Chiedu Christian O., Anichebe, S. A., Emeka-Nwokeji, N. A. (2022) Board Structure and Accounting Conservatism in Listed Non-Financial Firms in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 3, pp.42-58

 

Keywords: Accounting Conservatism, Board Structure, Nigeria, Non-financial firms

National Budget Management and Economic Development in Nigeria (Published)

Citation: Ojomolade, Dele Jacob ,  Ugwulali, Ifeanyi Joseph &Adejuwon, Joshua Adewale  (2022) National Budget Management and Economic Development in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 3, pp.18-30

Abstract: This study examines the impact of national budget management on economic development in Nigeria emphasising the controversial issues of whether its impact is visibly seen or not on Nigeria’s development. Secondary data were sourced from Central Bank of Nigeria statistical bulletin, 2020 and the data were analysed using co-integration and descriptive statistics. The results revealed long run relationship among the variables with ARDL bound test of F-statistic of 9.4 which is greater than the upper and lower bound while the R-squared is 85.2 and Adjusted R-squared is 70.4 which show those explanatory variables are jointly significant and estimated model is of good fit .The Durbin Watson is 1.7 and the Prob.(F-statistics) is less than 5% denoting absence of serial correlation. The study found out that Education and health have negative relationship with economic development in the Nigerian budgeting system, implying that increasing annual budget allocation results in decreasing proportion of education and health in the total national budget estimates. It was further found out that budget estimate and public debt payment services have positive relationship, implying that the more the budget estimates, the more the proportion of public debt services. The study concluded that the Nigerian government does not have enough budgetary allocation to education and health while substantial amount is being allocated to debt servicing. It is therefore recommended that Nigerian government should endeavor to develop human capital by increasing budget allocation to education and health to create a wealthy nation and sustainable development.

Keywords: Development, Economic, Government, Nigeria, national budget