Environmental Accounting and Reporting Practices: Significance and Issues and Journey Ahead in Nigeria Corporate Organisation (Published)
Environmental accounting and reporting practices as an emerging trending issue is dynamically fruitful to the fulfilment of the yearnings and aspirations of the key stakeholders in the corporate set up. It introduces transparency and accountability particularly in the area of resources management more so with natural resources. It involves the identification, measuring and controlling of costs, liabilities and consequentially assets that may be affected in the course of ordinary business and it encompasses sustainability reporting as well. A combination of primary and secondary data revealed that environmental accounting is still at infancy and the need for an implementation roadmap backed by the necessary statutes will be desired to ensure that all the accruable benefits of environmental accounting and reporting are enjoyed.
Keywords: Environmental Accounting, Nigeria, corporate organization, reporting practices
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
Effect of Dividend Policy on Shareholders Wealth in Nigeria (1986 To 2016) (Published)
This study investigated the effect of dividend policy on shareholders wealth in Nigeria. Data were generated on market price per share (MPS), dividend per share (DPS), net asset per share (NAPS) and earnings per share (EPS) from annual report and accounts of twenty five quoted companies in Nigeria stock exchange (NSE) Fact book and daily official list. To analyze the data, the statistical tools that have been used are ordinary least square regressions (OLS), unit root tests, Johansen cointegration and error correction model (ECM) for predicting the dividend policy effect on shareholder’s wealth. The significance of the various explanatory variables has been tested by computing t-values. To determine the proportion of explained variation in the dependent variable, the coefficient of determination (R2) has been worked out. The significance of R2 has also been tested with the help of F-value. The results show that most of the variable except dividend per share had significant relationship with market price per share. The R2 and F-test shows that earnings, dividend and net assets has combined effect on market price of shares but none of these variables has direct independent influence in determining the price of share in the stock market. This paper, therefore conclude that dividend payout does not have effect on shareholders wealth and shareholders do not react to dividend information. It was therefore recommended that firms operating under this environment should ignore distribution of earning and concentrate with investments that will boost net assets.
Keywords: Dividend Policy, Nigeria, Shareholders Wealth
Cashless Policy and the Performance of Deposit Money Banks in Nigeria (Published)
The main objective of the study is to investigate the effect of cashless policy on the performance of deposit money banks in Nigeria (2009-2018). The specific objectives are to: Investigate the effect of automated teller machine, examine the effect of point of sale, assess the effect of mobile banking, and to examine the effect of internet banking respectively on the performance of deposit money banks in Nigeria. We employed Econometric techniques involving Descriptive Statistics, Augmented Dicker Fuller and Philip Perron Tests for Unit Roots and the Autoregressive Distributed Lags (ARDL) for cointegration and coefficient analysis. The result of the study indicates that Automated Teller Machine (ATM) and Internet Banking each has a positive and significant effect on return on equity (ROE). Point of Sale (POS) has a positive but insignificant effect on return on equity, while Mobile Banking (MB has a negative and statistically significant effect on ROE, The study thus concludes that cashless policy has positively affected the performance of money deposit banks in Nigeria. The study recommends that government should provide uninterrupted power supply and adequate communication link while shortfalls should be covered by banks through back-up arrangement to power standby generator in case of power outage.
Keywords: Automated Teller Machine, Internet Banking, Nigeria, economic growth, mobile banking, point of sale
Firms Debt Structure and Shareholder Returns: Moderating Role of Foreign Director of Multinational Companies in Nigeria (Published)
Financing decision is one of the important areas in managerial finance to increase shareholders’ wealth. Firms can use either debt or capital to finance their business. This study uses two-stage least squares model and examines the impact of foreign directors as moderating variable on the relationship between firm debt structure and shareholders’ returns of quoted multinational firms in Nigeria. Secondary data were extracted from the annual reports of six (6) most active quoted multinationals firms on the Nigerian Stock Exchange for the period 2006 to 2018. After running the OLS regression, a robustness test was conducted for validity of statistical inferences. A multiple regression was employed using PCSE regression model and FGLS regression model respectively for model one and two. The study documents in model one that debt to total asset has a positive and significant effect on shareholder returns while debt to equity and debt to turnover have negative and significant effect on shareholders returns though foreign director has no significant impact of shareholder returns. The model two, revealed the moderating role of foreign director, where the debt to equity has a positive and significant effect on shareholder returns while debt to turnover revealed a negative and significant effect on the return to shareholder funds. Though, debt to total asset has no significant effect on shareholders returns. In line with the findings, the study recommended that board of directors of the study firms should ensure that listed multinationals firms in Nigeria should appoint foreigner in their board composition so that the interest of various shareholder’s would be fully protected by avoiding unnecessary debt and proper management of the company debt file and sales improve upon their turnover and reduction of unnecessary cost.
Keywords: Multinational Firms, Nigeria, debt structure, shareholder returns
Integrated Reporting and Implications for Accounting Curriculum in Nigeria (Published)
Integrated reporting (<IR>) has been promoted by influential international organisations as the communication vehicle that provides concise, future-oriented and strategically relevant information and integrates financial, social and environmental elements to providers of the capitals and other interested parties. Increasing adoption of <IR> globally envisages significant implications for accounting education and the accounting curriculum, for both professional and academic training necessary for the “new” corporate reporting protocol. This paper reviews integrated reporting literature to access the principles and frameworks and outputs articulated by these influential organisations. In view of the suggested reporting outcomes, fundamental guiding principles and the main components of an integrated report, it is envisaged that the “new” accounting curricula would focus more on the longer-term than the shorter-term, more on corporate strategic outlook than operational or transactional processes; more prospective rather than retrospective analysis and reporting on wider business performance metrics than on narrower external financial reporting data or audit compliance. While leading global professional accountancy bodies (e.g., ACCA & CIMA) have already fully incorporated integrated reporting principles within their curriculum at the professional level, only few universities outside Nigeria have incorporated integrated reporting principles or learning outcomes within their existing curriculum. The paper calls on Accounting Departments of universities to incorporate <IR> principles into their course offerings.
Keywords: Accounting Curriculum, Nigeria, Social Responsibility, Stakeholder Engagement, Sustainability, integrated reporting
Financial Sector Development and Poverty Reduction Nexus: Evidences from Nigeria (Published)
Previous studies have examined the effect of financial sector development on poverty reduction. This study is unique by adopting the UNDP broader measure of well-being, the Human Development Index (HDI) to provide an argument for financial sector development process and poverty reduction interrelationship in Nigeria for the period 1988-2017. Stationary properties of the series were tested by the ADF unit root test. The paper uses the Johansen Co-integration test to examine the existence of long run relationship among the variables. Generally, it was found that financial sector development has both positive and significant relationship with HDI used as proxy for poverty level. The result also indicates a significant positive relationship between aggregate credit (AGC) and HDI. This shows that financial sector development which manifests in the ability of the banking sector to facilitate borrowing and investment in income earning assets, and stimulate the private sector, in particular, small and medium scale enterprises (SMEs), impacts positively on HDI. Finding also shows that aggregate deposit (AGD) (deposit opportunities available to deposit money banks) is negatively related to HDI and significant. This perhaps suggests that the volume of deposit mobilization by deposit money banks in Nigeria is relatively low to what is needed to transform the economy as well as the standard of living of the people. Realising that Human development is a desideratum and sacrosanct in poverty reduction, the objectives of policies aimed at further strengthening the banking sector should be people focused.
Keywords: Deposit Money Banks, Human Development Index, Nigeria, Poverty Reduction, financial sector development
Effects of Financial Innovations on the Profitability of Deposit Money Banks in Nigeria (Published)
This study examined the effects of financial innovation on the profitability of deposit money banks in Nigeria. the general purpose of the study was to examine the effect of financial innovation on the profitability while the specific objectives was to examine the effect of automated teller machine, electronic fund transfer, internet banking, mobile banking and investment on information communication technology on return on equity of deposit money banks. The study formulated four hypotheses and used panel data regression to analyze the secondary data extracted from the annual reports and accounts of the fourteen firms for the period 2009 to 2017. Return on equity was the dependent variables while automated teller machine, electronic fund transfer, internet banking, mobile banking and investment on information communication technology on return were the independent variables. Findings of the study revealed that automated teller machine and electronic fund transfer have negative relationship with return on equity while internet banking, mobile banking and investment on information communication technology have positive relationship with return on equity. The study recommends that deposit money banks should adopt financial innovations, deposit money banks invest in technological innovations and banks should transform banking service by adapting to mobile banking and agency banking so that not only to providing jobs but also increase market share.
Keywords: Banks’, Deposit, Money, Nigeria, Profitability, financial innovations
Working Capital Management Firm Liquidity and Stock Market Seasonality: Evidence from Nigeria (Published)
This study examines the relationship between Working Capital Management Firm Liquidity and Stock Market Seasonality among quoted firms in Nigeria. Six hypotheses were formulated following the dependent variable of Stock Market Liquidity. The independent variables employed for this study include: Liquidity Ratio, Account Payable Day, Account Receivable Day, Inventory Day, Firm Leverage and Firm Size. This study is based on ex-post facto research design and employed a panel data set collected Fifty (50) non-financial companies over an eight year period ranging from 2011 to 2018 financial year. We analyzed the data set using descriptive statistics, correlation and Panel Ordinary Least Square Regression Analysis. Our finding lends credence to the efficient market theory which holds that share markets prices are unpredictable and as such cannot be forecasted. Specifically, the finding suggests that market liquidity cannot predict stock market returns irrespective of the season of the year. Hence, we carefully hold that the stock market in Nigeria is efficient due to its randomness and will rapidly respond to any information or anomalies presented to it. The study recommends among others that policy makers in emerging markets such as Nigeria should ease entry barriers for prospective firms so as to enhance liquidity. The study further recommends that, proper inventory management system should be put in place in order to avoid working capital mismanagement.
Keywords: Firm, Liquidity, Management, Nigeria, Stock Market, Working capital., seasonality
Effect of Corporate Attributes On Environmental Disclosure of Listed Oil and Gas Companies in Nigeria (Published)
This study investigates the influence of corporate attributes on environmental disclosure by oil companies in Nigeria. The study uses secondary data collected from the annual reports and accounts of 9 randomly selected oil companies for the period 2011 to 2017. The study analysed the data using the logistic regression technique. The study finds that corporate attributes significantly affect the environmental accounting disclosure by oil companies in Nigeria. Based on the findings, the study concludes financial leverage has a significant positive effect on environmental accounting disclosure by oil companies in Nigeria. Second, profitability has a significant positive effect on environmental accounting disclosure by oil companies in Nigeria. Third, the study also find that firm size has a significant positive effect on environmental accounting disclosure. Fourth, the study finds a positive but insignificant effect of auditor types on the environmental accounting disclosure by oil companies in Nigeria. The study recommends that the regulators of the oil companies in Nigeria should encourage the use of more debts in the oil companies’ capital structure, which will make them disclose more information about the environment based on the close monitoring and demand by the debt holders.
Keywords: Environmental Disclosure, Nigeria, corporate attributes, listed oil and gas companies