Corporate Social Responsibility Disclosure and Financial Performance of Listed Insurance Firms in Nigeria (Published)
The backdrop of contending views that CSR is merely façade, just a marketing campaign, and that CSR disclosures among insurance companies in Nigeria are very scanty; whereas organizations desire to be seen as legitimate corporate citizens satisfying various stakeholders, justify this study to examine the relationship between corporate social responsibility disclosure and financial performance of listed insurance companies in Nigeria. Based on the ex-post-facto research design, this study employed secondary data obtained from published financial statements of sampled seven insurance firms between 2015 and 2022. These seven insurance companies are all currently listed in Nigerian Exchange Group. The data gathered was analysed using simple linear regression technique based on the ordinary least square method assisted by E-Views version 9. Three hypotheses were formulated and tested at 0.05 level of significance based on the specific study objectives, using the results of analysis. The findings revealed that corporate social responsibility disclosures have statistically positive significant relationship with earnings per share, net profit margin, and return on assets of listed insurance firms in Nigeria. It was recommended that the management of insurance companies should adopt policies that would favour appropriate increase in corporate social responsibility to enhance performance and peaceful coexistence with their host communities.
Keywords: Assets, Earnings, Legitimacy., Performance, Returns, profit, stakeholder
Audit Committee and Performance: Evidence from Kenyan Deposit Taking Saccos (Published)
This research examined the effect of Audit committee characteristics on performance of Deposit Taking Saccos in Kenya. Audit committee characteristics was measured by independence, terms of service and study specialization as proxy. The study was guided by the Agency Theory and adopted descriptive cross-sectional survey and correlational research designs. A sample size was 108 licensed Deposit Taking Saccos drawn from a target population of 175. Primary data was collected from the board members and management executives. The analysis was done using descriptive statistics and multiple regressions. The study findings suggest that the overall correlation coefficient for Audit Committee characteristics and performance was found to be 0.144 with a p-value of 0.143> =0.05. This implies a weak positive and insignificant relationship between Audit Committee characteristics and performance. Based on findings, the study recommends proper constitution of audit committee with well spelt out terms of service and a consideration be made on appropriate study specialization. Independence of audit committee must be complied with to ensure conformity to best standards of practice. Areas for further studies suggested are conducting studies in other contexts to corroborate these findings and consideration of effect of other variables of Audit Committee characteristics on the performance.
Citation: Ncurai, D.M., Oloko, M., Rambo, C.M. (2023) Audit Committee and Performance: Evidence from Kenyan Deposit Taking Saccos, European Journal of Accounting, Auditing and Finance Research, Vol.11, No. 4, pp.47-59
Keywords: Performance, SACCOS, audit committee characteristics
The Effect of Corporate Social Responsibility Disclosure Index on Firm Performance of Selected Sectoral Industries in Nigeria (Published)
Corporate Social Responsibility (CSR) initiatives are charitable events and methods for improving a company’s image, satisfying key stakeholders, and increasing financial performance. The issue of CSR initiatives on capital growth and sustainability remains imperative for this study. Therefore, this study is set out to examine the effect of corporate social responsibility disclosure index on firm performance of selected sectoral industries in Nigeria and to investigate the effect of corporate social responsibility on market value of selected sectoral industries in Nigeria. This study adopts multi-stage sampling approaches. A quantitative method was used in which a deductive technique was adopted because the research was based on existing theories and findings from previous investigations. Descriptive statistics, correlation regression panel and cross sectional analysis were adopted for the purpose of this study. The result showed that CSR as a variable has the highest mean = 69.7608) with a standard deviation = 11.7713 indicates that CSR is the most sensitivity variable, while leverage (LEV) has the second highest mean = 55.0760 with a standard deviation = 182.3009 and SIZE has mean = 16.9473 with a standard deviation = 1.0996 indicates that the value of corporate SIZE is also a huge factor to the study. However, the correlations statistics shows that return on asset (ROE) has a positive correction = 0.4468 with return on equity (ROA) at 5 percent level of significant. TobinQ has a positive relationship with ROA = 0.5321 and ROE = 0.0842 at 5 percent level of significant respectively. CSR has a negative relationship with ROA = −0.0948*, ROE = −0.0760 and Tobin Q = −0.0734 at 5 percent level of significant respectively. SIZE has a positive significant relationship with ROA = 0.0589, ROE = 0.0826 and CSR = 0.2449. The findings revealed that firms in Nigeria are yet to significantly use CSR to promote their performances like what is done by firms in developed economies. Therefore, as part of the recommendation from this study, Nigerian firms are advised to pay more attention to being CSR responsible and find ways by which this can translate to improved profit and enhancement of their overall performances.
Citation: Olorunnisola A. O and Usman O. A (2023) The Effect of Corporate Social Responsibility Disclosure Index on Firm Performance of Selected Sectoral Industries in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.11, No. 3, pp.1-26
Keywords: Corporate Social Responsibility (CSR, Firm, Performance, disclosure index
The Effect of Corporate Social Responsibility Disclosure Index on Firm Performance of Selected Sectoral Industries in Nigeria (Published)
Corporate Social Responsibility (CSR) initiatives are charitable events and methods for improving a company’s image, satisfying key stakeholders, and increasing financial performance. The issue of CSR initiatives on capital growth and sustainability remains imperative for this study. Therefore, this study is set out to examine the effect of corporate social responsibility disclosure index on firm performance of selected sectoral industries in Nigeria and to investigate the effect of corporate social responsibility on market value of selected sectoral industries in Nigeria. This study adopts multi-stage sampling approaches. A quantitative method was used in which a deductive technique was adopted because the research was based on existing theories and findings from previous investigations. Descriptive statistics, correlation regression panel and cross sectional analysis were adopted for the purpose of this study. The result showed that CSR as a variable has the highest mean = 69.7608) with a standard deviation = 11.7713 indicates that CSR is the most sensitivity variable, while leverage (LEV) has the second highest mean = 55.0760 with a standard deviation = 182.3009 and SIZE has mean = 16.9473 with a standard deviation = 1.0996 indicates that the value of corporate SIZE is also a huge factor to the study. However, the correlations statistics shows that return on asset (ROE) has a positive correction = 0.4468 with return on equity (ROA) at 5 percent level of significant. TobinQ has a positive relationship with ROA = 0.5321 and ROE = 0.0842 at 5 percent level of significant respectively. CSR has a negative relationship with ROA = −0.0948*, ROE = −0.0760 and Tobin Q = −0.0734 at 5 percent level of significant respectively. SIZE has a positive significant relationship with ROA = 0.0589, ROE = 0.0826 and CSR = 0.2449. The findings revealed that firms in Nigeria are yet to significantly use CSR to promote their performances like what is done by firms in developed economies. Therefore, as part of the recommendation from this study, Nigerian firms are advised to pay more attention to being CSR responsible and find ways by which this can translate to improved profit and enhancement of their overall performances.
Citation: Olorunnisola A. O and Usman O.A (2023) The Effect of Corporate Social Responsibility Disclosure Index on Firm Performance of Selected Sectoral Industries in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.11, No. 2, pp.36-61
Keywords: Corporate Social Responsibility (CSR, Firm, Performance, disclosure index
Examining Effect of Audit Committee Attributes on Firm Performance: Evidence from listed Food and Beverages Firms in Nigeria (Published)
Persistent material misstatements in financial statements and subsequent loss of stakeholder’s confidence on credibility of reported information necessitated the establishment of statutory audit committee by corporate governance ethic of most countries including Nigeria. This paper examined effect of different audit committee attributes on performance of firms listed in the food and beverage industries in Nigeria Stock Exchange. Audit committee independence, audit committee financial expertise and audit committee meeting are proxy for measuring audit committee attributes while financial performance was measured with Earning Per Share (EPS). Ex-post facto research design was adopted and secondary data were collected from annual reports of selected firms spanning eight years from 2011 to 2018. The population of this study constitute of all firms listed under the food and beverages sector in Nigeria stock exchange which are twenty-one (21) firms as at December 31st, 2018. The study purposively selected fourteen (14) firms based on the availability of their annual reports. Data were analysed using descriptive and inferential statistics. Descriptive statistics and inferential statistics was conducted. Analyses revealed that: audit committee independence and audit committee expertise has positive but insignificant effect on firm performance measured with EPS, while audit committee meeting exhibit positive and significant effect on EPS of listed food and beverages firms in Nigerian Stock Exchange (NSE). Based on the findings, this study therefore recommended that firm should sustain frequencies of audit committee meetings, so as to ensure that the committee has enough time to take decisions that are efficient and effective in enhancing better firm performance. This study also recommends that regulatory bodies should ensure that audit committee are made more effective by ensuring that members includes independent non-executive directors and also ensure that more members with financial expertise especially accounting expertise be drafted into the audit committee to improve performance of firms.
Citation: Osevwe-Okoroyibo, E. E. and Emeka-Nwokeji, N. A (2021) Examining Effect of Audit Committee Attributes on Firm Performance: Evidence from listed Food and Beverages Firms in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.9, No. 8, pp.26-43,
Keywords: Audit, Performance, audit committee characteristics, audit independence, audit meeting, financial expertise
Fraudulent Practices in Nigerian Banks: Implications on the Performance of Deposit Money Banks, 1994 -2015 (Published)
This study investigates fraudulent practices in Nigeria banks and the implications on the performances of Deposit Money Banks in Nigeria. Secondary data were obtained from the annual reports of the Nigerian Deposit Insurance Cooperation (NDIC) covering 1994 to 2015 and analyzed using econometric techniques. Data obtained were tested for co-variance using Johansen Co-Integration and thereafter the four hypotheses postulated were tested using Ordinary Least Square Regression (OLS) and Vector Auto Regression Estimates. The study revealed significant negative relationships between fraud variables and bank performances represented by earnings before tax. The study therefore recommended that directors of Deposit Money Banks should invest in cyber controls and also conduct a thorough review of the existing internal control measures in the banks to ascertain the weaknesses of the existing controls and to strengthen them toward checking fraud. Further, the regulatory agencies such as the National Deposit Insurance Cooperation should rise above their present reactive posture of reporting fraud cases and proactively take up measures to monitor and safeguard depositors’ funds in the Deposit Money Banks. The study also suggested a strong synergy/collaboration between National Deposit Insurance Corporation and Central Bank of Nigeria for effective and proactive monitoring and regulation of the Deposit Money Banks to check fraudulent tendencies and by so doing forestall collapse of the banks. Furthermore, the study strongly recommended that all necessary prosecution measures as well as the evidence enactments should be amended and updated by the Federal Government to ensure that fraud investigation and prosecution are sped up for positive results and justice as deterrent to others.
Keywords: Deposit Money Banks, Performance, fraudulent practices
Effect of Environmental Cost on Performances of Quoted Firms in Sub-Saharan Africa, 2007-2016 (Published)
The study examined the effect of environmental costs on performances of quoted firms in Sub Saharan Africa. The study adopted longitudinal/panel ex-post facto research design and random sampling technique while quantitative secondary data covering 2007 to 2016 were obtained for sixty-four extractive and industrial firms quoted in the Stock Exchanges of four Sub-Sahara African countries namely South Africa, Nigeria, Ghana and Tanzania. The models for the study were estimated using Ordinary least square regression (OLS) built on panel data analysis. In the regional level analysis as well as in South Africa and Nigeria specific country analyses, the study revealed that environmental costs represented by employee health and safety, waste management and community development costs have no significant effect on return on capital employed, earnings per share and return on equity. The study showed that in Ghana, the predictor variables demonstrated significant effect on return on capital employed and return on equity while only waste management cost has significant effect on return on capital employed and return on equity in Tanzania. The implication of the preponderance of the findings, save for the aforementioned exceptions in Ghana and Tanzania, is that quoted firms in the region are yet to adequately indulge in environmental responsibility or their environmental engagements are not adequately captured and disclosed to the extent that can cause significant swings in the measures of firm performance. The implication of the exceptions found in Ghana and Tanzania is that of comparative improvement in environmental responsibilities, compliances and disclosures by quoted firms in the two countries. The study recommended among other things that firms in Sub Saharan Africa should give greater attention to environmental responsibility, cost recognition, classification and disclosures in the annual, integrated and sustainability reports.
Keywords: Earnings per share, Performance, Return on Equity, Waste Management, capital employed, community development costs, employee health and safety, environmental costs
Corporate Governance and Commercial Banks’ Performance in Uganda (Published)
More than ten commercial banks have collapsed in Uganda in the last two decades due to problems such as frauds, insider lending by dominant shareholders, weak boards of directors, non-performing loans portfolios, and managerial opportunism. This paper aims to investigate the impact of corporate governance on commercial banks’ performance in Uganda. The study adopted a survey-based approach to purposively collect data from the respondents of all licensed commercial banks in Uganda at the time of the study. Data was collected using a self-administered research instrument on the most emphasized corporate governance variables of board composition, board size, capital adequacy ratio, and the independent audit committee for the performance of banks. The data quality control was ensured by establishing the internal consistency of the research instrument that resulted in an overall Cronbach’s reliability coefficient of 0.78. The data was analyzed using hierarchical multiple regression analysis statistical technique after controlling for bank size and leverage. Using an alpha level of 0.05, the study found that the change in R-squared was 27.9% with a non-significant change in F (4,14) = 1.64, p = 0.219. Secondly, for the whole model F (6,14) = 1.587, p = 0.223 which signified that was no significant impact of corporate governance on commercial banks’ performance in Uganda while controlling for bank size and leverage. In order to improve bank performance in Uganda, the central bank should step up the supervisory and regulatory policies. This would involve proactive strategies such as regular review of corporate governance instruments like the Financial Institutions Corporate Governance Regulations (2005) so as to counteract any new threats to the banking sector which could render these instruments ineffective.
Keywords: Commercial Banks, Corporate Governance, Performance, Uganda
Evaluation of Internal Control System on the Performance of Cooperative Societies in Selected Tertiary Institutions in Ondo State, Nigeria (Published)
The study assessed the internal control systems on performance of cooperative societies in some selected tertiary institutions in Ondo States, Nigeria. A stratified sampling technique was adopted for the study. The data were collected from members of registered cooperative societies in the selected tertiary institutions in the study area using structured questionnaire. The statistical tools used include de, Likert ratings, regression analysis and paired sample t-test. Results revealed that the selected cooperative societies often use all the key internal control measures which influence their performance, which include authorization measure (p = 0.027), arithmetic and accounting measures (p = 0.000), as well as budgetary measures (p = 0.001. The study recommended that cooperative societies in the tertiary institutions should strengthen their internal controls to ensure good performance
Keywords: Cooperative, Institutions, Internal control, Loans, Performance, Tertiary
Capital Structure and Firm Performance Nexus in Nigeria: A Case Study of Aluminum Extrusion Company PLC (Published)
This study investigated the link between capital structure and firm performance in Nigeria using Aluminum Extrusion Company PLC (ALEX), a company listed under the Basic material sector of the Nigerian Stock Exchange as a case study. The study adopted return on capital employed as proxy for firm performance (response variable), while capital structure components such as debt to equity ratio, debt to capital employed ratio and equity to capital employed ratio were used as the explanatory variables. Secondary data were collected from the annual published financial reports of the company for the period 2009 to 2018. The study employ descriptive statistics and multiple regression technique based on the E- view 9.0 Software as the methods of data analysis. The results revealed that debt to equity ratio has significant positive effect on return on capital employed, debt to capital employed ratio has negative influence on return on capital employed and equity to capital employed ratio has no influence on return on capital employed. Overall, capital structure has no significant effect (at 5% level) on firm performance. Based on the findings, the study recommended among others that the company should finance her activities with retained earnings and use debt as the last option as this is in agreement with the perking Order theory; that the indirect effect of capital structure on firm performance be analyzed by future researchers and that the company managers are advised to be extremely conscious in the use of debt financing as an option in their capital mix up to the optimal limits, as debt to equity ratio provides positive effect though not significant on performance.
Keywords: Capital, Debt, Equity, Firm, Performance, Returns, Structure, employed