Profitability

Fraud Prevention and Business Performance in Quoted Manufacturing Companies in Nigeria (Published)

The study focused on Fraud prevention as a dimension of Audit function on Business Profitability, effectiveness and Efficiency as measures of performance. Primary and secondary data were collected, sample size was thirty (32) quoted manufacturing companies. Pearson Product Moment Correlation powered by Statistical package for social sciences and QSR-NVIVO software aided the data analysis. The study found that the influence of fraud prevention is more positive and very significant on business profitability, than on effectiveness and business efficiency, which appears to have weak influence in the quoted manufacturing companies in Nigeria. Conclusively, the more stringent fraud prevention measures tends to be the more businesses will achieve higher growth in terms of profitability. It is recommended that firms should improve on the fraud prevention mechanism to track all dubious tendencies to avoid being defrauded.

Keywords: Fraud Prevention, Operational Effectiveness and Efficiency, Profitability

The Effect of Using Accounting Information Systems on the Quality of Accounting Information According to Users Perspective in Jordan (Published)

The main reason of this study is to examine the impact of Accounting information system on the on the quality of accounting information Design/methodology/approach – The study applies the quantitative method to collect the data by using structure questionnaire to extract the users opinions about how accounting information system effect the quality of accounting information, The researcher identified some criteria to understand the concept of “Accounting information system” and used qualitative characteristic (relevance, reliability, more comparability, understandability, consistency and neutrality) as a proxy to measure accounting information quality. Findings – The paper specify that all accounting information users believe the important role of accounting information system on the quality of accounting information and there is a strong effect between the two variables, which in turn have influence on users’ decisions, such as creditors, financial analysts and investors. Also the analysis result indicate the accounting information system have a significant influence on companies’ profitability, there is a strong relationship between the use of accounting information that resulted from accounting system and managerial efficiency, also the findings shows struggle of using accounting information, such as ownership cost, training cost and fighting renewal such as accounting systems.Practical implications – The results of the study have significant implications regarding users of financial statements. In particular, mangers and investors, the research validates that the importance of AIS in rationalizing the decision making. Originality/value – It is believed that there is no Jordanian study to date examining the impact of accounting information system on the quality of accounting information. Therefore, this study significantly contributes to the limited literature on the perceived the effect of accounting information system on quality of accounting information. Research limitations: The difficulty of using such studies depending on questionnaire in developing countries, such as Jordan, because they do not care about the results of the study.

Keywords: Accounting Information Quality, Accounting Information Systems, Decision- Making Process, Jordan, Profitability, Qualitative Characteristics

Assessing the Impact of Liquidity and Profitability Ratios on Growth of Profits in Pharmaceutical Firms in Nigeri (Published)

This paper assesses the impact of liquidity and profitability ratios on growth of profits in Pharmaceutical firms in Nigeria. Eight ratios: acid test, current ratio, net working Capital. Return on assets, returns on capital employed, returns on equity, gross profit ratio and net profit ratio were regressed against the dependent variable growth of profit. Haussmann test was conducted to choose between Fixed Effect and Random Effects model. Results justified the use of Fixed Effect model. Test results indicate significant contributions of all the variables to profit growth of pharmaceutical companies in Nigeria implying that continued improvement in the variables can lead to increases in growth of profit by the Pharmaceutical firms.

Keywords: Growth of Profit, Liquidity, Profitability, Return on Assets, Return on Capital Employed, Return on Equity, Working capital.

Impact Of Company Income Taxation On The Profitability Of Companies In Nigeria: A Study Of Nigerian Breweries. (Published)

This study ascertains the impact of taxation on the profitability of companies in Nigeria. The study used secondary sources of data and a time series econometric technique with an error correction model tested the variables most likely to impact on profitability of companies in Nigeria. The study revealed that the level of company tax has significant effect on the profitability, that company income tax (CIT) has significant effect on profitability. We conclude that the positive and significant relation between the profitability and the taxation explanatory variables indicates that policy measures to expand tax revenue through more effective tax administration will impact positively on growing the company’s profitability. It is therefore recommended that Government should expand the tax yield through improved tax system administration. This is because of the positive danger of over-reliance on crude oil export receipts to drive the economy. There should be more improve in the effectiveness of taxation by ensuring proper and equitable tax assessment and timely collection.

Keywords: Breweries, Economy, Income, Profitability, Tax

THE IMPACT OF HUMAN RESOURCE ACCOUNTING ON THE PROFITABILITY OF A FIRM: EMPIRICAL EVIDENCE FROM ACCESS BANK OF NIGERIA PLC (Published)

The crux of the study was to examine the impact of human resource accounting on the profitability of Access Bank of Nigeria Plc, from 2003 to 2012. Using the ordinary least square analytical technique, secondary data from Access Bank of Nigeria Plc were obtained. Findings revealed that there is a positive relationship between the indicators of human resource cost (training cost, development cost and number of staff) and the profit of the organization (Access Bank Plc). It was also discovered that there was a significant relationship between training cost, development cost and the profit of the bank. However, the number of staff does not have a significant effect on profit of the bank. Nonetheless, organizational performance is dependent upon the performance of the individuals that make up the organization. That is, organization does not exist in a vacuum; there are people (employees) who may work together towards achieving its goal. It was therefore recommended inter alia that; organization should enhance the retention of education and training on staff so as to avert wastage of knowledgeable investment. Also, accounting standard board should incorporate their accounting standard for the valuation and disclosure of human resource accounting.

Keywords: Development costs, Human Resource Accounting, Profitability, Staff training costs, number of staff

EFFECTIVE WORKING CAPITAL MANAGEMENT AND THE PROFITABILITY OF QUOTED BANKS IN NIGERIA (Published)

This study examines the effects of working capital management on the profitability of Deposit Money Banks (DMBs) quoted on the Nigerian Stock Exchange for single period of year 2013. The paper adopts Returns on Equity (ROE) and Returns on Assets (ROA) as dependent variables for profitability while Current ratio (CRR), Profit before taxation to current liabilities (PCL), Operating cash flow to current liabilities (OCL) and Cash balance to total liabilities (CTL) are proxies for working capital and as well independent variables. The annual account and report of all the eleven banks quoted on the Nigerian Stock exchange as at 2013 served as the sources of data, regression was used to determine the relationship between the dependent and the independent variables, and the study finds that significant and positive relationship exist between the working capital management and the profitability of the DMBs in Nigeria. The findings indicate that the two profitability proxies are positively affected by all the elements of working capital management. The paper noted variety of components of working capital and profitability; this therefore means that banks are to ensure that appropriate management of working capital is essential for achieving its objective of maximizing the profitability.

Keywords: Deposit Money Banks, Profitability, Working Capital Management

AN EMPIRICAL ANALYSIS OF PRE AND POST MERGER OR ACQUISITION IMPACT ON FINANCIAL PERFORMANCE: A CASE STUDY OF PAKISTAN TELECOMMUNICATION LIMITED (Published)

The research of this study is to define the objectivity of merger and acquisition impact in pre and post scenario of the event. The study has played with two parts, the first part of the study implement regression model with the help of accounting ratios of profitability and long term financial position ratios with score of bankruptcy. The second part of the study just analyzes the pre and post financial ratios and its trend over the period of time. The time period taken for the selected company PTCL is from 2003 to 2009, which covers the event. The results of first part of the study has shown that profitability and long term financial position of the company is producing a strong positive impact on the firm score of bankruptcy. The second part of financial ratio has seen that after acquisition the profitability of has declined significantly and it has affected the score of the bankruptcy i.e. Z-Score. The overall long term financial position is neither improved nor declined. It has shown a constant trend over the period of time in which the data is taken. It has been conclude that performance of PTCL has not improved over the period of time

Keywords: Acquisition, Bankruptcy, Long Term Financial Position, Merger, PTCL, Profitability, Regression, Z Score

THE IMPACT OF MACROECONOMIC VARIABLES ON THE PROFITABILITY OF LISTED COMMERCIAL BANKS IN NIGERIA (Published)

Due to the immense contribution of commercial banks to the economic development in Nigeria, this research investigate the impact of macroeconomic variables on profitability of banks in Nigeria from 1990-2013. Pooled Ordinary least method is used to determine the effect of three major factors; gross domestic product (GDP), interest rate (INTR) and inflation (INFR) on return on equity (ROE) which proxies’ profitability. The findings from the empirical point of view show a positive relationship of gross domestic product (GDP) with return on equity (ROE). Interest rate and inflation rate have a negative relationship with return on equity (ROE). Gross domestic product have a significant positive effect on Return on equity(ROE) while interest rate have a significant negative effect on return on equity(ROE) but inflation is not significant at all levels of significance.

Keywords: Commercial Banks in Nigeria, Macroeconomic Variable, Profitability

ACCOUNTS RECEIVABLE MANAGEMENT AND CORPORATE PERFORMANCE OF COMPANIES IN THE FOOD & BEVERAGE INDUSTRY: EVIDENCE FROM NIGERIA (Published)

Receivable management is an important fact of financial management. Their accurate monitoring and proper management are also important dimensions in organization. This study examines the impact of receivables management on profitability of food and beverages manufacturing companies in Nigeria. The variables include, accounts receivable, debt and sales growth. Secondary sources of data were used for the period 2000-2011. The hypotheses were analyzed using the multiple regression analytical tools. The findings show that accounts receivable had negative and non-significant relationship with profitability, while debt had positive but non-significant relationship with profitability of food and beverages manufacturing companies in Nigeria. Finally, sales growth also had positive and non-significant relationship with profitability.

Keywords: Generalized Multiple Regression, Profitability, Receivables Management

EFFECT OF STRATEGIC MARKETING OF FINANCIAL SERVICES ON ORGANIZATION PERFORMANCE (Published)

This study focuses on the effect of strategic marketing of financial services on organization performance. The primary purpose of this study is to focus on the relationship between marketing strategies and banks performance. The research design adopted for this study was survey research design in which a sample was selected at random amongst the population of the study and used as respondents for the study. Questionnaires were used as an instrument of primary data collection. Stratified random sampling was used to select the sample. Simple percentages and frequency distributions together with Spearman’s rank correlation coefficient were used to analyze the data. The result of this study reveals that there is a significant positive relationship between the financial marketing services and profitability of First Bank of Nigeria Plc. Therefore, it is recommended that Banks should remove the communication gap that currently exists between the banks and their customers as most customers are not aware of the services rendered by their banks. Information can be provided through brochures, pamphlets, circular, adverts etc. The banks should devise ways of making it easy for customers to obtain information from banks.

Keywords: Financial Services, Marketing, Organization, Performance, Profitability, Strategic