Financial Reporting Quality and Shareholders’ Wealth Maximization: Evidence from listed Companies in Nigeria (Published)
A primary objective of shareholders’ equity investment is the expected returns. The level of returns depends largely on the operational and managerial competences and effectiveness of the managers as reflected in reported financial statements. However, the quality of financial reporting in some cases appears to be questionable. Consequent to this, this study investigated the effect of financial reporting quality on shareholders’ wealth maximization. The study population consisted of 173 listed companies on the Nigerian Stock Exchange, from which a sample of 10 companies were purposively selected based on the availability of complete and relevant data for a period of 10 years (2008-2017). Data were extracted from the published financial statements of the companies selected, while descriptive and panel data regression analyses were employed. The validity and reliability of the data were anchored on external auditors’ certification of the financial statements in line with statutory requirements. The study found that Shareholders’ wealth maximization was positively affected by the financial reporting quality (AdjR2 = 0.170; F(2, 98) = 41.96; p = 0.000). The individual effects of Earnings persistence (EPES) and Earnings smoothness (ESM) on Shareholder’s wealth maximization (SHWM) were negative and statistically insignificant (β = -0.044; t(100) = -0.483 ; p = 0.629; and β = -0.038; t(100) = -0.460; p = 0.645) respectively. The study recommended that managers should exercise high level of competence and effectiveness in managing the shareholder’s equity to ensure robust returns since this is key in attracting equity investments.
Keywords: Earning smoothing, Earnings persistence, Financial Reporting Quality., Managerial competence., Shareholders
Audit Committees: The Journey So Far In Nigeria (Review Completed - Accepted)
Before 1989, there was no issues of audit committee in Nigeria. In 1989 Professor Olowokure article titled a Case for Audit Committee in Nigeria was written drawing the attention of Government, Stakeholders for the use of Audit Committee in public companies in Nigeria. Hence this was captured in the CAMA 1990 as amended Section 359 (3), it then become very important in Nigeria. The importance have led to problematic issues which resulted to why the research is been carried out.
Keywords: Audit Committee, Board Of Directors, Corporate Governance, Shareholders
Corporate Governance, Shareholders Wealth Maximization and Tax Avoidance (Review Completed - Accepted)
Tax avoidance is a common problem among many nations I the word, especially the developing and third world countries. Most citizens see tax payment as very offensive, and seek all means to avoid tax liabilities. Nigeria is not exempted from this economic menace. In spite of the several tax holidays enjoyed by firms in Nigeria, most firms have resorted to creatively avoid tax under the disguise of shareholders wealth maximization. This act is seen by the researchers as a corporate governance factor because the provision of bonus schemes by shareholders for managers for abnormal wealth maximization had justified the act of tax avoidance in the Nigerian corporate world.
Keywords: Avoidance., Corporate Governance, Shareholders, Tax, Wealth Maximization