Corporate Governance and Market Value of Listed Manufacturing Firms in Nigeria (Published)
This paper examined the level of corporate governance compliance and its effect on the market value of listed manufacturing firms in Nigeria. The study adopted descriptive survey research design and used secondary data. The population of the study comprised of 78 listed manufacturing firms on the Nigeria Stock Exchange at the end of 2018. Using purposive sampling techniques, relevant data were obtained from 56 firms whose stocks were traded consistently on the stock market. Corporate governance practices and all other relevant economic data were obtained from the firm’s annual reports, the publication of the Nigeria Stock Exchange (NSE) as well as the website of the firms. The data were analyzed using tables, percentages and random effect estimation. The empirical and significant relationship between corporate governance index (t = 10.680 p < 0.001, t = 13.682 p < 0.001, and t = 11.206 p < 0.001) and firms’ value are found to be positive and highly significant in the three estimations. The study concluded that corporate governance is a value driver. The extended findings from the study also indicated that corporate governance mechanisms put in place by firms can ensure financial transparency and serve as catalyst towards ensuring proper utilization of the capital contributed to the firm by its inventors
Keywords: Corporate Governance, Tobin's Q
Audit Committee Characteristics and Financial Performance: A study of Listed Non-Financial Companies in Nigeria (Published)
This study examines the impact of audit committee characteristics (AC) on financial performance of listed non-financial companies in Nigeria from 2013-2020. A sample of seventy-six (76) companies listed as non-financial was drawn from the population of one hundred and thirteen (113) companies. Audited annual reports and accounts were used for data extraction. The analysis was done using descriptive statistics and multiple regressions. Explanatory research designed was adopted in the study to find out the impact of AC on financial performance. Variables used include AC proxy by ACIND, ACS and ACM as the proxies for independent variable and financial performances’ accounting and market based measures proxy by EPS and Tobin’s Q was used as the dependent variable. Robustness tests such as multicollonearity test, heteroscedasticity test, normality test and hausman specification test were conducted to validate the results. The study revealed that there is negative significant relationship ACIND and EPS, TQ and ACS has a significant relationship with EPS positively while a negative with TQ and lastly, ACM reported a positive significant relationship with EPS and a positive but not significant with TQ of listed Non-financial companies in Nigeria during the study period. Based the on the findings of the study, the study recommends that the management of the listed non-financial companies in Nigeria should ensure that AC should be made more effective by ensuring that members are made up of independent non-executive directors and the size of the AC should be optimal and lastly ensure that AC meetings are to be tailored towards relevant issues that enhance financial performance of the firm.
Keywords: Audit Committee, Board size, EPS, Tobin's Q, firm leverage, firm size
Environmental Disclosure and Financial Performance of Listed Non-Financial Companies in Nigeria (Published)
Citation: Junaidu Muhammad Kurawa and Kabiru Shuaibu (2022)Environmental Disclosure and Financial Performance of Listed Non-Financial Companies in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 2, pp.31-51
This study examines the influence of environmental disclosure (ED) on financial performance of listed non-financial companies in Nigeria from 2013-2020. A sample of seventy-six (76) companies listed as non-financial was drawn from the population of one hundred and thirteen (113) companies. Audited annual reports and accounts were used for data extraction. The analysis was done using descriptive statistics and multiple regressions. Explanatory research designed was adopted in the study to find out the influence of ED on financial performance. Variables used include the ED measured using ordinal coding scheme based on GRI guidelines (G4) focusing on environmental prevention expenditure disclosure(EN40), Waste disposal, emission treatment and remediation cost disclosure (EN41), Prevention and environmental management cost disclosure (EN 41) used as proxies for independent variable and financial performances’ accounting and market based measures proxy by earnings per share and Tobin’s Q was used as the dependent variable. Robustness tests such as multicollonearity test, heteroscedasticity test, normality test and Hausman specification test were conducted to validate the results. The study revealed that there is positive significant relationship between EPED, WDCD, PMCD and EPS while negative with TQ of listed Nigerian non-financial companies. The study therefore, recommends that the management of listed non-financial companies in Nigeria should create awareness on the importance of EPED, WDCD, PMCD and the other benefit that can be derived by a company and investors as a result of engaging in environmental activities as this may create good relationship between the company and the environment and consequently will improve financial performance. And also professional accounting bodies in Nigeria like the ICAN and the ANAN should key into introducing environmental and sustainability reporting into their mandatory professional education programs as this is a contemporary issue in accounting development this will help accountants to be trained on environmental accounting and reporting.
Keywords: Board size, EPS, Environmental Disclosure, Tobin's Q, firm leverage, firm size
Financial Ratios and Firm’s Value in Bahrain Bourse (Review Completed - Accepted)
This paper attempts to measure how financial ratios explain the firms’ value through price earnings ratio or market to book ratio in the Bahrain Bourse. All listed companies in Bahrain Bourse, with the exception of the closed ones, are used over the period of 1995 to 2013. Using all the main categories in financial ratios such as profitability, liquidity, efficiency and debt, the paper founds that return on assets (ROA) is the most determinant factor in explaining the market value followed by financial leverage and beta. Furthermore, the findings revealed that size of the firm also has a significant effect on the market value. Size of the firm is measured through total assets and Tobin’s Q ratio. In this respect, investors perceive different signals from small firms compared to large ones, and from growth firms compared to no-growth firms. On the sector analysis, it is found that ROA is the main determinant factor for explaining the value of the firm
Keywords: : Bahrain Bourse, Financial Ratios, Firm Value, Size and Sector Effect, Tobin's Q