Firm Size and Revenue Reserve of Agricultural Firms in Nigeria (Published)
The study evaluated the effect of firm size on the revenue reserve of agricultural firms in Nigeria. The objectives of the study were to ascertain the effect of total assets, turnover, and the number of employees on revenue reserve of agricultural firms in Nigeria. The study adopted an ex-post-facto research design, covering the period between 2012 and 2021. Secondary data were extracted from the annual reports and accounts of the sampled agricultural firms in Nigeria. A multiple regression technique was used for the data analysis. From the analysis of the study, it was revealed that total asset has a statistically nonsignificant negative effect on retained earnings of agricultural firms in Nigeria with a regression coefficient of -1.153966 and a P-value of 0.7517. However, turnover has a statistically significant positive effect on retained earnings of agricultural firms in Nigeria with a regression coefficient of 4.772568 and a P-value of 0.0002. In line with the findings on turnover, number of employees has a statistically significant positive effect on retained earnings of agricultural firms in Nigeria with a regression coefficient of 8.693119 and a P-value of 0.0440. This implies that firm size has a significant effect on retained earnings of agricultural firms in Nigeria. It was recommended therefore that agricultural firms in Nigeria should manage the trade-off between acquiring assets with the profit for the year and retaining for investment in other operations of the business such as wages and salaries and other overheads. They should engage in promotions and other programmes that will encourage customers to buy their products. This will increase their turnover and subsequently increase their Retained Earnings. Agricultural businesses require manpower, hence they should ensure that they have enough staff to enable them to carry out their business activities effectively which will guarantee profitability and maximum retained earnings.
Keywords: Agricultural Firms, Number of Employees, Revenue Reserve, Total Assets, Turnover, firm size, retained earnings
Effect of Capital Structure on Financial Performance of Quoted Manufacturing Companies in Nigeria (Published)
Capital structure is a mixture of the financing options a company uses to finance its investments. However, deciding on an optimal capital mix has been a huge task for most manufacturing companies. This paper therefore examined the effect of capital structure on financial performance of quoted manufacturing companies in Nigeria. The study covered ten companies for a period of seven years from 2013 to 2019. Panel data analysis was used to test the hypothesis. The independent variables used are total debt to total asset ratio (TDTAR), long-term debt to total assets (LDTAR), short-term debt to total assets (SDTAR) and total debt to total equity (TDTER) while the dependent variables are return on asset (ROA) and return on equity (ROE). The results of the study showed that SDTAR and LDTAR have positive but insignificant effects on ROA, and TDTAR has a negative significant effect on ROA and ROE respectively. Also, TDTAR and TDTER have negative insignificant effect on ROE. The study concluded that SDTAR, LDTAR, TDTER have no significant effect on ROA and ROE but TDTAR have effect on ROA. This study therefore recommended that firms should be cautious in accumulating debt that could eventually have adverse effects on their value and financial performance.
Keywords: Capital Structure, Return on Assets, Return on Equity, Total Assets, total debts
Capital Structure and Earnings per Shares in Listed Conglomerates in Nigeria (Published)
This research work studied the effect of capital structure on earnings per shares of listed conglomerate firms in Nigeria. The objective of the study was to examine the effect of between Capital Structure and Earnings per Share of Conglomerate Firms in Nigeria. The secondary data are obtained from annual reports of companies, relevant literatures and Nigerian Stock Exchange Fact Books. The multiple regression analysis i.e Ordinary least square (OLS) was used to test the relationship between Capital Structure Indicators; Ratio of Total Debt to Equity (TDE), Ratio of Short Term Debt to Total Assets (STDTA) and Ratio of Long term Debt to Total Assets (LTDTA) and Firms’ financial performance indicator; Earnings per Shares (EPS). The result shows that all Capital Structure indicators have significant impact on the performance of firms. The study concluded that a well configured capital structure management function plays a vital role on the level of profitability of the conglomerate firms. The study then recommends that Nigerian firms should try to match their high market performance with real activities that can help make the market performance reflect on their internal growth and accounting performance.
Keywords: Capital Structure, Earnings per share, Total Assets, conglomerates, total debt.
Determinants of Loan Loss Provisions of Commercial Banks in Nepal (Published)
This study aims to derive determinants of loan loss provisions (LLPs) of commercial banks in Nepal using pooled data of ten commercial banks with the 50 observations over the period of 2012/13 to 2016/17. The descriptive and causal comparative research designs have been adopted for the study. The need for this research is due to failures in the loan loss provisioning practices which resulted in loan loss provisions (LLP) not reflecting on collectability of the defaulted loans. As a consequence, the banks do not capture their loss expectations and do not continuously reassess their loss expectations as the conditions affecting their borrowers may change. The study has been used loan loss provision on total assets as dependent variables and natural logarithm of total assets, total loan to total assets ratio, nonperforming loan to total assets ratio, earnings before taxes and provisions to total assets, capital adequacy ratio, loan to deposit ratio taken as independent variables. The estimated regression model reveals that nonperforming loan ratio (NPL) and loan to deposit ratio are significant positive impact of loan loss provisions. This study concluded that nonperforming loan ratio (NPL) and loan to deposit ratio are the mainly determinants of loan loss provisions of commercial banks in Nepal.
Keywords: Capital Adequacy Ratio, Earnings Before Taxes, Loan Loss Provisions, Loan to Deposit Ratio, Nonperforming Loan, Provisions, Total Assets