Nigeria

Herding Bias and Financial Risk Tolerance On Individual Investment Performance in Nigeria: Moderated by Financial Literacy (Published)

Prior studies have shown that various individuals’ behavioral traits such as herding bias and risk tolerance have an unfavorable effect on investors’ decision-making. This paper examined the moderating role of financial literacy on herding bias and financial risk tolerance on individual investment performance in Nigeria. The population consisted of 460 active individual investors in Kaduna city as at the first quarter of 2023. A total of 460 copies of questionnaires were distributed, with 349 valid. A census method of sampling was used, and primary data was collected using a self-administered questionnaire and an online Google form. A 7-point Likert scale that ranged from ‘1’ “Extremely Agree” to ‘7’ “Extremely Disagree” was used. Smart-PLS version 4 was used to analyze the data. The study discovered that the herding bias has a positive and significant effect on investment performance, whereas financial risk tolerance has an insignificant negative effect on investment performance. Financial literacy has a positive but insignificant impact on investment performance. Furthermore, the moderating effect of financial literacy demonstrated that the herding bias has a significant and positive impact on investment performance. Risk tolerance has a significant negative influence on investment performance. This study concluded that herding bias helps investors make better investment decisions, Consequently, the study recommends that investors should reduce their risk tolerance levels while maintaining the herding behavioral bias.

Keywords: Financial literacy, Nigeria, financial risk tolerance, herding bias, individual investment performance

The Role of Emotional Intelligence in Effective Leadership and Its Impact on Team Performance: A Study of the University of Ibadan, Nigeria (Published)

This study aimed to investigate the impact of emotional intelligence on leadership effectiveness in the University of Ibadan, Nigeria. The emotional intelligence model used in this study consisted of four sub-variables: self-emotion appraisal, others emotion appraisal, regulation of emotions, and use of emotions. The study found that emotional intelligence has a strong positive and significant relationship with leadership effectiveness. The results of the regression analysis showed that emotional intelligence positively relates to leadership effectiveness. The study concluded that emotional intelligence is an indicator of leadership effectiveness, and employees in the University of Ibadan, Nigeria are emotionally intelligent. Self-emotion appraisal and use of emotion were the most emotional intelligence factors impacting leadership effectiveness in the organization. On the other hand, emotion regulation seemed to be difficult to control, thus it’s the least factor in affecting leaders’ effectiveness. The findings further show that use of emotion accounts for more of the variance in leadership effectiveness. 

Keywords: Emotional Intelligence, Nigeria, University of Ibadan, effective leadership, team performance

Impact of Employee Engagement On Service Quality in Nigerian Public Agencies (Published)

This study investigates the connection between employee engagement and service quality in the Asset Management Company of Nigeria (AMCON), which is a key player in Nigeria’s financial sector. This study examines three key dimensions of employee engagement – absorption, vigor, and dedication – and their effects on service quality, specifically focusing on the responsiveness dimension of the SERVQUAL model. This study is important because there is a lack of representation of AMCON and similar institutions in the existing literature, particularly within the context of Nigeria’s unique financial landscape. This study utilized a mixed-methods approach that included quantitative surveys and qualitative interviews with AMCON employees. The analysis employed the SERVQUAL model to evaluate service quality and multiple regression analysis to explore the influence of each engagement dimension. The findings of this study are expected to contribute to a theoretical understanding of the impact of employee engagement on service quality within the asset management sector. Additionally, this study aims to provide practical insights for AMCON, potentially improving service delivery strategies and effectiveness in fulfilling its mandate. The broader implications of this study extend to similar asset management entities in emerging economies, providing a comparative perspective, and understanding of these dynamics in diverse economic and regulatory environments.

Keywords: Employee Engagement, Nigeria, Responsiveness, SERVQUAL-model., Service Quality, absorption, asset management company, dedication, vigor

Effect 0f Deficit Budget Financing Sources on Inflation Rate in Nigeria (Published)

The study examined the effect of deficit budget financing sources on inflation rate in Nigeria. External debt, Ways and Means Advances, and Treasury Bills were the independent variables of the study, while inflation rate was the dependent variable. The study adopted an ex-post-facto research design, covering the period between 2011 and 2020. Secondary data were extracted from the Central Bank of Nigeria Statistical Bulletin. Ordinary Least Square multiple regression technique was used for the data analysis. In line with the specific objectives of the study which is to ascertain the effect of external debt, ways and means advances, and treasury bills on inflation rate in Nigeria, it was revealed that external debt and treasury bills have a significant effect on inflation rate in Nigeria. Ways and means advances have a positive and significant effect on inflation rate in Nigeria. This implies that among the explanatory variables, ways and means advances is the major determinant of inflation rate in Nigeria. The study recommended therefore that government policies on inflation rate should factor in external debts because of their negative effect on inflation rate. external borrowing should be prudently used in productive activities that can raise investments, reduced inflation and improve the country’s exchange rate. The Government should drastically reduce the rate they borrow from CBN. Any of such borrowing should be targeted towards developing the economy and they should always maintain the credit limit set by the CBN. The government should reduce the number of treasury bills issued to the general populace. Other sources of deficit budget funding, such as privatization of obsolete government institutions, should be considered by the government.

 

Keywords: External Debt, Inflation Rate, Nigeria, Treasury Bills, ways and means advances

Predictors of Continuous Intention to Use Mobile Payment Platforms in a Typical Developing Economy Context: A Literature Review (Published)

This paper aims to review literature on the predictors of continuous intention to use mobile payment platforms in a typical developing economy context. Extant literatures reveal that the unified theory of use and technology is the most widely used theory to explain continuous intention behavior in financial technology marketing literature but few studies have extended the theory to accommodate other variables and investigate the nexus among these variables especially on continuous intention to use mobile platforms from a developing economy like Nigeria. Also, the existing frameworks and models developed in advanced economies may not be suitable for developing mobile payment platforms usage behavior in Nigeria because of its peculiarities. The major importance of this study is to review extant literature on continuous usage of mobile payment technology and make available a comprehensive and robust framework for prospective researchers in this area, which will guide and direct their studies. The framework is premised on five key constructs- performance expectancy, effort expectancy, social influence, facilitating condition, intrinsic motivation, price value and prior experience. More so, the proposed conceptual framework is capable of providing insight for developing financial technology-related policies.

Keywords: Developing Economy, Mobile payment platforms, Nigeria, financial technology, unified theory of use and acceptance of technology

Corporate Governance and Debt Financing of Listed Manufacturing Firms in Nigeria (Published)

The study assessed the relationship between corporate governance and capital structure of listed manufacturing firms in Nigeria. The study employed secondary data covering a period of 10 years (2012 – 2021) with sample of 28 listed manufacturing firms. The study obtained annual reports of listed firms from their respective websites and Nigerian Stock Exchange (NSE) Factbook. The data were analysed using pool ordinary least squared and fixed effect model estimation. The findings revealed a significant relationship between the corporate governance and debt financing of the listed manufacturing firms in Nigeria. Specifically, results show that corporate governance variables such as the board size ((t = 2.120 p < 0.05), the board composition (t= 9.288, p < 0.05) and CEO duality (t =2.306, p< 0.005) had positive and significant effect on use of debt funding of listed manufacturing firms in Nigeria. The study concluded that the practice of corporate governance contributes and play significant role in finance decision and enhanced financial performance in Nigeria. Therefore, policy maker should ensure a combination of some mandatory minimum rules and flexibility above the minimum level that will ensure effective financing decision by manufacturing firms in Nigeria.

Keywords: Corporate Governance, Debt, Financing, Manufacturing, Nigeria

Housing Inadequacy in Nigeria and Ramifications (Published)

This article critically analyses housing inadequacy in Nigeria and its effects. The study is exploratory in nature and used qualitative methodology. Key findings suggest that protests, informal settlements, health challenges, shack fires, flooding, violence and criminality, corruption and xenophobic attacks are the ramifications of housing inadequacy in Nigeria. This study used relevant review of literature, document and policy review, and a qualitative inquiry of secondary sources with regards to housing inadequacy in West Africa/ Nigeria and its ramifications to answer the research questions. Through the Federal Housing Authority, the government needs to engage the private sector, state-owned enterprises, States and Local Governments to unlock strategic parcels of land suitable for human settlements development, which provision, especially for low-income groups should be at subsidized rates. The country needs an efficient, formidable and incorruptible Ministry of Housing Development that is able to perform the huge task of spatial integration.

Keywords: Housing, Nigeria, West Africa, inadequacy

Nigeria’s Population Politics and Its Janus-Headed Implications: A Critical Analysis (Published)

The strength of a country is measured through certain indices, some of which are military strength, economy, geography, and population. However, the population can become a tricky indicator because of the possibility of its Janus-headed manifestations. This context is most relevant in countries experiencing population explosion without the natural and material resources to cope with it. The trend is particularly evident in Africa, particularly the Nigerian situation, where attempts at addressing the explosion through policy have failed, which further proves that the Nigerian population explosion is a typical Janus-headed scenario. There is no known research on this discourse as scholars either focussed on the factors that promote population growth or how it affects the economy, without examining the Janus-headed tricky indicator of population explosion which prompted this discourse. In this context, the research paper evaluates the Nigerian population explosion politics as a Janus –headed dilemma and seeks an answer to this question to this question: “Does Nigeria’s population provide opportunities or challenges”?

 

Keywords: Janus-headed dilemma, Nigeria, Population, population explosion

Money Market Instruments and Price Stability in Nigeria: 1981 – 2021 (Published)

The study examined money market instruments and price stability in Nigeria. The study specific objectives include to investigate the relationship between treasury bills, treasury certificates, development loans stock, bankers’ acceptance, commercial papers and federal government of Nigeria bonds on consumer price index in Nigeria. The study adopted purposive sampling technique and the sample size consist time series data from 1981 to 2021. The study used secondary data obtained from Central Bank of Nigeria (CBN) statistical bulletin and National Bureau of Statistics (NBS) and the data were analysed using univariate, bivariate and multivariate analysis. The findings from the error correction model indicated that  treasury bills negatively and insignificantly influence consumer price index in Nigeria; treasury certificates positively and significantly influence consumer price index in Nigeria; development stocks positively and significantly affects consumer price index in Nigeria; certificates of deposits positively and insignificantly influence consumer price index in Nigeria; commercial papers negatively and insignificantly influence consumer price index in Nigeria; bankers’ acceptance positively and significantly influence consumer price index in Nigeria and federal Government of Nigeria bonds positively and insignificantly impact on consumer price index in Nigeria. On the basis of the findings, the study concludes that money market instruments on the short and long run affects price stability in Nigeria. Hence, the study recommends amongst others that government should established effective and efficient stabilization policies and quality of public sector governance that would ensure that prices of goods and services and money market instruments are stable for sustainable economic growth of Nigeria.

Keywords: Money Market Instruments, Nigeria, Price Stability, Treasury Bills, Treasury Certificates

Dynamic Relationship Between External Financial Flows and Total Market Capitalization in The Nigerian Capital Market: VECM Approach (Published)

The study examines the extent to which external financial flows influence market capitalization of Nigerian capital market for the period spanning 1981-2020. The study employed the VECM, regressors’ and ECT t-statistics causality approaches to establish the strong, short-run and long-run relationships.  The study unveiled that all the external financial flows such as FDI, FPI, remittance and others used in this study have positive impacts on total annual market capitalization in the Nigerian capital market, especially in the long-run. The stock indices movement is respective to the change in external financial flows basic. The study suggested that the policy measures aimed at directing long run capital inflows should not be the same as those aimed at changing the short run patterns of flow. The study concludes that policy should be put in place to ensure the directions of both long run and short run financial flows have a suitable time rage.

Citation: Folorunsho T.O. and Odior E.S. (2023)   Dynamic Relationship Between External Financial Flows and Total Market Capitalization in The Nigerian Capital Market: VECM Approach, International Journal of Business and Management Review, Vol.11, No. 2, pp.1-28

Keywords: Nigeria, VECM, external financial, total market capitalization