Corporate Governance and Financial Performance of Listed Consumer Goods Firms in Nigeria (Published)
The study investigated corporate governance and financial performance of listed consumer goods firms in Nigeria. The specific objectives of the study were to examine the relationship between board size, board independence, board meetings, and return on assets of consumer goods firms in Nigeria. The study adopted ex-post facto research design and secondary data were extracted from the annual reports of sampled consumer goods firms for the period 2013 – 2022. Correlation technique was used for the test of hypotheses. Findings showed that, board size does not have a strong relationship with return on assets (ROA) of listed consumer goods firms in Nigeria with correlation coefficient of -0.3815. On the other hand, board independence does not have a strong relationship with return on assets (ROA) of listed consumer goods firms in Nigeria with correlation coefficient of 0.2753. However, board meetings do not have a strong relationship with return on assets (ROA) of listed consumer goods firms in Nigeria with correlation coefficient of -0.3904. This implies that none of the corporate governance mechanism studied can be influence return on assets of consumer goods firms in Nigeria. The study recommended that rather than solely increasing board size, consumer goods firms should prioritize diversity and the expertise of board members. Directors should possess skills and experience that align with the industry’s specific needs. Achieving a balance between independent and non-independent directors is crucial. While board independence is important for governance, it should not impede industry-specific knowledge. Companies should strengthen board oversight mechanisms, utilizing robust audit committees and reporting structures to maintain independence while promoting industry expertise. The focus should be on the quality of board meetings rather than a specific number.
Keywords: Board Meetings, Board independence, Board size, Return on Assets, consumer goods firms
Capital Structure and Financial Performance of Quoted Manufacturing Firms in Nigeria (Published)
There is a divide of view on the relationship between capital structure and corporate financial performance. This study explored the effects of capital structure on financial performance of quoted manufacturing firms in Nigeria. The study used panel least square multiple regression to examine secondary data gathered from the 14 sampled organizations’ financial statements from 2011 to 2020. The null hypothesis that there is no statistically significant link between total-debt-to-total-equity and return on assets of manufacturing entities in Nigeria was accepted. The study rejected the second hypothesis relating to long-term-debt -to-total-assets. The study recommended that management of manufacturing corporations that are active on the stock market should strive to increase their long-term-debt-to-total-assets so as to improve their business operations and by extension, their financial performance. The study established that there is a beneficial link between capital structure and financial performance of manufacturing companies.
Citation: Akinrinola, O.O., Tomori, O.G., Audu, S.I. (2023) Capital Structure and Financial Performance of Quoted Manufacturing Firms in Nigeria, International Journal of Business and Management Review, Vol.11, No. 2, pp.29-47
Keywords: Capital Structure, Financial Performance, Manufacturing Firms, Return on Assets
Dividend Policy and Profitability of Agro Allied Companies in Nigeria (Published)
This study assesses the effect of dividend policy on the profitability of listed agro-allied companies in Nigeria. The population of the study consists of five (5) listed agro-allied companies on the Nigerian Stock Exchange as at 31/12/2018. All the listed agro-allied firms were used due to the small sample size. Secondary data were collected from the sampled firms through their published audited financial statements for 14 years ranging from 2005-2018. The ex-post facto research design was adopted with regression and descriptive analysis to determine the effect of explanatory variables. The results show that the return on assets has a positive and significant effect on dividend policy of listed agro-allied companies in Nigeria, while return on equity has a negative and significant effect on dividend policy of listed agro-allied companies in Nigeria but earnings per share have a negative and insignificant effect on dividend policy of listed agro-allied companies in Nigeria. Based on the findings, the study concludes that the dividend policy has the probability of influencing the profitability of listed agro-allied companies in Nigeria. The study, therefore, recommends that firms should adopt policy and strategy on efficient use of company assets that would enable them to generate profits to meet up with dividends payment regularly to attracts more investors. This is because investors assume that a firm which pays dividend regularly is evidence that a company is healthy financially.
Keywords: Dividend Payout Ratio, Return on Assets, Return on Equity, and dividend retention ratio., earning per share
Corporate Governance and Return on Assets of Quoted Banks in Nigeria (Published)
This study examined the influence of corporate governance on return on assets of quoted banks in Nigeria. The study used secondary data from 2013 to 2017.Data sourced from selected Annual Report and Accounts of three Quoted banks by the Nigerian Stock Exchange. The study utilised both Descriptive Statistics and Ordinary Least Square-Multiple Regression method with the aid of using E-view 9 to analyse the data. The results shown that, the corporate governance has significant influence on return on assets as (F-statistics = 23.46, P <0.05). The results further indicate that, the proportion of shareholders more than 10,001 share, board of composition size and bank size exerts a positive and considerable relevance to return on assets of quoted banks in Nigeria and bank size has significant influenced on return on assets with (β=2.09, t=3.94, p<0.05). Findings suggest that board of directors size of quoted banks in Nigeria should not be too large and must be meeting regularly to effectively and efficiently carry out their oversight functions and responsibilities
Keywords: Banks’, Corporate Governance, Multiple Regressions, Nigeria, Return on Assets
Managerial and Controlling Ownership, Profitability, Firm Size and Financial Leverage in Nigeria (Published)
An ordinary least squares regression test of sample of firms in manufacturing and services industries sorted into overall, low and high managerial and controlling interests (MCOWN), shows financial leverage (FL) as an increasing (decreasing) function of MCOWN, for firms with low (high) MCOWN and service (manufacturing) industry, and negatively (positively) related to profitability and size for firms with high (low) MCOWN. Result suggests increasing (decreasing) use of debt capital when MCOWN is low (high) and that the higher (lower) the MCOWN, the greater (lesser) the agency cost contradicting the notion that FL is a governance mechanism that mitigates agency problem
Keywords: Return on Assets, Return on Equity, convergence of interest hypothesis, entrenchment of interest hypothesis, free cash flow theory, managerial and controlling interest hypothesis