Companies In Nigeria Research Articles

Moderating Effect of External Monitory Mechanism on The Relationship Between Earnings Management and Profitability of Listed Petroleum Marketing Companies in Nigeria

This study investigates the relationship between earnings management and profitability of listed petroleum marketing companies in Nigeria and the moderating influence of external monitoring methods. Data for the years 2012 to 2022 were taken out of the sampled companies' annual reports. The results from the GMM estimator showed that the discretionary accrual, as well as the interaction between audit firm size and discretionary, have a significant impact on gross profit margin respectively. According to the study's findings, auditors are aware of earnings management, but they are far more concerned about it when their choices result in inflated rather than understated earnings. The likelihood of receiving a qualified audit report was unaffected by the interplay between audit firm size and discretionary accrual. However, this does not imply that auditors are ignorant of earnings management. The report suggests that methods for the quick detection of earnings management techniques be adopted to decrease the negative impact of earnings management on the profitability of listed petroleum marketing enterprises in Nigeria.

Risk management in the oil and gas sector: management of government equities in the Nigeria oil and gas sector

Petroleum is a gift of nature deposited under the earth’s surface. The ‘black gold’ as it is generally called, is viewed as a treasure that has the capabilities of transforming the social and economic fortunes of any country. This study explores risk management in Nigeria oil and gas sector with reference to management of government equities in the Nigerian oil and gas sector. A survey design was used for the study. By means of questionnaire, primary data was obtained from randomly selected members of the sampled organisations. The research hypotheses were subjected to chi-square analysis. Analysis was based on fifty-three copies of questionnaire filled and retrieved out of seventy-five questionnaires administered to employees of NNPC, NLNG and Shell companies in Nigeria. Findings from the study revealed some deficiencies in the way government equities in the Nigerian oil and gas sector are being managed, such lapses include government undue interference, lack of transparency, absence of established positive culture and too much bureaucracy. The study concludes that the Nigerian government equities in the oil and gas sector are not effectively managed; the fiscal policy in Nigeria’s oil and gas sector is inadequate; NNPC as presently constituted is not managing government equities invested in oil and gas JV agreements. Among the recommendations of the study include: the government should monitor returns on equities in the oil and gas sector in Nigeria; the government and stakeholders need the establishment a good culture and practice to ensure profitable ownership and collaboration.

The Impact of External Environment, Organizational Structure, People and Technology on Performance of FMCG Companies in Nigeria

This study investigates how the external environment, organizational structure, people, and technology impact the performance of Fast-Moving Consumer Goods (FMCG) companies in Nigeria. A quantitative approach surveyed 291 top-level managers from a population of 1207, employing a structured questionnaire and statistical analysis via SPSS, focusing on linear regression to evaluate the relationships between variables. The results indicate that all four factors significantly and positively influence organizational performance. Specifically, a decentralized and adaptive organizational structure and a dynamic external environment were strong predictors of improved performance, aligning with contingency theory principles. The findings also emphasize the importance of human resources; effective HR management practices, especially within a supportive and flexible organizational context, markedly enhance performance. Technology, while positively affecting performance, shows optimal impact when aligned with organizational structures that effectively integrate technological innovations. In conclusion, the study emphasizes the critical role of aligning external environment, organizational structure, people, and technology to boost organizational performance. Implications highlight the need for FMCG firms to adopt decentralized, adaptive structures and integrate strategic HR practices. Technological investments should align with organizational changes to maximize benefits. Recommendations include fostering adaptive structures, strategically integrating HR practices, aligning technology with organizational frameworks, and continuously adjusting organizational strategies to external environmental dynamics for sustained competitive advantage.

Mandatory and voluntary segment disclosures of listed companies in Nigeria: A recursive transition matrix analysis

Mandatory and voluntary segment disclosures of listed companies in Nigeria: A recursive transition matrix analysis

Effect of Inflation Rates on The Financial Performance and Sustainability of Public Healthcare Companies in Nigeria

This study investigates how inflation affects public healthcare companies’ financial performance and sustainability in Nigeria and suggests measures to make them more resilient in an inflationary climate. A quantitative research design was adopted. Data for the corporate performance were extracted from the annual accounts of the sampled firms. In contrast, the data for independent variables were extracted from the Central Bank of Nigerian Statistical Bulletin from 2012 to 2022. The Cost-push inflation theory was adopted. The Pearson Moment of correlation and regression analysis coefficient was employed to test the hypotheses. The result revealed specifically that the inflation rate has an adverse insignificant effect on financial performance. In contrast, the exchange rate and money supply have negative and positive statistical significance on healthcare firms' economic performance in Nigeria. However, the overall result showed that macroeconomics significantly affects the financial performance of public healthcare firms in Nigeria, indicating that inflation rate conditions substantially decrease and increase the effect on the performance of firms in Nigeria. Based on the findings, the study concluded that the inflation rate was not significant and therefore recommended that the government ensure that inflation has a pleasing effect on the public healthcare organisation’s operations and outcomes, as preventing inflation positively affects individuals, agencies and the country’s financial system. The findings of this study will enlighten policymakers, healthcare providers, and stakeholders about the sector’s specific issues and offer evidence-based recommendations to alleviate the detrimental impacts of inflation.

Logistics Risk Management and Delivery Performance of International Shipping Companies in South-West Nigeria

This study examined logistics risk management and delivery performance of international shipping companies in South-West Nigeria. The correlational research design and the positivist research philosophy were applied in this study. The population of this study consisted of 12 international shipping companies in South-West Nigeria. The census sampling technique was adopted where all the members of the population were studied. The sampling units consisted of managers of international shipping companies in South-West Nigeria. The instrument for data collection was the questionnaire which was structured on a point rating scale. The data collected via the questionnaire were analyzed statistically while the hypotheses were tested using Spearman Rank Order Correlation Coefficient (rho). The SPSS version 24 was used to correlate the data collected on the study variables. The findings revealed that transportation risk management has a significant relationship with accurate delivery of international shipping companies. This study also reported a significant relationship between transportation risk management and on-time delivery of international shipping companies. The study equally revealed that warehousing risk management has a significant relationship with accurate delivery of international shipping companies. The study also found a significant relationship between warehousing risk management and on-time delivery of international shipping companies. Therefore, it was concluded that logistics risk management, such as transportation and warehousing risk management, significantly improve delivery performance of international shipping companies in South-West Nigeria. Hence, it was recommended that international shipping companies in Nigeria should manage their logistics risks effectively as it would enhance their delivery performance.

Audit Committee Attributes and Financial Performance of Listed Industrial Goods Companies in Nigeria

The study examined the impact of audit committee attributes on financial performance of listed industrial goods companies in Nigeria to the period of 2013-2022. This study adopted an ex post facto research design. Secondary data was extracted from the sample companies' annual reports and financial statements. Multiple regression analysis (GLS) was used as the technique of data analysis. The results showed that out of all the measures of audit committee attributes studied, only AC size and AC meetings have positive coefficients and significantly influence listed industrial firms’ financial performance. AC size found to be an effective corporate governance mechanism that could improve the financial performance of the listed industrial firms. The study therefore recommends a more robust regulation on audit committee attributes and ensures that the size of the audit committee is an important consideration in ensuring effective governance and oversight, ensure that the audit committee is composed of independent members who are not directly involved in the day-to-day operations of the company it is generally recommended that audit committees meet regularly to fulfil their oversight responsibilities effectively

Effect of Inflation (With CPI, Interest Rate and Money Supply as the Proxies for Inflation) on the Financial Performance of Consumer Goods Companies in Nigeria- Nestle Nigeria Case Study

Abstract: This study examines the impact of inflation on the financial performance of consumer goods companies in Nigeria, focusing on Nestle Nigeria from 2000 to 2023. Employing descriptive statistics, correlation analysis, and hypothesis testing, the research investigates the relationships between key financial metrics, including Return on Equity (ROE), Consumer Price Index (CPI), interest rates, and money supply. The analysis reveals a significant negative correlation between inflation and profitability, highlighting the adverse effects of rising inflation on operational costs and financial outcomes. Additionally, a positive correlation between interest rates and ROE suggests that strategic financial planning can mitigate some inflationary pressures. The findings confirm that inflation significantly affects profitability and pricing strategies, although its impact on cost structure is less pronounced. This study offers valuable insights for policymakers and corporate managers, emphasizing the importance of robust cost management, financial risk mitigation, and adaptive pricing strategies to navigate economic volatility in Nigeria’s consumer goods sector. Future research is recommended to further explore these complex dynamics and their implications for corporate strategies in varying economic settings.

Impact of Greenhouse Gas Characteristics Disclosure on the Market Value of Oil and Gas Companies in Nigeria

This study examines the impact of emissions, effluents, and waste management disclosures on the market value of oil and gas firms in Nigeria. Specifically, it aims to evaluate the effects of emissions and effluents disclosure and waste management disclosure on the market capitalisation of these firms. The population of the study is made up of nine (9) publicly oil and gas companies listed on the Nigerian Exchange Group (NGX) as at December 31, 2023. The purposive sampling technique was used to select five (5) of the companies that provide substantial environmental disclosures in their annual reports. Data, covering the period 2015-2023, were collected from the NGX Fact Book and annual reports of the companies selected. The paper employed descriptive statistics to present data characteristics while correlation analysis explored the relationships between environmental disclosures and market value. To assess how these disclosures predict market value, multivariate regression analysis was conducted. The statistical analysis was performed using Jamovi software (Version 2.3.28). The findings indicate that emissions and effluents disclosure has a negative and statistically insignificant effect on market value while waste management disclosure had a positive and significant effect on market value The study concludes that emissions and effluent disclosures is insignificant, while waste management disclosures significantly boost market value in Nigerian oil and gas companies. This study contributes to the literature on environmental disclosures in Nigeria's oil and gas sector, and recommends improved transparency in reporting practices to enhance market competitiveness.

Effect of Capital and Ownership Structure on Financial Performance of Listed Information and Communication Technology Firms in Nigeria

Abstract: The study examines how different types of capital ownership affect the financial performance of publicly traded IT companies. The study also examined the relationships and effects among the selected variables. The study looked at the firm's debt-to-equity ratio, total debt-to-asset ratio, long-term debt-to-asset ratio, and short-term debt ratio. The firm's financial performance was the dependent variable. It also looked at managerial, institutional, and foreign ownership. We considered an ex-post facto research design appropriate for the study, which focused on the ten years' annual financial reports of the listed information and communication technology firms (2014-2023). The data analysis employed the multiple regression technique, panel data analysis with fixed effects, random effects, and pooled ordinary least square models. It was found that the capital and ownership structure of listed ICT companies in Nigeria have a big impact on their financial performance (FV=18.20, P<0.05; FV=7.9571, P<0.05; FV=11.7298, P<0.05; FV=12.852, P<0.05). The study concluded that capital and ownership structures are potent factors affecting the financial performance of listed ICT firms in Nigeria. The study suggests that listed ICT companies should let managers buy shares. This will encourage them to carefully handle debt to lower risks and use debt capital wisely in projects that will improve the business's long-term value and financial performance.

Ownership Structure and Financial Reporting Quality of Listed Consumers Goods Companies in Nigeria

This study examines the impact of ownership structure on financial reporting quality in Nigeria’s listed consumer goods companies. It focuses on managerial ownership, institutional ownership, and ownership concentration. Using an ex-post facto and correlational design, the study analyses secondary data sourced from annual reports of 15 out of 20 consumer goods companies in Nigeria, selected based on availability of data and age of listing, over a ten-year period (2012-2021). The Modified Jones model is applied to assess financial reporting quality through discretionary accruals. Data was analysed using panel regression. The results show that managerial and institutional ownership have negative but non-significant effects on reporting quality, while ownership concentration has a positive, though also non-significant, effect. The study concludes that while managerial and institutional ownership do not significantly affect reporting quality, ownership concentration shows a potential positive influence. It recommends optimising managerial ownership, leveraging institutional investors' monitoring role, and strengthening governance for firms with high ownership concentration to improve financial reporting quality.

Effect of Working Capital Components on Profitability in Selected Food and Beverage Companies in Nigeria

Effect of Working Capital Components on Profitability in Selected Food and Beverage Companies in Nigeria

Supply Chain Management and Consumer Loyalty of Selected Indigenous Automobile Companies in Nigeria

This study examines Supply Chain Management (SCM) and the consumer loyalty of indigenous automobile companies in Nigeria which is the home-grown car industry. The research follows a positivist philosophy that uses a descriptive survey methodology to obtain data from 273 Ministries Departments and Agencies (MDAs) that have been using indigenous automobile products for two years or longer. Data collection utilized regression analysis through SPSS for analysis alongside the sampling techniques which included stratified and purposive methods. Consumer loyalty primarily depends on pricing factors (Beta = .786, p < 0.000) while product design (Beta = .669, p < 0.000) and raw material sourcing (Beta = .547, p < 0.000) come in second and third places. The conclusions match the Resource-Based View (RBV) and Market Orientation theories because these SCM practices establish essential foundations for achieving competitive advantage. This study concluded that successful pricing methods along with creative product creation and productive material acquisition processes hold essential roles in developing loyal customer relations and business market performance success. The study recommended using value-based pricing techniques together with forming connections with local suppliers while allocating funds for research and development to generate innovative ideas. Successful navigation of market challenges depends on these measures for indigenous automobile companies to thrive in Nigeria’s competitive automotive sector.

The Role of Green Creativity in Enhancing Eco-Poetry for Sustainable Development in Nigeria

This study defines the concept of green creativity and eco-poetry. It further explores the critical role which green creativity will play in enhancing ecopoetry and achieving sustainable development across communities, cities, campuses and companies in Nigeria.

A Comparative Analysis of Agency Monitoring Cost and Financial Performance of Financial and Non-Financial Companies in Nigeria

Corporate governance is vital for transparency, accountability, and efficiency in organizational management. A key aspect of corporate governance is agency monitoring, which entails costs incurred to oversee managerial actions and align them with shareholders' interests. However, the impact of agency monitoring expenses on financial performance varies across sectors. Financial institutions, subject to strict regulatory oversight, require intensive monitoring, whereas non-financial firms may experience less scrutiny. Understanding these differences is crucial for policymakers, investors, and corporate managers aiming to enhance financial performance while maintaining strong governance. This study employs a correlational research design to examine the relationship between agency monitoring cost and financial performance in listed financial and non-financial firms in Nigeria. Based on market capitalization, the analysis covers 20 firms—10 financial and 10 non-financial—selected from 157 companies listed on the Nigerian Exchange Group (NGX) between 2011 and 2020. Data were sourced from the firms' annual reports and analyzed using panel regression estimates. Findings indicate that agency monitoring costs significantly enhance financial performance in financial firms, while their impact on non-financial firms is minimal. These results align with agency theory, which stresses the necessity of stringent oversight to mitigate managerial opportunism. The study underscores the sectorial differences in agency monitoring effectiveness and recommends that financial institutions prioritize monitoring expenses to improve governance and performance by strategically investing in efficient oversight mechanisms that align managerial actions with shareholder interests. These insights contribute to corporate governance literature and provide practical guidance for firms seeking to balance monitoring costs with financial efficiency.

Risk culture and organizational performance of Non – life insurance companies in Nigeria

Risk culture and organizational performance of Non – life insurance companies in Nigeria

Effect of Inflation and Exchange Rates on Financial Performance of Selected Quoted Manufacturing Companies in Nigeria

Effect of Inflation and Exchange Rates on Financial Performance of Selected Quoted Manufacturing Companies in Nigeria

The Influence of Capital Structure on the Financial Performance of Listed Industrial Goods Companies in Nigeria

The study examined capital structure and its influence on the financial performance of selected listed goods in Nigeria between 2014 and 2023. Capital structure is used to determine how firms mix their equity and debt in financing its business operations to boost financial performance. The ex-post facto research design was employed for the study and the data used were extracted from the annual reports and accounts of three (3) purposively selected industrial goods firms in Nigeria in the NGX; Dangote Cement PLC, Lafarge Africa PLC and BUA Cement PLC. The panel data was utilized to analyze the data to determine the relationship between capital structure variables and financial performance. The findings from the study showed that a higher equity ratio significantly improved financial performance; and a higher debt ratio equally impacted on the financial performance positively. Conversely, the debt-to-equity ratio did not significantly affect the financial performance and was negative in the fixed effect model. However, it was recommended that firms should optimize equity finance, manage debt level efficiently and re-evaluate debt-to-equity ratio policies to prevent its adverse effect on financial performance.

Working capital management and financial performance of listed cement companies in Nigeria

The article examines the effect of working capital management on the financial performance of Nigeria'slisted cement companies. The study's population consists of all listed cement companies in Nigeria, withtwo companies chosen as the sample. The data was analyzed using ordinary least squares regression(OLS) and correlation. The study's findings show that the inventory turnover period (ITP) has nosignificant effect on return on assets (ROA), while the average collection period (ACP) has significanteffects on return on asset (ROA). The average payment period (APP) has significant impact on return onassets (ROA). The study recommends that to improve the returns gained by cement companies in Nigeria,less emphasis should be placed on inventory turnover, which contributes little to such companies'profitability. However, much more focus should be given to average collection duration and averagepayment period because they have more impact on the success of listed cement firms in Nigeria.Keywords: Financial performance, Inventory turnover period, Averagecollection period, Average payment period.

Intellectual Capital and Financial Performance of Listed Oil & Gas Companies in Nigeria

Intellectual capital is a driving force to performance of many organizations worldwide. This study examines intellectual capital and the corresponding performance of listed oil and gas companies in the Nigeria. The specific objectives are to: (i) examine the influence of Human Capital Efficiency (HCE) on financial performance (Price Earning) (PE) among oil and gas companies in Nigeria; (ii) evaluate the influence of Structural Capital Efficiency (SCE) on Price Earning (PE) among oil and gas companies in Nigeria and (iii) assess the influence of Capital Employed Efficiency (CEE) on Price Earning (PE) among oil and gas companies in Nigeria. This study used a longitudinal research design; and annual reports of sampled twelve oil and gas firms for five years (2018-2022) were collected for analysis. A panel regression was used to analyze the obtained data. The result revealed that Capital Employed Efficiency (CEE) has positive and significant influence on financial performance of listed sampled oil and gas companies in Nigeria. Human Capital Efficiency (HCE) and Structural Capital Efficiency (SCE) do not have any influence on financial performance of the sampled listed oil and gas firms. The study concluded that intellectual capital and financial performance of oil and gas firms in Nigeria are interrelated. Thereby, recommended that oil and gas firms should invest more in physical asset (CEE) as it has capacity in enhancing the financial performances of the sampled firms.