Companies In Nigeria Research Articles

CLAIMS MANAGEMENT PRACTICES AND FIRM PROFITABILITY OF LISTED INSURANCE COMPANIES IN NIGERIA

The insurance sector provides financial protection for policyholders by pooling and investing premiums from which those who experience unforeseen losses are compensated. As a result, an efficient and timely claims settlement by insurance companies has been identified as a measure with the potential to boost the industry's growth and profitability. However, many insurance companies struggle to consistently improve their claims operations due to a poor claims process and unrecognized claims department staff, which Chief executive officers hinder their performance. This study examined the effect of Claim management practices and firm profitability of listed insurance companies in Nigeria. Survey research design was adopted. The target population of the study are the full-time top management employees of the listed insurance companies in Nigeria with a total population of 2183. Sample size of 776 was determined using Kerjcie and Morgan (1970). Proportionate stratified sampling technique was adopted. A validated questionnaire was used to collect data. Cronbach’s alpha reliability coefficients for the constructs ranged from 0.772 to 0.857. The response rate was 86.5%. Data were statistically analysed using descriptive and inferential statistics. Findings revealed that claims management practices have significant effect on profitability of the selected insurance companies in Lagos State Nigeria (Adj.R2 = 0.840; F (5, 655) = 695.900, p<0.05). 17.928, p < 0.05). The study concluded that Claims management practices dimensions have significant effect on firm profitability of listed insurance companies in Lagos State, Nigeria. The management of insurance companies in Nigeria should develop a policy to link claims management ancillaries and departments in order to make the sector profitable and sustainable in the long run. Such a policy would be the anchor of actions adopted by or proposed by the firms in matters pertaining to market dominance.

Corporate Social Responsibility and Financial Performance: Evidences from the Nigerian Industrial and Consumer Sector

The issue of corporate social responsibility has attractive more attention recently as result of its contribution towards stakeholders. This study investigated Corporate Social Responsibility (CSR) on financial performance of some selected manufacturing companies in Nigeria. Ex-post facto research design was used for the study. The study population comprised of all customer goods and industrial sectors of manufacturing companies in Nigeria among which fifteen (15) of them were selected using purposive sampling technique for the period of 2010-2019. Secondary data were collected from the annual report the sampled companies. Two hypotheses were formulated and tested. Both descriptive and inferential statistics (correlation and multi - regression) were used for data analysis. The result of analysis revealed that CSR has significant relationship on financial performance measured with EPS and negative significant relationship on NPM of selected manufacturing companies in Nigeria

Effect of the Interaction between Audit Firm Size and Audit Quality on the Financial Performance of Listed Consumer Goods Companies in Nigeria

Effect of the Interaction between Audit Firm Size and Audit Quality on the Financial Performance of Listed Consumer Goods Companies in Nigeria

Manipulation of transfer prices by multi-national companies in Nigeria

Background: Transfer pricing manipulation diminishes revenue generation by the host countries. The results of the investigations in the literature show divergence to the extent of the impact of transfer pricing on economic growth in both the low- and high-tax countries, especially as this type of investigation is still scanty in the literature.Aim: The study examines the effect of transfer pricing manipulation on economic growth in Nigeria.Setting: Multi-national companies in Nigeria.Methods: The auto-regressive distributed lag (ARDL) approach was applied to data from Nigeria between 1986 and 2019.Results: The findings reveal an insignificant relationship between economic growth and explanatory variables such as transfer pricing manipulation, unemployment rate, government revenue and trade openness. The result also shows a significant negative relationship between the exchange rate and economic growth.Conclusion: The study recommends that the government should implement proper monitoring of multinational companies to check their day-to-day transaction activities. This may help the government to generate more revenue, and serves as an avenue to create more employment opportunities.Contribution: In this study an important aspect is indicated in that multinational companies often misuse revenue to gain undeserved profits, rendering unnecessary costs to market and rendering other companies less competitive, as well as exploiting buyers and consumers. This is an important loophole that law- and policymakers as well as governments should pay attention to and act against.

The Effect of Sustainable Supply Chain Management On Firm Innovative Performance: A Study of Manufacturing Firms in Nigeria

The study sought to establish the effect of sustainable supply chain management practices on innovative performance of manufacturing firms in Nigeria. The precise goals were to evaluate how Nigerian manufacturing companies performed in terms of innovation in relation to economic, environmental, and social dimension of sustainability. The Transaction Cost Economics (TCE) Theory and the Stakeholder Theory were both used in the study. The study employed a descriptive survey approach, with three Nigerian manufacturing companies as the target population. The study used a purposeful sampling strategy, and the researcher decided that a sample size of 120 was manageable. A pilot study was conducted to evaluate the validity and reliability of the research instrument prior to the collection of data. A 91% response rate was obtained, and the results were displayed in tables using percentages. The analysis showed that sustainable supply chain management practices had a positive and significant impact on the innovative performance of manufacturing companies in Nigeria, demonstrating that economic, environmental, and social dimension of sustainability all had a significant positive impact on this performance. The research consequently advises manufacturing companies to engage in more sustainable operations so as boost their competitive edge.

Human Resources Accounting and Profitability: Evidence from Consumer Goods Companies in Nigeria

Human Resources Accounting and Profitability: Evidence from Consumer Goods Companies in Nigeria

Moderating Effect of Earnings Persistence on the Relationship Between International Financial Reporting Standards Implementation and Earnings Response Coefficient of Listed Companies in Nigeria

This study examined the moderating effect of earnings persistence on the relationship between International Financial Reporting Standards (IFRS) Implementation and Earnings Response Coefficient (ERC) of listed companies in Nigeria. This was done to evaluate the reason behind the poor utilization of capital market, especially equity market for funding of developmental project by both public and private sector entities. This study adopted historical-descriptive and content analysis research designs. This was conducted using forty six listed companies in Nigerian covering the period of 6 years (2013 to 2018). The data of the study was analyzed using the Partial Least Square. The results of the cross sectional effect model show that IFRS implementation brings about high quality information, but it is not sufficient enough to induce a change in the ERC. It was discovered that investors and speculators alike pay close attention to the degree to which current period earnings shocks persist in the future, and this outcome propels the IFRS compliance to enhance a high earnings response coefficient of firms in the stock market. It is therefore recommended that the financial reports of listed companies in Nigerian should be designed to improve the information contents of accounting earnings in order to include inherent socio-economic risk, full disclosure of net income, past and prospective earnings

Financial Reporting Quality and Shareholders Wealth Maximization of Listed Manufacturing Companies in Nigeria

Financial Reporting Quality and Shareholders Wealth Maximization of Listed Manufacturing Companies in Nigeria

Moderator Effect of Audit Committee on Earnings Management and Board Diversity

This study examined the effect of board diversity, audit committee and earnings management of oil and gas (o&g) companies listed in Nigeria stock exchange. Female directors and foreign directors served as proxies for board diversity, audit committee independence and meeting frequency were moderating variables to study possible discretionary accruals in earnings. Eleven o&g companies in Nigeria that were listed that had consistently produced audited yearly financial reports from 2009 to 2019 were employed to accomplish the study's goals. Regression models with fixed and random effects were utilised in the investigation. The outcome showed that earnings management and the board diversity of listed o&g companies in Nigeria was moderated by the audit committee. The findings suggested that Nigerian-listed oil and gas businesses should give a gender quota for female directors. It is advised that regulators consider the number of meetings that audit committees hold, as it is the members' intelligence to comprehend the financial ramifications of management decisions rather than meeting frequency that determines the monitoring of managers' opportunistic attitudes.

Cost Management and Corporate Performance in Quoted Manufacturing Companies in Nigeria

Cost Management and Corporate Performance in Quoted Manufacturing Companies in Nigeria

Corporate Governance Mechanisms and Financial Performance of Listed Companies in Nigeria

This study investigated the relationship between corporate governance mechanisms and financial performance of listed consumer goods manufacturing firms in Nigeria for the period of 2011 to 2020. The specific objectives were to investigate the relationship between board size on return on equity, and evaluate the relationship between board independence on return on equity, board compensation on return on equity and board diligence on return on equity of listed consumer goods manufacturing firms in Nigeria. The study adopted ex post facto and correlational research designs. The population of the study was twenty one (21) listed consumer goods manufacturing firms as at the end of 2020. The study used a census approach to determine a sample size of twenty one (21) firms. Secondary data from the published annual financial reports of the sampled firms were used for data analysis. Descriptive statistics, correlation coefficient and multivariate analysis were used. The results disclosed that board size has a negative and insignificant relationship with return on equity of listed consumer goods manufacturing firms in Nigeria; board independence has a negative and significant relationship with return on equity of listed consumer goods manufacturing firms in Nigeria; board compensation has a positive and significant relationship with return on equity of listed consumer goods manufacturing firms in Nigeria; and board diligence has a negative and significant relationship with return on equity of listed consumer goods manufacturing firms in Nigeria. The study concludes that corporate governance mechanisms influence the financial performance of listed consumer goods manufacturing firms in Nigeria. The study recommends among others that board sizes should be enhanced as this allows for the appropriate combination of directors. A large board increases the chance of directors having appropriate knowledge, skill and networks. The knowledge, skill and networks of directors may increase the performance of an organization; non-executive directors who act as professional advisers to ensure competition among insiders encourage measures consistent with maximization of shareholder value.

The Moderating Influence of Intellectual Capital on the Relationship Between Corporate Governance Attributes and Financial Performance in Nigeria

Corporate governance and intellectual competencies can provide corporate attractiveness and accomplishment. Hence, this study investigated the moderating effects of intellectual capital on the relationship between corporate governance attributes and the financial performance of listed companies in Nigeria. The study adopted ex post facto and correlational research designs. The population of the study was twenty-one (21) listed consumer goods manufacturing firms as of year-end 2020. The study used a census approach to determine a sample size of twenty-one (21) firms. Secondary data from the published annual financial reports of the sampled firms were used for data analysis. Descriptive statistics, correlation coefficient and multivariate analysis were used. The regression analysis revealed that board size has a positive and insignificant relationship with the return on equity of listed consumer goods manufacturing firms in Nigeria; Board independence has a positive and significant relationship with the return on equity of listed consumer goods manufacturing firms in Nigeria; board compensation has a negative and significant relationship with return on equity of listed consumer goods manufacturing firms in Nigeria; board diligence has a positive and significant relationship with return on equity of listed consumer goods manufacturing firms in Nigeria and intellectual capital positively and significantly moderates the relationship between corporate governance mechanism and return on assets of listed consumer goods manufacturing firms in Nigeria. The study concludes that intellectual capital moderates the relationship between corporate governance attributes and the financial performance of listed consumer goods manufacturing firms in Nigeria. The study recommends among others policymakers from listed firms should emphasise good corporate governance practices with quality intellectual input as a means of improving the level of financial performance. Hence, the implementation of corporate governance practices should be in terms of board accountability and transparency through quality human resources for the financial performance of listed firms in Nigeria.

Impact of Environmental and Social Disclosure on Return on Asset of Listed Oil and Gas Companies in Nigeria

Purpose: The purpose of this study is to examine the impact of environmental and social disclosure on return on asset of listed oil and gas companies in Nigeria.
 Methodology: The study used expo factor research. The population of the study comprises of all the thirteen (13) oil and gas companies and eight (8) of those companies made up the sampled population. The study used three variable, the dependent, independent and control variable. ROA is the dependent variable, environmental and social disclosure is the independent variable while firm size and firm age are the control variable. The study used secondary data sourced from annual report and account of the sampled companies for the period 2010 to 2019. To examine the study data, descriptive statistics, correlation matrix and multivariate regression analysis were used.
 Findings: The study revealed that environmental and social disclosure have negative impact on return on asset (ROA) of listed oil and gas companies in Nigeria.
 Unique Contribution to Theory, Practice and Policy: The study recommended that there should be proactive effort from policy makers like National Environmental Standards and Regulations Enforcement Agency and other standards setting bodies to introduce a standard framework for mandatory disclosure of corporate environmental information.

Macroeconomic Factors and Profitability: A Study of Selected Multinational Food and Beverages Companies in Nigeria

Manufacturing, particularly the food and beverage industry, remains critical to every economy around the world, as do the realities in Nigeria. Due to increased population, disposable incomes, changing tastes and products, Nigeria's food and beverage sector is expected to grow rapidly. However, fluctuating macroeconomic factors threaten the daily operations of Nigeria's food and beverage industry. This study examined the effect of macroeconomic factors (political, economic, socio-cultural, and technological) on the profitability of selected multinational food and beverages companies in Nigeria using a survey research design with specific reference to Coca-cola, PepsiCo, Nestle, Unilever, and Cadbury Nigeria Plc. A questionnaire was used to collect primary data from a sample of 417 employees drawn from five multinational food and beverage companies located in Lagos State, Nigeria. Multiple regression analysis was used to test the hypotheses formulated. Results indicated that macroeconomic factors (political, economic, and technological) had a significant effect on the profitability of multinational food and beverage companies in Nigeria. The study concluded that macroeconomic factors are vital and have a significant impact on the extent to which enterprises’ operations generate a profit, thus, it was recommended that the management of the multinational food and beverage companies in Lagos State, such as Coca-Cola, PepsiCo, Nestle, Unilever, and Cadbury, need be aware of the macro-environmental factors influencing their profitability in order to make decisions that will increase the firm's profit.

Effect of Managerial Ownership and Audit Committee Financial Expertise on Earnings Management of Listed Manufacturing Companies in Nigeria

Earnings management research has a long and rich history. However, the effect of managerial ownership and audit committee financial expertise on earnings management is rarely conducted in the developing countries like Nigeria. Therefore, this study examines how managerial ownership and audit committee financial expertise on earnings management of listed manufacturing companies in Nigeria. This study used the Roychowdhury approach to measure real earnings management. Thirty-four (34) manufacturing companies out of seventy-three (73) population that were listed on the Nigerian Exchange (NGX) from 2007 to 2021 was selected as sample size. Data was gleaned from the annual financial reports of the sampled companies for this study. Descriptive statistics, Pearson correlation, and quantile regression analysis are the econometric techniques used to test the analysed data and for hypothesis testing. Results from the study showed that managerial ownership significantly affects real-earnings management. When the effect was moderated by the financial expertise of the audit committee, the effect of ownership structure on real earnings management disappears. The result from the study show that managers of manufacturing firms in Nigeria should be encouraged to own more shares in the companies they manage in order to minimize real earnings management. The evidence can theoretically serve as a solid foundation for regulatory action, notably through improving the alignment of managers' and shareholders' interests. The results from this study have important implications for regulators, who will gain from understanding how managerial ownership affects real earnings management and improve the accuracy of financial reporting. The findings will also help policymakers and academics to understand how managerial ownership affects real earnings management in Nigeria.

Ownership Concentration and Earnings Management of Listed Manufacturing Firms in Nigeria: Audit Committee Financial Expertise

Significant corporate shareholders can exert undue pressure on managers to enhance earnings in order to increase corporate value, and that as a result of this undue pressure, managers to resort to earnings management practice in the corporations they manage. This study examined the moderating role of audit committee expertise on the relationship between ownership concentration and real-earnings management in Nigeria. The independent variable (ownership concentration) was measured as shareholders who have more than 5% equity stake in a company, and real-earnings management was measured using the Roychowdhury approach. Audit committee financial expertise which is the moderator, was measured in binary form, 1 if at least one member of the committee has accounting experience, and 0 otherwise. This paper used a sample of 34 manufacturing companies listed on the Nigerian Exchange (NGX) over a period of 15 years from 2007 to 2021. Data was collected from the annual financial reports of the sampled companies. Descriptive statistics, Pearson correlation and Quantile regression was employed for data analysis and the findings show OWNCON has a positive and insignificant effect on REM. However, when audit committee financial expertise was used as a moderator, the effect of ownership concentration on the real- earnings management of listed manufacturing companies in Nigeria became statistically significant. Based on the findings, the study recommends that manufacturing companies should have more concentrated owners because the higher the concentration the less tendency of REM of listed manufacturing companies in Nigeria.

Corporate social responsibility performance among listed non-financial firms in Nigeria

The extent of involvement in Corporate Social Responsibility (CSR) by companies in Nigeria is required in order to know the level of acceptance and actual performance of CSR demands on the companies. This descriptive research design study was carried out using data from the annual reports (2010-2019) of listed non-financial companies in Nigeria. Social and environmental disclosures based on the Global Reporting Initiative framework (GRI-4) were used. Social disclosure is measured as an index score generated from the score of 1 or 0 for disclosures or otherwise on community, donation, employee, health and safety, and customer/complaints. Environmental disclosure represents an index score generated from the score of 1 or 0 for disclosures or otherwise on material, energy, water, biodiversity, emission/greenhouse gas, waste management, product services, and compliance with laws. The companies are involved in activities that contribute more to social sustainability than environmental sustainability, accounting for an aggregate average performance score of 0.71 (71%) and 0.03 (3%) for social and environmental responsibility respectively. The firms contributed significantly to social responsibility and very little with no significant performance in environmental responsibility. The very low environmental responsibility performance among these firms is worrisome and calls for investigation into the existing national environmental regulatory frameworks.

INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE OF QUOTED COMPANIES IN NIGERIA


 The study examined the impact of intellectual capital on the financial performance of quoted companies in Nigeria. The study employed twenty-five companies from five sectors of the economy. The ex-post facto research design was employed in the study, to aid the use of secondary data within 2015-2020 was soured from the financial statement of the companies. The dependent variable was measured using the sales and asset growth of the selected companies and the intellectual capital was measured using the human capital efficiency, structural capital efficiency, and relational capital efficiency. The findings revealed that structural, relational capital efficiency and value-added have a negative, positive and positive significant effect on sales and asset growth of the selected companies. It is therefore recommended that the organization should invest in the structural and relational capital efficiency in the organization because it has the intrinsic capacity to improve the level of performance in the organization. 

Merger and Acquisition (M&A) and the Performance of Insurance Industry in Nigeria

The study examines merger and acquisition and the performance of insurance industry in Nigeria (pre-M&A 2011- 2015) and (post-M&A 2016-2020) five years each. The study adopts a sample of three (3) conveniently selected insurance firms in Nigeria. The study used profitability (PRF) as the dependent variable while investment income (IVI), underwriting profit, total asset (TA0 and shareholders wealth (SHE) as the independent variables. Panel data was used, Ordinary Least Squares estimation technique was also tested with the aid of E-views 9. The study found that the p-value for investment income in pre-M&A era is 0.3178 while post-M&A era is 0.000, this shows that investment income (IVI) has a significant effect on performance of insurance firms in post-M&A era in Nigeria because the p-value is less than 5% level of significance at the post M&A era. For underwriting profit there is a positive effect on profitability of insurance companies in Nigeria in the post-M&A era, the preM&A era was negative, furthermore, the p-value for pre-M&A era is 0.3636 while post-M&A era is 0.000, this shows that underwriting profit (UP) has a significant effect on performance of insurance firms in post-M&A era in Nigeria because the pvalue is less than 5% level of significance at the post M&A era. Total asset (TA) has a positive effect on profitability of insurance companies in Nigeria in the post-M&A era, the pre-M&A era was negative, furthermore, the p-value for pre-M&A era is 0.5147 while post-M&A era is 0.04. This shows that total asset (TA) has a significant effect on performance of insurance firms in postM&A era in Nigeria because the p-value is less than 5% level of significance at the post M&A era. Finally shareholders equity has a positive effect on profitability of insurance companies in Nigeria in both pre and post-M&A era. Furthermore, the p-value for pre-M&A era is 0.3748 while post-M&A era is 0.000. This shows that shareholders equity (SHE) has a significant effect on performance of insurance firms in post-M&A era in Nigeria because the p-value is less than 5% level of significance at the post M&A era. The study concludes that merger and acquisition have significant effect on the performance of insurance industry during the post merger and acquisition era. The study further recommended that government should encourage declining or distressed insurance companies to engage in merger/acquisition by providing incentives such as tax holiday, loss relief and capital allowance. Government should constantly provide the enabling and conducive environment for mergers and acquisitions.

Improving Management Accounting and Control System (Macs) For Sustainable Innovation and Performance of Manufacturing Companies in Nigeria

The main purpose of the study was to determine the measures for improving management accounting and control system for innovation and performance of manufacturing companies in Nigerisustainablea. The study was guided by three research questions and two null hypotheses. A descriptive survey research design was adopted for the study. The population for the study was 94 accountants working in 53 purposive sampled from manufacturing companies in South-East States of Nigeria. The instrument used for data collection was a 41 item questionnaire grouped into three sections. The instrument was validated and reliability of the instrument was determined using Cronbach Alpha which yielded 0.87. Out of 94 copies of the questionnaire distributed 92 were properly filled and returned representing 97.87% return rate. Mean, standard deviation and t-test statistics were the statistical tools used. From the result of data analysis, the study identified the indicators for improving management accounting and control system for sustainable innovation and performance of manufacturing companies. The findings of the study showed that there is no significant difference in the mean rating of experienced and less experienced on the identified the indicators. Based on the findings, recommendations were made which include; that the business managers and accountants need to understand the relevance of management accounting and control system in achieving sustainable innovation and performance in the organization and the indicators should be used to improve management accounting and control system for sustainable innovation and performance.