Companies In Nigeria Research Articles

Executive Compensation and Bank Performance in Nigeria

This study provides empirical evidence on executive compensation and bank performance. The objective of this study is to examine the influence director compensation, CEO compensation, chairman’s compensation and CEO ownership on bank performance. This study employed a quantitative and longitudinal research design in which secondary data were collected from the quoted banks in the Nigeria Stock Exchange from 2012 to 2016. Multiple regression technique, descriptive statistic, Pearson correlation matrix, Variance Inflation Factor for multicollinearity and Breusch-Pagan-Godfrey Heteroskedasticity test for heteroskedasticity in the regression results the data analysis are performed using EViews 8.0 econometric software. The empirical results show that director compensation has a negative and insignificant influence on bank performance measured by return on equity, CEO compensation has a positive and a significant influence on bank performance, chairman compensation has a negative and a significant influence on bank performance, CEO ownership has a positive and insignificant influence on bank performance while the control variable, firm size has positive and insignificant influence on bank performance. The study recommended that quoted companies in Nigeria should be more concern of CEO ownership and compensation as it had a negative impact on the performance of the organization. The study recommends that quoted banks in Nigeria should be more concern of chairman’s compensation due to it negative influence on bank performance. The study also suggests that remuneration drive CEO motivation to enhance performance.

Reviving economic recession and the role of insurance companies in Nigeria

The persistent occurrence of poor economic condition and economic recession has put the policy makers on the possible and appropriate approaches to tackle the economic problem. Despite the efforts expended both empirically and theoretically to curb the menace, the economy is still vulnerable to macroeconomics shocks. Therefore, this study investigated the role of insurance companies on revival of reviving economic recession in Nigeria. The study covers the period of 25 years from 1996 to 2020 and data were gathered from CBN statistical bulletin, 2020 edition. Data on economic recession was represented with dummy variable such that “0” represents the period of positive economic growth rate while “1” represents the period of negative growth rate. Data on insurance investment, insurance asset, number of insurance companies and insurance contribution to GDP were considered to measure insurance performance. The model was specified with Ordinary Least Square and multiple regression methods. It was shown that insurance asset, insurance investment and insurance performance were found to statistically significant while numbers of insurance companies were found to statistically insignificant. The result revealed that insurance asset is not capable of reducing economic recession during the period under review but insurance investment, insurance performance and numbers of insurance companies have proven to be sufficient tools to reduce economic recession. Based on these findings, the study concluded that insurance companies played a significant role in reviving poor economic condition. The study recommended that adequate attention should be given to insurance companies in order to fulfill their full potential.

Flexible Work Arrangements and Productivity of Sales Representatives of Book Publishing Companies in Nigeria

This study examined the effect of flexible work arrangements on productivity of sales representatives of book publishing companies in Nigeria. The specific objectives of the study were; to examine the relationship between flexi-time, job sharing, part time and telecommuting and employee effectiveness and employee efficiency of sales representatives of top 10 book publishing companies in Nigeria. Cross-sectional survey involving collecting data across top 10 book publishing companies in Nigeria was employed. Twenty (20) sales representatives from each company were surveyed using convenience sampling technique. Out of the 200 questionnaires administered, 162 copies of questionnaire were filled correctly and returned. constructs of flexible work arrangements as well as measures of employee productivity were measured on four point Likert scale ranging from 4= Strongly agree; 3 = Agree; 2= Disagree; 1 = Strongly disagree. Cronbach Alpha was employed to ascertain the internal consistency of the instruments and they fall within 0.70 -.080 threshold. Validity of instrument was determined using face and content validity. Views of respondents were analyzed using descriptive statistics (mean and standard deviation) with the aid of statistical package for social sciences version 22.0. Statistical instrument employed to analyze the hypotheses was Pearson Product Moment Correlation Coefficient (rs). Findings revealed that flexi-time, job sharing, part time and telecommuting all have significant positive relationship with both employee effectiveness and employee efficiency. Based on the findings, the study concludes that making time and location flexible for employees, the book publishing sector organizations in Nigeria could significantly enhance productivity of their sales representatives. The study therefore recommended among others that since flexi-time is found to have the potential to affect employee productivity, management of companies in the book publishing sector in Nigeria should avail all categories of staff the opportunity to choose start and close time where necessary. It is also suggested that more options of FWAs like compressed week work and self-roistering could be added to the survey instrument in addition to the ones identified in this study which could lead to new findings.

Effect of Knowledge Management on Corporate Performance of Pharmaceutical Companies in Nigeria

The study examined the effect of knowledge management on corporate performance of pharmaceutical companies in Nigeria. The research utilized quantitative and descriptive method to analyze the study. The study’s target population comprised all the staffs of the seven (7) pharmaceutical companies listed on the floor of the Nigerian Stock Exchange. The sample size for the study was 289 employees from 7 pharmaceutical companies in Nigeria. Primary data with the aid of questionnaire consisting of 46 items, rated in a 5-point Likert scale was used. The gathered data was analyzed using both descriptive and inferential statistics. Descriptive statistics, including frequency component with aid of SPSS and in order to test the research hypotheses multiple regression was used to provide meaningful result to the hypotheses. The findings of this study have drawn conclusions that pharmaceutical companies in Nigeria have implemented a high level of knowledge management techniques. Knowledge creation primarily occurs through participation in seminars, conferences, industry products and benchmarking. The study recommended that functional heads within the pharmaceutical industry should encourage knowledge management.

Corporate Financial Reporting and Investor’s Confidence in some quoted Industrial Companies in Nigeria

Investors are confronted with the difficulties or issues of settling on a choice as far as deciding when to contribute, regardless of whether to contribute. An investor can reduce decision-related risk by using financial reporting information. the study aims to investigate the impact of corporate financial reporting on investors’ confidence using some quoted industrial companies in Nigeria. The study used secondary data by adopting an ex-post factor resign design through the use of a purposive sampling technique to select ten (10) listed industrial companies from the Nigeria Group Exchange. The paper was analyzed using descriptive and panel regression analysis. The study result found that corporate financial reporting significantly affects investors’ confidence (Adj. R2 = 0.541; F statistics = 4.73; p-value = 0.004). Audit firm size moderately affects the effect of corporate financial reporting on investor confidence in some listed industrial companies in Nigeria (Adj. R2 = 0.579; F statistic =5.18, p-value =0.001). Thus, the study recommended that investors maintain their current confidence level. Also, the investors, as well as the managers, can work on developing the legal framework for corporate financial reporting in light of the suggested framework being developed, and finally inspiring financial reporting, managerial, institutional and regulatory studies and research that lead to the best practices for meeting compliance obligations.

Intellectual Capital Reporting and Share Price Volatility of Quoted Financial Companies in Nigeria (20012- 2021).

This study empirically examined the nexus between intellectual capital and the share price volatility of quoted financial companies in Nigeria from year 2011 to 2021. The sample comprised of thirteen money deposit banks that are listed on the Nigeria stock exchange market over the period between 2011 and 2021. Data from 13 listed banks from 2011-2021 were analyzed using descriptive and inferential statistics. The results showed that advertisement cost had a significant positive effect on share price volatility as a result of p-value of the t-statistics calculated for AD is less than the critical value of 5% (p-values < 0.05), while research and development expenditure did not as a result of p-value of the t-statistics calculated for RD is greater than the critical value of 5% (p-values > 0.05). The p-value of the t-statistics calculated for STVA is greater than the critical value of 5% (p-values > 0.05), Structural Capital Value Added was not significant, while Value Added Capital Employed and Value Added Human Capital positively influenced share price volatility as a result p-value of their t-statistics calculated being less than the critical value of 5% (p-values < 0.05). Control variables of Leverage, Liquidity, and Net Assets were also significant volatility as a result p-value of their t-statistics calculated being less than the critical value of 5% (p-values < 0.05). The P-value of the F-statistics computed for the variables for testing the overall fixed effect of the regression model of 0.000000 was less than the critical value of 5% (p-values < 0.05). The overall result of the finding had revealed that there was a significant relationship between intellectual capital and the share price volatility of quoted financial companies in Nigeria. Therefore, the study recommended that the Nigerian listed deposit money banks should invest more in research and development to improve their competitiveness and increase their share price. Also, human capital and capital employed should be effectively utilized.

Tax Incentives and Growth of Listed Oil and Gas Companies in Nigeria

This study examined the effects of tax incentives on business growth of the listed Oil and gas companies in Nigeria. The ex-post facto research design was adopted for this study. The population of this study consists of the 12 listed Oil and gas Companies on the Nigerian Stock Exchange from which samples size of ten (10) firms was considered due to availability of data. The panel secondary data were collected from annual reports of the sampled companies for a 7 year period. In analyzing the data, Generalized Least Squares (GLS) was used. The results revealed that capital allowance has no significant relationship with business growth of the sampled listed oil and gas firms in Nigeria. The results also show that there is positive significant relationship between investment allowance and business growth of listed oil and gas firms in Nigeria. While the findings of the study showed that loss relief has a positive significant relationship with business growth of listed oil and gas firms in Nigeria, it was also disclosed that there is significant relationship between allowable interest and business growth of listed oil and gas companies in Nigeria during the period under review. The study therefore recommended that the Government should lay more emphasis on the role of tax incentives and help firms to understand tax law so as to utilize all the available tax incentives which in turn contribute to the growth of oil and gas businesses in Nigeria. The study also recommends there is need for the downstream sector to employ more loan to save tax and use the tax savings to grow the business.

Liquidity and Working Capital Management Practices on Firm Value of Listed Non-Financial Companies in Nigeria

The value of a firm, often represented by its market capitalization, reflects the market’s perception of its future earnings potential, growth prospects, risk profile, and overall financial health. Conversely, poor financial management practices can expose firms to increased risks, reduced profitability, and potential value erosion. This study examined the relationship between liquidity and working capital management practices and the value of listed non-financial companies in Nigeria. To achieve these objectives, ex- post facto research design was employed and the study utilized seventy (70) selected listed non-financial firms that had consistently published their audited annual financial reports from 2011 to 2022, and analyzed the data using panel multiple regression technique with the help of E- view statistical tools. The result of the study revealed that liquidity management practices had negative and insignificant effect on firm value of listed non-financial firms in Nigeria. While working capital management practices had positive and significant effect on price to book value of listed non-financial firms in Nigeria. Based on this finding, it is recommended that the management of non-financial companies in Nigeria should improve on working capital management to balance operational needs with cost considerations and also avoid overstocking or under stocking, which can tie up resources or disrupt operations.

Enterprise Risk Management (ERM) in the Nigerian Insurance Industry

The study looked at how Nigerian listed insurance companies performed in terms of enterprise risk management. The ex post facto research design was used in the study. According to Nigeria Stock Exchange data as of December 30, 2021, there were 23 insurance businesses listed on the Exchange (NSE). Ten Nigerian insurance firms made up the sample size. In choosing the selected firms, we used the convenience sampling approach. The sample firms’ financial statements and annual reports were used to collect data for the study. The statutory audit of the financial accounts served as the foundation for validity and reliability. Inferential (multiple regressions) and descriptive statistics were used to analyse the data. The results showed enterprise risk management has no significant impact on listed insurance companies in Nigeria’s earnings per share; return on asset of listed insurance companies in Nigeria; or return on equity of listed insurance companies. According to the study’s findings, enterprise risk management has little or no financial impact on Nigeria’s listed insurance businesses. The research proposed that risk committee meetings be held regularly in order to improve performance and that members of the committee should be proficient in managing risk-related issues. It also advised that the committee be allowed its independence to operate.

Effect of Marketing and Organisational Innovations on Performance of Telecommunication Companies in Nigeria

Because of the dynamism and competition in today's business environment, firms that wish to compete and endure for a long time must adopt new techniques. The general population of Nigeria has the impression that the nation's telecommunications operating businesses are not only doing well, but also extremely profitable. However, a recent assessment by the industry watchdog, the Nigerian Communications Commission (NCC, 2020), revealed that despite the significant investment made by these telecom businesses, the overall sector performance has decreased. This served as the basis for this study, which looked at how organizational and marketing changes affected the success of telecom companies in Nigeria. Questionnaires were used as the tool of data collection in a survey design. Data were gathered from 213 employees at the six-person management cadre. Due to this, the report advises telecom operators to keep looking for new and effective ways to market their goods and services, while also making sure to set them apart from those of rival companies. Additionally, telecom businesses should use better methods for managing their interactions with important parties, particularly regulatory organizations, since doing so will likely result in fewer sanctions and other regulations that could endanger their business operations.

FIRM PERFORMANCE ATTRIBUTES AND SOCIAL SUSTAINABILITY REPORTING: A CASE OF LISTED NON-FINANCIAL COMPANIES IN NIGERIA

Stakeholders all over the world are concerned about the environmental damage that corporations are engaged in and how it affects their lives. Social sustainability reporting in Nigerian as affected by firm performance attributes was investigated. To understudy the effect, ex-post facto research design, non-probability (purposive) sampling technique, and Panel regression estimation was employed with reliance on annual report (secondary data ) of listed 112 non-financial companies from 2012-2021 out of which 82 firms were selected. Also, hausman test (random effect) was conducted using of E-views. The findings of the study shows that firm size has positive significant effect on social disclosure index while firm age has positive negligible effect on social disclosure index of non-financial companies in Nigeria. According to the findings, the social sustainability reporting of listed non-financial companies in Nigeria is significantly influenced by firm performance attributes. Therefore, the study recommends that non-financial companies' management should increase the size of their firms in relation to the total assets due to the positive multiplier effect it has on the company's social sustainability reporting.

Testing Financial Statement Fraud: Perspective of the M-Score Model in Nigeria and South Africa

In the past several years, financial statements fraud has cost market participants huge sum of loss and it has eroded market participants confidence in the audit financial report of organisations. This study therefore, examined the determinants of financial statement fraud in Nigeria and South Africa. The study specifically focus on firm size, leverage, board independence, institutional ownership, firm profitability and capital structure. The population of the study comprised 510 quoted non-financial companies in the Nigeria Stock Exchange and Johannesburg Stock Exchange for the periods 2012 to 2018. A sample size of 70 was selected using random sampling techniques. The data collected were analysed using descriptive statistics and robust least square regression analysis. It was observed from the descriptive statistics that there is presence of financial statement fraud reporting among the quoted non-financial companies in Nigeria and South Africa. The results revealed that firm size was statistically significant in Nigeria and South Africa, leverage was statistically insignificant in Nigeria and South Africa, board independence was statistically significant in Nigeria but insignificant in South Africa, institutional ownership was statistically significant in Nigeria and insignificant in South Africa, firm profitability was statistically significant in South Africa but insignificant in Nigeria while capital structure was statistically insignificant in Nigeria and South Africa. The study recommended that the results have direct implications for further improvement of firm size, board independence, institutional investors and capital structure.

Environmental Conservation Cost and Corporate Performance of Quarry Companies in Nigeria: An Empirical Analysis

The pursuit of sustainable development has gained significant attention in recent years, emphasizing the need for businesses to integrate environmental conservation practices into their operations. Thus, this study examined the effect of environmental conservation costs on the corporate performance of quarry companies in Nigeria. This study employed a survey research design and data was sourced through the distribution of well-structured questionnaires. The population of the study comprised 682 accounting staff of quarry companies in the southwest of Nigeria. The sample size was 480 determined through a purposive sampling technique. The sourced data were analyzed using both descriptive and inferential statistics. It was found that research and development, legal, and regulatory compliance costs exhibited a significant positive relationship with the corporate performance of quarry firms in Nigeria. Restoration, monitoring, and evaluation, as well as training and engagement costs, exhibited a significant positive relationship with the corporate performance of quarry firms. It was concluded that when quarry companies prioritize allocating resources and attention to these areas it will enhance their overall performance. This study recommends that quarry companies should allocate more resources to research and development activities to foster innovation, improve operational efficiency, and stay competitive in the market.

Board Attributes and Stock Returns of Listed Consumer Goods Companies in Nigeria

This study investigates how board attributes (BA) affect the stock returns (SR) of Nigerian quoted consumer goods companies (QCGC). Size, independence, and financial knowledge of the board were all employed as predictor variables. For the purpose of addressing the problem, this investigation chose descriptive and expost facto methodology as well as positivist view point. The twenty-three (23) QCGC of the Nigerian Stock Exchange (NES) as of 2020 made up the population. A sample size of sixteen (16) QCGC was obtained using the purposive sampling procedure. Secondary sources were employed to compile the study's data. The data were gathered from the yearly financial reports of the selected corporations for ten (10) years (2011-2020). With the use of STATA-13, the study used multiple regression as the analysis method. The study utilised the Hausman specification test to examine endogeneity because the data it used were panel data (i.e., crosssectional time series data). The Breusch-Pagan test for heteroscedasticity and the test for Multicollinearity utilizing the Variance Inflation Factor (VIF) were additional robustness tests used in this study to assess the model's suitability and the validity of the results. According to the overall regression result indicated by the R-squared, BAs can be utilised to forecast how SRs would behave in the QCGC. Accordingly, it was discovered that board independence and financial skill had a positive significant effect on SRs, whereas board size has no significant impact on SRs of QCGC in Nigeria. According to the study's findings, the board of directors of QCGCs should expand their capability for monitoring discretionary management conduct by adding at least three accounting and financial professionals to the board to advance the quality of earnings.

Challenges of implementing management accounting innovations: Evidence from the field

This study investigates the challenges of implementing innovative management accounting techniques, referred to as strategic management accounting (SMA), the interrelationship among the challenges and the impact of the challenges on SMA usage intensity. From the analysis of survey data obtained from listed manufacturing companies in Nigeria, the result supports the conclusion that SMA implementation challenges are interrelated. However, lack of top management support and low awareness/lack of knowledge are contributory to most of the implementation challenges. The challenges discouraging the intensive use of SMA are the perception that SMA implementation is unnecessary as strategy issues are already integrated in other functions within the organization, high implementation cost and problems relating to information flow between departments within the organization. The current study contributes to knowledge in the sense that it is the first (to the researchers’ knowledge) to examine specifically the interrelationship among SMA implementation challenges in the Nigerian context, thereby drawing attention to the need to consider the challenges to embracing management accounting innovations holistically. Knowledge of SMA implementation challenges could help explain the low adoption rate of SMA in developing countries. Such knowledge might be helpful in providing a robust response to the challenges of implementing management accounting innovations.

Evaluation of the contributions of street trading on performances of selected FMCG companies in Nigeria

Aim/purpose – Street traders are seen selling all kinds of goods to patrons who pass-by or who are vehicular traffics on Nigerian roads, particularly major intra and inter-state roads in urban and rural areas. The study assessed the perspectives of salespersons from six selected FMCG companies regarding the extent to which street trading has contribut- ed to the overall performances of their respective firms. Design/methodology/approach – The study was done as a cross-sectional research, encompassing individuals from all levels of the sales departments of six selected FMCG companies in Lagos, Nigeria. It utilized a survey methodology by distributing a 39-item questionnaire, which employed a 5-point Likert scale to a sample of 174 participants. These individuals were picked from a larger population of 308 salespersons who were employed by the selected FMCG companies. The questionnaires were administered by email and the response rate was 56.32%. Descriptive statistics and chi-square test to determine the dependence or otherwise of the variables. Findings – The research findings established that the respondents perceived street trad- ing as a contributor to the sales performance of the FMCG companies they worked for. Among the findings was the perception that street trading had been an integral part of the channels used for distributing their companies’ products. This study also highlighted that salespersons did not consider the government’s actions as impeding their organizations from formally recognizing or as any hindrance to integrating street trading as a channel of distribution. The respondents’ views suggested that other factors are responsible for the lack of formal acknowledgement of street trading as a means through which end consumers are served. Research implications/limitations – The study affirmed the economic importance of street trading and the positive impact it has on organizations in the formal sector. It also gave insight into how FMCG companies and street traders groups can collaborate to influence favorable government policies towards street trading. Urban development planners can also find ways to provide for street trading by allocating zones where this activity can be carried out in urban areas. Originality/value/contribution – An attempt to synthesize the impact of an aspect of the informal economy on largely formal sector operators. The study provided a perspec- tive on street trading, which has not received much scholarly attention as a channel of distribution. Keywords: FMCG companies, informal retail, street trading, street vendors. JEL Classification: D3, E2, F1.

FINANCIAL REPORTING QUALITY AND CORPORATE PERFORMANCE OF BUSINESS ORGANIZATIONS IN NIGERIA

Evidence from previous studies revealed that quality of financial reporting has effect on firms’ performance by placing more emphasis on the financial measures of corporate performance with little emphasis on the non-financial measures. Therefore, this study appraises the impact of financial reporting quality on performance using both the financial and non-financial measures of corporate performance. This study focuses on the listed manufacturing companies in Nigeria. Data were sourced primarily and secondarily with the use of questionnaires and annual reports of the selected companies from the periods of 2017 to 2021 respectively. The information supplied in annual reports and the questionnaires were then analyzed distinctively by the use of multiple regression analysis. The result showed that financial reporting has an impact on both financial and non-financial performance of corporate entities in Nigeria. Hence, it recommended that companies should ensure to give credible and equal reports on both the financial and non-financial performance of their businesses.

The Effect of Audit Quality on The Financial Performance of Listed Deposit Money Banks in Nigeria

This study explored the influence of audit quality on the financial performance of listed deposit money banks in Nigeria. It successfully identified a significant and positive relationship between audit quality, represented by audit fees and audit firm specialization, and the performance of the sampled banks measured using ROA (Return on Assets) and EPS (Earnings per Share). The research collected annual data from 2009 to 2021, sourced from the annual reports and accounts of non-financial quoted companies in Nigeria. To address potential endogeneity issues, the study employed feasible generalized least square regression, aligning with the results of diagnostic tests. The analysis outcomes indicated that audit fees had a positive and statistically significant impact on the return on assets and earnings per share of the sampled banks. Similarly, audit specialization exhibited a positive and significant influence on both return on assets and earnings per share. Consequently, the study confirmed a noteworthy positive relationship between audit quality and the performance of Nigerian listed Deposit Money Banks. In light of these findings, the study recommends that regulatory authorities in the sector encourage banks to engage specialized audit firms.

The moderating effect of marketing competence on the relationship between strategic flexibility organizational performances of quoted pharmaceutical companies in Nigeria

The moderating effect of marketing competence on the relationship between strategic flexibility organizational performances of quoted pharmaceutical companies in Nigeria

Effect Of Cost Control Techniques on The Survival of Manufacturing Companies in Nigeria

Effect Of Cost Control Techniques on The Survival of Manufacturing Companies in Nigeria