Companies In Nigeria Research Articles

Corporate Governance and Earnings Quality of Quoted Consumer and Industrial Goods Companies in Nigeria

This study investigates the impact of corporate governance on earnings quality of quoted firms in Nigeria. Corporate governance was indicated by board size, board diversity and the number of female representatives on the board while earnings quality was measured by the earnings per share and net assets per share. The study employed the expo facto research design and was anchored on the Agency Theory. The population of the study was Consumer and Industrial Goods firms listed on the Nigerian Stock Exchange. The researcher employed the purposive sampling technique to select a total of twenty out of the thirty companies as sample for the study. Secondary data was sourced from the companies’ annual reports for the period of 2015 – 2020 and was analyzed using descriptive statistics, correlation and multiple regression techniques. The results basically indicate that there was an inverse and non-significant relationships between board size and earnings quality (EPS and NAPS). The study also revealed a positive and significant relationships between board diversity and both EPS and NAPS. It was recommended that board size should not be increased since it has negative and insignificant effect on earnings quality; but board diversity should be encouraged due to its positive and significant effect on earnings quality of listed firms in Nigeria

Customer Targeting and Product Positioning: A Study of Small-Scale Enterprises in Nigeria

This study examined the connection between product positioning and customer targeting strategies amongst small scale food, beverage, and fabric manufacturing companies in Nigeria. The research design used in the study was descriptive survey. Data were collected via questionnaires from 211 marketing professionals and clients of the aforementioned manufacturing entrepreneurs. The Pearson Product Moment Correlation Analysis was used as an inferential tool for data analysis. The study's findings demonstrated the importance of product positioning strategy in determining sales results and enhancing competitive advantage. It was discovered to have excellent sales prediction capabilities. In addition, the sales of manufacturing SMEs in under review were significantly impacted by product positioning tactics. As a result, this study recommends using a product price positioning strategy to increase the marketability of their items.

Green Cost Accounting and Financial Performance of Selected Upstream Companies in Nigeria

There is a growing concern about the implications of environmental activities on the profitability of upstream companies in Nigeria. In view of the individual importance of the environment and the continued survival of business organizations, attention is focused on the interplay of sustainability of the environment and profitability of corporate organizations. The study specifically assessed the effect of environmental conservation cost on return on assets and net profit after tax of upstream companies in Nigeria. The study adopted the ex-post factor research design and data were sourced from the companies’ annual audited financial reports for the period 2009 to 2018. The multiple regression technique was applied in estimating the study’s parameters. Findings showed that environmental conservation cost has positive and insignificant effect on return on assets and profit after tax of upstream companies in Nigeria. The study therefore concluded that green cost accounting has positive and insignificant effect on financial performance of selected upstream companies in Nigeria. Based on the findings, it is therefore recommended that Nigerian upstream Companies should ensure proper management of environmental conservation costto enhance their profitability

Customary Practices in African Print Fabric Design Process in the Nigerian Textile Industry

African print fabrics is commonly referred to as Ankara fabrics. It is a major textile product produced in Nigeria, which has the high economic value. This study focused on the customary practices in the African print fabric design process in the Nigerian textile industry. The study adopted survey research design. The population of the study comprised of African print fabric designers in the functioning textile companies in Nigeria. Ten African print fabric designers were sampled. Questionnaires and interviews were used for data collection. The data collected was analyzed using descriptive statistical tools. The study revealed that textile companies in Nigeria do not have value for quality designers, intellectual property right and originality of designs. It was recommended that the design institutes and professional design bodies should intervene in the design process in the Nigerian textile industry so as to generate designs that are original and capable of promoting the Nigerian textile industry.

Impact of Corporate Governance Structures on Earnings Management and Performance: An Empirical Investigation of Quoted Manufacturing Companies in Nigeria

The study examines the impact of corporate governance structure on earnings management and corporate performance of manufacturing listed firms in Nigeria. The study used a sample size of twenty-seven listed manufacturing firm in Nigeria from 2012-2021. The study adopted a panel data research design. A multiple regression statistical tool was used to test the hypotheses. The predictor variable was measured using board size, board meeting frequency, audit committee size and audit committee meeting frequency. Earnings management was measured using Discretionary Accrual after the modified Jones (1991) model. Corporate performance was measured by return on security market stock (RET). Results of the multiple regression analysis indicated that the four governance categories have a negative and significant association with earnings management, but a positive and significant relationship with RET. The study recommended that there should an increase in board size, board meeting frequency, audit committee size and audit committee meeting frequency

Agroforestry Technology: A Climate Change Mitigation Measure for Sustainable Food Security in Niger Delta Region of Nigeria

Oil and Gas production in Nigeria are domiciled in the Niger Delta. Agroforestry technologies were introduced as mitigation strategies against food insecurity as land management technique due to constant litigation on accusation of emissions, increase climate change and environmental devastation. Objectives were to determine reasons for agroforestry practice by rural women and identify effects of agroforestry technologies on income in the oil and gas rich Niger Delta. A total of 270 respondents in Bayelsa, Imo and Rivers States were selected using purposive and random sampling techniques. Data were collected with questionnaires and focus group discussion. Descriptive statistics and Discriminating index were used for analysis. Results showed a mean age of 51years, 38% completed secondary school, 77% married, household size of 6 and 3-4 years’ experience. A discriminating index of 2.5, food production (2.8*), Income generation (3.4*), raw materials production (3.3*), Nutrient replenishing (3.1*) and soil quality (2.9*) topped reasons for agroforestry practice. It was concluded that Agroforestry technology should be advocated through extension education to meet food needs of Niger Delta to addressing the reputations of Multinational Oil and Gas companies in Nigeria. This study recommends that Multinational Oil and Gas companies should assist primary stakeholders to establish agroforestry farms as part of its corporate social responsibility addressing food insecurity and unemployment.

Evaluation of Financial Determinants of Biological Assets of Agricultural Companies in Nigeria

This study examined the financial determinants of biological assets of agricultural companies in Nigeria. The specific objectives were to examine the effect of leverage, profitability, and firms size on the biological assets of quoted Agricultural firms in Nigeria. The study adopted ex-post facto research design and made use of secondary data collected from annual reports and accounts of the sampled agricultural firms for a period of ten (10) years (2011-2020). Ordinary Least Squares (fixed effect model) were applied to evaluate the determinants (leverage, profitability, & firm size) of biological assets of quoted agricultural firms in Nigeria. The result of the analysis showed that leverage has a significant effect on the biological assets of quoted agricultural firms in Nigeria. The other variables which include profitability measured by return on assets and firm size have an insignificant effect on biological assets. The implication is that only leverage can cause a significant increase or decrease in the biological assets of agricultural firms in Nigeria. The study conclude that leverage is the only financial determinant that have significant effect on biological assets of agricultural firms in Nigeria.

The Impact of Retained Earnings on the Financial Growth of Pension Fund Administrator (PFA) Companies in Nigeria.

The study examined the relationship between retained earnings and growth of companies in Nigeria. There is a gap in investors’ knowledge as to the relationship between retained earnings and the growth of corporate organisations. The model of retained earnings of some Companies in Nigeria does not follow the pattern of a growth inclined strategy; this has always impacted negatively on growth and expansion as well as the operational efficiency (operating expenses) and value of some companies in Nigeria because they fail to reflect their intrinsic value. For organisation to grow well it must be able to leverage on the advantage of the cheapest source of financing from the available alternatives such as retained earnings. The population for the study is 20 registered and licensed Pension Fund Administrators (PFAs) in Nigeria. Sample of the top four (4) PFAs in terms of their Asset Under Management (AUM) was taken from the population and examined. Data were collected through panel secondary source from the websites of the various PFAs from 2016 to 2020 and these were analysed using panel regression analysis to establish the effect of Retained Earnings (RE) and Operating Expenses (OPEX) on Gross Earnings in these companies. The results revealed that fixed effect panel is plausible and it establishes a significant positive relationship between retained earnings and the gross earning or growth of these companies in Nigeria. The study therefore concludes that retained earnings are an essential method of financing for PFAs’ operations. It is recommended that the PFAs in Nigeria need to improve design strategies that can be used to increase their earnings, to prevent future shocks, and operating expenses (OPEX) which is the lubricant for growth in these companies should be used wisely. Keywords: Dividend pay-out, Dividend Policy, operating expenses, Gross earnings, Retained earnings, Strategies.

Risk Monitoring Committee and Firm Value of Listed Oil and Gas Companies in Nigeria: A Panel Data Analysis

In this paper, the relationship between the risk monitoring committee (RMC) and the firm value of listed Nigerian oil and gas firms was examined. The risk monitoring committee was measured via the presence and size of the risk committee and the contributions of non-executive directors, while firm value was measured using Tobin’s Q, price-to-earnings per share, and earnings yield. Data were collected from the Machamratios database for the period 2012–2020. An aggregate panel data of eight (8) firms was obtained and the data were analyzed using descriptive and inferential statistical tools. The fixed effect (FE) and random effect (RE) models established that the risk monitoring committee measures insignificantly and negatively affected the value of the firm. This suggests that the risk monitoring committee does not affect firm value, particularly for listed Nigerian oil and gas firms. Consequently, for firms to enhance their value via a risk monitoring committee, management must develop a well-structured risk monitoring framework aimed at increasing firm value; this can be realized by reducing the size of the risk committee, the presence of the risk committee, and the contribution of non-executive directors in the risk committee structure of listed Nigerian oil and gas firms.

Internationalization Strategies and Performance of Multinational Companies in Nigeria

The challenges of firm performance of international companies and assessment of corporate strategies have witnessed fundamental changes in literature far beyond book values. A consideration of comprehensive integration and inadequate overlap among firm performance drivers, and declining comparative competitive advantage in the industry where the multinational companies operate are significantly unsettling. The study adopted an ex-post facto research design. The survey was conducted across three (3) sectors of the Nigeria Stock exchange with the population of one hundred and seventy-one (115) companies. The study used a purposive sampling technique to select the international companies. Hence, a sample size of sixteen (16) multinational companies is used to investigate the effect of internationalization and firm performance. Secondary data was adopted for the study and the data for the study were obtained from the Nigerian Stock Exchange Annual report; annual reports and financial statements of the selected companies. Descriptive and inferential (Panel regression analysis) were used to analyse the data. Hausman test was conducted to determine the choice of model to use between the fixed effect model or random effect model. The study revealed two models. One model without control variables and the other with control variable. Model one shows that internationalization has a significant effect on firm performance of listed companies in Nigeria revealing an adjusted r square of 0.0913; Wald Stat of 18.30 and the p-value of 0.000 < 0.05. Model two also revealed a significant effect with an adjusted r square of 0.252, F statistic of 9.93 and p-value of 0.000 < 0.05. The study, however, concluded that internationalization has a significant effect on firm performance of listed companies in Nigeria. Therefore, it was recommended that management of multinational companies should review and re-engineer the dynamics of export intensity to improve the performance of companies to efficiently and effectively generate profits using its assets. . The government and policymakers should reconsider charges and interest rates to accommodate the loan facilities of the multinational companies. Management should put in place investment policies that will attract foreign investors in the company which will enhance operations and performance. Management should take advantage of their strength and emerging opportunities to enhance company sales.

Firm Specific Attributes and Financial Performance of Quoted Insurance Companies in Nigeria

Firm Specific Attributes and Financial Performance of Quoted Insurance Companies in Nigeria

The Effect of Debt on Earnings Per Share Using Manufacturing Companies in Nigeria from 2011 to 2021

This research work analyzed the effect of debt on earnings per share using manufacturing companies in Nigeria from 2011 to 2021. The data for the study were obtained from the financial statements of these listed firms using purposive and stratified sampling procedures. Before conducting the analysis of the effect of debt on earnings per share using SPSS 28, the data used were examined to comply with basic assumptions of linearity, homogenity and outliners. The result obtained indicated that short term debt has no significant effect on earnings per share (p = 0.651, DW = 1.008, R=0.108). This outcome of this study is in disagreement with Sriyono & Fatmasari [1] which opined that short term debt enhances earning per share. Also the study found out that long term debt exert significant positive effect on earnings per share (p=0.025, DW=1.234, R=0.498). The findings is in line with Efuntade, Efuntade, & Akintola, [2]. Siyanbola, Olaoye, & Olurin [3] and Sriyono & Fatmasari [1] as they all suggest that long term debt increase earnings per share. Further findings from this research indicated that there is a significant effect of total debt on earnings per share (p=0.0194, DW= 1.064, R=0.303). This result is in tandem with Badruzaman [4], Efuntade, Efuntade, & Akintola, [2]. Siyanbola, Olaoye, & Olurin [3], Sriyono & Fatmasari [1] among others. This study concluded that while short term debt exert insignificant effect on earnings per share, long term debt and a mix of short term debt and long term debt do. This study further supports the Perking Order Theory which helps in explaining that management elects to finance their investment in the cheapest means available using options that better their lots.

Tax Evasion Attitudes of Small Firms in Low‐ and Middle‐income Countries: Evidence from Nigeria

SummaryMotivationThe need to tax small firms for revenue generation alongside the aim of establishing a sustainable tax system for such firms that encourages economic growth has long been a challenge for lower‐middle income countries, especially those with large informal economies, such as Nigeria. This article explores the drivers of tax morale of small firms in lower‐middle income countries.PurposeThis article investigates what determines the attitudes of small firms on their potential evasion of taxes on profits, defined here as tax morale. Our objective is to use a new, dedicated small firm survey in Nigeria with high power to construct regressions that can help explore, and contribute to, hypotheses about tax evasion attitudes of small firms.Methods and approachWe use a new nationally representative dataset of 8000 small firms in Africa’s largest economy, Nigeria, based on in‐person interviews conducted in the summer of 2018. To investigate key factors shaping tax morale of small firms in Nigeria, we estimate an ordinary least squares (OLS) regression model using a comprehensive set of explanatory variables based on the large‐N power of our survey.FindingsWe find that in Nigeria the normative dimension and business development dimension appear more important. Small firms that have a higher trust in the government seem to have better tax morale. But firms that believe corruption is relatively frequent have notably worse morale. Firms that are registered and have positive expectations of their own growth also appear to have better tax morale.Policy implicationsSmall companies play an important role in Nigerian society as both employers and drivers of economic growth. Yet, tax compliance among small companies in Nigeria remains very low, as evidenced through our survey. Investigating tax morale and compliance of small firms is critical to design strategies to incorporate them in the tax base to the benefit of the entire country. In particular, the findings suggest that building trust in government and business development policies is important to improve tax morale.

Taxation and Performance of Manufacturing Companies in Nigeria: Evidence from Flour Mills Plc

The study examined the impact of taxation on the performance of manufacturing company in Nigeria from 2005-2021. The study sought to determine if taxation has any impact on the return on asset (ROA) and earnings per share (EPS) using flour mills plc as a case study. The Ex-post research design was adopted and time series data were collected for the study. The ordinary least square regression analysis was used in the analysis. The findings revealed that there is no significant relationship between taxation and the performance of manufacturing company in Nigeria. From the result of the analysis, independent variable of tax showed a weak and negative relationship with ROA and weak and positive relationship with EPS. The study recommends that there should be improvement in the effectiveness of tax administration by ensuring proper assessment. Also, all Relevant Tax Authorities (ROA) should endeavour to have good relationship with the Professional Associations like Chartered Institute of Taxation of Nigeria (CITN) and Institute of Chartered Accountants of Nigeria (ICAN) involved in tax matters so as to increase their support in reducing tax malpractices perpetrated by tax payers with the connivance and often active support of external auditors and tax consultants. Also, the entire tax system as well as the taxes that affect the performance of manufacturing sectors should urgently be overhauled for more effectiveness to achieve the desired results.

Corporate Governance Mechanisms and Tax Sheltering; Evidence from Quoted Tax Aggressive Firms in Nigeria

This study empirically examined the relationship between corporate governance mechanisms and tax sheltering of publicly traded tax aggressive companies in Nigeria. To determine the relationship between corporate governance mechanisms and tax sheltering, corporate governance mechanisms were measured with CEO share ownership, directors' remuneration, board independence and board diligence, while tax sheltering was proxy using effective tax rate. The hypotheses formulated to guide the study and the statistical testing of the parameter estimates were worked out using the OLS regression model using STATA V.15. The ex post facto design was adopted and the data for the study was sourced from the published annual financial reports of all tax aggressive companies classified under ICT Sector, Health Care Sector and Oil & Gas Sector of the Nigerian Exchange Limited (NGL) covering from 2013-2021. The results indicate that corporate governance mechanisms having significant and positive association with tax sheltering of listed tax aggressive companies in the country. The study concludes that corporate governance mechanisms ensure tax sheltering for tax aggressive companies. The study however suggests that firms’ board should consider the percentage and proportion of CEO’s share ownership concentration, pay higher remuneration to the board members, increasing the number of independent directors in their board and also consider in composition of the board of directors, their level of expertness, expertise, intelligence and proficiency as these led to tax sheltering among the quoted firms in Nigeria.

Determinants of Accounts Receivable of Listed Consumer Goods Companies in Nigeria

The management of accounts receivable is usually done not just to reduce inventory, improve sales and profitability, but also to improve liquidity and short-term solvency. These and other factors affect the level of accounts receivable in different ways depending on the industry's nature. This study examines the determinants of accounts receivable in consumer goods manufacturing companies listed on the stock exchange in Nigeria. The study population consists of 14 consumer goods companies listed on the Nigerian stock exchange as of November, 2020. It is a longitudinal study using expost facto research design. Census sampling method was used to consider all listed consumer goods manufacturing companies. Data were collected from 2014 to 2019 annual reports of the 14 companies. Accounts for these years were prepared to comply with the International Financial Reporting Standards (IFRS). The dependent variable is accounts receivable represented by the Receivables Collection Period. Firm size, profitability, inventory, liquidity, leverage and age of companies are independent variables. The study used panel data analysis with its various elements of Pool, Fixed and Random effects. Robustness tests conducted include Variance Inflation Factor (VIF) Test, Hausman test, Lagrange Multiplier test. The result shows profitability and age has significant impact on accounts receivable. Firm size, inventory, liquidity and leverage have no significant impact on Receivable Collection Period. This suggests that profitability and age of companies have significant impact on receivables of consumer goods manufacturing companies in Nigeria. This implies that key determinants of account receivable in these companies are the quest to make profit. It also suggests that older firms know their customers better and might have vast experience in handling accounts receivable.

Sustainability and Financial Reporting Quality for Listed Manufacturing Companies in Nigeria: The Legitimacy Theory Perspective

The universal declaration of a healthy and sustainable environment was adopted by the United Nations (UN) Human Rights Council in 2021 as a fundamental human right; The U.S. Security Exchange Commission in March, 2022 and the European Union's directives in 2014 strengthen the need for all reporting entities to include sustainability reports in their annual reports, for the purpose of improving the quality of financial reporting. Our study examined how sustainability reporting affects the quality of financial reporting from the perspective of legitimacy theory, within the manufacturing sectors in Nigeria as a result of their environmental impact amongst other sectors. The published annual reports of 16 listed manufacturing companies, on the Nigerian Stock Exchange Market, were observed between the financial reporting periods of 2011 and 2020. Sustainability indices were proxied using both the Environmental Disclosure index and Social Disclosure index, while the financial reporting quality was measured using the Accrued earnings management, following the Jones (1991) Model. Using a panel regression analysis, the study applied the Variance inflation factor to test for multicollinearity among the predictors and also employed the fixed effect estimator, as suggested by our Hausman test result, in analyzing the observed data. Our findings revealed that environmental disclosures do not impair the quality of their financial reports. Such impracticability could have resulted from the use of strict environmental regulations by the government and its agencies. However, opportunistic managers could use social disclosure information to dilute the quality of financial reporting. We also found that the profitability performance of manufacturing firm is highly susceptible to impairing the quality of financial reports. We suggest that auditors should be provided with a full-fledge understanding of sustainability reporting to unveil managements' practice of earnings management; the financial reporting council should mandatorily impose the disclosure of sustainability information either as a stand-alone report or as part of the annual reports to allow stakeholders to make relevant economic decisions about the firm; and adequate internal control systems should be in place and should be assessed on yearly basis, as firms continue to operate.

Standards’ Compliance and Financial Reporting Quality Among Listed Companies in Nigeria

The study determined the extent of compliance with financial reporting standards and the extent of financial reporting quality among quoted non-financial firms in Nigeria between 2005 and 2020. The study used secondary data sourced from the published annual audited reports and financial statements of 50 non-financial firms listed in the Nigeria Stock Exchange. Descriptive statistics and Beneish Model were used to determine the compliance and the extent of financial reporting quality. The results showed that the level of compliance with financial reporting standard among quoted non-financial firms is significantly high. Also, results showed that since the adoption of International Financial Reporting Standards (IFRS) in 2012, the level of financial reporting quality of quoted non-financial firms has increased as there was no manipulation of any financial statement of the selected firms up to 2020. Keywords : Financial Reporting Quality, IFRS compliance, Beneish Model. DOI: 10.7176/RJFA/13-14-08 Publication date: August 31 st 2022

Influence of economic environment on the performance of cement manufacturing companies in Nigeria

Many experts are concerned about the necessity to look into what causes the performance of cement manufacturing businesses in Nigeria to be questionable. Therefore, the study looked into how economic factors impact Nigerian cement manufacturing enterprises' performance. Interest rate, inflation rate, exchange rate, unemployment rate, and economic growth were the economic environmental factors taken into account in this study. The study's descriptive and explanatory design and survey methodology were appropriate for achieving its goal. For the 398 sample size considered, primary data were gathered using a standardized questionnaire. In this study, descriptive and inferential analyses were both completed. Frequency tables and charts were used to analyze the data collected in a descriptive manner. The Statistical Package for Social Science (SPSS), which produced the correlation and regression results, was used to conduct the inferential analysis. The results showed that all economic and environmental factors significantly affect how well cement manufacturing enterprises function in Nigeria. The original finding of this study is that the performance of Nigerian cement manufacturing enterprises is most significantly influenced by economic factors, specifically currency rates. With these findings, the study came to the conclusion that economic considerations had a favorable impact on the performance of Nigerian cement manufacturing enterprises. Therefore, it is recommended that cement manufacturing businesses, among other things, should be more aware of the economic indicators that could affect their performance through ongoing feasibility studies on alternative economic indicators in the industry.

Empirical evaluation of value relevance of accounting information on share prices of listed service companies in Nigeria

Empirical evaluation of value relevance of accounting information on share prices of listed service companies in Nigeria