Financial Institutions In Nigeria Research Articles

Firm attributes and discretionary disclosures of financial institutions in Nigeria

Firm attributes and discretionary disclosures of financial institutions in Nigeria

Firm attributes and discretionary disclosures of financial institutions in Nigeria

Firm attributes and discretionary disclosures of financial institutions in Nigeria

Regulatory Intervention Effectiveness and Performance of Financial Institutions in Nigeria.

Deposit Money Banks have over the years made good contributions to Nigeria’s economic development. However much remains to be done as various regulatory interventions implemented to ensure safe and sound financial services delivery have not achieved the expected results as Nigerian banks still carry poor credit portfolios, illiquidity, weak asset quality, and high interest rates and this may be attributed to sub-optimal increase in asset base, increasing loan loss provision, huge non-performing loan, poor earnings of non-interest income and return on assets. This study adopted ex-post facto design using multiple regressions estimation techniques to analyse the data which was extracted from annual financial statements of three (3) foremost DMBs in Nigeria (UBA, FBN and GTB). The study revealed that combined variations in the institutions intervention effectiveness (shareholders fund, reserve requirements, statutory reserve, asset quality and prime lending rate) have resulted into 60% changes in all the explanatory variables of bank performance. It is therefore recommended that the CBN should be more proactive in the exercise of their regulatory intervention functions when an indication emerges that any of the banks’ are experiencing liquidity crisis to avoid systemic distress in the banking industry as intermediation of funds can get disrupted and liquidity challenges turn into reputational damage.

Effect of Creative Accounting on the Financial Performance of Listed Deposit Money Banks in Nigeria

The list of recent cases of creative accounting practices is growing as many financial institutions in Nigeria are being investigated. As a result, this study examined the effect of creative accounting on the financial performance of listed deposit money banks in Nigeria. For this study, secondary data were explored, and the study adopted an ex-post facto research design. The population of this study comprised all the nineteen (19) deposit money banks listed on the Nigerian Exchange Group as of December 31 2022, and ten (10) banks were selected as sample size using purposive sampling techniques. Data were analysed using the panel multiple regression technique (fixed effect regression model) with the help of Statistical tool, E-views version 12.0. The study found that Non-performing Loans exert a positive and significant influence on the Return on Equity of the listed deposit money banks; Capital Adequacy Ratio has a negative but significant effect on Return on Equity; Gross Earnings Ratio has a positive but insignificant effect on Return on Equity; and Loan-to-asset Ratio posited a negative but significant effect of on Return on Equity. The study recommends that proactive measures to identify, assess, and mitigate credit risks can help minimise the adverse impact of non-performing loans on financial performance.

Appraising the Impact of Cashless Economic System on the Financial Performance of Financial Institutions in Nigeria

The main objective of the study is to investigate the effect of cashless economic system on the

Financial Statements Fraud of Banks and other Financial Institutions in Nigeria

Purpose: There is evidence that managers engage in opportunistic practice to manipulate reported performance to attract unsuspecting investors. This paper seeks to detect the likelihood of manipulations on the financial reports of financial service firms (banks and other financial institutions) as well as to identify the financial indicators that are the likely predictors of the probability of manipulations in Nigeria. Theoretical framework: The M-score models, from Beneish (1999), are employed as theoretical basis for the paper. The model use financial ratios computed using accounting data to confirm the probability that firms’ reported earnings are manipulated. Design/Methodology/Approach: The study uses data from the Nigerian Exchange Group, from 2010 to 2019 to compute M8/M5-scores and classify firms into likely manipulators and unlikely manipulators. In addition, a probit regression model was applied to establish financial ratios that significantly predict the likelihood of FSF amongst the financial firms. Findings: The results based on M8 (M5)-score indicate that 26.67% (23.33%) of firms likely manipulate financial books and exhibit the possibility of FSF. In addition, only sales in receivable, sales growth, depreciation expenses, leverage and accruals to assets ratios are found to be (positive) significant predictors of the probability of manipulations. Research, Practical & Social implications: The implication of the outcome is that subjecting financial statements to empirical and statistical scrutiny should not be ignored because it would detect and reduce associated risks to manipulations. Therefore, more regulatory interventions and empirical auditing of reports are needed to ensure their readability and reliability to the investors. Originality/Value: The study offers a novel and first evidence, based on Beneish M-score, to scrutinise reports of financial firms in Nigeria. The evidence ensures quality reporting of the financial statements in order to credibility as well as protect the integrity of the capital markets.

Fintech adoption dynamics in a pandemic: An experience from some financial institutions in Nigeria during COVID-19 using machine learning approach

Fintech adoption dynamics in a pandemic: An experience from some financial institutions in Nigeria during COVID-19 using machine learning approach

A Review on Islamic Corporate Governance and Performance of Islamic Financial Institutions In Nigeria

Islamic financial institutions are essential catalyst to economic growth in Nigeria and their performance assumed to be influenced by corporate governance practices. The purpose of this study is to review the role of Islamic corporate governance on the IFIs performance in Nigeria. Even though the relationships have produced significant scholarly impact, few studies have been conducted on IFIs performance in Nigeria. The content analysis was utilized. The findings of the study revealed that corporate governance is significant to IFIs’ performance in Nigeria. This study contributes to the existing literature on corporate governance practices and IFIs’ performance in Nigeria. Finally, the study’s implications for theory and practice, limitations, conclusion as well as the direction for future research are provided and discussed.

Building a Cyber Fitness and Resilience in Financial Institutions in Nigeria using Hack Ability Score Technique and Cyber Security Self-Assessment Tool

Building a Cyber Fitness and Resilience in Financial Institutions in Nigeria using Hack Ability Score Technique and Cyber Security Self-Assessment Tool

Impact of Electronic Banking on the Performance of Financial Institutions in Nigeria (A Study of First Bank Plc)

Impact of Electronic Banking on the Performance of Financial Institutions in Nigeria (A Study of First Bank Plc)

ASSESSING CAPITAL ADEQUACY: AN EMPIRICAL STUDY OF FINANCIAL INSTITUTIONS IN NIGERIA

This empirical study investigates the determinants of capital adequacy among financial institutions in Nigeria. Using a comprehensive dataset and econometric techniques, the research explores various factors influencing the capital adequacy ratios of banks and other financial entities in the Nigerian market. Key determinants such as asset quality, earnings retention, risk management practices, and regulatory compliance are analyzed to understand their impact on capital adequacy levels. The findings contribute to the understanding of the financial stability and resilience of Nigeria's banking sector, offering insights for policymakers, regulators, and industry stakeholders to enhance capital adequacy standards and promote a robust financial system.

Adoption of new accounting information in nigeria: is accounting information more relevant?

This paper discussed whether accounting information has an incremental value relevance among Nigerian financial institutions. The study is motivated by the Report on the Observance of Standard Code (ROSC) of 2014 and 2011, which report that Nigerian accounting reporting has been marred with non-compliance, non-update, and nondisclosures of accounting information. These have contributed to the sudden fall of the Nigerian stock market from 2008 to 2009 and Nigerian financial institutions that made investors lose confidence in the Nigerian capital markets. This situation provided an opportunity to study the value relevance of accounting information among Nigerian financial institutions. The study uses 52 listed financial institutions in Nigeria. The stock price model used in value relevance studies is employed for data analysis. Data is collected from Bank Scope and Thompson Reuters Data Stream. The study findings provide more value relevance of accounting information under IFRS. Furthermore, assets and liabilities provide positive and negative significant relationships with stock returns, respectively. Lastly, the study provides evidence of the value relevance of accounting information after adopting IFRS.

MODERATING EFFECT OF AUDIT LIBERTY ON REPORTING TIMELINESS OF NON-BANK FINANCIAL FIRMS IN NIGERIA

This study examined the impact of auditors' liberty on the timely submission of audit reports by financial institutions in Nigeria (2011-2020). For the study, two research hypotheses were developed, and tested based on the purview of ex-post facto research design. All financial firms quoted and trading on the Nigerian Exchange Group (NGX) as of December 31, 2021, were included in the study's population. Twenty-three (23) financial firms were chosen as a sample. The Nigerian Exchange Group (NGX) website and the annual reports provided by the sampled companies themselves served as the study's primary secondary sources of data. The hypotheses were validated using random effect least squares regression. The study found that audit fees have a significant negative impact on timely submission of audit reports, but that the gender diversity of the audit committee had no mitigating influence on this relationship. In light of the findings, the report suggests, among other things, that businesses hire audit firms with more experience who will prioritize professionalism and due diligence over any pressure brought on by large or low fees. In order to avoid spending more than is necessary without sacrificing audit quality and timely reporting, the study also advised organizations to budget an ideal amount for audit expenses. Other research can be done on additional particular elements that influence audit report latency in manufacturing firms and the oil and gas industry.
 Keywords: Audit Liberty, Audit Fee, Audit Committee Gender Diversity, Audit Report Timeliness.

Adoption of new accounting information in nigeria: is accounting information more relevant?

This paper discussed whether there is an incremental value relevance of accounting information among Nigerian financial institutions. The study is motivated by the Report on the Observance of Standard Code (ROSC) of 2014 and 2011, which report that Nigerian accounting reporting has been marred with non-compliance, non-update, and non-disclosures of accounting information.These have contributed to the sudden fall of the Nigerian stock market from 2008 to 2009 and Nigerian financial institutions that made investors lose confidence in the Nigerian capital markets. This situation provided an opportunity to study the value relevance of accounting information among Nigerian financial institutions. The study uses 52 listed financial institutions in Nigeria. The stock return model used in value relevance studies is employed for data analysis. Data is collected from Bank Scope and Thompson Reuters Data Stream. The study findings provide more value relevance of accounting information under IFRS. Furthermore, assets and liabilities provide positive and negative significant relationships with stock returns, respectively. Lastly, the study provides evidence of the value relevance of accounting information after adopting IFRS.

The Effects of Blockchain Technology on Corporate Governance: Evidence from Emerging Economy

Abstract Modern developments in digitization have completely changed business structures and operating procedures. The core structure of a database can be built using the distributed technology known as blockchain, which combines data blocks and hash chains. Blockchain has been recommended by academics as one of the foundational elements of corporate governance. Though previous studies examined the impact of blockchain on firm numerous extents, few study has investigated the impact of blockchain technology on corporate governance. We examined the effects of blockchain technology on corporate governance of financial institutions in Nigeria. We use multiple regression over 121 responses. Samples were collected using a random sampling method. Results indicates that blockchain technology has positive impact on corporate governance suggesting the removal of agents as intermediaries in corporate governance through code, peers’ connectivity, and collaboration. Our results help managers transform the regulatory, financial, and entire governance structure of financial institutions.

Factors Influencing Saving Behaviour of Nigerians

Purpose: This paper is motivated by the dearth of domestic savings required for inclusive economic growth in Nigeria. The paper examines the impact of financial literacy and socio-economic factors on Nigerians saving behaviour.
 Methodology: The models are estimated with linear probability and probit estimators. There are three categories of variables in the models; the independent variables, which are the computed scores of financial literacies; control variables, which are the measures of demographic and socioeconomic factors and; the dependent variables, which are the measures of frequencies of saving in three financial institutions in Nigeria.
 Findings: Our finding resonates with policy debates suggesting that improving Nigerians knowledge about finance and financial services would foster Nigerians saving behaviour. We observed also that households with 1 – 4 persons have tendency to put away more money as savings. The paper documented that the optimum household size for accelerating saving is 5-6 persons beyond which enforces financial exclusion or dissaving, among others.
 Unique contributions to theory, practice and Policy: This paper provide fresh evidence on the influence of the newly financial literacy scores variables designed by the National Bureau of Statistics (NBS) on Nigerians saving behaviour. It equally, expanded the saving literature by considering differently level of household sizes to explained Nigerians saving behaviours. Consequent on the findings the paper suggested that the Federal Government of Nigeria in collaboration with the States governmant reenforce the National Financial Inclusion Strategy framework and include a finance course to be made mandatory and taught at all levels of education in Nigeria. The paper also suggested a rethink on the Nigerian population policy to an aggressive campaign on family planning aimed at reducing fertility level to about 2 – 3 children per family.

Effect of Capital Structure on the Profitability of Non-Financial Institutions in Nigeria

Capital structure decision primarily deals with the question of how much debt is needed to optimize the value of a firm. The research objective was to establish effects of capital structure on the profitability of non- financial institutions in Nigeria. Theoretically it is assumed that the capital mix a firm uses to finance its operations does not matter and that its future operating income generated by its asset is what determines its value. Multiple linear regression which is capital structure determinant independent variable, leverage ratio, growth of the firm and earnings management. These variables were used to establish whether capital structure decisions affect profitability of non-financial intuitions in Nigeria. Secondary data was collected from 2015 to 2020 and analyzed with the aid of statistical tools. Descriptive study research design was used to determine frequency of occurrence or extent to which variables were related. The population used in this study was five non-financial institution listed at the NSE, study further found out that profitability improved with increase in liquidity and sales growth. From the findings outlined above, the study recommends that companies, should consider borrowing less funds and use internal funds economically so that they can consequently reap from such funds and increase their profit. The study concludes that the firm management should take into account their liquidity which is significant and growth as this also turned to be critical factors in determining profit.

Empirical Analysis Of Core Value Statements Of Financial Institutions In Nigeria: A Strategic Finance Approach

Mission, values, vision and objectives are considered essential in strategic planning and management activities of any organization, in that they function together to determine its strategic direction. The objective of this study is to identify, classify and analyse core value statements of financial institutions quoted on the Nigerian Stock Exchange. Based on simple random sampling and in line with the Godden (2004)’s sample size formula, a sample of 38 was selected out of a population of 52 financial institutions. The selected financial institutions have 209 core value statements, which were classified into seven value dimensions: commitment to customers, commitment to stakeholders, commitment to employees, commitment to diversity, commitment to integrity, entrepreneurship, and corporate social responsibility. Using both content and descriptive analyses, the study found that commitment to integrity (33.97%) and commitment to customers (23.92%) are two most popular out of the seven value dimensions. However, commitment to employees constitutes as low as 1.44% of the value dimensions. It is therefore recommended that financial institutions in Nigeria should increase their commitment to employees and practically institutionalize and integrate their core values in the heart of the employees rather than making it a mere statement in black and white

Do Internal Corporate Governance Code, Capital Structure, and Ownership Structure Matter in Explaining the Performance of Nigerian Financial Institutions

The rise in financial scandals and corporate failures prompted a greater spotlight on CG, particularly as it pertains to financial institutions (FI). This research looks at how the corporate governance code, CS, and ownership structure affect financial institution performance in Nigeria. The data for the study was obtained from the annual financial reports of 37 financial service institutions as the sample between 2010 and 2019. Internal corporate governance code proxy by board size, board independence, board remuneration and audit committee size, capital structure proxy by long-term debt and equity and short-term debt and equity ratio, ownership structure proxy by board ownership, ownership concentration, and foreign ownership concentration are the independent variables used in this study. The dependent variable is performance proxy by earnings per share and Tobin's Q. The study used a dynamic panel GMM estimator to deal with the panel data models. The results show that the EPS of FI in Nigeria is positive and significantly influenced by board size and short-term debt to equity ratio. Board remuneration and the long-term debt to equity/assets ratio, on the other hand, have a negative and considerable effect on FI earnings per share. Similarly, for Tobin Q, Bindp and Bremu, except board size, negatively impacted FP of the Nigerian financial service industry. Capital structure proxies by long-term debt and equity and short-term debt and equity ratio exerted a considerable impact on Tobin's Q. Equally, the ownership structure has a considerable impact on Tobin's Q. As a result, we recommend that financial institutions in Nigeria prefer equity financing over long-term debt when funding capital projects. On the other hand, short-term debt obligations should be used to fund short-term initiatives to keep the firm's performance growing. The research is necessary to ensure that debt and equity ratios are used appropriately in financial sector funding firms to maximise return on capital.

Assessment of Impact of International Financial Reporting Standards (IFRS) Adoption on Financial Institutions in Nigeria

This study examines the impact of adopting IFRS on the financial statements of Nigerian depositary banks. The data used was taken from the annual report of selected banks listed on the Nigeria Stock Exchange in Nigeria from a period of 2013 to 2017. To achieve this, the panel's Ordinary least squares regression procedure was used. The results show that R-squared is 78%. This means that the overall QFS variation is 78%, which can be explained by the explanatory variables following the independent variable, which is sufficient to explain the dependent variable (quality of accounting information). The F-Statistic is 2.07870 and the probability value is 0.026393 with p <0.05. This is statistically significant and means that the goodness of fit of the model is high and significant. Therefore, the model is well specified and can be estimated. A Durbin-Watson statistic of 2 was obtained. This means that the results are free of continuous autocorrelation issues. In particular, the IFRS correlation coefficient is 0.74458 and the probability value is 0.0105 with p <0.05. This is positive and statistically significant. This shows that there is a direct and significant correlation between the adoption of IFRS and the quality of financial statements. The results revealed a positive and significant association between ROA, growth, size, age and quality of accounting information.