Firms In Nigeria Research Articles

CHIEF EXECUTIVE OFFICER (CEO) ATTRIBUTES AND TAX AVOIDANCE INSIGHT FROM LISTED NON-FINANCIAL FIRMS IN NIGERIA

The study mainly examined the effect of chief executive officers’ attribute on tax avoidance of listed non-financial firms in Nigeria. To achieve this objective, this study specifically tests the hypothesis that chief executive officers’ attributes in the context of chief executive officers’ tenure, chief executive officers’ ownership, chief executive officers’ gender and chief executive officers’ nationality significantly affects tax avoidance over a 10year time frame (2012 – 2021) for non-financial listed firms in Nigeria. This study is anchored on the Upper Echelon Theory noting that the key concept of the upper echelon theory is that the company reflects its chief executive officer. Robust regression analysis technique was employed to test the formulated hypotheses after fulfilling the necessary conditions for obtaining non-spurious regression estimates. Specifically, the result reveals mixed evidence suggesting that the effect of chief executive officers’ attribute on tax avoidance depends on the observed or unobserved traits. Particularly, the result suggests that higher ownership rights owned by the chief executive officer reduces the level of tax avoidance of listed non-finance firms in Nigeria. Therefore, this study recommends among others that to optimize the non-debt tax saving strategy, management must develop a culture within the organization that values responsible tax planning and encourages chief executive officers’ to actively consider the non-debt tax shield as a strategic tool. Further, management team should promote transparency and open communication about tax strategies, ensuring that tax planning is integrated into overall business decision-making processes.
 Keywords: Chief Executive Officer Attribute, Tax Avoidance, Robust Regression, Upper Echelon Theory.

Sustaining organizational competitiveness through strategic management in manufacturing firms

The study examined the application of strategic management practices towards the sustenance of organizational competitiveness in selected manufacturing firms in Nigeria. The specific objectives are to assess the effect of strategic planning practices on the organizational competitiveness of selected firms in the manufacturing industry and examine the effect of strategy formulation practices on the organizational competitiveness of selected firms in the manufacturing industry. The research design used for this study was cross-sectional research design. The population of the study was 15, 625 in three categories/sectors/sub-sectors (consumer, industrial and healthcare sector) listed in the Nigeria stock exchange. The sample size was determined, using the Taro Yamani formula to arrive at 390 which consists of senior, middle and lower-level staff. Data analysis was conducted using Stata version 31 while data sources were obtained from interviews and questionnaires. Multiple regression analysis was used to test the formulated hypotheses. The study found that there is a significant and positive effect of the strategic planning practices dimension of strategic management practices on the organizational competitiveness of selected manufacturing firms in Nigeria. (Coef.0.129, P=0.001). There are significant and positive effects of strategy formulation practices on the organizational competitiveness of selected manufacturing firms in Nigeria. (Coef.0.2059, P = 0.000). The study concluded that strategic planning practices are the pathways to or the starting point of marketplace dominance and a strong competitive position over a long period for any organization. The study recommends that policymakers should ensure adequate resource allocation to ensure that the strategic planning practices of the firms are successful.

Capital Structure and Financial Performance of Listed Oil and Gas Firms in Nigeria

Extensive research has been conducted on the relationship between capital structure and financial performance of firms, with the literature documenting the impact of this relationship. In Nigeria, there has been a growing trend of firms consolidating their equity capital as opposed to debt, leading to a need for further investigation into this relationship. This study aims to address this gap by exploring the impact of equity and debt, two capital structure variables, on net profit margin, a measure of financial performance. The study focuses on ten Nigerian listed firms over a decade-long period (2010-2020) and uses published annual reports as the primary data source to ensure the findings are valid and reliable. The selected firms are representative of Nigerian listed firms on the Nigerian Stock Exchange (NSE). Regression analysis using ordinary least square methodology of secondary data indicates that capital structure has a significant positive relationship with the financial performance of Nigeria listed firms, suggesting that these firms have consistently used both debt and equity capital to improve their earnings. The study's results have several implications for managers and investors in Nigeria, including the importance of finding the optimal balance between debt and equity capital to enhance financial performance, the need for proper management of debt levels to avoid excessive leverage and financial distress, and providing insight into the factors that drive the performance of Nigerian listed firms, which can guide investment decisions and strategies. This study adds to the growing body of literature on capital structure and financial performance by analyzing the relationship between capital structure and net profit margin in Nigerian listed firms. The findings suggest that well-managed capital structure positively impacts financial performance and provides valuable insights for managers and investors in Nigeria.

The Moderating Effect of Institutional Shareholders on the Relationship between Board Attributes and Auditor Selection among Listed Financial Service Firms in Nigeria

The study examines the moderating effect of institutional ownership on the relationship between board attributes and auditor selection among listed financial service firms in Nigeria. It investigated whether institutional shareholding moderate the relationship between board size, board independence, board gender diversity, board meeting attendance and auditor selection among listed financial firms in Nigeria. The study used secondary data extracted from the published financial statements of the sampled firms for the period 2007 to 2020. The population of the study consists of 53 listed financial service firms in Nigeria. The study adopts correlational research design using logistic regression as a tool of analysis. This study presents evidence that higher levels of institutional ownership strengthen the effect of board attributes (gender diversity and board meeting attendance) on auditor selection. Hence, the result implies that managers may face stringent monitoring when institutional investors, board gender diversity and board meeting attendance interacts. Such superior monitoring may compel managers to consider hiring an industry specialist auditor to audit the firm which leads to boosting the firm’ value. The finding of this investigation has an important policy implication on enhancing sound corporate governance practices, particularly for firms operating in developing countries where the market for corporate control is ineffective.

DETERMINANTS OF TAX AGGRESSIVENESS AMONG NON-FINANCIAL LISTED FIRMS IN NIGERIA

The study investigated the determinants of tax aggressiveness among Nigerian listed non-financial firms using inferential and descriptive statistics. Ex-post facto research design was used based on the researchers’ choice of relying on secondary data of listed non-financial enterprises in order to meet the study's general and specific objectives. For this study, 10 years company-specific data were collected from MachameRatios Positive Accounting Database covering 2011 to 2020. Analysis was done using the regression method along with relevant diagnostic tests. According to the results of the hypothesis test, we discovered that Return on Assets (ROA) and gender diversity on the audit committee, does not significantly influence tax aggressiveness, whereas, real earnings management and independence of corporate boards have significant impact on the level of tax aggressiveness of listed non-financial firms in Nigeria. The study thus submits that the level of board independence and the degree of managements’ involvement on real earnings management are major determinants of tax aggressiveness among Nigerian listed non-financial firms. This study thus recommends that the Financial Reporting Council of Nigeria and other relevant regulatory agencies should sustain previous provision in the corporate governance codes requiring the compulsory inclusion of independent directors in the boards of corporate entities. Conscious attempts must be made by regulators to strategically monitor the activities of corporate organizations and their respective management to the extent that tax aggressive tactics through real activities’ manipulation should be discouraged and possibly sanctioned.
 Keywords: Tax Shield, Effective Tax, Tax Aggressiveness, Non-Financial Listed Firms, Corporate Boards, Nigeria.

Effect of Audit Quality on Value Relevance of Accounting Earnings of Manufacturing Companies Listed in Nigerian Exchange Group

The study investigates the effect of audit quality on the relationship between accounting earnings and share prices of quoted manufacturing companies in Nigeria. The current research uses secondary data extracted from 19 sample companies listed on the Nigerian Exchange Group (NGX), from 2006 to 2021. Pooled Ordinary Least Squares (POLS) are used to estimate the results. The findings reveal that earnings per share (EPS) statistically significantly and positively impact the share price of quoted manufacturing firms in Nigeria. The results also indicate that book value per share does not significantly explain the variations in share price. Interestingly, findings show that the moderating role of audit quality has a greater interaction effect with book value per share of quoted manufacturing firms in Nigeria. Finally, the results also show that earnings per share and book value per share have a combined significant effect on the share price of quoted manufacturing companies in Nigeria. The study has valuable insights and implications for shareholders, board members, practitioners, academicians, and policymakers. Further, the study contributes to the current literature by investigating the impact of audit quality on the relationship between accounting earnings and the share price of manufacturing companies. The agency, shareholders, and stakeholder theories support the findings, which contribute to a better understanding of the role of audit quality in the value relevance of accounting earnings information. We recommend among others the need for quality auditing of financial statements of companies to enhance financial performance.

Boss-Driven Development and Employee Commitment in Telecommunication Firms in Nigeria

The study examined the nexus between boss-driven development and employee commitment in telecommunication firms in Nigeria. Boss-driven development is a development process whereby the direction and priorities that accelerate professional growth are determined by the boss; and employee commitment is the extent to which employees are willing to invest their time, effort, and energy to contribute to the success and well-being of the organization. The study was based on four selected telecommunication companies in Port Harcourt with a sample size of 226 telecommunication staff selected from a population of 550 staff. Data collected were analyzed using Pearson Moment Correlation Coefficient with SPSS version 21. It was found that boss-driven development leads to employee commitment. Therefore, we conclude that boss-driven development brings about employee commitment. Based on the above conclusion, it was recommended that telecommunication firms should encourage the boss-driven development of their employee to ensure employee commitment.

Effect of Financial Leverage on Financial Performance of Listed Consumer Goods Firms in Nigeria

This study examined the effect of financial leverage on financial performance of listed consumer goods firms in Nigeria. Data were collected from audited annual reports and accounts of 8 listed industrial goods firms in Nigeria from 2013-2022. Ex-post facto (after-the-fact) research design was adopted. Data were analyzed using Random Effect Regression. Results indicated that debt-equity ratio and long term debt ratio hade had significant negative effect on financial performance while short term debt ratio had negative insignificant effect on financial performance. Over all, the study found that financial leverage has negative effect on cash value added of listed industrial goods firms in Nigeria. Recommendations are also made.

Employees’ Compensation Packages and Profitability of Consumer Goods Firms in Nigeria

The study examined the effect of wages and salaries, bonuses and incentives, and training costs on the return on capital employed of sampled consumer goods firms in Nigeria. Data were collected from annual financial reports of the firms for the period, 2013-2022. The research adopted an ex-post facto research design. The systematic Sampling technique was used to select a total of four (4) companies for the study. The analytical tool used for the study was ordinary least square multiple regression. Results of the test of hypotheses indicate that Wages and Salaries have a negative but significant effect on Return on Capital Employed. Bonuses and Incentives have a negative and insignificant effect on the Return on Capital Employed however; training Cost has a positive and significant effect on the Return on Capital Employed of consumer goods firms in Nigeria. The study suggests that Wages and salaries should not be higher than the value addition made by the employees and labourers, rewards should be directly related to performance and as wanted by the recipient and Training of staff is very pertinent to a company’s overall success.

Tax Shield and Firms Value of Quoted Manufacturing Companies in Nigeria

This study investigated the effect of tax shield on firms’ value of selected manufacturing companies in Nigeria from 2012 to 2021. The dependent variable of this study was firm value which was proxied by Tobins Q, while the independent variables were debt tax shield, depreciation tax shield and charitable donation tax shield. The research design adopted for the study was ex post facto, secondary data were employed, three hypotheses were tested and purposive sampling technique was used. The data for the study were analyzed using ordinary least square regression technique and the statistical tool package used was SPSS Version 20. From the result of the analysis, it was found out that debt tax shield, depreciation tax shield and charitable donation tax shield have significant effect on market value of selected manufacturing firms in Nigeria. Hence, it was concluded that tax shield could be used to optimize the value of manufacturing firms’ in Nigeria. Based on the outcome of this study, it was recommended among others that management of manufacturing firms should consider increasing debt financing, invest more in non-current asset, take advantage of charitable donation as means to enhance corporate image and maintain a proper mix of tax shield in the firm thus bringing overall benefit to shareholders and prospective investors.

Exploring the Influence of Strategy Implementation on the Performance of Pharmaceutical Firms in Nigeria.

Exploring the Influence of Strategy Implementation on the Performance of Pharmaceutical Firms in Nigeria.

Corporate Overheads and Operational Performance of Brewing Firms in Nigeria

The study examined the effect of corporate overheard on the operational performance of firms in the Brewing Industry in Nigeria. The specific objectives of the study were to ascertain the effect of sales and marketing expenses, administrative expenses, and company income tax expenses on earnings per share of breweries in Nigeria. The study adopted an ex-post-facto research design, covering the period between 2015 and 2022. Secondary data were extracted from the annual reports and accounts of sampled breweries in Nigeria. Multiple regression techniques were used for test of hypotheses. The findings of the study indicate that sales and marketing expenses, administrative expenses, and company income tax expenses do not have a statistically significant effect on the earnings per share of breweries in Nigeria. These non-significant relationships suggest that variations in these expenses do not significantly impact the profitability and financial performance of breweries in terms of their earnings per share. These findings highlight the need for further exploration of other factors that may influence profitability in the brewing industry in Nigeria. The study therefore conclude that corporate overheads does not significantly affect operational performance of breweries in Nigeria. The implication of the finding is that there is a need for breweries in Nigeria to consider a broader range of factors beyond the studied expenses to enhance their profitability and operational performance. The study, therefore, recommends that breweries should consider incorporating additional financial performance indicators, such as return on assets, return on equity, and gross profit margin, to gain a comprehensive understanding of their financial performance and identify areas for improvement. In addition to financial indicators, breweries should focus on non-financial factors like product quality, customer satisfaction, brand reputation, and market share, as these can significantly impact profitability and overall competitiveness. Breweries should analyze all aspects of the value chain, including production, distribution, procurement, and overhead costs, to identify opportunities for cost optimization. Managing cost drivers effectively can improve cost efficiency and enhance financial performance.

Environmentally Sensitive Industries Attributes and Environmental Disclosure in Nigeria: Modelling the Double Hurdle Technique

The environmental damages firms’ activities have caused, has aroused the need for firms to be very sensitive to their operations. The 2011–2020 research examines firm-specific features and corporate environmental disclosure for listed environmentally sensitive firms in Nigeria. Age, size, leverage, and management ownership are the explanatory variables. Environmental disclosure explains the GRI environmental disclosure index. The research assessed corporate involvement in environmental disclosure using double hurdle regression. The population and sample are all 23 Oil & Gas and Industrial Goods firms. The research found that firm size and financial leverage influence disclosure choice and extent of disclosure. Firm age does not affect disclosure choice or intensity. The study proposes that Nigerian corporations should give detail disclosure of environmental information. It should be a listing requirement for companies. This promotes green accounting. As captains of industries, managers should push environmental policies that improve their environmental performance to better align the organisation and its stakeholders.

Effect of Cost Control on Corporate Performance: Evidence from Selected Listed Brewery Firms in Nigeria

The main objective of this study is to determine the effect of cost control on corporate performance of listed brewery firms in Nigeria for the period of 2011 to 2021. To achieve this objective, material cost (MATC), labour cost (LABC) and overhead cost (OHDC) were used as proxy for cost control while the return on assets (ROA) was used as the proxy for the dependent variable, corporate performance. The study adopted ex post facto design and the data was obtained from the sampled firms’ annual reports and World Bank annual data official publications. The study was anchored on the Kaizen Costing Theory. The ordinary least square (OLS) regression technique was employed to analyze the data and test the hypotheses formulated at 5% level of significance. The findings revealed that cost control proxies such as material cost and overheads have positive and significant impact on corporate performance of brewery firms in Nigeria while labour cost has positive and insignificant impact on corporate performance of brewery firms in Nigeria. The study concluded that the elements of cost control used in the study such as material cost and overheads have positive and significant impact on corporate performance while labour cost has positive and insignificant impact on corporate performance of brewery firms in Nigeria. The study therefore recommends among other things that the management of brewery firms in Nigeria should embark on cost control strategies that emphasized on material cost, labour cost and overheads reduction in order to improve on their corporate performance indices.

The Mediating Effect of Financial Distress on the Relationship between Profitability and Value of Listed Non-Financial Firms in Nigeria

This study examined mediating effect of financial distress on the relationship between profitability and firm value. The prior studies have focused on the FND and firm value, individually. To date, relatively little research has been conducted in this area, the current study would like to investigate this issue and fill such a research gap in Nigerian capital market. The study used listed non-financial services firms in the Nigerian Exchange Group for the period 2011 to 2020. Purposive sampling technique was used in the study. The study used 72 firms out of the 113 non-financial services firms that were listed for the period under study. The descriptive statistics, correlation and Structural Equation Modeling (SEM) were used as techniques for data analysis while Monte Carlo model was used to determine the level of significance of the indirect effects. The study found that profitability has positive and significant effect on value, as well as financial distress of listed non-financial services firms in Nigeria. Financial distress has negative and significant effect on firm value. Finally, financial distress partially mediates the relationship between profitability and value of listed non-financial service firms in Nigeria. Hence, the study recommends among others that listed non-financial service firms in Nigeria should put profitability into consideration as it may the effect of profitability reduce financial distress and increase the value of their firms.

Audit Committee Attributes and Financial Performance of Insurance Firms in Nigeria

The study investigated the effect of audit committee characteristics on the financial performance of firms listed under insurance sector, on the Nigerian stock exchange group covering 2017 to 2021. The study set out four objectives that includes examining the impact of audit committee independence, audit committee size, audit committee gender diversity and audit committee meeting on the return on assets of insurance firms in Nigeria. Ex post facto research design was adopted as suitable which allowed the study to gather secondary data from annual reports of the firms. The insurance sector has twenty three firms listed under it from which seven were chosen as the sample size on the basis of judgment of the researcher. The data were analysed with the descriptive statistics, correlation and regression analysis. The results show that audit committee meeting and audit committee independence have negative and no significant effect on financial performance of insurance firms. Again audit committee size has positive no significant impact but audit committee gender diversity has positive and statistical significant impact on financial performance of Nigerian insurance firms at 5% level. The study recommends amongst others that larger percentage of the audit committee members should be drawn from women gender to maximally utilize the potentials inherent in them that drive financial performance.

Auditors Independence and Audit Quality of Health-Care Firms in Nigeria

This study examines the effect of auditor independence on audit quality of twenty industrial goods companies in Nigeria for a period of ten years spanning 2012 to 2021. The objectives were centered on assessing possible effect of client importance, auditor reputation, audit opinion and auditor professional qualification on audit quality of health care companies in Nigeria. To achieve this set objectives, this study employed ex-post-facto research design based on data sourced from selected firm’s yearly reports for time period that ranged from 2012 to 2021. Adopting an ex-post factor and longitudinal research design, the secondary data collected were subjected to some preliminary data tests such as descriptive analysis, Pearson moment correlation matrix and multi-collinearity analysis using Variance Inflation Factor (VIF). The research used panel least square procedure based on fixed and random effect framework and houseman test was equally employed in selecting the best model to estimate parameters contained in the model. Emanating from the review of relevant literature and theories on auditor’s independence and audit quality and based on the data collected, analyzed and the hypotheses tested the study found that auditor reputation and auditor professional qualification recorded a positive and significant effect on audit quality which was statistically significant at 5% level of significance. On this basis, therefore, it may be recommended that there is need for the audit firm to protect its independence by working within its statutory duties. The management of health care companies is hereby advised to always source for the services of reputable audit firms with professional qualification and expertise to ensure quality of audit in their firms

Assets Composition and Financial Performance of Listed Consumer Goods Firms in Nigeria

This study investigated the effect of asset composition on financial performance of listed consumer goods companies in Nigeria from (2012-2021). three research questions and corresponding three hypotheses were formulated for the study. Ex-post facto research design was employed in the study. The population of the study included all consumer goods manufacturing firms quoted on the Nigerian Exchange Group (NXG) (NSE) as at 31st December 2022 with a sample size of Twenty-nine (29) consumer goods manufacturing companies selected from the population sector. The study relied on secondary sources of dataset which was obtained from Annual reports of sampled companies as provided by individual companies, Nigerian Exchange Group (NXG) website and Machame Database (www.machameratios.company.site). Amongst other preliminary analysis and tests, the panel least square regression analysis was done in validating the hypotheses. The study found that property, plant and equipment have positive and significant effect on the performance of quoted manufacturing companies in Nigeria Exchange Group; Intangible assets have positive but insignificantly effect on the performance of quoted manufacturing companies in Nigeria Exchange Group; current assets has positive significant effect on the performance of manufacturing companies quoted in the Nigeria Exchange Group. Consequent on the findings of the study, it is recommended amongst others that management of manufacturing companies in the Nigeria should formulate policy that will enhance their investment in property plant and equipment as this will increase the performance of their companies and enable them achieve shareholders wealth maximization objective. The study also recommended that management of manufacturing companies in their effort to enhance the performance of manufacturing companies should increase the level of the of on intangible assets. Increasing the investment in intangible assets would positively enha

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.

The Attributes of Corporate Governance and Financial Reporting Quality of Listed Agricultural Firms in Nigeria

This study examined the relationship between the attributes of corporate governance and financial reporting quality. It made use of listed agricultural companies on the Nigeria stock exchange. This study is anchored on agency theory. Descriptive research design and secondary data extracted from the financial statement of the sampled companies were used. The dependent variable was financial reporting quality proxy by discretionary accruals; the independent variable was the attributes of corporate governance measured by board independence, board size, and board gender diversity while the control variable was firm size. The study used multiple regression analysis to analyze the data. It concluded that the attributes of corporate governance was negatively and significantly related to discretionary accruals i.e. a percentage increase in the attributes of corporate governance reduced discretionary accruals by 132%, thus improving the financial reporting quality. The study, therefore recommended that the attributes of corporate governance especially in agricultural companies listed on the Nigeria stock exchange should be increased.