Firms In Nigeria Research Articles

Environmental Costs and Key Financial Performance Indicators of Oil Firms in Nigeria

This study examined the effect of environmental costs on the key financial performance indicators of oil firms in Nigeria. The study specifically examined the effect of environmental cost on the retained earnings, earnings per share and the return on asset of oil firms in Nigeria. A sample of three firms was selected out of a population of eleven oil and gas firms listed on the Nigeria Stock Exchange during the period. Secondary data were collected from the selected firms and analysed using multiple regression analysis. Findings of the analysis shows that environmental cost has a positive and insignificant effect on the retained earnings of oil firms in Nigeria. It was also observed that environmental cost has a negative and insignificant effect on the earnings per share of oil firms in Nigeria. The study equally revealed that environmental cost has a positive and significant effect on the return on asset of oil firms in Nigeria based on the findings, the study recommends that oil firms should adopt uniform reporting and disclosure standards of environmental cost for the purpose of control and measurement of performance. Firms (especially smaller ones), should be encouraged to disclose their environmental practices in their annual reports to enhance their competitiveness which would subsequently lead to high corporate performance. Top management should ensure that they comply with the environmental laws of the nation as it will go a long way in enhancing sustainability.

Consignment Inventory System and Obsolescence Management in the Drilling Fluid Firms in Nigeria

This study investigated the consignment inventory system and obsolescence management in the drilling fluid firms in Nigeria. The study adopted cross sectional design and ex-post facto design. A total population of 9432 and sample size of 384 was determined using Taro Yamane Formula at 0.05 level of significance using purposive and proportionate stratified random sampling technique. The 384 copies of questionnaire were administered, only 317 was deem fit after processing, retriever, coding and cleansing. The Split Half method was employed to determine the reliability of the instrument with Spearman Prophesy approach. Four research questions and four hypotheses were raised which was tested with Pearson Product Moment Correlationand Partial Correlation because of the bivariateand multivariate functionrespectively via SPSS 25 version. From the findings, consignment inventory system positively correlates with the obsolescence management. Hence, it was revealed that the alternate hypotheses were accepted. In conclusion, the explanatory variable has positive significant influence response variable. From the findings, maximum stock level, re-order stock level and minimum stock level expresses strong correlates on reactive and proactive obsolescence management in the short term and long term. It could be recommended that re-order level should only be implemented and demonstrated by the top management of the drilling fluid companies because of its complexity towards balancing the ordering cost and holding cost.

Relationship between Gender Diversity and Board Size on Corporate Performance of Listed Insurance Firms in Nigeria

The heterogeneity of the board is a sensitive issue because theories emphasized on how important it is to have female directors. Therefore, this study examined the female on board and board size on the corporate performance of listed insurance firms in Nigeria. uses a sample of 25 insurance firms for the years 2011 through 2021. The MachameRatios Database and the annual reports of the sampled companies from the Nigerian Stock Exchange provided the study's data, which were then analyzed using ordinary least square regression. The study discovered that the financial success of businesses is influenced by female directors and board size. The results supported the argument that gender diversity enhances the financial outcomes of firms. Therefore, the study recommended that the management of insurance firms should have the right board member consisting of women inclusion to increase financial performance. The regulators or policymakers should make sure firms in NSC maintain the appropriate board size by ensuring that corporate governance code compliance is painstaking.

The Intangible Assets Innovation and Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria

This study examined the intangible assets and firm value of quoted consumer goods manufacturing firms in Nigeria from 2012-2020 periods. Ex Post Facto research design was adopted. Data were sourced from the annual reports and accounts of twenty sampled manufacturing firms. Regression analysis was employed via E-views 9.0 statistical software. Data analysis revealed that a significant and positive effect exists between intangible assets and firm value at 5% level of significance respectively. The study further concludes that the components of considered in this study are important variables in explaining Firm Value of quoted manufacturing firms in Nigeria. Since innovation in intangible assets has a positive correlation with firm value, the study suggested that businesses should maintain a culture of innovation for the purposes of increasing customer loyalty, trust, and sales.

Intellectual Capital Potency and Firm Value in Nigeria; Evidence from Listed Nonfinancial Firms in Nigeria

The objective of this paper is to investigate the influence of intellectual capital potency on firm value of non-financial firms in Nigeria. This study uses analysis technique to measure ICD. Secondary data were obtained from the Audited account reports of selected non financial firms and Nigerian exchange factbook for the period 2011-2020.This study selected 76 firms out of 107 quoted firms in non-financial sector of Nigerian economy using simple purposive sampling method. The 76 firms were analyzed using regression analysis. The results shows that there is negative influence of capital employed efficiency on firm value while human capital employed efficiency have positive but no significant influence on firm value. The moderating variables of firm size (FISZ) have negative and significant influence, while firm age (FIRA) has positive and non significant influence on firm value of non- financial firms in Nigeria. The findings enhanced the knowledge base of intellectual capital in emerging economies such as Nigeria. Based on the findings this study recommended that, the human capital component of intellectual capital should be trained and educated regularly, innovated, nurture capacity, creativity, know-how and previous experience, teamwork capacity, employee flexibility, tolerance for ambiguity, motivated, satisfied, so as to enhance the usefulness of its output to total input. Also firm specific growth and sustainability policy should strongly placed using corporate governance code and other enhanced internal structural innovative processed to ensure that the firm does not extinct.

Influence of Firm size on Audit Quality and Earnings Management Relationship: Evidence from Listed Manufacturing Firms in Nigeria

The study investigated the influence of Firm size on the relationship between Audit quality and Earnings Management of listed Consumer Goods Manufacturing firms in Nigeria. This study tested a number of audit quality indicators (auditor’s tenure, Audit firm size and joint audit) and earnings management proxies that is (earnings restatement and discretionary accruals), using 26 listed consumer-goods manufacturing firms as the study population. Secondary data were extracted from the annual report of 13 listed consumer-goods manufacturing firms while judgmental sample from the population, covering the study period from 2012 to 2018 using historical data were adopted. The data were tested through the use of Univariate, Bivariate and Multivariate analysis. Univariate/descriptive, Bivariate, Pearson Product Moment Correlation (PPMC) techniques by use of E-view 10 Econometric software and Multivariate – regression model. The findings of the study showed that firm size variability does not influence every aspect of the Firm's attributes. Some aspects of Firms' characteristics are influenced by the size of the Firm whereas some other aspects do not respond to size variability. As was indicated by the Firm size analyses, earnings restatement of consumer-goods manufacturing firms does not respond to Firm size attribute while their discretionary accrual practices significantly depend on their size attributes. The study concludes that firm size is a significant moderator between the use of audit quality and earnings management, however it depends of the variable of earnings management used. In the light of these, it is the recommendation of this study that to ensure positive significant relationship with earnings management, the firms should voluntary engage two audit firms in all to other to allow for effective comparison, so that hidden information in financial statement could be dictated or revealed; the total assets as a dimension of firm size should be r

Systemic Risk and Capital Budgeting Decisions of Quoted Industrial Goods Manufacturing Firms in Nigeria

The purpose of this study was to examine the effect of systemic risk on capital budgeting decisions of quoted industrial goods manufacturing firms in Nigeria. Panel data were collected from annual reports of 15 industrial goods manufacturing firms. Capital budgeting was modeled as the function of exchange rate risk, interest rate risk and consumer price risk. Ordinary least square method of multiple regressions was used as data analysis method. After cross examination of the models, the fixed model was adopted. The regression summary produced adjusted R 2 from the fixed effect regression model implied that 69.9 percent variation in capital budgeting decision of the quoted manufacturing firms were attributed to changes in systemic risk while the model is statistically significant by the value of F-statistics and F-probability. The Durbin Watson statistics implies absence of serial autocorrelation. The study found that exchange rate risk is negative and significant; interest rate risk is positive and significant while consumer price risk is positive but not significant effect on capital budgeting. from the findings, it recommend that There is need for management of the manufacturing firms to formulate strategies of managing systemic risk and the implementation should not just be formulated but strategic and tactical measures should be put in place to absorb, retain and transfer systemic risk and there should be policy to fully deregulate interest rate in the financial market. Systemic risk management should be considered as part of strategic plans which need to be reviewed on a more frequent basis and macroeconomics policies should directed towards stabilizing Nigerian exchange rate to avoid depreciating naira exchange rate against key currencies that exposes t he firms to exchange rate risk

Human Relations and Organizational Conflict Resolution; A Study of Manufacturing Firms in Nigeria

Increasing uncertainty and complexity in the operating environment of organizations provide fertile ground for the beginning of conflict in the workplace. This study was conducted to examine the effect of human relations in resolving conflicts in an organisation using manufacturing firms in Delta State as a case study. The study, anchored on the human relations theory, adopted the survey research design hence data were collected through the use of questionnaires as research instrument. Findings of the study indicate that human resources management style, employee’s job description and alternative dispute resolution strategies all have positive effect in organizational conflict resolution in surveyed manufacturing firms in Nigeria. The study therefore concludes that positive human relation is important in resolving conflicts in an organistion and recommends amongst others the need for management to adopt the use of alternative dispute resolution strategies to avoid the attendant costs and manhour lost inherent in litigations

Chief Executive Officers Dynamics And Corporate Voluntary Disclosures in Nigeria and South Africa

This study investigated the effect of Chief Executive Officers Dynamics on voluntary disclosure of selected industrial goods firms in Nigeria and South Africa. Corporate social responsibility was used as dependent variable while chief executive officers’ tenure, chief executive officers’ age, chief executive officers’ experience, were used as independent variables. A sample of 26 quoted industrial goods firms from two African countries (Nigeria and South Africa) was used for the period of ten years spanning 2012 to 2021. The study employed ex-post facto and longitudinal research design. The secondary sources of data were collected from annual reports and seven (3) specific objectives and hypotheses were subjected to some preliminary data tests like descriptive statistics, Pearson correlation analysis, Variance inflation factor, histogram normality tests and were tested using binary logit least regression analysis. Using a sample of 260 from two African countries firm-year observations, the result revealed that chief executive officers tenure and chief executive officers experience has positive and significant effect on voluntary disclosure practices which was statistically significant at 1% and 5% levels of significance respectively while, CEO Age was found to have negative and insignificant effect on voluntary disclosure practices. Based on the findings made, the study recommends among others that quoted industrial goods firms in Nigeria and South Africa should ensure that the long tenure of CEOs should be encouraged among Nigeria firms while the maximum three years of CEO tenure should be discouraged among South Africa firms and it should be backed up by law and strictly enforced. Again, the study recommend that management of industrial goods firms in Nigeria and South Africa should Long tenure of CEOs should be encouraged among Nigeria firms while the maximum three years of CEO tenure should be discouraged among South Africa firms and it sho

Effect of Capital Structure on the Performance of Brewery Firms in Nigeria

The impact of capital structure on the performance of Nigerian brewery firms was investigated in this study. The precise aims for this research were as follows: determine the effects of long- term debt financing, short-term loan financing, and equity financing on the profit for the year of brewery enterprises in Nigeria. It was decided to use an ex – post facto study design. The study's analytical technique was a random panel regression model, with descriptive statistics and the unit root test as preliminary tests. Long-term loan financing, short-term debt financing, and equity financing all have a substantial impact on the profit of Nigerian brewery enterprises for the year. The study concluded that a firm's capital structure should be carefully constructed to protect the interests of stock holders, shareholders, and the firm's financial needs.

Environmental Sustainability Reporting and Financial Performance of Listed Consumer Goods Firms in Nigeria

Environmental sustainability is the art or science of measuring, disclosing, and being accountable to internal and external stakeholders for organizational performance towards the goal of sustainable development. This study was carried out to examine the relationship between environmental sustainability reporting and financial performance of consumer goods firms in Nigeria. In order to determine the relationship between environmental sustainability reporting (ESR) and financial performance, environmental sustainability reporting was proxy using Kinder Lydenberg Domini (KLD) social-environmental performance rating system while financial performance on the hand was proxy using return on equity (ROE), net assets per share (NAPS) and return on assets (ROA). The study adopted Ex Post Facto Design and data were collected from the annual reports and accounts of consumer goods firms in Nigeria spanning from 2016-2020. The study employed OLS regression model as a statistical test tool. The findings of the study indicate that environmental sustainability reporting (ESR) has significant and positive relationship with financial performance (ROE, NAPS & ROA) of consumer goods firms in Nigeria at 5% significant level. Thus, the study concludes that environmental sustainability reporting ensures firms performance in Nigeria. Thus, the study recommended that the management of environmentally-sensitive firms in Nigeria should sustain and enhance environmental sustainability reporting since it has positive and significant relationship with financial performance

Debt-Equity Variations and Determinants: Empirical Study of Quoted Firms in Nigeria

This study investigates debt-equity variations and determinants with reference to quoted firms in Nigeria for the period 2009 to 2018. The major objective of the study is to ascertain the factors that influence the change in debt-equity. The data used is from fifteen listed firms in Nigeria, Preliminary analysis showed that income volatility, interest payment, asset tangibility, firm size and non-debt tax shield have high correlation with change in debt-equity ratio. All the independent variables are positively related to change in debt-equity ratio except income volatility. The panel unit root test showed that the data were all stationary at first differencing. The major findings indicated a positive and significant relationship between asset tangibility, firm size and change in debt-equity ratio of the selected firms. Interest payment and non-debt tax shield increased change in debt-equity ratio but insignificant, while income volatility showed a negative and insignificant effect on change in debt-equity ratio. The study recommends the need for quoted firms in Nigeria to provide quality management in various areas of the businesses activities to ensure the stability of income, without which can cause numerous business.

Tax Incentive Practices and Financial Performance of Listed Consumer Goods Firms in Nigeria

Tax incentives are granted to enhance positive financial performance and growth of companies across various industries in the country. It is also encouraging to know that consumer goods companies are ranked as one of the pioneer companies. There is however some air of uncertainties as to the value or rationale behind the continued provision of tax incentives. The study examined the relationship between tax incentive practices and financial performance of listed consumer goods firms in Nigeria. The specific objective was to investigate the relationships between annual allowance and return on assets. Secondary data was obtained from the annual reports of) consumer goods firms listed on the Nigeria Exchange Group (NEG) Fact book on a time series of 2011-2020. Convenience sampling technique was adopted where 5 listed consumer goods were selected. Data sourced were subjected to a battery of robustness test, while Pearson’s Product Moment (PPMC), Partial Correlation and Regression analysis used for data analysis and testing the hypothesis formulated. The study result indicated that there is a significant relationship between Annual Allowance and Return of Assets of listed consumer goods in Nigeria. The study recommended that the authorities responsible for administration of tax incentives should prioritize the process of granting tax incentives by making it easier for companies in the consumer goods have unrestrained access to tax incentives, so as to bolster productivity in the sector in order to promote made in Nigeria goods.

Relationship between Environmental Costs and Financial Performance of Oil and Gas Firms in Nigeria

This study explored the relationship between environmental costs and financial performance of oil and gas firms in Nigeria for the period 2010 – 2019. The dependent variable and proxies for financial performance were return on assets, return on equity and earnings per share while environment al costs is the independent variable of the study and was measured by corporate social responsibility expenses. A sample of 5 firms was selected from the 11 oil and gas firms listed on the Nigeria Stock Exchange for the period of study. Secondary data were sourced from the annual reports and accounts of the selected firms and analyzed using Pearson’s Product Moment Correlation analysis. Findings from the analysis indicate that the relationship between corporate social responsibility expenses and return on a ssets was negatively weak and insignificant. It was also found that corporate social responsibility expenses of oil and gas firms has weak positive and insignificant associations with return on equity and earnings per share. In view of the findings of the study, we recommend that firm managers should avoid incessant investment in assets and invest only on those assets that will enable them achieve cardinal corporate objective of profit and wealth maximization for the firm owner. It was also recommended that firm managers should use more of equity financing in their capital structure. This will increase return on equity thereby boasting the firms’ corporate social responsibility performance. It was further recommended that the firm should repurchase some of its share floating around the Stock Exchange Market in order to increase the firms’ earnings per share and thus enhance corporate social responsibility performance of the firms.

Strategic Flexibility and Employee Productivity of Quoted Pharmaceutical Companies in Nigeria

The global pharmaceutical industry is becoming increasingly prone to disruptions and economic fluctuations. In Nigeria, available records showed that pharmaceutical companies are plagued with poor employee productivity in the face of increasing competition and changes in the business environment. This study investigated the effect of strategic flexibility on employee productivity of quoted pharmaceutical companies in Nigeria. 
 The survey research design was adopted for the study. The research population consisted of 642 management and senior staff employees of the six quoted pharmaceutical companies in Nigeria. The study adopted total enumeration in soliciting responses from the sample population using an adapted and well-structured questionnaire. The data collected from respondents were analyzed using both descriptive and inferential (PLS-SEM) statistics. 
 Findings showed that strategic flexibility (coordination flexibility, futurity, reactive flexibility, resource flexibility) has a positive significant effect on employee productivity of quoted pharmaceutical companies in Nigeria. The study concluded that strategic flexibility does have a positive impact on employee productivity of quoted pharmaceutical firms in Nigeria and recommended that management of the pharmaceutical companies should pay more attention to resource flexibility, coordination flexibility, reactive flexibility and futurity in their bid to enhance employee productivity.

Corporate Financial Problems: A Case Study of Listed Manufacturing Companies in Nigeria

A number of manufacturing firms in Nigeria are folding up. Although, there are several reasons why this is happening, the study investigated the corporate financial problems: A case study of listed manufacturing firms in Nigeria because of the crucial roles they play in the Nigerian economy. The results of the previous studies reviewed showed that equity financing had a positive significant impact on the financial performance of listed manufacturing firms in Nigeria. However, the findings on debt financing were not consistent. While some studies reported that debt financing had a positive significant impact on the financial performance of listed manufacturing firms in Nigeria, some revealed that debt financing had a negative significant impact on the financial performance of listed manufacturing firms in Nigeria. Thus, the study recommends that the listed manufacturing firms in Nigeria should continue to use the optimal level of equity in financing their operations because by using equity, they have directly avoided the payment of high interest that may impact negatively on their performance. In using equity to finance their activities, the excess profits can either be paid as dividend or they can be reinvested into the business for better performance if the management considers it that it is better do so.

Firm Size and Revenue Reserve of Agricultural Firms in Nigeria

The study evaluated the effect of firm size on the revenue reserve of agricultural firms in Nigeria. The objectives of the study were to ascertain the effect of total assets, turnover, and the number of employees on revenue reserve of agricultural firms in Nigeria. The study adopted an ex-post-facto research design, covering the period between 2012 and 2021. Secondary data were extracted from the annual reports and accounts of the sampled agricultural firms in Nigeria. A multiple regression technique was used for the data analysis. From the analysis of the study, it was revealed that total asset has a statistically nonsignificant negative effect on retained earnings of agricultural firms in Nigeria with a regression coefficient of -1.153966 and a P-value of 0.7517. However, turnover has a statistically significant positive effect on retained earnings of agricultural firms in Nigeria with a regression coefficient of 4.772568 and a P-value of 0.0002. In line with the findings on turnover, number of employees has a statistically significant positive effect on retained earnings of agricultural firms in Nigeria with a regression coefficient of 8.693119 and a P-value of 0.0440. This implies that firm size has a significant effect on retained earnings of agricultural firms in Nigeria. It was recommended therefore that agricultural firms in Nigeria should manage the trade-off between acquiring assets with the profit for the year and retaining for investment in other operations of the business such as wages and salaries and other overheads. They should engage in promotions and other programmes that will encourage customers to buy their products. This will increase their turnover and subsequently increase their Retained Earnings. Agricultural businesses require manpower, hence they should ensure that they have enough staff to enable them to carry out their business activities effectively which will guarantee profitability and maximum retained earnings.

Effect of Inventory Management and Financial Performance of Manufacturing Firms in Nigeria

The study examines the effect of inventory management on the financial performance of selected manufacturing firms in Nigeria. The ex-post facto design was adopted in this study. 56 listed manufacturing firms in the Nigerian Stock Market were selected as the population of the study. Eleven (11) companies were selected using a purposive sampling method. Multiple Ordinary Least Square regression technique, specifically the panel regression model was applied in testing the hypotheses of the study. Firstly, the study revealed that cash conversion cycle has a negative significant effect on return on assets of listed manufacturing firms in Nigeria. The second hypothesis tested showed that account receivable turnover has a positive significant impact on return on assets of listed manufacturing firms in Nigeria. The third hypothesis tested that indicated that account payable turnover has a positive significant effect on return on assets of listed manufacturing firms in Nigeria. Consequently, the recommendations of the study that manufacturing firms in Nigeria should speed up the conversion of finished into sales. Through putting in place appropriate marketing strategies that ensure quick sales of product to attract more revenues and profit, this can be achieved. Again, manufacturing firms should strive to retain only credit worthy customers who would ensure prompt payment of account receivables. By so doing, quick returns would be enhanced and profitability of manufacturing firms boosted. In conclusion, the manufacturing firms should strive to achieve timely payment of credit purchases as this would aid the suppliers have greater confidence in entrusting more raw materials to the firms on credit basis with the positive effect of boosting their inventories, increased sales and profit.

LIQUIDITY RISK AND PERFORMANCE OF NON-FINANCIAL FIRMS LISTED ON THE NIGERIAN STOCK EXCHANGE

This study has examined the effect of liquidity risk on performance of non-financial firms listed on the Nigerian Stock Exchange. The main objective was to assess the degree of influence liquidity risk measured by (standard deviation of quick ratio and current ratio) have on performance (return on assets) of the non-financial firms in Nigeria. Data from all the 87 non-financial firms listed on NSE were extracted through financial reports and analyzed using descriptive statistics, correlation and regression through STATA version 16. The findings revealed that current ratio have negative and significant effect on performance, while the quick ratio was not significant in influencing performance. The result implies that an increase in liquidity risk (difficulty in running the operations and offsetting short term maturing obligations), leads to a significant decrease in performance of the firms. The result also confirms that the standard deviation of current ratio provides better measurement of liquidity risk. It was however concluded that, liquidity risk has negative and significant effect on performance of firms in Nigeria. The study recommends that more attention should be given to liquidity management to minimize the risk of insolvency or bankruptcy of firms in Nigeria as such will help in reducing liquidity risk issues and improve performance of the non[1]financial firms in Nigeria.

BOARD DIVERSITY, POLITICAL CONNECTIONS AND FIRM VALUE: AN EMPIRICAL EVIDENCE FROM FINANCIAL FIRMS IN NIGERIA

The effect of board diversity, political connections and firm value of listed financial service firms in Nigeria is investigated in this study. Firm value, proxied by Tobin's q and computed as the ratio of the firm's market value of equity to the book value of total assets, is the study's explained variable, while board gender diversity, board nationality, board ethnic diversity, and political connections are the study's explanatory variables. The study’s population consists of fifty-one (51) listed financial service firms on the Nigerian Stock Exchange as at 31st December 2020. Thirty-five (35) of these firms made up the sample size for a period of nine years (2012-2020). Data was gathered from the annual reports of the sampled companies and analyzed using the feasible generalized least square regression (FGLS) approach. According to the study, board gender diversity, board nationality, and board ethnic diversity have a positive significant effect on the firm value of listed financial service firms in Nigeria, whereas political connections had a positive but minor effect. According to the findings, the boards of directors of listed financial service organizations in Nigeria should ensure that females are considered for directorship seats on the boards in order to increase their value, as suggested by the resource dependency theory. Also, the board should be made up of foreign directors in order to lure foreign investors to the firm and enhance its value. In addition, the boards of directors of listed financial services firms in Nigeria should consist of a mix of both northerners and southerners to improve firm value.