Industrial Goods Sector Research Articles

Audit committee characteristics and firm financial performance of quoted industrial goods firms in Nigeria

Purpose: This study examines the effects of audit committee characteristics on the financial performance of listed industrial goods firms in Nigeria. Research methodology: This study used an ex-post factor research design and utilized secondary data collected from the annual reports and accounts of thirteen (13) sampled industrial goods firms for a period of 10 years (2013-2022). The sample of firms was obtained using a purposive sampling technique. Data were analyzed using descriptive statistics, correlation, and regression analysis (GLS Random Effect) with the aid of Stata 13. Results: The findings reveal that an insignificant positive effect exists between audit committee size and financial performance (ROA and ROE), while audit committee independence has a significant negative effect on return on assets (ROA) and a negative insignificant effect on return on equity (ROE), and audit committee meetings have a positive significant effect on asset (ROA) and a positive insignificant effect on return on equity (ROE). Limitations: The research is limited to only those companies in the industrial goods sector listed on the Nigerian Stock Exchange from 2013 to 2022 and only focuses on the effect of audit committee characteristics on firm financial performance. There was also incomplete data, which did not allow for a complete and thorough analysis of the entire sector. Contribution: This study contributes to the existing body of literature on the effect of audit committees on the financial performance of Nigeria’s listed industrial goods sector. It provides insights that can assist the board in formulating appropriate strategies to improve their performance.

Circular Economy in the Industrial Goods Sector: A Framework for Understanding Private Sector Progress and Innovation

Circular Economy in the Industrial Goods Sector: A Framework for Understanding Private Sector Progress and Innovation

Cash Flow Management and Firm Performance: Moderating Effect of Corporate Governance Mechanism in the Era of Disruption in Emerging Economy

The moderating effect of corporate governance mechanism on the relationship between cash flow management and performance of listed manufacturing firms in the era of disruption in Nigeria was empirically investigated in this study. Operating, financing, and investing activities were used as proxies for cash flow management. Net assets per share (NAPS) was used to measure firm performance while board independence was used as a proxy for the corporate governance mechanism (moderating variable). Panel least squares regression model operated with E-View 12 was utilized to perform the statistical test of parameter estimates, and six hypotheses were formulated to direct the investigation. Ex Post Facto design was used, and the data for the study was collected from the published annual financial reports and accounts of companies listed on the Nigerian Exchange Group (NGX) under the consumer goods sector, industrial goods sector, and oil and gas sector. The results of the study show that operating activities (OA) significantly affect firm performance (NAPS) at 5% significant level. Furthermore, it was discovered that, at 1% significant level, financing activities (FA) has a positive and significant effect on firm performance, whereas investing activities (FA) has the same effect on firm performance in Nigeria. Also, it was noted that, at 1-5% significant level, corporate governance mechanism (board independence) moderated the effect of cash flow management on firm performance in Nigeria. Thus, the study concludes that in this disruptive era in Nigeria, firms’ performance is determined by their ability to manage their cash flow effectively. Moreover, strong corporate governance practices ensure the success of the company. In light of the study's findings, the study recommends that businesses should review their approaches to managing cash flow so that they can produce enough cash to cover both their operating and investing needs. On the other hand, net cash flow from financing activities ought to be preserved because it has a substantial impact on the financial results of the Nigerian listed companies.

Fair Value Assessment for Industrial Goods Stocks in Indonesia Post-Pandemic

Many industrial sectors were severely affected during the pandemic, which lasted from 2020 to 2021. Such indicators can be observed in various companies implementing efficiency measures ranging from cost reduction unrelated to revenue growth to layoff policies. Despite being under pressure due to the pandemic, many industrial subsectors experienced significant growth in the second quarter of 2021, according to statistics from the Ministry of Industry. This study aims to determine the fair value of shares in Industrial Goods companies listed on the Indonesia Stock Exchange. This approach uses a discounted cash flow (DCF) methodology with free cash flow to the company and relative valuation through price-to-earnings and price-to-book ratios. From 2017 to 2021, historical financial data was utilized to forecast future income and expenditure behavior in three scenarios: optimistic, moderate, and pessimistic. The results showed that the DCF-FCFF technique underestimated IMPC, ARNA, and UNTR. MARK is overvalued in pessimistic, moderate, and optimistic scenarios, while MARK is undervalued in optimistic scenarios. HEXA is overvalued in the pessimistic scenario but undervalued in the moderate and optimistic scenario. ARNA and UNTR were overvalued in all relative assessment scenarios using the PER approach, but MARK and HEXA were undervalued. IMPC is undervalued in a gloomy scenario and overpriced in a moderate and optimistic scenario. In all cases, the PBV method overestimates IMPC, ARNA, MARK, HEXA, and UNTR. The study implies that investors should conduct thorough due diligence before making investment decisions, considering company-specific factors and broader market conditions. Companies in the Industrial Goods sector must be ready to adapt to changing market dynamics and prioritize long-term value creation to attract and maintain investor confidence.

Board Diversity and Tax Saving Strategies of Financially Trouble Listed Firms in Nigeria

The study examined the relationship between board diversity and tax saving strategies of financially troubled listed firms in Nigeria. Board diversity was proxy using board gender diversity (BGD), board nationality diversity (BND) and board ethnicity diversity (BED) while tax savings was proxy as tax sheltering using effective tax rate (ETR). The ex post facto design was adopted and the data for the study was collected from the annual reports and accounts of the firms listed under industrial goods sector and oil & gas sector of the Nigerian Exchange Group (NGX)for the period of 2015-2022. Panel Least squares regression model was used in the data analysis and the results of the study show a significant and positive association between board gender diversity (BGD), board nationality diversity (BND), board ethnicity diversity (BED) and tax savings of listed financially troubled firms in Nigeria at 1% -5% significant level. The study therefore concludes that board diversity ensures corporate tax savings. The study recommends that firms should increase the number of female directors in the board as high proportion of female directorship presence ensures corporate tax savings so also the number of ethnic group in the board as it ensures ease resuscitation of financially troubled listed firms in Nigeria. A balanced approach towards the hiring of foreign directors was recommended for listed firms in Nigeria. With this development, corporate tax savings would constantly be maintained.

THE EFFECT OF COMPANY SIZE, FUNDING DECISIONS, AND FINANCIAL PERFORMANCE ON FIRM VALUE

This study aims to determine the effect of company size, funding decisions, and financial performance on firm value. Secondary data is sourced from the financial statements of companies in the Industrial Goods sector index companies listed on the IDX during the 2017-2021 period. The number of samples used was 40 companies as research objects for five years. Panel data regression analysis was used as a mechanism in this study. The results showed that firm size significantly affects strong values with a negative coefficient direction. On the other hand, funding decisions and financial performance do not affect firm value. Therefore, it is concluded that fit size has a significant effect on solid buy with a negative coefficient direction, indicating that the larger the size of the company, the greater the agency costs that the company must incur to overcome agency problems and diversify into products that are less profitable and absorb a lot of resources, so this can reduce the value of the company.

Corporate Social Responsibility and Shareholders’ Wealth of Industrial Goods Producing Companies Listed on the Exchange Group PLC of Nigeria

Purpose: The purpose of this study is to determine how the practices of corporate social responsibility (CSR) influence the wealth of shareholders of industrial goods producing companies listed on the Exchange Group Plc of Nigeria and other developing countries. Theoretical Framework: The role played by CSR practices in enhancing shareholders’ wealth has attracted the interests of companies’ executives and policy makers all over the world. The theoretical foundations of this research work are provided by the Shareholder Value Theory, the stakeholder theory, the Business Ethics theory and the Agency theory. However, this work is anchored on the shareholder value theory propounded by Milton Friedman in 1970 and this is used to evaluate the influence of corporate social responsibility on shareholders’ wealth. Design/methodology/approach: The study uses the ex-post facto research design and judgemental sampling technique to select a sample of 10 industrial goods producing firms listed on the Nigerian Exchange Group Plc as at 31st December, 2021. Social responsibility relationships with the society, employees, suppliers, customers, tax authorities and lenders provide the basis for sample selection. Information from the financial statements of the sampled companies was used to compute weighted average cost of capital (WACC), rate of stock turnover, actual corporate tax rate, invested capital, leverage, return on equity (ROE), value of debts and value of equity. This approach facilitates the computation of economic value added (EVA) which is used as proxy for shareholders’ wealth. Firm-year observations of 1,840, ordinary least squares panel data regression, fixed and random effects models, stationarity test, cross-section dependence test and the Hausman test are used for data diagnosis and analysis. Findings: The research has disclosed that CSR to society positively and significantly influences shareholders’ wealth while CSR to suppliers and lenders have non-significant positive effect on shareholders’ wealth. Contrastingly, it is further revealed that CSR to employees and tax authorities have significant negative effects on shareholders’ wealth while CSR to customers negatively and non-significantly influences shareholders’ wealth. Research, Practical & Social implications: The implication for managers is that CSR relationship with society is value enhancing in Nigeria’s industrial goods sector while CSR relationships with employees and tax authorities are value destroying. Value enhancing results of the dealings with suppliers and lenders and the value destroying result of the dealings with customers lack sufficient evidence. This research has helped in filling the gap in the existing literature and in serving as the basis for the economic and social development of Nigeria and other developing and developed countries of the world. Originality/value: This is the first time in the industrial goods sector that we are associating four new corporate social responsibility variables namely, CSR to suppliers, CSR to customers, CSR to tax authorities and CSR to lenders with shareholders’ wealth. This study encourages the revival of CSR to employees and CSR to tax authorities which are currently value destroying in the industrial goods sector of Nigeria.

Disclosure of Sustainable Indicators in Grids of Companies of The Industrial Goods Sector - Transportation

O objetivo do presente estudo é observar quais indicadores de sustentabilidade estão sendo evidenciados na Global Reporting Initiative das empresas de transporte. A pesquisa foi realizada em 7 (sete) empresas do setor econômico de bens industriais e mineração do setor de transporte. No setor econômico de bens industriais e mineração, foram pesquisados os segmentos de exploração de rodovias, ferrovias e rodovias, listados como Novo Mercado e Nível 1. Trata-se de uma pesquisa baseada em documentos publicados pelas empresas avaliadas, onde houve avanços na divulgação dos Indicadores da Global Reporting Initiative, formados por princípios e indicadores econômicos, sociais e ambientais, tendo como importância a clareza, a qualidade e a credibilidade das informações. divulgado, sendo certificado em todo o mundo. Verificou-se que a empresa VALE S / A apresentou 93% de seus índices entre as empresas que obtiveram o melhor resultado, logo após JSL com 90%, COSAN LOG com 84%, CCR S / A AUTOBAN com 71% ECOPISTAS - GRUPO ECOVIAS apresentou 66%, a INVEPAR 44% e a empresa ALL AMER LAT apresentou um índice baixo, com 39% da divulgação de seus relatórios. No entanto, mesmo com o esforço da GRI em desenvolver um modelo de relatório de sustentabilidade mais sólido e abrangente, seu objetivo nos setores pesquisados ainda precisa ser aprimorado para que os vários usuários possam acessar o que realmente expressam a responsabilidade ambiental das organizações. e a empresa ALL AMER LAT apresentou um índice baixo, com 39% de divulgação de seus relatórios. No entanto, mesmo com o esforço da GRI em desenvolver um modelo de relatório de sustentabilidade mais sólido e abrangente, seu objetivo nos setores pesquisados ainda precisa ser aprimorado para que os vários usuários possam acessar o que realmente expressam a responsabilidade ambiental das organizações. e a empresa ALL AMER LAT apresentou um índice baixo, com 39% de divulgação de seus relatórios. No entanto, mesmo com o esforço da GRI em desenvolver um modelo de relatório de sustentabilidade mais sólido e abrangente, seu objetivo nos setores pesquisados ainda precisa ser aprimorado para que os vários usuários possam acessar o que realmente expressam a responsabilidade ambiental das organizações. 
 
 
 
 
 

Análise setorial do impacto da IFRS 16 e covid-19 nos indicadores das arrendatárias brasileiras

ABSTRACT The objective of this article was to analyze the impact of International Financial Reporting Standard 16 (IFRS 16) and the coronavirus disease 2019 (COVID-19) pandemic on the indicators of Brazilian lessee companies, segregated by economic sector. The effects of IFRS 16 after its entry into force and of COVID-19 simultaneously with the concession of the International Accounting Standards Board (IASB) on the indicators of lessee companies, segregated by Brazilian economic sectors, were not yet known. The study contributes to the literature by providing evidence on the consequences of the accounting standard setters’ decisions, as well as the COVID-19 pandemic, on the indicators of different economic sectors. The study helps both preparers and regulators to understand the impact of the accounting standardization and COVID-19 on the indicators of lessee companies according to economic activity. For investors, it shows the importance of anticipating the impact of the standards on their decision making. A comparative analysis of the indicators before and after the adoption of the new standard and the pandemic was carried out, as well as a statistical relevance analysis for the indicators of public companies, by economic sector and using the difference in differences method and multiple linear regression with panel data, for the period from 2010 to 2020. The study showed that the impact of IFRS 16 on the indicators was differentiated by sector, with healthcare, oil, gas, and biofuels, and cyclical consumption being the most affected. The standard was not relevant to the value of most sectors, with the exception of healthcare and non-cyclical consumption, showing that investors were positively surprised by the adoption of IFRS 16 by these sectors. The effect of COVID-19, combined with the IASB’s concession to lessees, was positive for profitability and earnings before interest, taxes, depreciation, and amortization (EBITDA) in the healthcare sector, but did not reverse the deterioration in leverage and profitability of the industrial goods sector and the lessees as a whole and the profitability of the cyclical consumption sector, highlighting the partial effectiveness of the measure.

Impact of Environmental Cost on Financial Performance of Listed Industrial Goods Firms in Nigeria

To fill the gap in the industrial goods sector of the Nigerian economy on the subject matter, this study investigates the impact of environmental cost on the financial performance of listed industrial goods firms in Nigeria. An explanatory research design was employed to collect panel data extracted from the annual reports and account of the 11 sampled listed firms, for a period of Ten (10) Years (2012 -2021). The regression results obtained from the study’s models indicates that the firms’ environmental cost (Community Development cost and administrative cost) affects their accounting-based financial performance (ROA) significantly and positively, and also affects the market-based financial performance indices (Tobin’s Q) insignificantly and negatively. Thus, based on the study’s findings it recommended that the management of the firms should employ effective and right balance investment on environmental cost components that will cater for all the stakeholders’ interest.

VALUE RELEVANCE OF ACCOUNTING INFORMATION OF QUOTED NIGERIAN FIRMS IN THE INDUSTRIAL GOODS SECTOR: ASSESSMENT OF THE PRE- AND POST- IFRS ERA

The possible impact that IFRS adoption may have on the relevance of accounting information of some selected quoted industrial goods sector firms in Nigeria. The studied periods spanned from 2003-2011 (pre-IFRS periods) and 2012-2020 (post-IFRS periods). The sample used in this article consisted of ten (10) readily chosen quoted industrial businesses. In the study, the share price served as both a regressand and a regressor, together with earnings per share and book value per share. The provided data were examined using descriptive statistics, a correlation matrix, and a variance inflation factor. The study opted for the Panel Corrected Standard Error (PSCE) due to heteroskedasticity challenges. The study finds that, on the overall, accounting information produced under the pre-IFRS periods are more value relevant than accounting information produced under the post-IFRS periods. Similarly, earnings per share during pre-IFRS periods have higher value relevance than post-IFRS periods. On the contrary, compared to the pre-IFRS periods, the post-IFRS periods have a higher value relevance for book value per share. The study concludes that the implementation of IFRS has not yet fully boosted the value relevance of accounting information for listed industrial products sector enterprises in Nigeria. As such, the recommends that management of the industrial goods sector firms in Nigeria should continue to adhere strictly to the standards laid down by IFRS for financial reporting and not be selective of standards. This will help to improve the value relevance of what is being reported especially to the stakeholders.
 Keywords: Accounting Information, Value Relevance, Industrial Goods Sector, Firms, Pre- and post-IFRS adoption.

Environmental accounting practices and profitability of quoted industrial goods sector in Nigeria

Environmental accounting practices and profitability of quoted industrial goods sector in Nigeria

Firms' Characteristics and Quality of Financial Reports of Firms in Nigeria Industrial Goods Sector

Firms' Characteristics and Quality of Financial Reports of Firms in Nigeria Industrial Goods Sector

Working Capital Management and Profitability of Industrial Goods Sector in Nigeria

This study investigated the relationship between working capital management and profitability of industrial goods sector in Nigeria. Specifically, the variables of working capital management namely: Cash Conversion Cycle (CCC), Current Ratio (CR), Quick Ratio (QR) and Working Capital Turnover ratio (WCTR) and Return On Assets (ROA) were examined. Firms in the industrial goods sector were selected and their data sourced from the Nigerian Stock Exchange Factbook (2011-2020) and seventy (70) observations were obtained. The study revealed from the regression analysis carried out that a positive linear relationship exist between the variables of working capital management (CCC, CR, QR and WCTR) and ROA. CR was negatively and significantly related with ROA while, CCC and QR was positively but insignificantly related with ROA.WCTR shows a negative and insignificant relationship with ROA when tested at 0.05 level of significance. Based on the findings, it is recommended therefore, that listed industrial goods firms should adopt the management of their short term financial strength in boosting profitability.

Sustainable development goals (SDG) reporting: an analysis of disclosure

PurposeThe global agenda of sustainable development goals (SDGs) has posed a major challenge to corporate organizations by addressing sustainability issues within their business model and strategy. Based on this premise, this study provides empirical examination of SDG reporting of the top fifty (50) listed companies in Nigeria for the period of 2016–2018.Design/methodology/approachThe study adopts survey method and content analysis technique to analyze corporate SDG reporting of the selected firms. The study examines the top-50 listed firms in Nigeria based on their market capitalization. Questionnaires were distributed to financial managers of the top-50 listed firms and staffs of the big four audit firms from the governance and sustainability department. The fifty (50) firms selected are as follows: 17 firms from the financial sector, 13 firms from the consumer goods sector, 5 firms from the healthcare sector, 6 firms from the oil and gas sector, 5 firms from the industrial goods sector and 4 firms from the information technology sector. The content analysis was utilized through the PwC framework, Global Reporting Initiative (GRI) framework and International Integrated Reporting Council (IIRC) framework to gage the extent of firms' compliance regarding corporate SDG reporting. Also, the business reporting indicators for each SDG developed by GRI was employed to determine the compliance level of the selected firms with respect to corporate SDG reporting.FindingsThe empirical evidence shows that corporate organizations in Nigeria have performed poorly in corporate SDG reporting. The result of the survey reveals that lack of regulatory framework and voluntary disclosure are the major factors that contributes to low level of SDG reporting by Nigerian firms. Also, the result of the content analysis shows poor reporting on SDG activities. The result of the research survey indicates that voluntary disclosure, lack of management commitment and lack of regulatory enforcement accounts for low SDG disclosure by the selected Nigerian firms.Practical implicationsThis study's findings call for clear responsibility and a strong drive for SDG performance from corporate institutions in Nigeria. Whilst the overall responsibility rests on the government, the actualization of SDG cannot be achieved without support from corporate organizations. The empirical approach used in this study emphasizes the need for corporate organizations to embrace sustainable practices and to integrate SDG information into their reporting cycle.Originality/valueThis study contributes to growing literature in the area of corporate reporting and SDG research in Nigeria and other emerging economies.

FREE CASH FLOW, MANAGERIAL OWNERSHIP, AND AGENCY COST: A NONLINEAR EVIDENCE FROM NIGERIAN QUOTED CONSUMER AND INDUSTRIAL GOODS FIRMS

This study focuses on a nonlinear approach in assessing the effect of free cash flow and managerial ownership on the agency cost of firms listed under the Consumer and Industrial Goods sector in the Nigerian Stock Exchange (NSE). Based on the extant theories, firms with high free cash flow are more exposed to agency costs. Existing literature however shows that managerial ownership could moderate this tendency. In this study, we argue that the extent to which managerial ownership moderates the effect of free cash flow on firms’ agency costs is dependent upon the level of the ownership, and thus, the moderation effect is not entirely linear. The study therefore empirically investigates whether free cash flow has a significant positive effect on agency costs; whether managerial ownership has a nonlinear effect on free cash flow; and whether the moderating effect of managerial ownership on the association of free cash flow and agency costs is nonlinear (not the same at different levels [Formula: see text]25% and above 25%). We estimate the panel regression using data from 2009 to 2015 to test three main hypotheses. We measured free cash flow using the cash flow approach and adopted the inverse of asset utilization to proxy for agency costs. The findings reveal that while free cash flow linearly and negatively affects agency costs, managerial ownership has a nonlinear effect on free cash flow and on the effect of free cash flow on agency costs. In line with the findings, this study concludes that managerial ownership is not a straight jacket remedy for tacking problems associated with agency costs that results from having excess free cash flow. Further studies should consider other proxies of agency costs.

The Effect of Institutional Ownership and Audit Committee on Audit Quality with Financial Distress as Moderation: On Manufacturing Sector Companies Listed on The Indonesia Stock Exchange Period 2016-2020

This study aims to analyze the effect of institutional ownership and audit committee on audit quality with financial difficulties as a moderation. This research was conducted on Manufacturing Companies in the Consumer and Industrial Goods Sector Listed on the Indonesia Stock Exchange for 2016-2020. The quantitative research method uses secondary data, namely the company's annual report that is the object of research. Analysis of the data used is logistic regression analysis. The results show that the direction of the influence of the institutional ownership variable on audit quality is positive, where institutional ownership has a significant effect on audit quality. Likewise, the direction of the impact of the audit committee on audit quality is positive but does not significantly affect audit quality. The results of the moderation show that Financial Distress can moderate institutional ownership in influencing audit quality. In contrast, after being moderated with the financial distress variable, the audit committee has a negative and significant direction, which means it can moderate the audit committee in influencing audit quality but in the opposite direction.

THE ROLE OF DIVIDEND POLICY IN DETERMINING THE MARKET VALUE OF SHARE OF LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA

This study examines the role of dividend policy in determining the market value of share of listed industrial goods companies in Nigeria, the research design used as a guide is ex-post facto method, as the study entails the use of annual reports and accounts of listed industrial goods companies in the Nigerian Stock Exchange (NSE). The secondary data were sourced from the company’s financial report for the period of five years from 2013 to 2017 contained in company’s annual reports and account and all were used to compute the dependent variable (share price) while dividend payout ratio and dividend yield as proxies of independent variable respectively. Regression analysis is use establish the relationship between the variables by using Statistical Software (SPSS). The result showed that there is no positive significant relationship between dividend payout ratio, dividend yield and share price of listed industrial goods companies in the Nigeria. Based on findings the study recommends that the existing investors in the Nigerian industrial goods sector should from time to time; ensure extensive and critical evaluation of dividend policy as it can significantly influence their market value which has ultimate effect on the investments.

The Effect of Der on Stock Return in Manufacturing Companies of Consumption Industrial Goods Sector

The Effect of Der on Stock Return in Manufacturing Companies of Consumption Industrial Goods Sector

Assessment of the effect of location and financial variables on environmental management performance for industrial goods supply chains

The paper uses data on environmental (management) performance (EP) of industrial goods companies in 14 countries to assess the impact of 3 variables on EP: companies' headquarters location, global spread (GS) & financial performance (FP). No prior study has addressed these questions for the industrial goods sector, a crucial sector in most economies. Hierarchical regression and other methods are used to test pertinent hypotheses. Among other things, the paper finds that EP differ based on regional location of the companies' headquarters. Consistent with prior research for some industries, FP and GS show no impact on EP. An auxiliary finding is that manufacturing firms outperform service firms environmentally. These results have several practical implications. For example, industrial goods companies headquartered outside Europe can learn environmental best practices in Europe, and endeavor to implement them throughout their global operations. Also, firms need not excel financially to excel environmentally. Such firms may focus on environmental excellence, knowing that investments in environmental programs would ultimately pay off. This work bridges the International Management and Sustainability Literatures, provides some guidance to managers about EP improvement and adds to our understanding of EP. It will stimulate related research in the Production and Operations Management and Environmental Management fields.