Non-financial Firms In Nigeria Research Articles

Managerial Irrationality and Dividend Policy of Non-Financial Firms in Nigeria

Managerial Irrationality and Dividend Policy of Non-Financial Firms in Nigeria

BOARD ATTRIBUTES AND TIMELINESS OF FINANCIAL REPORTS OF LISTED NON-FINANCIAL FIRMS IN NIGERIA

This study is on board attributes and timeliness of financial reports of listed non-financial firms in Nigeria. The study covers a period of ten (10) years from 2011 to 2020. The study embraced the correlational research design. The population of the study comprises of one hundred and fourteen (114) non-financial firms that are listed on the NXG as at 31st December 2020 out of which sixty (60) was selected using a two-point filter to eliminate the firms that has not fulfil the criteria for the sample selection for the study. The dependent variable of the study is timeliness of financial reports and is proxied by audit report lag. The independent variable which is board attributes is proxied by board size and board gender. While the control variable profitability and firm size. Board attribute was found to have a negative and significant impact on timeliness of financial report of listed non-financial firms in Nigeria. This implies that for every increase in the board size and an increase in the number of females on the board, there is a significant reduction in the audit report lag among listed non-financial firms in Nigeria. It can be concluded that board attribute reduces audit report delay among listed non-financial firms in Nigeria. It is therefore recommended that the board of directors of listed non-financial firms should reduce the level of leverage in their capital structure since it was found that delay in audit report increases with an increase in leverage.

The Role of Financial Constraints in Shaping Non-Financial Firm Performance in Nigeria: Evidence from the KZ Index

This study examines the impact of financial constraints on the performance of non-financial firms in Nigeria, utilizing the KZ index as a measure of financial constraint. Employing a static panel regression estimation on a sample of 87 non-financial companies listed on the Nigerian Stock Exchange from 2016 to 2021, the study investigates the relationship between financial constraints and firm performance. The findings reveal that financial constraints significantly hinder firm performance, highlighting the importance of effective governance and access to external financing. The study contributes to the literature by providing insights into the financial challenges faced by non-financial firms in Nigeria and offers recommendations for policymakers and practitioners to improve corporate performance.

Corporate Governance On Financial Report Timeliness Among Quoted Non-Financial Firms In Nigeria

The study seeks to examine the effect of corporate governance on financial report timeliness among quoted non-financial firms in Nigeria between the periods of 2013-2022. Specifically, there are twenty one (21) consumer goods firms and thirteen (13) industrial goods firms listed in the Nigerian Exchange Group as at 31st December, 2023 respectively. The study purposively selected ten (10) consumer goods firms and seven (7) industrial goods firms within the reviewed periods. The variables used to measure corporate governance are: board size (BBS), board composition (BOC), board expertise (BOP) and Board Gender Diversity (BGD) while regressed, and financial report timeliness (FRT). The Hausman test evidenced that, the random effect model is the most appropriate model for the study. The study reported that board size has a negative significant effect on financial report timeliness while has a positive insignificant effect on financial report timeliness (FRT). Both board gender diversity and board expertise have positive effect on financial report timeliness (FRT).

Ownership Structure and Financial Reporting Quality of Listed Non Financial Firms in Nigerian: The Moderating Role of Audit Committee

The aim of this study is to evaluate the moderating role of audit committee on the relationship between ownership structure and financial reporting quality of listed non-financial firms in Nigeria. The study used annual reports from 41 listed non-financial firms in Nigeria between 2010 to 2021 period. The study used causal research design approach. The analysis was done using descriptive statistics and multiple regression technique using Generalised Method of Moment (GMM). The findings of the study show that there is significant relationship between ownership structure and financial reporting quality and audit committee can effectively moderate their relationship. The study therefore, rejects all the null hypotheses formulated. The implications of the study are that regulators and policy makers, may encourage more shareholders representation in audit committee of listed companies and mandate financial expertise to all audit committee members. The study concludes that presence of institutional, managerial and foreign ownerships as well as sound audit committee are important for improving firms' financial reporting quality. The study therefore, recommends that in order to enhance the reporting quality, management of listed non-financial firms in Nigeria should ensure that they have effective and functional audit committee. The ownership structure should also be strengthened in order to assist in improving financial reporting quality and also improve relevance and reliability of annual reports and make it easier for the stakeholders to make appropriate decisions relevant to their needs.

Sustainability Committee, Audit Firm Type and Corporate Sustainability Reporting of Non-Financial Firms in Nigeria

In spite of the detrimental consequences, such as pollution and other environmental risks arising from corporate activities, there has been a noticeable lack of transparency in disclosing social, environmental, and economic information. In light of this, the research aims to present empirical evidence regarding the impact of sustainability committees and the type of audit firm on the reporting of corporate sustainability information by companies. The study utilized an Ex-post facto research design, considering a population of one hundred and fifteen (115) listed non-financial firms. Ninety-two (92) companies were selected as the sample. Both descriptive and inferential (Panel Corrected Standard Error) estimation techniques were employed to analyze data collected from the annual reports and accounts of the sampled listed manufacturing companies over a seven-year period (2016-2022). The findings revealed that the presence of a sustainability committee and audit type significantly predict corporate sustainability reporting among listed non-financial firms at a 5% level of significance. In conclusion, the study determined that sustainability committees and audit types play a crucial and meaningful role in shaping corporate sustainability reporting practices among listed non-financial firms in Nigeria. As a result, the study recommends that listed companies should establish sustainability committees to proactively address sustainability issues and enhance disclosure. Additionally, non-Big Four audit firms are encouraged to enhance their services by providing their staff with up-to-date audit skills.

Corporate Governance and Accounting Conservatism of Quoted Non-Financial Firms in Nigeria

This study investigates the impact of some corporate governance attributes on accounting conservatism in Nigeria. The study covers the period from 2005 to 2020 of 75 non-financial firms listed on the floor of the Nigerian Exchange Group (NXG). The results of the generalized method of moments (GMM) reveal that while four of the variables board size (BODS), managerial ownership (MOWN), audit committee size (ACS) and number of foreign directors (NFODIR) are positively significant with accounting conservatism; two of the variables chief executive officer with military experience (CEOME) and board independence (BODI) are negatively significant with it but board gender diversity (BGDIV) is insignificant. Again, while the Big4 as well as the number of foreign directors (NFODIR) are positively significant; foreign income (FINCOME) as well as the industry (IDUM) and yearly (YDUM) dummy variables are positively insignificant. The study makes some recommendations such as management should maintain or increase the present level of board size, managerial ownership, audit committee size and the number of foreigners in the board since these variables allowed management to stick to prudence in financial reporting for the period under review.

NON-FINANCIAL INFORMATION DISCLOSURES AND FIRM PERFORMANCE OF LISTED NON-FINANCIAL SERVICES FIRMS IN NIGERIA

This study explored the impact of non-financial information disclosures on the performance of non-financial services firms listed in Nigeria. It utilized an ex-post facto research design on panel data extracted from annual financial reports of selected firms spanning from 2013 to 2022. The methodology involved Generalized Linear Models (GLS) regression analysis, performed using E-Views V.9.0 software. Diagnostic tests were conducted to ensure compliance with panel assumptions, and hypotheses were evaluated based on the specific model formulated. The study utilized two models with dependent variables being accounting-based (Return on Equity - ROE) and market-based (Net Assets per Share - NAPS) to measure various independent variables (environmental, social, corporate governance, and forward looking disclosures). With p-values of 0.000 and 0.0433 for the models ROE and NAPS, respectively, the analysis's findings showed that environmental disclosures significantly and favourably affect the performance of listed non-financial companies in Nigeria. Social disclosures had negative p-values in both NAPS and ROE (0.0113 and 0.1310, respectively). However, corporate governance was statistically significant in ROE but negligible in NAPS. Additionally, with p-values of 0.0000 and 0.0230 for ROE and NAPS, respectively, the study demonstrated that forward-looking information positively and significantly impacted the performance of quoted non-financial firms in Nigeria. The study concludes that non-financial information disclosure has a mixed effect on the financial performance of quoted firms in Nigeria's non-financial services sector. It recommends regulatory standardization for forward-looking disclosures. Furthermore, investors are advised to consider future investment projections alongside financial statements to gain a comprehensive understanding of a firm's future outlook.
 Keywords: Non-financial information disclosures, Performance, Non-financial firms, Return on Equity, and Net Assets per Share.

Corporate Board Characteristics and Performance of Non-Financial Firms in Nigeria

This study investigates if there is any relationship between certain corporate board characteristics and financial performance of non-financial listed firms in Nigeria. It uses secondarily sourced panel data over the period from 2005 to 2020 of 76 such firms listed on the floor of the Nigerian Exchange Group (NXG). The generalized method of moments (GMM) results reveal that while board size(BS), board compensation(BC), board meetings(BM) and board members with military experience(BME) are positively significant with performance; board independence(BI), board gender diversity(BGD), board national diversity(BND), board tribal diversity(BTD), board busyness(BB), board members’ education level(BE) and board foreign directors(BFD) are negatively significant with performance but board shareholding or ownership(BSH) is insignificant. All the control variables (leverage, market–to-book ratio, firm size, year fixed effect dummy as well as the industry sector fixed effect dummy) are statistically significant. This study concludes with some recommendations.

Statutory Payments and Accruals on Financial Performance of Listed Non-Financial Firms in Nigeria

The unresolved controversy regarding the effect of statutory payments and accruals on financial performance continues to challenge the success of listed non-financial firms in Nigeria. Despite the critical importance of these factors, there exists a lack of clarity and understanding surrounding their impact on organisational outcomes. Given the foregoing, this study examined the effect of statutory payments and total accruals on financial performance of listed non-financial firms in Nigeria. To achieve these objectives, longitudinal research design was employed and the study used twenty (20) listed non-financial firms that had consistently published their audited annual financial reports from 2008 to 2022, and analyzed the data using panel multiple regression technique with the help of E-view 13 statistical tools. The result of the study revealed that financial statutory payment has a significant effect on financial performance of listed non-financial firms in Nigeria. Conversely, total accrual has insignificant effect on financial performance of listed non-financial firms in Nigeria. Thus, this study concluded that statutory payments serve as a veritable tool or determinant of financial performance. Thus, the study recommended that non-financial firms are to prioritize compliance with financial statutory payments, as demonstrated by the significant influence of such payments on financial performance. This entails adhering to regulatory requirements, tax obligations, and other statutory payments to maintain transparency and credibility with stakeholders.

Misappropriation of Assets, Improper Expenses Recognition and Financial Performance of Listed Non-Financial Firms in Nigeria

The Nigerian business landscape, like many others globally, faces persistent challenges related to corporate misconduct, ethical lapses, and accounting irregularities. These challenges have the potential to undermine not only the financial integrity of individual firms but also the overall health and stability of the nation’s financial markets. Given the foregoing, this study examined the effect of misappropriation of assets and improper expenses recognition on financial performance of listed non-financial firms in Nigeria. To achieve these objectives, longitudinal research design was employed and the study employed twenty (20) listed non-financial firms that had consistently published their audited annual financial reports from 2008 to 2022, and analyzed the data using panel multiple regression technique with the help of statistical tools (E-view 10). The result of the study revealed that both misappropriation of assets and improper expenses recognition had positive and insignificant effect on financial performance of listed non-financial firms in Nigeria. Thus, this study concluded that both misappropriation of assets and improper expenses recognition does not appear to be a primary driver of financial success or failure for the listed non-financial firms under study. The study recommended that listed non-financial firms should encourage a mindset of continuous improvement throughout the organization and seek opportunities to optimize operations and financial performance, even if misappropriation of assets and improper expenses recognition are not a significant issue.

Capital Structure, Dividend Policy and Firm Value of Listed Non-Financial Companies in Nigeria.

A balance is required for optimal capital structure and dividend policy becomes crucial, as an imbalance could result in increased debt burdens, higher interest payments, and reduced overall profitability. Additionally, such misalignment might erode investor confidence, causing fluctuations in stock prices and, in extreme cases, leading to a decline in market capitalization. Given the foregoing, this study examined the effect of capital structure and dividend policy and firm value of listed non-financial firms in Nigeria. To achieve these objectives, ex post research design was employed and the study utilized seventy (70) selected listed non-financial firms that had consistently published their audited annual financial reports from 2011 to 2022. The study analyzed the data using panel multiple regression technique with the help of statistical tools (E-view 10). The result of the study revealed that debt-to-equity ratio has negative and insignificant effect on firm value of listed non-financial firms. On the other hand, the study found that dividend per share has a significant effect on firm value. Thus, the study recommended that financial management decisions related to capital structure of non- financial companies should take into account the trade-off between potential benefits and risks associated with debt financing. Also, financial managers are advised to integrate thoughtful dividend management seamlessly into their broader corporate finance strategy. This proactive and adaptive approach ensures that companies remain competitive, responsive to changing circumstances, and capable of optimizing their overall value in the market.

Moderating Role of Board Independence on the Effect of Environmental and Governance Sustainability Disclosure on Firm Value of Listed Non-Financial Firms in Nigeria

A corporation’s worth may draw the attention of a variety of stakeholders, and preserving its long-term survival requires overcoming multiple hurdles, most notably the implementation of robust disclosures about environmental and governance sustainability. This study looked at how Board independence affected the link between environmental and governance sustainability disclosures and the total value of Nigerian listed non-financial firms over a decade (2012-2021). Using purposive selection, 69 firms were chosen from a population of 104 to use in a longitudinal study design. Data from the company’s annual reports were evaluated using regression analysis. The Governance Disclosure Index (GDI) and the Environmental Disclosure Index (EDI) were used as proxies for disclosures on governance and environmental sustainability, respectively, while Tobin’s Q was used to represent corporate value. The findings revealed that environmental sustainability disclosure, particularly when moderated by board independence, significantly influenced the firm value of Nigerian listed non-financial companies, whereas governance sustainability disclosure had a significant impact on firm value on its own. As a result, the research recommends that businesses encourage more sustainability transparency via rating and evaluation methods. Furthermore, they should be proactive in developing and executing governance and environmentally friendly policies and programs, since these efforts are critical to increasing their total worth.

Corporate Governance Characteristics and Earnings Management of Quoted Non-Financial Firms in Nigeria

This study investigates the relationship between some corporate governance attributes and earnings management of listed firms in Nigeria. This study uses the correlational research design and purposively sampled secondarily sourced data over the period from 2005 to 2020 of 75 non-financial firms listed on the floor of the Nigerian Exchange Group (NXG). The Robust Least Squares Estimators results reveal that board independence (BODI) is positively significant with earnings management; board size (BODS board gender diversity (BGDIV) and audit committee size (ACS) are negatively significant with it while managerial ownership (MOWN); chief executive officer with military experience (CEOME) and number of foreign directors (NFODIR) are insignificant. While foreign income (FINCOME), year fixed effects (YDUM) and industry fixed effects (IDUM) dummies are negatively and statistically significant, the Big4 auditors is positively insignificant. The study concludes with some recommendations that management, among others, should maintain or increase the present level of board size, audit committee size and the number of females in the board since these variables deter management in managing earnings for the period under review.

Audit Committee Characteristics and Environmental Disclosure Among Nigeria Listed Non-Financial Firms

This study investigates the influence of audit committee attributes on the corporate environmental disclosure using listed non-financial firms in Nigeria as case study. The population of the study consists of all non-financial listed firms on the Nigerian Exchange Group (formerly NSE). Using purposive sampling techniques, the study selected a total 70 listed non-financial firms having required information necessary for the study between 2011 and 2020. The study employed fixed effect and feasible generalized least square (FGLS) panel regression technique. The fixed effect of FGLS regression analysis indicates that while audit committee independent and audit committee gender diversity recorded significant positive influence on the environmental disclosure among Nigerian listed non-financial firms, the impact of audit committee size and audit committee meetings were negligible. Based on results, it is not the size of the committee nor the number of their meetings that matter for the disclosure of environmental information but the composition of the committee in terms of female and independent members representation. In conclusion, the study found evidence in support of the critical role of audit committee characteristics in environmental disclosure practices among Nigerian listed non-financial firms. Hence, it is recommended that efforts should be made to encourage higher composition of female and independent members on the audit committee.

KARAKTERISTIKE REVIZIJE I KVALITETA FINANCIJSKOG IZVJEŠTAVANJA MEĐU LISTANIM NEFINANCIJSKIM TVRTKAMA U NIGERIJI

This study is set up with the purpose of examining the effects of audit attributes on financial reporting quality of quoted Nigeria non-financial firms. The study also reviewed the moderating effect of external audit quality on the connection between internal audit characteristics and the quality of financial reporting (FRQ). Longitudinal panel research design was used in this study. The population of the study comprises of 112 non-financial firms quoted on the Nigeria Exchange Group (NGX). The study make use of secondary data obtained from 72 listed non-financial firms in Nigeria over the period covering 2013 - 2020. Analysis of the data collected for the study was done using panel regression, correlation analysis and descriptive statistics. The results revealed that AC meetings and AC gender diversity has significant positive impact on the FRQ report while AC independence and AC size have no significant influence. In addition, the study found significant moderating effect of audit report lag on the link between AC meeting and FRQ, as well as on the link between AC gender diversity and FRQ implying that audit report timeliness strengthens the positive and significant impact of AC meetings and gender diversity on FRQ. The study concluded that audit quality attributes are significant in improving the FRQ of the listed non-financial firms in Nigeria. Hence, the study recommends that regulators and decision makers of the firms should ensure higher female representation in the AC. Also, AC of the firms in Nigerian non-financial sector should be encouraged to meet regularly.

Corporate Governance Mechanisms and Sustainability Reporting Practices of Listed Non-Financial Firms in Nigeria

Corporate Governance Mechanisms and Sustainability Reporting Practices of Listed Non-Financial Firms in Nigeria

Effect of Corporate Attributes on Sustainability Reporting of Listed Non-financial Firms in Nigeria

The conventional accounting practice is predicated on the protection of overriding interests of wealthy capital providers. This is clearly demonstrated in the contents of general-purpose financial statements, which serves as a bastion of accountability and stewardship. This study examined the effect of corporate attributes on sustainability reporting of listed non-financial firms in Nigeria. The study measured corporate attributes with firms’ attributes (firm size, profitability, leverage, liquidity), board attributes (board size, board independence, board gender diversity, board financial expertise) and ownership attributes (foreign, managerial, institutional, ownership concentration) and sustainability reporting measured by sustainability disclosures in line with Global Reporting Initiative (GRI) standards. The study adopted ex-post facto research design relying on secondary data obtained from annual reports of the population, which comprised of 116 non-financial firms listed on the Nigeria Exchange Group (NGX) as at 31st December 2020 with sample size of 51 firms, covering the period of 2011 – 2020. The study employed the use of multiple regression panel model to analyze the data using E-view 10 statistical tool. According to the results of random effect regression, profitability, liquidity, leverage, institutional ownership, firm size, foreign ownership, board size and board financial expertise have positive and significant effect on sustainability reporting. Based on the findings, the study concluded that corporate attributes can effectively enhance the sustainability reporting of firms. Thus, the study recommended among others that regulators in financial reporting should monitor corporate attributes in firms closely as a measure of enhancing sustainability reporting of listed non-financial firms in Nigeria.

Corporate Taxation, Capital Investment Decisions and Firm Performance of Quoted Non-Financial Firms in Nigeria

The study examined the effect of corporate taxation, capital investment decisions on firm performance. Ex-post facto research design was adopted using secondary source of data, 61 firms were purposively sampled from years 2012 to 2020 and data were obtained from the audited annual reports of selected firms. Panel Regression Analysis with fixed effects was adopted and the result showed that Positive and significant relationship was found to exist between CEP and ROA while GNC was negative and insignificant. Corporate tax was positively insignificant related to ROA. Also, there was insignificant positive influence of corporate taxation on the two-investment metrics. The study further found that corporate taxation and investment decisions jointly have positive and significant relationship with firm performance. It was concluded that corporate taxation and investment decisions jointly had significant influence on firm performance of non-financial firms in Nigeria.

Effect of Board and Audit Committee Attributes on Earnings Management: Evidence from Listed Non-Financial Firms in Nigeria

This study examines the effect of board and audit committee attributes on earnings management. The study adopts purposive sampling technique. The study carries out robust regression statistical model with a 10-year panel data among 36 listed firms in Nigeria. The data used were sourced from the published annual account and reports of sampled firms listed on the Nigeria Exchange Group. The findings from the study reveal that board size, board independence and financial expertise of women on the board and audit committee diminish earnings management while board expertise show mixed finding as board expertise promotes non-discretionary accrual, its equally diminishes discretionary accruals. The findings of this study imply that board and audit committee attributes are important in dealing with earnings management. From our key findings, the study recommends the inclusion of women with financial expertise on the board and audit committee beyond gender diversity. In contrasts to the present practice, the study recommends the inclusion of more independent directors to the board as against the current practice of non-executive directors as independent directors reduce earnings management.