Non-financial Firms In Nigeria Research Articles

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.

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.

Grey Directors and Earnings Management of Selected Quoted Non- Financial Firms in Nigeria

This study examined the effect of grey directors on earnings management of selected non- financial firms in Nigeria. Earnings management was used as dependent variable while grey director’s presence, grey director’s size, grey director’s gender diversity and grey director’s stock holding were used as independent variables. A sample of 44 selected non-financial firms were used for the period of ten years spanning 2012 to 2021. The study employed ex-post facto and cross-sectional research design. The secondary sources of data were collected from annual reports of the selected non-financial firms and four (4) specific objectives and hypotheses were subjected to some preliminary data tests like descriptive statistics, Pearson correlation analysis and Variance Inflation factor (VIF) were analyzed using panel regression analysis after taking cognizance of hausman effect tests. Using a sample of 440 firm-year observations, the result revealed that grey director’s presence and grey directors gender diversity have a negative and significant effect on earnings management of selected quoted non-financial firms in Nigeria which was statistically significant at 5% level of significance respectively while grey directors stock holding has negative but insignificant effect on earnings management of quoted non- financial firms in Nigeria. Based on the findings above, the study recommends among others, that shareholders of non-financial firms in Nigeria should ensure that there is presence of grey directors in their team of management to help curtail the opportunistic behavior of managers and contend earnings management practices. Again, having more women as grey directors in top management should be the priority of every non-financial firms in order to reduce earnings management practices of the firms.

Audit Committee Characteristics and Financial Restatement of Quoted Non-Financial Firms in Nigeria

This study investigates whether there is any relationship between audit committee characteristics and financial restatement. Using secondary data over the period from 2005 to 2020 of 76 non- financial firms, the results of the generalized methods of moments (GMM) reveal that audit committee independence, audit committee diversity, audit committee meetings and audit committee expertise are positively significant with financial restatement while total audit committee size is negatively insignificant with it. The overall results shows that although most of the audit committee characteristics significantly influenced financial restatement, none of them helped in reducing managers tendencies to reduce the practices of restating previously reported financial statements. The study concludes with some recommendations for better performance reporting

CORPORATE SPECIFIC ATTRIBUTES AND THE PERFORMANCE OF LISTED FIRMS IN SELECTED SUB-SAHARA AFRICA COUNTRIES

The paper investigated the effect of corporate specific attributes on financial performance by employing samples from listed non-financial firms in Sub-Sahara African countries of Kenya, Nigeria, and South Africa between the periods of 2012-2021. The study sourced data from annual reports of non-financial firms in Nigeria, Kenya, and South Africa. The model evidenced that, the series are evenly spread, are not faced with multi-collinearity issues, and that the robust fixed effect model is appropriate for the study since the p-value of the Hausman Test estimated at 0.000 is below 0.05 significant level. Evidently, the results obtain from the fixed effect regression shows that, firm size has an inconsiderable (insignificant) positive effect on firm performance both in Kenya and Nigeria. However, it has an insignificant negative effect on firm performance in the case of South Africa. Again, liquidity (current ratio) has an insignificant positive effect on firm performance. Furthermore, asset tangibility has a negative and insignificant effect on the performance of understudied firms in Kenya but reduce the performance of understudied firms in Nigeria. In the case of South Africa, asset tangibility improves the performance of South African firms minimally. However, only leverage was consisted in the three sampled firms in that leverage has a negative and significant effect on the performance of firms in Kenya, Nigeria and South Africa. Meanwhile, cash-flow from operations exerted direct yet considerable effect on understudied firms in Kenya but had adverse yet negligible effect on understudied firms in Nigeria. Hence, the paper submits that, managers of SSA firms should endeavor to reinvest profitability into the firm, which will increase the growth of the company and enhance financial performance.
 Keywords: Corporate Specific Attributes, Performance, Listed Firms, Sub-Sahara Africa Countries.

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.

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.  

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.

AN ASSESSMENT OF THE DETERMINANTS OF EARNINGS MANAGEMENT IN NIGERIA

This study is based on the assessment of Tax Aggressiveness, Share Price, Return on Assets as  determinants of Earnings Management among quoted industrial and consumer goods sectors in Nigeria between the periods of 2012-2022. A sample of thirty-two (32) firms were  drawn out of the listed non-financial firms in Nigeria. The study was quantitative in nature and made use of secondary data which was sourced from the Nigerian Stock Exchange (NSE) factbook, National Bureau of Statistics, and annual reports of selected industrial and consumer goods firms. Descriptive statistics and correlation analysis was used to determine the nature of the data as well as the relationship between the independent and dependent variables. The pooled panel regression analysis, the Hausman test and the random effect model (REM) method of model estimation employed was used in the study. The findings revealed that share price and return on assets are the primary determinants that significantly affect the earnings management of publicly traded companies in the industrial and consumer goods sectors during the observed timeframe. Moreover, firm size is perceived as a significant control factor in determining earnings management. Tax aggressiveness on the other hand showed no significant impact on earnings management. Based on the findings the study recommended that Projects that enhance the firms' profitability should be at the center of the investment objective of managers overseeing industrial and consumer goods firms that are publicly traded. In addition, projects with favourable net present values should be embarked on by managers of industrial and consumer goods firms listed on the stock exchange. Furthermore, cutting edge earnings management strategies should be adopted by managers of industrial and consumer goods firms that are publicly traded. They can as well prioritize the utilization of tax aggressiveness.
 Keywords: Earnings Management, Tax Aggressiveness, Share Price, Return on Assets, Hausman Test.

Effect of Environmental Disclosure on Shareholders’ Value Maximization: Evidence from Non-Financial firms in Nigeria

This study examined the effect of environmental disclosure on shareholders’ value maximization. The population of the study is all quoted non financial firms listed in Nigerian Stock Exchange. Sample of 60 companies from different sectors were used for the period of ten years spanning from 2011 to 2020. The study employed ex-post facto and cross sectional research design. The secondary sources of data were collected from annual reports and account of the selected non financial firms quoted in Nigeria stock exchange and three (3) specific objectives and hypotheses were tested and analyzed. The panel data were subjected to preliminary data tests such as descriptive analysis, correlation analysis and Hausman effects tests for the period of ten years. Multiple panel least regression analysis was employed via E-Views 10.Using a sample of 600 firm-year observations, the result of the tested hypotheses revealed that employee health and safety disclosure, and environmental remediation disclosure have positive but insignificant effect on shareholders’ value maximization while environmental waste management disclosure has positive and significant effect on shareholders’ value maximization which was statistically significant at 5% level of significance. The study recommends among others, that managers of non-financial firms should pay more attention to environmental waste management disclosure in their host communities to boost their performance and hence add value to their shareholders’ wealth creation. Moreover, due attention should be paid to environmental remediation disclosure by non financial firms in Nigeria since such disclosure influence strategic decision such as shareholders’ value maximization.

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.

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.