Accounting and Finance

This study examines the impact of capital structure on the financial performance of Nigerian oil and gas companies. Using an ex-post facto research methodology, the short-term debt to total asset, long-term debt to total asset, total debt to total equity, and return on asset variables were investigated as proxies for capital structure and financial performance, respectively. Based on the data's availability at the time of the inquiry, the study used an easy sampling strategy to gather secondary data. These data covers the years 2011 through 2020 and were compiled from the annual financial reports of five Nigerian oil and gas companies. Descriptive statistics and panel regression analysis were used to analyze the data. The analysis' findings shows that while long-term debt to total assets has a negative significant influence on return on assets, short-term debt to total assets and total debt to total equity had positive insignificant impacts. According to the findings, manage...

Although the factors that influence capital structure have been the subject of numerous prior studies, determining the best financing combination to maximise a firm's value is still one of the most contentious in corporate finance. Furthermore, the existing research in Nigeria on the theme concentrated mostly on firm-specific factors with inconclusive and mixed findings aside from neglecting the importance of macroeconomic variables. To fill the gap, this study examined the factors that influence capital structure decisions in Nigerian consumer goods publicly traded companies by accounting for the economic growth effect. The study used secondary data from the annual reports of 15 of the mentioned corporations, spanning ten years from 2011 to 2020. The association between the leverage ratio and the six explanatory variables in the model was investigated using the Panel Least Square regression approach. The study's findings showed that while non-debt tax shield is not statistically significant, asset tangibility, firm size and economic growth all positively and significantly affect leverage. Furthermore, profitability and firm growth are negative and have a large impact on leverage. Based on the study's findings, it can be said that the capital structure of listed consumer products companies in Nigeria is significantly influenced by factors such as size, firm growth, profitability, tangibility and economic growth. The study then suggested that financial managers of listed firms in Nigeria should deploy effective measures to boost these important variables to have an optimum financing mix for their firms.

The relationship between degrees of leverage and systematic risk has been a subject of ongoing debate in finance. While it is generally accepted that leverage can amplify both return and risk, the exact nature and magnitude of this relationship remain unclear. In this light, the current study investigates the impact of degrees of leverage on the systematic risk of quoted industrial and consumer goods firms in Nigeria. The study covered a period of 11 years from 2012 to 2022. Data on operating leverage, financial leverage, and stock prices were obtained from the audited annual financial reports of 15 industrial and consumer goods firms and the official price list of the Nigeria Exchange Group. The data analysis methods consist of descriptive statistics, correlation analysis, and panel least squares regression analysis. The study's findings revealed that the degree of combined leverage (DCL) has a significant positive interactive effect on systematic risk. Further, both the degree of financial leverage (DFL) and operating leverage (DOL) individually have a negative relationship with systematic risk but only the financial leverage is statistically significant. The study therefore concludes that the degrees of leverage significantly influence the shareholders' systematic risk in quoted industrial and consumer goods firms in Nigeria. The study recommends that firms should carefully consider their leverage decision in the context of their overall risk management strategy. Firms should also be aware of the potential impact of market conditions and imperfection on the risk associated with leverage to minimise the systematic risk.

The relationship between degrees of leverage and systematic risk has been a subject of ongoing debate in finance. While it is generally accepted that leverage can amplify both return and risk, the exact nature and magnitude of this relationship remain unclear. In this light, the current study investigates the impact of degrees of leverage on the systematic risk of quoted industrial and consumer goods firms in Nigeria. The study covered a period of 11 years from 2012 to 2022. Data on operating leverage, financial leverage, and stock prices were obtained from the audited annual financial reports of 15 industrial and consumer goods firms and the official price list of the Nigeria Exchange Group. The data analysis methods consist of descriptive statistics, correlation analysis, and panel least squares regression analysis. The study's findings revealed that the degree of combined leverage (DCL) has a significant positive interactive effect on systematic risk. Further, both the degree of financial leverage (DFL) and operating leverage (DOL) individually have a negative relationship with systematic risk but only the financial leverage is statistically significant. The study therefore concludes that the degrees of leverage significantly influence the shareholders' systematic risk in quoted industrial and consumer goods firms in Nigeria. The study recommends that firms should carefully consider their leverage decision in the context of their overall risk management strategy. Firms should also be aware of the potential impact of market conditions and imperfection on the risk associated with leverage to minimise the systematic risk.

This study examined the effect of board attributes on the financial reporting quality of listed deposit money banks in Nigeria. It focused on board independence, gender diversity, board expertise, and board meetings. Using an ex-post facto research design, 12 out of 14 listed banks were selected through purposive sampling. Secondary data were obtained from the banks' audited annual reports from 2011 to 2022, and descriptive and panel estimation techniques were applied. The results showed that board independence had a negative but significant impact on financial reporting quality, implying that independent boards effectively perform monitoring and advisory roles. Gender diversity positively and significantly impacted financial reporting quality, suggesting that women on boards enhance decision-making. Board expertise also had a positive and significant effect, indicating that members with accounting and auditing experience improve financial reporting. The study concluded that board attributes significantly affect financial reporting quality in deposit money banks. It recommended maintaining a manageable number of independent directors and increasing the presence of board members with relevant expertise to enhance financial reporting quality.

This paper examines the optimum level of capital structure through which a firm can increase its financial performance using annual data of ten firms spanning a five-year period. The results from Im, Pesaran & Shine unit root test show that all the variables were non-stationary at level. The study hypothesized negative relationship between capital structure and operational firm performance. However, the results from Panel Least Square (PLS) confirm that asset turnover, size, firm’s age and firm’s asset tangibility are positively related to firm’s performance. Findings provide evidence of a negative and significant relationship between asset tangibility and ROA as a measure of performance in the model. The implication of this is that the sampled firms were not able to utilize the fixed asset composition of their total assets judiciously to impact positively on their firms’ performance. Hence, this study recommends that asset tangibility should be a driven factor to capital structure because firms with more tangible assets are less likely to be financially constrained.

This paper empirically examined the impact of government fiscal and monetary policies on business performance in Nigeria. The study which covered the period from 1970 to 2010 used secondary data. The study hypothesized negative relationship between inflation rates, value added tax, exchange rate and return on assets, which is the measure of business performance. Collected data were regressed using the Fully-modified OLS estimation technique while Augmented Dickey Fuller and Johansen Cointegration tests were used to determine the stationarity and long run properties of the variables. Findings indicated a negative relationship between monetary policy measures (inflation and exchange rate) and return on assets (ROA), while the impact of value added tax on ROA was positive. Hence, it was recommended that Nigerian government should be consistent and maintained its policy framework (fiscal stance, exchange rate policy, interest rate policy, and pricing policy) to spur confidence of foreign and local investors.

The study empirically examines the impact of creative accounting on firm performance in Nigeria using econometric
analysis method on annual data of seven financial institutions over the period of 2006-2011. The results from Levin, Chin
Chun unit root test shows that the all the variables were non-stationary at level. The results from the panel least square
shows that non-performing loan is positively related to return on equity and dividend pay-out while gearing ratio and net
income before tax is negatively related to both return on equity and dividend pay-out. The study recommends that the need
for a stronger regulatory regime with effective enforcement mechanisms for ensuring compliance with accounting and
auditing standards cannot be over emphasized. This should improve quality of financial statements as misstatements of
financial statements would attract prosecution of offenders. Thus, the enthronement of a more stringent regulatory regime
with effective enforcement mechanism will ensure compliance with accounting and auditing standards.

The rising non-performing credit portfolios have significantly contributed to financial distress in the banking sector. Banks collect deposits and lends to customers but when customers fail to meet their obligations problems such as non-performing loans arise. This study evaluates the impact of credit risk management on bank profitability of some selected commercial banks in Nigeria using econometric analysis method on annual time series data of ten banks over the period of 2006 to 2012. The results from Levin, Lin & Chu unit root test shows that all the variables were non-stationary at level. The results from Panel Least Square (PLS) estimate found that that credit risk management has a significant impact on the profitability of Nigeria banks. Therefore, management need to be cautious in setting up a credit policy that might not negatively affects profitability and also they need to know how credit policy affects the operation of their banks to ensure judicious utilization of deposits. This conclusion has important policy implications for emerging countries like Nigeria as it suggests that capitalisation and total assets of the bank should be periodically evaluated. The regulatory authorities will therefore need to put in place appropriate machinery that will address issues of bank liquidity and shore assets quality in the industry.

This paper analyses the impact of crude oil price, stock price and some selected macro economics variables on the growth of Nigeria economy from 1980 – 2010. Using Johansen cointegration, unit root test and error correction model, it was found that crude oil price, stock price and exchange rate have
significant influence on the growth of the Nigeria economy. In the final analysis, the study recommends that central bank of Nigeria should manage the dwindling nature of the interest rate, ensure transparency and accountability in the stock exchange market to boost the confidence of the
investors and further as a matter of urgency diversify Nigeria economy from oil reliance to gainful manufacturing so as to minimize negative effects of oil shock.

The study examines the impact of corporate social responsibility (CSR) on organizational financial performance of some selected banks in Nigeria using time series of annual data of ten banks over the period of 1990 to 2010. Pearson Correlation coefficient was used to analyse the correlation that exist between CSR and organization performance while
collected data were regressed using Ordinary Least Square technique. Findings indicate a positive relationship between CSR cost and Profit after Tax (PAT). The study therefore
recommends that top management in an organization must ensure prudence in its spending and get committed to any social activity it wants to embark upon and allow the members of the public to associate such an activity or activities.

This paper analyzes relationship between external debt and economic growth. Data collections are mainly secondary over the period of 1980 to 2010. The study hypothesized negative
relationship between external debt; debt servicing and economic growth. Collected data were regressed using OLS technique and Augmented Dickey Fuller to test for the stationarity of the variables. Findings indicate a negative relationship between external debt and economic growth while
that of debt servicing conforms with the apriori expectation of positive relationship. Hence, it is therefore recommended that Nigeria has to narrow down its international trade in order to save its balance of payment (BOP) to meet debt servicing needs of the country. The policy makers should also create credibility including political will in order to spur investor confidence for both local and foreign investments.

Generally, both fiscal and monetary policies seek at achieving relative macroeconomic stability through maintaining stable prices or low and stable inflation. In the light of this, this study empirically investigates the impact of inflation and monetary policy on economic growth performance in Nigeria with the use of econometric technique - O L S method using time series data from CBN statistical bulletin from 1981-2008. The results revealed that although money supply is positively related to economic growth performance, but the result is however insignificant in the case of GDP growth rates on the choice of inflation rate has no significant impact on economic growth performance. This study reveals that monetary policy alone is
incapable of controlling inflation. It should therefore be supplemented by fiscal measures, non monetary
and non fiscal measures. Fiscal measures are highly effective for controlling government expenditure, personal consumption expenditure, and private & public investment. The study therefore recommends that the Central Bank of Nigeria needs to deal with monetary policy in a more transparent manner so as to address the issues of expectations as inflation exhibits a high degree of inertia.

This paper attempts to empirically examine the impact of investment and inflation on economic growth performance as well as showing the trend analysis between inflation and investment in Nigeria from 1981 to 2006 using econometrics model with Ordinary Least Square (OLS) technique. In an attempt to establish longrun relationship between investment, inflation and economic growth, the result of the regression reveals that the coefficient of inflation is negative and significant at 10% while that of Gross capital formation (GCF) is positive and significant at 1%. It implies that I per cent increase in inflation will result in 0.09 decreases in economic performance (RGDP). There is therefore a negative relationship between inflation and RGDP. A positive relationship also exists between investment (GCF) and RGDP (economic performance), of which 1 per cent change in investment (GCF) will bring about 0.3 per cent unit increases in economic performance. Increased investment would lead to increase consumption, also increase labour, increase productivity, increase output therefore improve the economic performance because there would be reduction in capital flight. It could therefore be recommended that both supply-side policies and demand management policies such as a reduction in real broad money supply should be adopted to reduce inflation in the short-run and in the long-run.

This study attempts to empirically examine the trends as well as effects of government spending on the growth rates of real GDP in Nigeria over the last decades using econometrics model with Ordinary Least Square (OLS) technique. The paper test for presence of stationary between the variables using Durbin Watson unit root test. The result reveals absence of serial correlation and that all variables incorporated in the model were non-stationary at their levels. In an attempt to establish long-run relationship between public expenditure and economic growth, the result reveals that the variables are co integrated at 5% and 10% critical level. The findings show that there that there is a positive relationship between real GDP as against the recurrent and capital expenditure. It could therefore be recommended that government should promote efficiency in the allocation of development resources through emphasis on private sector participation and privatization\commercialization.

The study examines the effect of payments system innovations on the performance of commercial banks in Nigeria, Ex post factor research design was adopted for the study. The population of the study comprises all the banks operating in Nigeria. Data were collected from the economic reports and statistical bulletin of central bank of Nigeria. The Auto-Regressive Distributed Lags (ARDL) bounds approach to co-integration was adopted on quarterly time-series data from Q1 2007 to Q4 2020 to test the causal relationship between payments system innovations and financial performance of commercial banks in Nigeria. The results indicated that mobile payment, POS transactions and internet payment have positive and significant impact on return on assets of commercial banks in Nigeria, while RTGS has negative impact on the return of assets. The results of the study will fill the knowledge gap and will benefit both regulators and operators in making decision-making process and development of new policies that will aid the promotion of innovative products for safe reliable, and credible payments system and in identify payments system technology, projects and initiatives that are significantly viable, respectively. The study recommends the need for the commercial banks in Nigeria to undertake massive mass media enlightenment campaigns on all payments system innovations/initiatives.

This study examines the impact of capital structure on the financial performance of Nigerian oil and gas companies. Using an ex-post facto research methodology, the short-term debt to total asset, long-term debt to total asset, total debt to total equity, and return on asset variables were investigated as proxies for capital structure and financial performance, respectively. Based on the data's availability at the time of the inquiry, the study used an easy sampling strategy to gather secondary data. These data covers the years 2011 through 2020 and were compiled from the annual financial reports of five Nigerian oil and gas companies. Descriptive statistics and panel regression analysis were used to analyze the data. The analysis' findings shows that while long-term debt to total assets has a negative significant influence on return on assets, short-term debt to total assets and total debt to total equity had positive insignificant impacts. According to the findings, manage...