INTERNATIONAL JOURNAL OF FINANCIAL RESEARCH AND MANAGEMENT SCIENCE (TIJFRMS)
VOL. 15 (7) NOVEMBER, 2023
TIMBOU-AFRICAN ACADEMIC PUBLICATIONS,
Centre for African Development Studies, Federal Ministry of Education, Abuja, FCT-Nigeria.
EMPIRICAL STUDY OF THE IMPACT OF BUSINESS LOCATION ON THE PERFORMANCE OF SMES IN BAUCHI STATE
DR MOHAMMED ALKALI
Department of Business Administration, Faculty of Management Sciences, Federal University of Lafia, Nasarawa State.
The aim of the study is to identify whether there is a relationship between business location and the performance of small business enterprises in Bauchi state. Target population of the study was small business manufacturing enterprises in Bauchi state. Based on a random sampling, the sample size of the study was 302 small business manufacturing enterprises in Bauchi state. A structured questionnaire was used to gather data from owner managers of the enterprises. The data was analyzed through descriptive analysis and cross-tabulation analysis through SPSS software. The findings of the study reveal that business location was found to be significantly related with business performance of the enterprises in terms of symmetric and directional significant values in cross- tabulation.
Keywords: Entrepreneurs, Enterprises, Small Business, Business Location
A CONCEPTUAL REVIEW OF TAX GAPS IN NON FINANCIAL INSTITUTIONS IN NIGERIA
DISU, SAMSON ADEWALE1, SOMOYE, RUSSEL OLUKAYODE CHRISTOPHER2 AND AKINTOYE, ISHOLA RUFUS3
1,2Olabisi Onabanjo University, Ago-Iwoye, Nigeria; & 3Babcock University, Ilishan-Remo, Nigeria.
The Nigerian economy has been having a regressive pattern in the last decade hence the revenue generation could not sustain the infrastructural growth and development of the nation. The objective of this study is to elucidate various determinants of tax gaps in non-financial institutions in Nigeria. Tax avoidance has been a concern in accounting studies as it reduces the government’s ability to generate revenue and to implement its policies because tax payers engage in affairs to reduce their taxable base. Tax evasion is the use of unlawful act to reduce tax liability. It is akin to a pandemic for the countries because it could be difficult to control.
Keywords: Tax Evasion, Tax Avoidance, Tax Gap
BENEFITS OF TAKAFUL INSURANCE ADOPTION TO SMES IN LAGOS STATE METROPOLIS, NIGERIA
*OBINNA CHARLES CHILEKEZI; & **PROF. F. M. EPETIMEHIN
*Department of Entrepreneurship, Joseph Ayo Babalola University, Ikeji Arakeji, Osun State, Nigeria. [Department of Insurance and Risk Management, Joseph Ayo Babalola University, Ikeji Arakeji, Osun State, Nigeria]. **Department of Insurance and Risk Management, Joseph Ayo Babalola University, Ikeji Arakeji, Osun State, Nigeria
In Islam, the basic principle of investment is that reward must not be accompanied by risk. Takaful insurance companies cannot invest in products which are interest-based, have a guaranteed or minimum return on the investment, or are based on haram practices (casinos and gambling companies). The centre point of Islamic finance provides the focal guideline of Takaful insurance. Takaful insurance as a result could be seen as an answer to modern concept of insurance to the Islamic faithful. Moslems buy these products to provide insurance covers for themselves, their families and their assets against fortuitous losses. This study adopted survey design which is cross-sectional and the data base of one of the takaful insurance companies were used to identify the SMEs that insured their risks with them. As a result of the nature of the population, through the assistance of the Marketing Manager of the company, four hundred (400) questionnaire were administered to enterprises that adopted takaful insurance in Lagos state using convenience sampling method while three hundred and eighty five (385) questionnaire were retrieved and used for the analysis of this study. The qualitative research method was adopted through the calculation and standard deviations of the collected data. This study concluded that the adoption of takaful insurance is highly beneficial to enterprises that adopted it in Lagos State. Among the benefits accrued from adopting takaful insurance are: access to interest free loan, quick access to claim; less cost of insurance; capacity business and business advisory engine to mention a few.
Keywords: Benefits, Insurance, Small and Medium Enterprises, Takaful
BOARD SIZE, BOARD COMPOSITION AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA
*ABDULAZEEZ ABUBAKAR; *PROFESSOR AHMAD BELLO DOGARAWA; & *PROFESSOR SALISU ABUBAKAR; AND **DR NASIRU ABDULLAHI
*Department of Accounting, Ahmadu Bello University, Zaria, Nigeria. **Department of Banking and Finance, Ahmadu Bello University, Zaria, Nigeria.
This paper examined the effect of board size and composition on financial performance of consumer goods firms listed in Nigeria for the period 2010 to 2021. The study used panel data extracted from the Annual Reports and Accounts of 15 firms out of 16 consumer goods firms listed in the Nigerian Stock Exchange as at 31st December, 2021. The study adopted correlation research design and Panel regression as technique for data analysis. The result of the fixed effect regression showed that board independence and board gender have positive significant effect on financial performance. The result also showed that board size has significant negative effect on financial performance. It is recommended that, firms in the consumer goods subsector should maintain the existing ratio of independent directors in their board since their presence increase the financial performance. They are also advised to increase the proportion of female directors in their boardroom as the ratio enhances their financial performance, however, reduce their board size since it is found having significant negative impact on financial performance.
Keywords: Agency Theory, Board Composition, Consumer Goods Firms, Financial Performance
INTEREST RATE LIBERALIZATION AND FINANCIAL SAVINGS IN NIGERIA
FASHINA OLUFUNMI EMMANUEL; & OBISANYA, ROTIMI OLASUPO
Department of Economics, Faculty of Management and Social Sciences, Lead City University, Ibadan, Nigeria.
Debate over whether or not to liberalize interest rates in Nigeria has been going on for years. Liberalization is seen as essential for the development of the Nigerian economy by many experts, while others worry it would bring about unintended consequences including a drop in national savings. In 2020, Nigeria’s gross domestic savings were 17.3% of Gross Domestic Product (GDP), down from 18.9% in 2019. As of September 2021, Nigeria’s benchmark interest rate was 11.5%, which is significantly higher than the average interest rate throughout the rest of Africa. However, financial savings kept falling even as interest rates rose. Thus, using annual time series data from 1981 to 2021, this research analyzes how interest rate liberalization in Nigeria has affected financial savings. Using the Autoregressive Distributed Lag (ARDL) bound estimator, this study demonstrates the impact of the short-term interest rate on financial savings. This suggests that an increase in Nigeria’s short-term interest rates benefits the country’s financial savings by encouraging both individuals and businesses to save more funds for the future. However, interest rates have a negative effect on savings over the long term. Thus, economic growth, overall loan demand, and savings rates have all been shown to suffer when interest rates are kept artificially high. Therefore, this research paper recommends that Nigerian government should do more to foster domestic investment through policy changes that boost domestic savings and new capital formation. Both domestic investment and GDP growth will benefit from the increased level of domestic savings.
Keywords: Interest Rate, Gross Savings, Inflation, Money, Trade, Investment
COMPENSATION AND PRODUCT INNOVATION IN DEPOSIT MONEY BANKS IN SOUTH EAST NIGERIA
UZOWIHE NGOZI IJEOMA (Ph.D); KENNETH-UGOCHUKWU IJEOMA BABY; & MBAKWE AHAMEFULA UGOCHUKWU
Faculty of Management Sciences, Department of Management, Imo State University, Owerri.
The study investigates compensation and product innovation in Deposit Money Banks in South East Nigeria. The study was conducted to find out the relationship between base pay and product innovation; benefits package and product innovation as well as bonuses and product innovation in Deposit Money Banks. The study was guided by three research questions and three hypotheses. The survey research design was used to handle the study. The researcher used the non-probability sampling technique in the research work. Descriptive statistics of mean and standard deviation were used to analyze data. Correlation analysis was employed in the testing of the hypotheses. The analysis was enabled by Statistical Package for Social Sciences (SPSS) Version 23. The findings showed that base pay positively influenced product innovation; benefits package positively influenced product innovation and offer of bonus positively affected product innovation. It was concluded that compensation enhanced product innovation in the Deposit Money Banks. The study recommends that management of various Deposit Money Banks should not take the issue of product innovation for granted.
Keywords: Compensation, Product innovation, Deposit Money Banks
CONTRIBUTORY PENSION SCHEME AND EMPLOYEE RETIREMENT BENEFITS: A CASE STUDY OF FEDERAL MEDICAL CENTRE (FMC) OWERRI, IMO STATE (2015 – 2022)
*UBAH CHUKWUDI NELSON, Ph.D; **NWACHUKWU, UZOCHIAMAKA SYLVIA, Ph.D; & **EMMANUEL ONYEIWU, Ph.D
*Abia State University, Uturu, Abia State, Nigeria. **Department of Political Science, Faculty of Social Sciences, Imo State University, Owerri.
This study examined contributory pension scheme and employee retirement benefits: a case study of Federal Medical Centre (FMC) Owerri, Imo State 2015 – 2022. The work was anchored on and conservation of resources (COR) as the framework of analysis. In the research method, survey research design was used and questionnaire served as the instrument of data collection. The data collected were analyzed using mean statistics. It was discovered there is significant relationship between pension policy and employees’ retirement benefits in contributory pension scheme; corruption in contributory pension scheme affects employees’ retirement benefits; there is significant relationship between retirees’ knowledge of contributory pension and their retirement benefits. This study concludes that employee productivity in public sector and overall organizational growth depends on the extent to which there is effective and efficient contributory pension management which will make workers to feel at home, feel relax and therefore perform their functions well; hence enjoying benefit after retirement. Based on the findings, it was recommended that there is need for the amendments of the contributory pension policy to make it favourable for the employees; hence making the government to contribute more and the employees to contribute less. More so, there should be high level of transparency, accountability and probity in the contributory pension management so as to identify and stop all forms of corrupt practices.
Keywords: Contributory Pension Scheme, Employee Retirement Benefits, Pension Policy, Corruption and Retirees’ Knowledge
IMPLEMENTATION OF TREASURY SINGLE ACCOUNT IN SELECTED FEDERAL INSTITUTIONS IN ANAMBRA STATE
ANTHONY OFFIAH, PH.D
Department of Political Science, Imo State University, Owerri, Nigeria.
This research critically appraises the implementation of Treasury Single Account (TSA) in the selected federal institutions in Anambra state. The specific objectives are to ascertain if the implementation of TSA has contributed to financial accountability; discover if TSA has contributed in facilitating the release of funds for delivery of services and find out if poor ICT development is a challenge to the implementation of TSA in the selected federal institutions in Anambra state. The system theory of David Easton was adopted as a framework for analysis. Data were collected through primary (questionnaire) and secondary sources. The data were analyzed quantitatively using simple percentage and mean statistical methods. Based on the analysis, it was revealed that the implementation of TSA has contributed to financial accountability in the selected federal institutions in Anambra state. In addition, it revealed that the implementation of TSA has not facilitated the release of funds for delivery of services and poor development of ICT is a strong challenge to the implementation of TSA in the selected federal institutions in Anambra state. This paper recommended among others, that there is need for strong political will and commitment for implementation of TSA, improvement of the level of e-government development, reduction of bureaucratic bottleneck for easy release of funds, enforcement of TSA implementation in all level of government etc.
Keywords: Treasury Single Account, Federal Institutions, Financial Accountability, Delivery of Services, Poor ICT Development and Cost of Governance
THE INFLUENCE OF AUDITORS INDEPENDENCE ON FINANCIAL REPORTS QUALITY IN DEPOSIT MONEY BANKS IN NIGERIA
SHAMSUDDEEN SHEHU SAEED1; YAHAYA HASSANAT IDRIS2; & ALABI TAOFEEQ OLANIYI3
1&2College of Business and Management Studies, School of Business and Financial Studies, Department of Accountancy, Kaduna, Polytechnic. 3Kadpoly Trust cooperative society LTD.
The study determined the influence of auditors independence on financial reports quality in deposit money banks .The data covered the period from 2013-2022.Data were analyzed based on multiple regression models with aid of STATA software package and the study aligns itself with positivist paradigm. Auditors’ independence was proxy by auditor’s incentive, Audit tenure, Audit fees, audit client and audit Independence committee. However, financial reporting quality was proxy by Discretionary Accruals. Findings of the study designate that audit incentives, audit tenure and audit client size have a positive relationship with quality of financial reporting. The study also finds that auditor’s status has a significant negative relationship with quality of financial reporting. The study therefore concludes that independence of the auditor has a significant effect in decreasing discretionary accruals which by extension improves on quality of financial reporting. The study recommends against this framework that audit firms should charge reasonable fees that will cover their audit obligation so as to be able to carry out their audit work and also recommends that critical stakeholders should ensure that there are adequate board members and directors to provide the objective of the firm to reduce the financial manipulations. In the case of the board independence, the management or the authority concern should reduce the number of non-executive directors since this study established positive relationship. This is because; the aim is to reduce the manipulations of financial reporting by banks since is misrepresenting the financial position of the banks.
Keywords: Auditors, Independent, Financial Report, Board
GENDER DIVERSE BOARDS AND FINANCIAL REPORTING QUALITY: A THEORETICAL REVIEW
GEHYA EMMANUEL FILLI; OGUNJOBI EMMANUEL ABIODUN; & OPEYEMI IBITOMI
Department of Accountancy, Federal Polytechnic Mubi, Adamawa State, Nigeria.
This paper gender diverse boards and financial reporting quality specifically reviewed literatures on the influence of gender diverse boards as a corporate governance mechanism on financial reporting quality of corporate organizations. The inclusion of women among corporate boards has been a subject of debate in many nations which led to introduction of voluntary policies in some countries to include women among corporate boards for business decisions like financial reporting quality. Various relevant literatures were reviewed. The reviews showed that the inclusion of women among corporate directors increases the chances of a more prudent, civilized and enhanced creativity in the style of leadership thereby influencing financial reporting quality positively. More women need to be given opportunity to showcase their hidden talents as this will also promote gender equality among corporate boards and beyond.
Keywords: Gender Diverse Boards, Corporate Governance, Financial Reporting Quality
BOARD DIVERSITY, MANAGERIAL OWNERSHIP AND QUALITY OF ENVIRONMENTAL ACCOUNTING INFORMATION DISCLOSURE BY LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA
YAYA MUKHTAR WALI1; IBRAHIM MAGAJI BARDE2; MUHAMMAD AMINU ISA3; & ZAHARADDEEN ABDULLAHI4
1Department of Accountancy, Federal Polytechnic Bauchi 2Department of Accounting Bayero University, Kano, 3Department of Accounting Bayero University, Kano, 4Department of Accounting Bayero University, Kano.
This study examined the impact of Board Gender Diversity, Foreign Directorship and Managerial Ownership on the quality of environmental accounting information disclosure by listed industrial goods companies in Nigeria. The study used a sample of eight (8) industrial goods companies listed on the Nigerian Exchange Group for a period of sixteen years (2006-2021) which were selected using a two-point filter of being listed on the Nigerian Exchange Group on/or before 31/12/2006 and not been delisted within the period 2006-2021. Content analysis technique was used to elicit data from the annual reports and accounts of the companies, through the use of an environmental disclosure index adapted from the Global Reporting Initiative. Regression analysis was used to analyze the data collected. Skewness and Kurtosis, Hausman, Heteroskedasticity and Multicolinearity tests were conducted. Descriptive statistics were also used. The study revealed that listed industrial goods companies made low quality disclosures during the period. The results found that Board Gender Diversity has a negative and significant impact, Foreign Directorship has a negative and insignificant impact and Managerial Ownership has a negative and insignificant impact on the quality of environmental accounting information disclosed by listed industrial goods companies in Nigeria. This study is restricted to only assessing the impact of Board Gender Diversity, Foreign Directorship and Managerial Ownership on the quality of environmental accounting information disclosure in listed industrial goods companies in Nigeria. It does not measure the impact of such attributes on environmental disclosure quantity. The directive by the Federal Government to companies to comply with all environmental standards would lead to high quality environmental information disclosure. Proper Board Gender Diversity, Foreign Directorship and Managerial Ownership would lead to a higher quality of environmental accounting information disclosure thereby benefitting the whole society. This is the first study that provides empirical evidence on the impact of Board Gender Diversity, Foreign Directorship and Managerial Ownership on the quality of environmental accounting information disclosure by listed industrial goods companies in Nigeria to the best of the authors’ knowledge.
Keywords: Board Gender, Foreign Directorship, Managerial Ownership, Diversity, Disclosure, Quality
COMPLIANCE WITH DISCLOSURE REQUIREMENTS OF INTERNATIONAL ACCOUNTING STANDARD 16 BY LISTED AGRICULTURAL FIRMS IN NIGERIA
*BABAGANA M. ABATCHA; & **HAMSATU MUSA
*Department of Accountancy, Ramat Polytechnic, Maiduguri. **Department of Banking and Finance, Ramat Polytechnic, Maiduguri.
This study aims to evaluate the extent to which listed agricultural firms in Nigeria adhere to the disclosure requirements of International Accounting Standard (ISA)-16. The research delves into the impact and level of compliance with IAS 16 among these firms. Secondary data extracted from the financial statements of Livestock Feeds and Presco PLC between 2015 and 2022 were analyzed using a compliance index and ANOVA statistical tools. The study compared the provisions of the IAS-16 standard to
HUMAN CAPITAL INVESTMENT ON FIXED CAPITAL FORMATION IN NIGERIA
SHAROMO DAUDA ARUNA; & UMOLE I. MOHAMMAD
Department of Cooperative Economics and Management, School of Business Studies and Management, Auchi Polytechnic Auchi, Edo State.
This study, will examine the impact of human capital investment on a fixed capital formation in Nigeria. From the findings, it can be concluded that the total government expenditure on education, total government expenditure on health, tertiary school enrolment and secondary school enrolment as human capital investment indicators have a significant impact on gross fixed capital formation in Nigeria. Therefore, Nigeria can only reposition herself as a potent force through the quality of the products from the primary, secondary and tertiary school systems, and by making her manpower relevant in the highly competitive and globalized economy through a structured, well-funded and strategic planning of her educational and health institutions and more efforts must be made at allocating more funds to government expenditure on health and education in order to improve the quality of life, the material well-being and life expectancy of the people.
Keywords: Human, Capital Investment, Capital Formation, Expenditure, Nigeria
IMPACT OF PENSION FUND ON THE ECONOMIC GROWTH OF NIGERIA
DR OHIOKHA, G.; & SULAIMAN–OLOKO, ABDUL
Department of Accounting, Faculty of Arts, Management and Social Sciences, Edo State University Uzairue, Edo State, Nigeria.
In a quest to solve problems associated with the old unfunded pension scheme and improve economic growth in Nigeria, the Federal Republic of Nigeria repealed her pension degree 1959 and enact a new Pension Reform Act 2004 to adopt a Chilean contributory pension scheme model which is designed towards mobilization of savings for long-term capital, financial markets development and improved economic growth. This study examines the relationship between pension fund and economic growth in Nigeria from the year 2004 to 2021. In this pursuit, the study adopted ex post facto research design method and the secondary data obtained from the National Pension Commission Annual Report and the Central Bank of Nigeria Statistical Bulletin for the purpose of the study were analyzed with the use of Autoregressive Distributive Lag Model. The findings of the study revealed that pension contributions from public sector have a positive impact on the economic growth. Meanwhile, pension contributions from private sector have a negative and significant impact on the economic growth of Nigeria. The study concluded that pension fund have significant impact on the economic growth of Nigeria. To address the negative impact of pension fund on the economic growth of Nigeria, the study recommended that appropriate investments analytical technique should be employed in the determination of investment that smooth out returns on investment. It also recommended that the stakeholders in pension industry should put in place policy that will ease the accessibility to pension fund contributions by pension contributors who are willing to undertake investments from the outset as soon as they discovered viable investment opportunity and not when they attain retirement age.
Keywords: Pension Fund, Public Sector Pension Contribution, Private Sector Pension Contribution, Economic Growth, Gross Domestic Product