Gusau Journal of Accounting and Finance

CAPITAL STRUCTURE AND FIRM FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA: MODERATING EFFECT OF BOARD FINANCIAL LITERACY

2023-05-02T20:42:50+00:00

The purpose of this work is to examine the interaction of members of the board with financial knowledge on the association among capital structure with firm financial performance in the Nigeria DMBs. Empirical studies were reviewed to scrutinize the upshot of capital structure in connection to the performance of firms. As the result of the foregoing, this study introduces board financial literacy as a moderator variable to interact between capital structure with performance of firms. A correlational design was adopted. Population and sample size of the study consists of 13 listed DMBs on the floor of Nigeria Stock Exchange for the period 2012 to 2021. Fixed effects regression model was employed to analyse the data of the study. Diagnostic test was conducted to confirm the validity of the statistical inferences of the study. The result shows that BFL moderated the correlation involving DEFR with financial performance. Also, the result found that EFR and DEFR were not significant to the firm financial performance of DMBs in Nigeria. This work recommends that board members with financial literacy should come up with effective policy towards encouraging debt financing in their entities by effective supervision so as to enhance the overall firms’ financial performance as well as safeguarding shareholders interest. Research in future should replicate this topic in a domain other than DMBs.

INFLUENCE OF SOCIALIZATION ON MSME COMPLIANCE BY MEDIATING UNDERSTANDING AND MODERATING KNOWLEDGE OF TAX VISITS

2023-05-02T20:50:55+00:00

This study aims to determine the role of tax knowledge in being able to strengthen the relationship between tax socialization and understanding of taxpayers and understanding of taxpayers being able to mediate the relationship of socialization of tax visits or picktime to 151 MSMEs in the "Selecta" destination, Batu City - East Java - Indonesia. This research is included in survey research, but from a number of MSMEs that are eligible for data analysis, there are 148 because 3 respondents are considered unfit for processing. Testing mediation and moderation using WarpPLS in order to determine the mediating role of the taxpayer understanding variable and the moderating role of the taxpayer knowledge variable. WarpPLS is also used to test the fit of external models which include convergent validity tests and composite reliability, compositer Realiability, Model Fit and Quality Indices. The results show that understanding taxpayers is able to mediate the impact of "Picktime" socialization on taxpayer compliance, while knowledge of tax visits can strengthen the relationship of tax visit socialization to taxpayer compliance, especially knowledge related to providing ease of use of the picktime application and being able to increase the influence of socialization on taxpayer understanding tax to get a queue number make a face-to-face appointment with the tax officer

DOES INTERNATIONAL FINANCIAL REPORTING STANDARD NARROWS AUDIT EXPECTATION GAP?

2023-05-02T20:54:08+00:00

The many arguments advanced by scholars as to International Financial Reporting Standard’s capacity to enhance audit procedures and outcomes underscores this research’s quest for determining whether International Financial Reporting Standard could help with the perceptional dilemma that triggered the long lingering Audit expectation gap crisis. To this end, this study assays stakeholders’ perception as to whether the adoption of International Financial Reporting Standard could have certain narrowing impact on Audit expectation gap. The study adopted a mixed research design (i.e. exploratory and survey designs) by which structured questionnaires were administered to a purposeful randomly selected sample of 400 respondents drawn from audit practitioners, academics, accounting standards issuers, and members of professional accounting bodies within the North Central States of Nigeria and the Federal Capital Territory to collect data which were analyzed using multiple regression with the help of STATA 13 software. Result of the analysis revealed that both International Financial Reporting Standard induced quality financial report and complexity of audit work could narrow audit performance expectation gap in a significant positive manner, while International Financial Reporting Standard’s induced audit quality was negative in narrowing the expectation gap. We recommend however, that even with the significant result leading to rejection of the null hypotheses, standard setters should look at ways to draw up standards that will harmonize accounting standards and auditing standards in a way that clearly spell out how every category of reportable transactions should be reviewed and reported so as to improve the quality of what auditors deliver to the public.

SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA

2023-05-02T20:57:35+00:00

This study examines the effect of sustainability reporting (SR) on financial-performance of listed manufacturing firms in Nigeria from 2010 to 2020. Ex-post facto research design was employed and 24 firms form 8 sectors were sampled. Data were sourced from their annual report and analysed using Panel-regression technique. The study found positive significant connection linking DP, ERS and R&D and financial performance while CRS has negative insignificant effect on financial-performance. Base on the findings, the study concluded that SR has positive influence on financial-performance of listed manufacturing firms in Nigeria. The study recommended that relevant authorities should encourage firms to report SR on real-time and make reporting compulsory and not voluntary. There should be strict enforcement on firms to increase investment in R&D as this will increase profitability and help climate change.

FIRM ATTRIBUTES AND FINANCIAL REPORTING TIMELINESS OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

2023-05-02T21:00:36+00:00

This study examines the effect of firm attributes on financial reporting timeliness of listed consumer goods companies in Nigeria within the period of 2017-2021. The sample size of the study is the entire consumer goods firms listed on the Nigeria Group Exchange (NGX) from 2017-2021. The study used secondary data extracted from the annual reports of the various sampled firms, the Generalized Least Square (GLS) regression technique was used to analyze the data used in testing the hypothesis. The outcome of the regression analysis showed that firm size and financial leverage had a negative and significant effect on financial reporting timeliness. Based on the findings, the study recommends that listed consumer goods firms should increase their size as this will lead to the reduction in the time taking to publish their financial reports. The firms should also restructure their capital structure with a reasonable increase in debt equity as more debts equity will lead to a reduction in the reporting timeliness of the firms’ financial information and in turns helps to promote value relevance of accounting information.

NIGERIA ECONOMIC GROWTH AND CAPITAL MARKET DEVELOPMENT: DOES CONTRIBUTORY PENSION SCHEME MATTER?

2023-05-02T21:06:32+00:00

Whether the contributory pension scheme (CPS) has addressed the shortage of capital for investments, the challenge of full compliance with the system and the shortage of investment outlets spurred the interest to investigate the impact of the CPS on capital market development and economic growth from 2005 to 2021. Secondary data was adopted for this study, and the data were extracted from the National Pension Commission and world development indicators. The study employed the auto-regressive distribution lag (ARDL) model as an estimation technique. The empirical results show that among the proxies for gross domestic product, total pension fund asset (TPFA) was significant in both the short and long run, which showed that a 1% increase in TPFA would produce a 0.0028% increase in the GDP. Also, among the proxies for capital market development, total pension fund asset (TPFA) was significant in both the short and long run, which showed that a 1% increase in TPFA would produce a 0.024% increase in capital market development. Based on these findings, the study concluded that CPS influenced capital market development and economic growth. Consequently, this study recommended, among others, that the NPC should continue to partner with relevant stakeholders such as pension fund administrators and custodians by making its investment regulations more flexible and encouraging increased pension fund investments.

AUDIT COMMITTEE AND FINANCIAL REPORTING QUALITY: THE MODERATING EFFECT OF BOARD INDEPENDENCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

2023-05-02T21:08:38+00:00

The widely publicized corporate accounting scandals perpetrated under the watchful eye of audit committee despite their roles and function-ns in financial reporting processes, casts doubt in the minds of users on its relevance and credibility. This study examines the moderating role of board independence on the relationship between audit committee and financial reporting quality of listed Nigerian deposit money banks from 2012 to 2021. The study utilized correlation research design, extracted secondary data and OLS multiple regression for analysis. The finding reveals that board independence has a significant negative moderating effect on audit committee characteristics and financial reporting quality represented by discretionary loan loss provision, thereby strengthen the nexus. Based on the findings, the study recommends the appointment of more outside directors, holding strategic regular meeting and appointment of members with financial expertise into the audit committee to guarantee independence, assure discussion and handling of complex financial issues which would improve the financial reporting quality.

DETERMINANTS OF FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

2023-05-02T21:11:21+00:00

This paper seeks to address some factors influencing the financial performance of listed DMBs in Nigeria as the industry has a crucial role to the growth and development of the nation. The major goal of this study was to examine, using secondary data the determinants of financial performance of DMBs with international operating license between 2010 and 2020. Analysis was carried on 8 listed banks using secondary data, correlation and ex-post factor research design. According to the study's findings, all of the indicators have a large impact on the financial performance of the listed financial banks, with the exception of liquidity risk, which has no significant effect. It is therefore recommended that the management of listed DMBs strictly concentrate on investing in lower risky projects, developing and adopting an effective internal control system with clear policies and procedures and to also adhere to CBN directives in maintaining a certain capital adequacy ratio and to checkmate some internal management factors that led to a significant but negative relationship between ROA and LR as the relationship is expected to be significant and positive. This would assist them in achieving their objectives and prevent liquidation and bankruptcy.

HUMAN RESOURCE ACCOUNTING AND PROFITABILITY OF LISTED DEPOSITMONEY BANKS IN NIGERIA

2023-05-09T09:20:58+00:00

One of a company's most important intangible assets is its human capital. Because a company’ssuccess or failure depends on how well its few physical resources are exploited by its human resources, a company’s failure to account for human resources and the changes that occur inside may present a misleading image of its performance. due to inconsistent in the literature, the study examine the relationship between human resource accounting and financial performance of deposit money banks in Nigeria. The study used ex-postfacto research design as it entails the use of annual reports and accounts of listed Deposit Money Banks in the Nigerian Exchange Group. Secondary data were sourced from the banks’ financial report for the period of seven (7) years from 2015 to 2021. The dependent variable is Return on Assetsuse as a proxy of profitability, the independent variables are: Staff Cost, Directors’ Remunerations use as the proxy of human resource accounting. The study control for age and size.The descriptive statistics, correlation and regression statistical method of analysis are employedto test the nature, relationship and effect among the variables using Statistical Software (STATA v14). The result shows that HRA has significant effect on the financial performance of listed deposit money banks in Nigeria. Thus, upon recommendation, workers should be retain to avoidunemployment, and company management should endeavor to send workers on training and development to accommodate the structural changes.

BOARD INDEPENDENCE, AUDIT EFFECTIVENESS AND THE QUALITY OF REPORTED EARNINGS IN THE NIGERIAN CONSUMER GOODS FIRMS

2023-05-09T09:35:30+00:00

This paper studied the link of board independence, audit effectiveness and the quality of reported earnings in Nigeria. Using convenient sampling, 7 consumer-goods firms quoted in the Nigerian stock exchange (NSE) from 2016 to 2020 (5 years) were used in conducting the research. The data source was primarily obtained from firm’s annual report and analyzed by using Random Effect GLS in STATA 14. The findings show that board independence and expertise are statistically significant in affecting the quality of reported earnings. The result found board independence and audit expertise to be negatively affecting earnings quality in the Nigerian consumer goods firms. Considering the fact that the results found the characteristics of firms board – independence and expertise - to be significant in affecting earnings quality, the study recommended that the financial users should not over rely and have absolute confidence in using financial report. The monitoring mechanisms for shielding financial report may not be effective, and the final report can mislead the stakeholders in their various decisions. Thus, the regulatory bodies should focus more in revising it guides that will improve quality of earnings to restore stakeholder’s confidence in using financial reports.

IMPACT OF CAPITAL STRUCTURE ON FINANCIAL PERFORMANCE OF LISTED AGRICULTURAL COMPANIES IN NIGERIA

2023-05-09T11:46:15+00:00

A company is usually faced with the challenge of financing investments; the management is to decide on the optimal mix of capital structure decision. This study sets to investigate the influence that capital structure of a firm has on financial performance of listed manufacturing firms in Nigeria for period spanning from 2017-2021. The dependent variable of the study is financial performance proxy by return on asset (ROA) while the independent variable of the study is capital structure proxy by long-term debt, short term debt, total debt ratio and total equity ratio. The population of the study consist of all the 5 listed manufacturing firms in Nigeria and the sampling technique was the census arriving at a 25 firm year observations. The multiple regressions was employed for the data analysis and the study revealed that long-term debt ratio has a negative insignificant relationship with return on asset while short-term debt, total debt ratio and total equity ratio have positive significant influence on return on asset. The study recommends that the management of listed manufacturing firms in Nigeria should pay attention in curtailing long-term debt and improving on short term debts in order to improve financial performance.

TRADE ORIENTED MONEY LAUNDERING AND ERA OF CYBERSECURITY TAX EVASION IN NIGERIA

2023-05-09T15:17:46+00:00

This study examined at tax evasion also related trade-based money laundering mitigation strategies in Nigeria in the age of cyber security. Three objectives and research questions were designed to guide the study using a sample of 120 respondents. A survey research methodology was used for this study. The instrument used was a set of pre-coded, independently developed structured questionnaires. The study's analytical approaches included frequency distribution tables with percentages, bars, and charts, and logit regression was used to assess the objective. Since the majority of respondents (100%) are of working age based on the descriptive age group conclusion, they are qualified to understand how tax fraud and laundering of money affect economy growth. about educational achievement, it is implied that most of respondents has higher education standard than what the Cultural Organization, United Nations Educational and Scientific recommends for secondary school, which qualified them to provide an appropriate

response. This shows that, in terms of working experience, most of respondents have the fact and expertise necessary to comprehend the importance of laundering of money and tax evasion and in terms of economy growth. The findings indicated that among the duties of banks in recognizing cyber-scam were the development of the Bank Verification Number (BVN) and Single Treasury Account System,) and the instruction of collector of tax. In Nigeria's age of the cyber security, numerous measures have also been implemented to curtail and trade-oriented and tax evasion money laundering. According to logit regression, both laundering of money and tax evasion & were significant has indirect impact on economy growth. It follows, it is implied that both government revenue and economic growth are decreased as a result of large organizations' or individuals' tax avoidance. At a 5% level of significance, the logit regression outcome shows that tax collection (TAXC) was significant & positively connected with economy growth (ECOA). This means that 99.9% of the economic growth that the government funds through taxes is directly facilitated by the provision of infrastructure. For the amount of businesses that were registered, which was 5% and not statistical significant. This implied that the number of registered enterprises in the study area did not contribute enough to tax receipts to support economy growth. Tax evasion, its fact that it impacted on economy growth that was detrimental. Also, the findings indicated that Nigeria's economy growth would slow down as money laundering increased (MOLA). The marginal impact showed that laundering of money (MLA) was sensitive to economy growth at 99.9 percent and that it was statistically significant at 5 percent.

EFFECT OF FEMALES IN THE BOARDROOM ON CORPORATE SUSTAINABILITY REPORTING

2023-05-09T07:45:51+00:00

Increasing body of research overtime has focused on corporate sustainability reporting due to its global significance. However, there is still scarcity of studies, especially, on the role of women in improving corporate sustainability reporting. Furthermore, this relationship is rarely investigated using African data. This studytakes advantage of this existing gap to explore the effect of female directorship andrepresentation in the audit committee on corporate sustainability reporting. This study utilized 120 firm year observations from sampled African firms that adopted for the period 2015 to 2020. Using quantitative approach, regression analysis wasused to test the hypotheses. The results of the regression analysis indicate that both female directorship and female presence in the audit committee have a significant positive effect on corporate sustainability reporting. It is therefore recommended that women directorship should be mandated on the boards of African firms to improve corporate sustainability reporting.