Gusau Journal of Accounting and Finance

ASSET STRUCTURE, FINANCING DECISIONS, AND SCALE EFFECTS AS DETERMINANTS OF FIRM PERFORMANCE IN EMERGING MARKETS: INSIGHTS FROM NIGERIAN CONSUMER GOODS FIRMS

2026-01-01T19:43:36+00:00

In developing nations like Nigeria, the output of businesses in the consumer products sector is crucial to industrialisation, job creation, and economic expansion. Using panel data on thirteen listed firms from 2000 to 2023, this study examines the effects of asset structure, external financing, and company size on return on assets (ROA) for consumer products companies in Nigeria. The findings indicate that while external financing has a negative impact on ROA, asset structure and business size have a beneficial impact. Leverage and sales growth sensitivity tests show that the results hold up well. The models' fit is justified by diagnostic testing after estimate, which reveals the lack of autocorrelation and heteroskedasticity. This work underscores the importance of prudent asset allocation, judicious financing choice, and size advantage in enhancing firm performance and provides practical guidance for managers, investors, and policymakers in developing countries.

DETERMINANTS OF MOBILE MONEY ADOPTION IN NIGERIA: AN EMPIRICAL STUDY BASED ON TAM

2026-01-01T19:52:15+00:00

In Sub-Saharan Africa, mobile money has become a game-changer for financial inclusion, enhancing the availability, quality and use of financial services. However, despite Nigeria's high mobile penetration rate, mobile banking usage is still very low. With a focus on perceived utility, transaction costs, service quality, perceived ease of use, and trust. This study investigates the variables that affect behavioral intention to use mobile money services. A sample 400 respondents completed an online survey that was disseminated via social media channels, and SPSS was used to analyze the primary data used in this study. Descriptive statistics, multiple regression, correlation, and reliability testing were all used in the analysis. The findings show that willingness to utilize mobile money is highly influenced by perceived utility, service quality, and perceived simplicity of use, but transaction costs have a negative effect. Although trust was positively correlated with behavioral intention, it did not remain significant when controlling for other variables. These results imply that utility, affordability, and service dependability are more important to Nigerian consumers than trust alone. The study emphasizes that in order to encourage widespread use of mobile money services in Nigeria, financial service providers must place a strong priority on value delivery, cost reduction, and service consistency.

PUBLIC DEBT, DEBT SERVICING, AND ECONOMIC GROWTH IN NIGERIA

2026-01-01T19:56:52+00:00

Nigeria’s rising public debt profile has become a central issue in economic policy debates, particularly as debt servicing consumes an increasing share of government revenue. This paper investigates the relationship between public debt, debt servicing, and economic growth in Nigeria from 2014 to 2024. Relying on secondary data from the Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS), World Bank, and International Monetary Fund (IMF), the study employs descriptive statistics and trend analysis to examine the evolution of debt dynamics and their implications for macroeconomic performance. The findings reveal that Nigeria’s total public debt increased from ?12.1 trillion in 2014 to over ?97 trillion in 2024, while debt servicing rose disproportionately, often exceeding 90% of government revenue in some fiscal years. Although external borrowing initially supported infrastructure investment, rising servicing costs have constrained fiscal space, reduced capital expenditure, and slowed inclusive growth. The evidence suggests a debt overhang effect, where excessive servicing obligations crowd out productive investment and weaken growth prospects. The paper concludes that while moderate borrowing can stimulate growth, Nigeria’s current trajectory is unsustainable without reforms in revenue mobilization, expenditure prioritization, and debt management. It recommends a strategic balance between borrowing and domestic resource mobilization, restructuring high-cost debts, and channeling funds into sectors that generate long-term productivity gains.

EFFECT OF CREDIT RISKS ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

2026-01-01T20:00:55+00:00

The low performance of the Nigerian banking sector was revealed by the Financial Stability Report of the Central Bank of Nigeria in 2020, which stated that the financial status of the Nigerian deposit money banks is very week and not promising as their primary duties of financial intermediation and money creation may be affected in relation to their poor performance in almost all major banking performance indicators.In view of this, the study examined the effect of credit risks on the financial performance of listed Deposit Money Banks in Nigeria from the period of 2013-2022. The population of the study consisted of Nineteen (19) DMBs listed in Nigeria, seven (7) DMBs were later filtered out reducing the total population to twelve (12) adjusted population. Secondary data were extracted from the annual financial reports of the twelve (12) adjusted population from 2013 to 2022. The dependent variable which is financial performance was proxied by Return on Assets (ROA), while credit risks was proxied by Non-performing loan, Loan loss provision, and Insider lending whereas firm size was used as a control variable in the study. After all the necessary diagnostic tests were conducted the outcome supported the use of the Random Effect (RE) regression analysis technique. The regression result shows that Non-performing loan, and Insider lending had negative and significant effect on the financial performance of listed DMBs in Nigeria, while Loan loss provision had positive and significant effect on the financial performance of listed DMBs in Nigeria. Therefore, the study concluded that Non-performing loan, Loan loss provision and Insider lending are all determinants of DMBs financial performance in Nigeria. In line with the conclusion, the study recommended that the management of the listed DMBs in Nigeria should increase the rate of Non-performing loans and Insider lending to enhance their financial performance. Also, the management of the listed DMBs in Nigeria should increase their loan loss provision to promote their financial performance.

CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA: MODERATING ROLE OF CORPORATE GOVERNANCE

2026-01-01T20:06:20+00:00

Nigerian deposit money banks continue to struggle with achieving optimal financial performance, partly due to ineffective capital structure decisions and weak corporate governance mechanisms. This study investigates the effect of capital structure and corporate governance on the financial performance of listed deposit money banks in Nigeria. Specifically, it examines whether board size moderates the relationship between debt-to-equity ratio and financial performance, measured by Return on Assets (ROA). The study adopts an ex-post facto research design using secondary data from 12 banks with complete financial records between 2015 and 2024. Descriptive statistics, correlation analysis, diagnostic tests, and multiple regression models, estimated through Ordinary Least Squares (OLS) after validating assumptions via the Hausman test, were employed for data analysis. Findings reveal that the debt-to-equity ratio negatively and significantly affects financial performance, while corporate governance, proxied by board size, has a positive and significant effect. Moreover, board size significantly moderates the relationship between capital structure and performance, improving the model's explanatory power. These results support the Trade-Off Theory, suggesting that while high leverage may reduce performance, strong governance can mitigate its negative effects. The study concludes that maintaining a balanced capital structure and enhancing corporate governance structures are essential for improved bank performance. It recommends that banks minimize over-reliance on debt, optimize board composition, and strategically design governance practices to complement financial decisions.

TRADE BALANCE, EXPORT DIVERSIFICATION AND ECONOMIC RESILIENCE IN WEST AFRICA

2026-01-01T20:10:53+00:00

West Africa’s economic trajectory over the last decade has been shaped by persistent trade imbalances, heavy reliance on a narrow range of primary commodity exports, and heightened vulnerability to global shocks. This paper examines the nexus between trade balance, export diversification, and economic resilience in West Africa, from 2014 to 2024, a period marked by the oil price crash, the COVID-19 pandemic, the war in Ukraine, and the rollout of the African Continental Free Trade Area (AfCFTA). Drawing on secondary data from the World Bank, UNCTAD, ECOWAS Commission, and national statistical offices, the study employs descriptive trend analysis and empirical evidence from recent literature to assess how diversification patterns influence macroeconomic stability. The findings show that West Africa’s economies remain highly commodity-dependent, with over 70% of export earnings concentrated in hydrocarbons, minerals, and agricultural products. However, countries with broader export baskets-such as Côte d’Ivoire, Ghana, and Senegal-exhibited relatively greater resilience during external shocks, as reflected in smaller trade deficits and faster post-crisis recovery. The evidence further indicates that structural trade imbalances in Nigeria, the subregion’s largest economy, magnify regional vulnerabilities due to overdependence on crude oil exports and high import bills. The paper concludes that export diversification is a critical driver of resilience, as it reduces exposure to global commodity cycles, strengthens intra-African trade, and supports sustainable growth. Policy recommendations emphasize the need to deepen industrialization, leverage AfCFTA for regional value chains, invest in transport and digital infrastructure, and expand access to finance for small and medium-sized enterprises (SMEs).

EXPLORING THE INFLUENCE OF FINANCIAL INCLUSION AND HUMAN CAPITAL DEVELOPMENT ON ECONOMIC GROWTH: AN ANALYSIS OF NIGERIA'S ECONOMIC INDICATORS

2026-01-01T20:19:21+00:00

This study delves into the significant roles played by financial inclusion and human capital development as catalysts for global economic growth, with a specific focus on their contributions to Nigeria's economic landscape. The analysis uses secondary data obtained from the National Bureau of Statistics and the World Bank covering the period 2000–2024. A Pooled Ordinary Least Squares (OLS) estimation technique was employed to assess the relationships among the variables. The findings reveal that bank account penetration (BAP) has a positive and significant effect on Nigeria’s GDP growth (? = 15.28430; p < 0.05), indicating that a unit increase in access to formal banking services leads to a 15.3% rise in GDP. Similarly, literacy level (DL) positively influences GDP growth (? = 9.557163; p < 0.05), demonstrating the essential role of human capital development. In contrast, inflation (LI) exerts a negative and significant impact on GDP (? = –21.48206; p < 0.05), as does poverty level (LP) (? = –19.80323; p < 0.05), implying that increases in either variable reduce economic growth. Thus, the study comes to the conclusion that human capital development and financial inclusion have a significant impact on Nigeria's financial industry and economic growth. The study also emphasizes how crucial it is to promote human development and financial inclusion as necessary components of long-term economic growth. Recommendations include advocating for the Central Bank of Nigeria to intervene in reopening closed branches of deposit money banks nationwide, particularly in rural areas. Additionally, the federal government is urged to address economic policies contributing to inflation, naira deregulation, and an increase in the poverty rate, the study also underscore the need for sustained policy efforts that expand financial access and strengthen human development as foundations for long-term economic growth in Nigeria.

INFLATION, INTEREST RATES AND SME PROFITABILITY IN NIGERIA: A DECADE OF EVIDENCE

2026-01-01T20:23:20+00:00

Small and medium-sized enterprises (SMEs) are the backbone of Nigeria’s economy, contributing nearly 48% to GDP and employing over 84% of the labor force, yet their profitability remains highly vulnerable to macroeconomic instability. Between 2014 and 2024, Nigeria has witnessed persistent inflationary pressures, volatile interest rates, and recurrent economic disruptions including the 2016-2017 recession, the COVID-19 pandemic, and the 2022 inflation surge, that significantly affected the operational sustainability of SMEs. This study investigates the trends in inflation, lending interest rates, and SME profitability over this decade, using secondary data from the Central Bank of Nigeria, National Bureau of Statistics, World Bank, and IMF. Data were analyzed through descriptive and trend analysis with Microsoft Excel. Findings reveal that average inflation rose from 8.1% in 2014 to over 24% in 2023, peaking during the pandemic and again in 2022, thereby eroding SME purchasing power and profit margins. Interest rates remained consistently high, exceeding 20% for SME-targeted lending, constraining access to affordable credit. Profitability indicators, measured through SME sectoral earnings reports, declined sharply during 2017 and 2020, with partial recovery post-2021, though margins remained below pre-2015 levels. The study recommends urgent reforms in monetary policy to stabilize inflation, expansion of subsidized credit for SMEs, and fiscal measures that support productivity under volatile global and domestic shocks.

CAPITAL FLIGHT IN THE POST-PANDEMIC ERA: MACROECONOMIC AND POLITICAL DRIVERS IN SOUTH AFRICA

2026-01-01T20:27:24+00:00

South Africa has witnessed growing concern over escalating capital flight in the post-pandemic era, driven by political and macroeconomic instability. This study investigates the effects of political risk, real interest rate differentials, and public debt to GDP ratio on capital flight in South Africa from 2020 to 2024. Anchored in Portfolio Theory and Push-Pull Theory, the study adopts a quantitative ex-post facto research design, using quarterly data from reputable sources including the Global Financial Integrity, SARB, IMF, and the PRS Group. A total of 56 complete observations were analyzed. Descriptive statistics, correlation analysis, diagnostic tests, and multiple linear regression were employed to test the hypothesized relationships. Findings reveal that political risk and real interest rate differentials exert significant negative effects on capital flight, indicating that political stability and competitive real yields are essential in mitigating capital outflows. Conversely, public debt to GDP ratio exerts a strong positive effect, suggesting that rising debt levels trigger investor anxiety and encourage capital flight. The regression model recorded an R² of 0.68, indicating strong explanatory power. The study concludes that political and macroeconomic stability are pivotal in managing capital mobility in South Africa. It recommends institutional reforms to reduce political risk, improved monetary policy coordination to sustain attractive real returns, and prudent fiscal management to stabilize public debt. These steps are critical to restoring investor confidence and reducing capital leakage in emerging economies.

EDUCATIONAL ATTAINMENT AND EARNINGS INEQUALITY IN SOUTH AFRICA

2026-01-01T20:32:24+00:00

This study empirically examines the impact of education on earnings in South Africa, using the five-wave panel of the National Income Dynamics Study (NIDS). An instrumental variable estimation approach using parental education was utilised. The findings of this study suggest that schooling generally has a significantly positive effect on South Africa's earnings outcomes. The evidence also suggests that returns to education are highest at the tertiary level, followed by primary and secondary education. However, the impact of education differs along gender and race lines, implying the existence of inequality. The observed higher returns at higher levels of education suggest the need for equitable access to higher education across socio-economic groups. The key policy recommendation arising from these findings is that the expansion of higher education, particularly for Africans, should be geared towards significantly contributing to the reduction or eradication of the high levels of inequality in South Africa.

EFFECT OF PRESUMPTIVE INCOME TAX ON MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) TAX COMPLIANCE IN BAUCHI STATE, NIGERIA

2026-01-01T20:37:48+00:00

Bauchi State, Nigeria, is faced with the problem of low internally generated revenue. The study, therefore, aimed to investigate the effect of presumptive tax on tax compliance of micro, small and medium enterprises (MSMEs) in the State. The population of the study is 1,167,941, which is the number of MSMEs in Bauchi State, Nigeria. A proportional sampling selection technique was adopted, and Taro Yamane's 1967 formula was employed for the sampling size. The research design for the study is cross-sectional; therefore, a quantitative approach was adopted.Aprimary data collection method was used, andto collect the data, 400 questionnaires were administered to the participants. Out of the questionnaires administered, 282 were properly filled out and collected, and for the analysis, a regression technique was employed.The result of the study shows that presumptive tax does not have a significant effect on tax compliance of MSMEs in Bauchi State, Nigeria.The study, therefore, found that presumptive tax does not affect MSMEs’ tax compliance decisions in Bauchi, Nigeria. This implies that the businesses may choose not to grow beyond the presumptive regulation’s eligibility threshold. The government is advised to educate the MSMEs on the importance of bookkeeping to exit the presumptive regime for the standard tax system.

SUSTAINABILITY OF HANDCRAFTED LEATHERWORK IN ZAMFARA STATE, NIGERIA: ADDRESSING VALUE-CHAIN CONSTRAINTS AND CULTURAL HERITAGE LOSS

2026-01-03T07:54:12+00:00

This study investigates the uncertain sustainability of traditional handcrafted leatherwork in Zamfara State, Nigeria, where centuries-old vegetable tanning processes (jima) and intricate Hausa embroidery are being quickly degraded by long-term armed banditry. Drawing on secondary data from policy documents, displacement reports, and existing value-chain studies, supplemented by semi-structured interviews with six key informants in Gusau, the paper identifies severe disruptions across the leather value chain: road ambushes and illegal tolls have increased transport costs by 300–400 %, collapsed rural hide collection, and deepened financial exclusion, while fear of abduction has reduced apprenticeship intake by over 75 % since 2018. Cultural transmission of specialised knowledge and symbolic motifs is breaking down as communal tanning pits go silent and youth migrate or quit the art. However, there are still pockets of resilience, such as direct sales to Lagos designers made possible by WhatsApp, an increase in the demand for ethical leather that can be traced worldwide, and preliminary efforts to obtain Geographical Indication certification. Integrating global value chain governance, intangible cultural heritage preservation, and conflict-sensitive sustainable livelihoods frameworks, the paper contends that banditry now operates as the main chain governor, turning buyer-driven dynamics into violence-driven ones. Practical recommendations include secure micro-clusters, digital marketing training for youngsters, GI branding, and traceable provenance systems to reconnect craftsmen to premium markets while protecting living heritage. Zamfara's distinctive red goat leather faces extinction within a generation if focused, culturally grounded remedies are not implemented.

A REVIEW OF ENVIRONMENTAL REPORTING PRACTICES AMONG LISTED OIL AND GAS FIRMS IN NIGERIA

2026-01-03T07:59:02+00:00

Environmental degradation associated with oil and gas operations in Nigeria such as oil spills, gas flaring, and habitat destruction has amplified stakeholder demand for corporate environmental accountability. Despite the sector's economic significance, environmental disclosures by listed oil and gas firms remain inconsistent and often lack credibility. This study critically reviews environmental reporting practices among these firms, with emphasis on disclosure quality, regulatory frameworks, stakeholder influence, and governance mechanisms. Employing a systematic literature review (SLR) of 73 sources published between 2020 and 2024, the study synthesizes findings from peer-reviewed articles, policy documents, and industry reports. Results indicate that while multinational firms moderately comply with global reporting standards like GRI and TCFD, most indigenous companies offer superficial, symbolic disclosures devoid of quantitative data or third-party verification highlighting widespread green washing. Weak regulatory enforcement, poor governance structures, and limited stakeholder pressure are identified as key barriers to substantive reporting. The study concludes that environmental disclosures in Nigeria’s oil and gas sector remain largely performative, undermining transparency and sustainable development. It recommends mandatory ESG reporting aligned with international frameworks, enhanced regulatory enforcement, stakeholder engagement, and capacity building within firms. These steps are essential to foster a culture of credible environmental accountability and to bridge the gap between policy and practice.

STOCK MARKET DEVELOPMENT AND PERFORMANCE OF THE MANUFACTURING SECTOR: EVIDENCE FROM NIGERIA

2026-01-03T08:05:35+00:00

This study investigates the relationship between stock market development and the performance of Nigeria’s manufacturing sector from 1985 to 2023. Stock market development is measured using total new issues (TNI), the number of listed securities (NLS), and the all-share index (ASI), while manufacturing value added (as a percentage of GDP) serves as a proxy for manufacturing performance. The analysis draws on secondary data obtained from the Central Bank of Nigeria Statistical Bulletins, the Securities and Exchange Commission, and the World Bank. Using the Johansen and Jeselius cointegration framework, complemented by the Dickey-Fuller, Phillips-Perron, and Kwiatkowski–Phillips–Schmidt–Shin unit root tests, as well as a Vector Error Correction Model (VECM). The study finds that NLS exerts a positive and significant long-run effect on manufacturing performance, while TNI shows a limited but positive short-run impact. The ASI demonstrates a positive short-run effect but a negative and non-significant long-run influence. These results indicate that stock market indicators, except the ASI, play a meaningful role in shaping manufacturing sector performance in Nigeria. The study recommends policies aimed at strengthening manufacturing sector growth, enhancing savings mobilization and investment, and improving macroeconomic and financial management to reinforce the linkage between stock market development and manufacturing sector performance.

EFFECT OF ELECTRONIC BANKING ON PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

2026-01-03T08:10:28+00:00

This research looks on the performance of deposit money banks in Nigeria. This analysis used secondary data acquired from financial reports of the selected banks. The research used descriptive statistical techniques and a panel data estimation approach to examine the data gathered. The research disclosed that ATM has significant impact on banks profitability at a 5% significant level, POS has an advantageous benefit to bank profitability and is also statistically noteworthy, similarly, mobile banking has a beneficial influence on the profitability of the banks at a 5% significant level. The research shows that electronic banking has a major impact on the functioning of Nigerian deposit money institutions. The research consequently suggests that banks offer multiple offerings and services through Point of Sale (POS) and Mobile Banking (MB) in an effective, profitable, and economically feasible manner in order to further enhance their financial performance.

INSTITUTIONAL PRESSURE AND STRATEGIC COST MANAGEMENT IMPLEMENTATION IN NIGERIAN AGRICULTURAL FIRMS

2026-01-03T08:15:39+00:00

This study investigates the influence of institutional pressures specifically regulatory policies, cultural norms and social expectations, and technological advancements on the implementation of strategic cost management (SCM) practices and their subsequent effect on decision-making in sustainable agricultural firms in Nigeria. A cross-sectional survey design was adopted, using stratified and purposive sampling to collect primary data through structured questionnaires administered exclusively to respondents with vast knowledge and direct involvement in cost management practices across the 63 agricultural firms listed in the Nigerian Bulletin Index 2023, yielding 171 valid responses. The data were analysed using Partial Least Squares Structural Equation Modeling (PLS-SEM) in Smart-PLS 4.0. The results reveal that all three institutional pressures significantly and positively affect SCM implementation, with technological advancements showing the strongest influence (? = 0.685, p < 0.001), followed by regulatory policies (? = 0.462, p < 0.001) and cultural norms and social expectations (? = 0.420, p < 0.001). Reliability was generally acceptable, and discriminant validity was confirmed as all HTMT values remained below 0.85, although some AVE values fell below 0.5, indicating weaker convergent validity for certain constructs. The findings highlight the critical role of regulatory compliance, cultural alignment, and technology investment in enhancing SCM effectiveness among Nigerian agricultural firms. However, the cross-sectional design limits causal inferences, the sample of 63 firms restricts statistical power and generalizability beyond listed sustainable agricultural firms, and the observed measurement overlaps suggest that the instrument requires further refinement in future studies.

DIGITAL TRANSFORMATION AND COMPETITIVE ADVANTAGE IN NIGERIAN NORTH-WESTERN PRIVATE UNIVERSITIES: THE ROLE OF ORGANIZATIONAL AGILITY

2026-01-03T08:26:28+00:00

Despite the growing importance of digital transformation in higher education, many private universities in Nigeria struggle to leverage it for competitive advantage due to operational inefficiencies and rigid structures. This study investigates how digital strategy, technology adoption, and data-driven decision-making influence operational efficiency, with organizational agility as a key moderating factor. Using a quantitative approach, data were collected from 396 administrators, faculty, and IT staff across five universities in North-West Nigeria, selected through stratified random sampling. Structural equation modelling revealed that all three digital transformation components significantly improve operational efficiency, while organizational agility both directly enhances performance and strengthens these relationships. The findings highlight the critical role of agility in maximizing the benefits of digital initiatives. Recommendations include prioritizing strategic digital alignment, investing in adaptive technologies, and promoting agile leadership. The study contributes to the discourse on digital transformation in resource-constrained educational contexts.

EARNINGS INCENTIVES AND EMPLOYEE PERFORMANCE OF LISTED INSURANCE FIRMS IN NIGERIA

2026-01-03T08:32:49+00:00

Despite decades of reform in Nigeria’s insurance industry, optimizing compensation structures to drive employee productivity remains a persistent challenge, with empirical clarity still lacking on which incentives are most effective. The study investigated the effect of salaries and wages, bonuses and commissions, and allowances and benefits on employee performance of listed Nigerian insurance firms. The study employed secondary data and ex post facto research design. The population of the study consists of 28 insurance companies, with a sample size of 22 insurance firms with 220 observations were selected using a purposive sampling technique because data for the study were directly obtained from audited financial reports of insurance firms on the Nigerian Exchange Group between 2015 and 2024. The data were analyzed using descriptive statistics such as kurtosis, skewness, mean, median, standard deviation, and pooled ordinary least squares regression analysis. This study’s findings revealed that salaries and wages with a coefficient of 1.160 and a p-value of 0.001 positively affect employee performance. This highlights the centrality of competitive base pay in fostering organizational performance. Bonuses and commissions with a coefficient of 0.010 and a p-value of 0.409 positively and insignificantly affect employee performance. This result indicates that, within the sampled firms, variations in bonuses and commissions are not systematically associated with changes in employee performance. Allowances and benefits with a coefficient of 0.009 and a p-value of 0.053 positively and marginally significantly affect employee performance. This suggests that higher allocations to non-wage financial benefits are linked to modest improvements in revenue per employee. The study recommended that industry regulators and policymakers promote greater transparency in compensation reporting and to develop guidelines that support the adoption of evidence-based incentive schemes across the sector.

EVALUATING THE DUAL ROLE OF CARBON PRICING IN ENVIRONMENTAL PERFORMANCE AND INNOVATION OF CANADIAN PROVINCES USING A DIFFERENCE-IN-DIFFERENCES ANALYSIS

2026-01-03T08:38:35+00:00

Carbon taxation or other policies aiming at the mitigation of climate change become more critical in the promotion of sustainable environmental and economic results. This paper uses a panel dataset of 102 Canadian firms over the period between 2010 and 2023 sample and estimates the effect of carbon taxation on carbon emissions at the firm level and total factor productivity (TFP) using a method of difference-in-differences (DiD) estimation. The findings confirm the Porter Hypothesis which proposes that emissions can be largely reduced through the carbon tax by an estimated 0.8 units along with a 0.22 increase in the TFP which indicates that carbon tax can spur environmentally friendly efficiency in production. We found that factor intensities, such as firm size and capital intensity has a major impact on these effects. The results suggest that carbon taxation is a powerful instrument to lower environment externality without undermining, and possibly increasing, firm competitiveness. The advice to the policymakers is stated to shape carbon tax measures and pre-incentives on innovation to continue economic development with respect to climate goals.

BOARD CAPABILITY, INTELLECTUAL CAPITAL AND FORWARD-LOOKING INFORMATION DISCLOSURE IN LISTED MANUFACTURING FIRMS IN NIGERIA

2026-01-03T08:44:55+00:00

The present empirical study assessed the combined effect of board capability (BC) and firm intellectual capital (IC) on the disclosure of forward-looking information (FLI) in 30 manufacturing companies based in Nigeria during the years 2015- 2024. Panel data obtained from the annual report based on content-analysis were employed. Board capability and intellectual capital were operationalised as non-tradable strategic resources, the value of which is reflected through plausible forward-looking disclosures. In order to deal with endogeneity, the analysis utilised Panel Corrected Standard Errors (PCSE). The findings show that board independence (z?= 3.07, p <0.05) and board gender (z = 2.01, p< 0.05) had a strong positive impact on FLI. In addition, interaction of both board independence and human capital (z?=?3.21, p?<?0.05) andboard meetings and relational capital with the FLI disclosure was positively and significantly correlated.The research makes contributions to the body of literature on various fronts. It is theoretically an extension of the Resource-Based View because it demonstrates the manner in which the intangible resources determine the effect of disclosure, and not just the performance of the firm. It also contributes to Signaling Theory by establishing that the attributes of governance and intellectual capital can be used as credibility-enhancing mechanisms of forward-looking disclosures. The empirical evidence on the complementary role of board independence and human capital in predicting the quality of disclosure is scarce and empirically provided through interaction in thisstudy. Contextually, it has added value to the scanty body of evidence on the African capital markets, which provide information about how firms with high information asymmetry can use the governance capability and intellectual capital to provide future projections to their stakeholders.