Gusau Journal of Accounting and Finance <p><strong>Gusau Journal of Accounting and Finance (GuJAF)</strong> is a response for a timely call with a view to filling a significant research vacuum and to provide an academic platform for researchers, academics, practitioners, policy makers, Students as well as other interested parties to evaluate, share, and disseminate knowledge, professionalism, skills and experiences on areas especially contemporary issues in the field of Accounting and Finance. The Journal is the first of its kind in the Department and is expected to provide and expand the existing body of knowledge in the area of Accounting and Finance research. GUJAF is an academic, double blind peer reviewed published by the Department of Accounting and Finance, Federal University Gusau, Zamfara State Nigeria. The journal is to be published in two issues of April and October annually.</p> Federal University Gusau en-US Gusau Journal of Accounting and Finance 2756-665X BOARD CHARACTERISTICS AND EARNINGS MANAGEMENT OF LISTED CONSUMER GOODS FIRMS IN NIGERIA <p><em>Corporate governance mechanisms have continued to strengthen the operations and activities of corporate entities in Nigeria. Board characteristics and earnings management have attracted many scholars trying to establish relevant relationship that will assist policy makers and regulatory agencies in facilitating good corporate governance. This study examines the impact of board characteristics on earnings management of listed consumer goods firms in Nigeria. The Agency Theory was used to underpin the study. Board characteristics as the independent variable was proxied using board independence, board meetings, board gender diversity and board expertise while earnings management as the dependent variable was measured using the Modifies Jones Model. The panel data multiple regression was used on data extracted from annual reports of sixteen listed consumer goods firms from 2011 to 2020. The study found that, board gender diversity and board expertise negatively and significantly influence earnings management while board independence and board meetings have no significant influence on listed consumer goods firms in Nigeria. The study therefore recommends that, regulatory agencies and policy makers should encourage listed consumer goods firms in Nigeria to increase diversity in boards and expertise as this will minimize earnings management activities by management.</em></p> Benjamin Gwabin Joseph Murtala Abdullahi Benjamin Kumai Gugong Copyright (c) 2023 Author(s) 2023-08-11 2023-08-11 4 1 1 17 10.57233/gujaf.v4i1.197 DIVIDEND POLICY AND VALUE OF LISTED NON-FINANCIAL COMPANIES IN NIGERIA: THE MODERATING EFFECT OF INVESTMENT OPPORTUNITY <p><em>The relationship between dividend policy (DP) and the value of firms (FV) has been investigated by several researchers in different jurisdictions. However, the findings of these researchers have been always inconsistent. This is due to the other factors that affect this relationship, which include the investment opportunity (IO). This paper is therefore aimed to empirically examine the impact of dividend policy on firms’ value with investment opportunity as moderator. The population of the study consists of 102 listed Non-financial companies. Based on the criterion set by the researcher, a judgmental technique of sampling was used in selecting 30 non-financial companies from the year 2011 to 2020. Tobin’s’ Q (TQ) and Market Price Per share (MPS) are the proxies for firms’ value, while Dividend per share (DPS) dividend payout ratio (DPR) and dividend yield (DY) are the proxies for dividend policy. Investment opportunity (IO) was measured as fixed asset growth. The study also used Firms’ size (FSIZE), Leverage (LEV) and Industry dummy (IND) as control variables. Descriptive statistics, correlation, and Feasible Generalized Least Squares (FGLS) analysis were used. It was found that DP, DPR, and DY are statistically significant to influence TQ. While MPS was only influenced by DP and DY. It was also found that IO did not moderate the relationship between dividend policy and firm value. It is recommended that the management of corporations should put measures in place that will increase revenue and decrease expenses so that regular dividend payments could be maintained.&nbsp; </em></p> Abubabkar Umar Copyright (c) 2023 Author(s) 2023-08-11 2023-08-11 4 1 18 34 10.57233/gujaf.v4i1.198 TRIALABILITY AND OBSERVABILITY OF ACCRUAL BASIS INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS IMPLEMENTATION IN NIGERIA <p>The study examined the effect of trialability and observability of IPSAS on accrual basis IPSASIMPL in Nigeria. 656 accounting staff of all the 29 Federal Government ministries in Abuja constitute the population of the study. The sample size of 242 was arrived at using Krejcie and Morgan table for Determining Sample Size from a Given Population. The sampling technique adopted for the study was proportionate stratified random sampling techniques. Closed ended Questionnaires were used in collecting the data for this study. The data collected was analyzed using binary logistic regression techniques with the aid of STATA 13 Software. The study revealed that Trialability (TRIALA) and Observability (OBSERV) were negative and significantly related to accrual basis IPSASIMPL in Nigeria. It was therefore concluded that TRIALA and OBSERV have negative effect on accrual basis IPSASIMPL in Nigeria. The study recommends for an increased consideration of the visibility and benefits of IPSAS on one hand and its testing capability and suitability on the other hand in order to facilitate the implementation process of accrual basis IPSAS in Nigeria.</p> Aliyu Abdullahi Ahmed Zakari Usman Copyright (c) 2023 Author(s) 2023-08-11 2023-08-11 4 1 35 53 10.57233/gujaf.v4i1.199 LIQUIDITY RISK AND PERFORMANCE OF NON-FINANCIAL FIRMS LISTED ON THE NIGERIAN STOCK EXCHANGE <p>This study has examined the effect of liquidity risk on performance of non-financial firms listed on the Nigerian Stock Exchange. The main objective was to assess the degree of influence liquidity risk measured by (standard deviation of quick ratio and current ratio) have on performance (return on assets) of the non-financial firms in Nigeria. Data from all the 87 non-financial firms listed on NSE were extracted through financial reports and analyzed using descriptive statistics, correlation and regression through STATA version 16. The findings revealed that current ratio have negative and significant effect on performance, while the quick ratio was not significant in influencing performance. The result implies that an increase in liquidity risk (difficulty in running the operations and offsetting short term maturing obligations), leads to a significant decrease in performance of the firms. The result also confirms that the standard deviation of current ratio provides better measurement of liquidity risk. It was however concluded that, liquidity risk has negative and significant effect on performance of firms in Nigeria. The study recommends that more attention should be given to liquidity management to minimize the risk of insolvency or bankruptcy of firms in Nigeria as such will help in reducing liquidity risk issues and improve performance of the non[1]financial firms in Nigeria.</p> Muhammed Alhaji Abubakar Nurnaddia Binti Nordin Abubakar Hamisu Umar Copyright (c) 2023 Author(s) 2023-08-11 2023-08-11 4 1 54 74 10.57233/gujaf.v4i1.200 BOARD DIVERSITY, POLITICAL CONNECTIONS AND FIRM VALUE: AN EMPIRICAL EVIDENCE FROM FINANCIAL FIRMS IN NIGERIA <p>The effect of board diversity, political connections and firm value of listed financial service firms in Nigeria is investigated in this study. Firm value, proxied by Tobin's q and computed as the ratio of the firm's market value of equity to the book value of total assets, is the study's explained variable, while board gender diversity, board nationality, board ethnic diversity, and political connections are the study's explanatory variables. The study’s population consists of fifty-one (51) listed financial service firms on the Nigerian Stock Exchange as at 31st December 2020. Thirty-five (35) of these firms made up the sample size for a period of nine years (2012-2020). Data was gathered from the annual reports of the sampled companies and analyzed using the feasible generalized least square regression (FGLS) approach. According to the study, board gender diversity, board nationality, and board ethnic diversity have a positive significant effect on the firm value of listed financial service firms in Nigeria, whereas political connections had a positive but minor effect. According to the findings, the boards of directors of listed financial service organizations in Nigeria should ensure that females are considered for directorship seats on the boards in order to increase their value, as suggested by the resource dependency theory. Also, the board should be made up of foreign directors in order to lure foreign investors to the firm and enhance its value. In addition, the boards of directors of listed financial services firms in Nigeria should consist of a mix of both northerners and southerners to improve firm value.</p> Rofiat Oyetunji Isah Shittu Ahmed Bello Copyright (c) 2023 Author(s) 2023-08-11 2023-08-11 4 1 75 95 10.57233/gujaf.v4i1.201 MODERATING EFFECT OF BANK SIZE ON THE RELATIONSHIP BETWEEN INTEREST RATE, LIQUIDITY, AND PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA <p>The recurring instability of commercial banks’ performance in Nigeria have triggered stakeholders to deploy efforts toward providing solutions where the desired result is yet to be achieved. Consequently, this study examined the moderating effect of bank size on the relationship between interest rate, liquidity, and performance of the banks in Nigeria. An ex-post-facto research design was adopted, where the bank-specific data were sourced from the published annual financial statements of 12 commercial banks listed on the Nigerian Stock Exchange and the macroeconomic data were extracted from the WDI database for a ten-firm-year period from 2011 to 2020. The analysis was done using the panel regression technique with the support of Stata software version 14.2. Findings on the direct effects showed a significant and negative relationship between deposit rate and performance, and both the lending rate and loan-to-deposit ratio have positive and significant relationships with performance. Meanwhile, the intervention effects showed that the bank size has positively moderated the relationship between deposit rate and performance; whereas bank size has negatively moderated the relationship between loan-to-deposit ratio and performance. Therefore, the study recommended that banks should grow their assets to enable them to achieve economies of scale and cost efficiency.</p> Shehu Usman Hassan Bello Sabo Ismai'l Idris Tijjani Idris Ahmed Aliyu Copyright (c) 2023 Author(s) 2023-08-11 2023-08-11 4 1 96 120 10.57233/gujaf.v4i1.202 SOURCES OF HEALTH CARE FINANCING AMONG SURGICAL PATIENTS SEEN AT THE DALHATU ARAF SPECIALIST HOSPITAL LAFIA NASARAWA STATE NIGERIA <p>Sources of healthcare financing especially among surgical patients in Nasarawa state is presently unknown. Sub-Saharan African countries have introduced a number of methods to funding healthcare system. The Nigerian government commenced implementation of a social health insurance scheme (National Health Insurance Scheme; NHIS) so as to improve on healthcare funding for its citizens. This study determined the sources of financing surgical cases, type of surgeries and compared the cost of treatment among patients attending the Dalhatu Araf Specialist Hospital and other Health Centers in Nasarawa State. It was a hospital based cross-sectional descriptive study among 420 adults aged 18 years to 75 years in a study that lasted for two years. The data collected was analyzed using Statistical package for the Social Science (SPSS) version 20.0. Significant p was &lt; 0.05. The average age of patient was 28.6 ± 11.9 years. There were more females (75.5%) with most (73.8) of our participants living in rural areas. Majority (60.0%) had Caesarean Section and one-sixth had exploratory laparotomy respectively. Most spending for healthcare needs was Out-Of-Pocket (OOP) with only a handful (6.7%) enjoying insurance coverage. The average cost of surgery was 41,337.73 Naira and 28,426.47 Naira among the low and high socio-economic class respectively. Most of the participants in this study were on Out-Of[1]Pocket healthcare financing with only one out of fifteen having health insurance coverage of the NHIS. Most of the surgical patients are from the rural areas, are females, do not attend tertiary level of education and are of low socio-economic status. Caesarean section and exploratory laparatomy were the predominant indications for surgeries. Those from the lower socio-economic status pay more for surgeries even though they earn less. We recommended that the state consider State health insurance agency and this should cater for people in both the formal ana the non-formal sectors. In addition, rural dwellers and surgeries such as caesarean section and emergency laparatomies should not be left out.</p> Ahmed Mohammed Yahaya Babatunde Joseph Kolawole Bello Surajudeen Oyeleke Copyright (c) 2023 Author(s) 2023-08-11 2023-08-11 4 1 121 134 10.57233/gujaf.v4i1.203 TRANSPARENCY, COMPLIANCE AND SUSTAINABILITY OF CONTRIBUTORY PENSION SCHEME IN NIGERIA <p>Policymakers have taken cognisance of necessity to improve the transparency and compliance level among parameters of pension reforms. Empirical literature found positive roles of transparency and compliance toward the achievement of pension reform objectives such as sustainability. However, the level of transparency and compliance of pension fund managers and employers of labour under the contributory pension scheme in Nigeria leaves much to be desired. Thus, this study examined the effects of transparency and compliance on the sustainability of the Nigerian contributory pension scheme. Data was collected with the use of survey questionnaires administered on purposive sampling method on the managerial level staff of contributory pension operators and active participants enrolled in the scheme. The data collected was analysed using partial least square structural equation modelling with the aid of Smart PLS statistical application. The results showed that transparency has positively significant effect on the sustainability of contributory pension scheme in Nigeria while compliance has positive but insignificant effect. The study recommends the need for National Pension Commission as the regulator of the contributory pension scheme to strengthen its capacity to enforce adequate transparency and compliance level among the operators and employers of labour in contributory pension scheme in order to achieve not only the sustainability but other objectives of contributory pension reform.</p> Olanrewaju Atanda Aliu Mohamad Ali Abdul-Hamid Salami Suleiman Salam Mudathir Olanrewaju Copyright (c) 2023 Author(s) 2023-08-11 2023-08-11 4 1 135 150 10.57233/gujaf.v4i1.204 EXAMINING THE IMPACT OF WORKING CAPITAL MANAGEMENT ON THE FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS ENTITIES IN NIGERIA <p>The main objective of this study is to examine the influence of working capital management on the financial performance of listed industrial goods firms/entities in Nigeria. The study collected data from the yearly reports of selected companies between 2011 and 2021, using the purposive sampling method. The generalized method of moments (GMM) estimator technique was employed for data analysis. The findings indicate that inventory turnover and receivable collection positively impact financial performance. the finding revealed that inventory turnover, and receivable collection have statistical significant effect on return on equity with the coefficient (-0.6150, and 0.0067) and p[1]value (0.000and 0.009) at 5% level of significant respectively. The study concluded that inventory turnover was noted to have increased the likelihood of financial performance and thereby Governments should endeavor to provide adequate infrastructure such as constant and stable electricity supply, good road network and rail system to facilitate the cost of production at minimum cost and movement of goods.</p> Abdulrahman Bala SANI Jamilu Jibril Taophic Olarewaju BAKARE Copyright (c) 2023 Author(s) 2023-08-11 2023-08-11 4 1 151 170 10.57233/gujaf.v4i1.205 RISK COMMITTEE DEMOGRAPHIC TRAITS: A STUDY OF THE IMPACT OF EXPERTISE ON RISK DISCLOSURE QUALITY OF LISTED INSURANCE FIRMS IN NIGERIA <p>The study explored the effect of risk committee expertise on the risk disclosure quality (RDQ) of listed insurance firms in Nigeria from 2011-2021. Data was obtained from the financial statement and annual reports of seventeen listed insurance firms sampled out of a population of twenty-one firms. The dependent variable employed in the study was RDQ defined by the quantity of risk disclosure sentences while risk committee expertise was employed as the independent variable of the study. The ratio of the number of Directors with expertise in Accounting, Finance, and Risk Management in the committee to the total number of Directors in the committee serves as a proxy for the independent variable. Descriptive statistics, correlation analysis, and GLS regression were used to analyse the data collected. To ascertain the suitability of the data for regression analysis and the robustness of the regression results, post estimation and pre-estimation tests were performed. The result of GLS regression conducted indicated that Risk Committee expertise has a significant positive impact on RDQ. Consequently, the current study recommends that in order to improve the quality of risk disclosure in listed insurance firms, the financial reporting council of Nigeria (FRCN) and other regulatory authorities, such as the national insurance commission (NAICOM), should mandate the establishment of risk committees composed of members experienced and knowledgeable in finance, accounting, risk management, and disclosure in their corporate governance codes. This result has practical implications as it underscores the fact that the knowledge and skill of the risk committee drives improved risk disclosure. In addition, the result further influences the efforts of regulatory authorities in their attempt to develop resilient corporate governance codes that guarantees qualitative risk disclosure.</p> Najib Abbas Wada Kabiru Isa Dandago Naja’atu Bala Rabiu Copyright (c) 2023 Author(s) 2023-08-11 2023-08-11 4 1 192 215 10.57233/gujaf.v4i1.207 MODERATING EFFECT OF AUDIT COMMITTEE ON THE RELATIONSHIP BETWEEN AUDIT QUALITY AND EARNINGS MANAGEMENT OF LISTED NON-FINANCIAL SERVICES FIRMS IN NIGERIA <p>This study investigated the moderating impact of audit committee on the relationship between audit quality and earnings management. Earnings management is the dependent variable, audit quality is the independent variable proxy by audit independence, audit fee, audit tenure and audit size while the moderator is audit committee proxy by audit committee governance score. Secondary source Panel data was extracted for a period of ten (10) years from a population of 113 listed non-financial services firms and a sample of 76 companies were selected based on the model adopted to measure the dependent variable. The research engaged a historical causal design to answer the research question raised. The data was analysed using the multiple linear regression technique and the results reveals that audit committee moderates the relationship between audit quality and real earnings management. Conclusively, audit independence has positive insignificant effect on real earnings management, audit fee and audit size have a positive and significant impact on real earnings management, audit tenure has a negative and significant impact on real earnings management, while audit committee has a significant moderating impact on audit quality and real earnings management. The study recommends amongst others that the number of financial experts in the audit committee should be increased to three and that the companies should be encouraged by the relevant regulatory authority to engage Big4 auditors as their external auditors for a transparent and credible financial statement. The study is limited to only quoted non-financial services firms in Nigeria.</p> Ahmad Muhammad Ahmad Lubabah Mansur Kwanbo Shehu Usman Hassan Musa Suleiman Umar Copyright (c) 2023 Author(s) 2023-08-11 2023-08-11 4 1 216 236 10.57233/gujaf.v4i1.208 INTERVENTION ANNOUNCEMENTS AND NAIRA MANAGEMENT: EVIDENCE FROM THE NIGERIAN FOREIGN EXCHANGE MARKET <p>Many studies establish how foreign exchange intervention affects the exchange rates. Intervention announcement do also have impact different for the actual financial involvement. Recent evidence has tested this for some countries but none has investigated Nigeria, despite volume of interventions and its announcements made via press circulars by the central bank. The paper applies daily data, from January 02, 2001 to May 15, 2023, to verify the impact of intervention announcements on the Nigerian exchange rate. The paper evaluates the relationship based on an event driven baseline specification, which measure the impact of announcement period windows on the exchange rate. The paper finds conclusive evidence of highly significant impacts that past, contemporaneous and future intervention announcements cause appreciation shocks. The naira is revealed to appreciate by 3.5% upon the intervention announcement, and this further increases to 4.49%, 4.55% and 5.22%, on one day, two day, three days after, but subsequently slow down on fourth day (5.21%) and fifth day (3.45%) after the intervention announcements. Robustness test based using alternative data frequency for the estimation yields close (different) result for the monthly (quarterly) periodicity, therefore supposes that the data frequency matters. The result has implications for future conduct of interventions and conventional monetary policies. Amongst others, higher market uncertainty, low credibility of transmission mechanism and possible predominance of global over the national factors may contribute to influences the effectiveness of interventions. The paper’s major limitation is that it excludes the influence of actual intervention, via sales and purchases of dollar, by the central bank.</p> Adedeji Daniel Gbadebo Copyright (c) 2023 Author(s) 2023-08-11 2023-08-11 4 1 254 274 10.57233/gujaf.v4i1.210 IS THERE EARNINGS DISCONTINUITY AFTER THE IMPLEMENTATION OF IFRS IN NIGERIA? <p>Earnings metrics are major financial indicators which capital market participants and investors focus on for informed decisions. Because reporting earnings increase may enhance firms’ stock price, many managers are motivated to avoid reporting earnings decreases, but prefer to consistently report increase earnings greater than its previous valuation. There is evidence that such practice has led to a situation of conspicuous upward shift in frequency of observations, starting from the left of identified earnings benchmark to the right. Recent studies have shown that a change in accounting regulation may have effects on the shape of the firm-year distribution of earnings. This paper examines the discontinuity evidence for Nigeria, in relation to the adoption of the international financial reporting standard. The aim is to establish whether discontinuity in earnings, represented by the asset-scaled net profits, as well the discontinuity in earnings-change, has reduced following the adoption. According to literature, the study employs three methods – empirical histogram, standardise differences tests and the permutation tests – to validate the aims. The findings suppose evidence for increase in discontinuity, indicating increased in small profits’ earnings management, after the adoption. Contrary, the evidence is not sufficient to conclude that the discontinuity has increase for the earnings-change. It can be argued that the adoption has not achieve much in ensuring firms are monitored against earnings management to avoid losses. The study has limitation, since it considers only the distributions of earnings and earnings-changes. The distribution of forecast errors is not investigated because such is influence by forecast management. Future studies may consider this for improvement.</p> Adedeji Daniel Gbadebo Copyright (c) 2023 Author(s) 2023-08-11 2023-08-11 4 1 275 297 10.57233/gujaf.v4i1.211