Gusau Journal of Accounting and Finance

IMPACT OF AUDIT QUALITY ON EARNINGS MANAGEMENT OF CONSUMER GOODS FIRMS IN NIGERIA

Sirajo Bappah, Awwal Saad, Saidu Adamu PhD, Shehu Usman Hassan PhD — Sun, 01 Sep 2024 00:00:00 +0000

This study examines the impact of audit quality on earnings management of listed consumer goods firms in Nigeria. The study adopted correlational research design. The population of the covers all twenty-one (21) listed consumer goods firm in Nigeria and two-stages filter was used to arrive at a sample size of fifteen (15) consumer goods firms listed the floor of Nigerian Exchange group as at 31st December, 2022, the data were extracted from annual reports and accounts of the sampled firms for the period of ten (10) years from 2013-2022. Multiple regression was used as a technique of data analysis, regression result shows that audit reporting lag, audit client’s importance and auditor independence have a positive and significant impact on earnings management of the sampled firms, while auditor’s tenure has a negative and significant impact on earnings management. Based on the findings, the study concluded that audit reporting lag, audit client’s importance and auditor independence enhanced the earnings management. while, auditor tenure does not affect earnings management. Based on findings and conclusion, it is therefore, recommends that the regulatory bodies such as Financial Reporting Council of Nigeria and Security and Exchange Commission in Nigeria should ensure that audited reports for private companies are release within a regulated period, this is because prolonged audit lagged increase earnings management by giving management of the companies enough time to manipulate earnings. This will impede the users of financial information to take an informed decision.

BOARD CHARACTERISTICS AND CORPORATE SOCIAL RESPONSIBILITY OF LISTED OIL AND GAS COMPANIES IN NIGERIA

Aliyu Abubakar, Yunusa Nasiru PhD, Dr. Umar Abubakar — Sun, 01 Sep 2024 00:00:00 +0000

This research investigated the influence of board characteristics on corporate social responsibility of listed oil and gas companies in Nigerian Exchange. Variables examined are bord size, independence, gender diversity, activity, professionalism and equity ownership of board members. While corporate social responsibility was proxy by CSR expenditure. The population consists of twelve (12) listed oil and gas firms from which five (5) firms have consistently published their annual reports within the period covered and extracted data from their respective annual reports. Panel corrected standard error was used for analysis. Findings revealed both board size and board activity have no significant impacts on CSR while in contrast, board independence, female gender, board professionalism and board equity ownership have a significant effect on CSR. It was recommended that the management of listed oil and gas companies need to have more independent outside directors on the board to enhance monitoring and CSR performance. Also, higher participation of female on the board will improve CSR performance because of their concern for environmental issues. In addition, having more members with professional expertise will improve the decision making of the board and equally shape CSR performance. Board members with equity stake will align the interest of the managers with those of shareholders and likewise, focus more on long-term goals of the firm. Listed oil and gas firm should maintain appropriate board size and required number of board meetings as stipulated by code of corporate governance.

BOARD CHARACTERISTICS AND AUDIT QUALITY OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Aliyu Shehu Usman, Danson Andrew Gyar, Abdullahi Bala Ado — Sun, 01 Sep 2024 00:00:00 +0000

The study investigates the effects of board characteristics on the audit quality of publicly traded listed consumer goods firms in Nigeria from 2013 to 2022. An ex-post facto research approach was used in this study. For data analysis, the panel regression technique was used in the study. The study's findings revealed that board independence and board financial expertise have a positive and significant effect on the audit quality of Nigerian listed consumer goods companies. However, board gender diversity had a negative and insignificant effect on the audit quality of Nigerian-listed consumer goods companies. The study concludes that boards with more independent members who are not influenced by management may improve the audit process efficacy. To improve audit quality, listed consumer goods firms should focus on retaining board independence and guaranteeing the presence of directors with significant financial experience. While the relationship between board gender diversity and audit quality is still uncertain, it is critical to promote diversity and inclusivity on corporate boards in order to build a more robust governance structure. Continuous monitoring and research in this area will contribute to a better understanding of the relationship between gender diversity and audit quality.

CEO CHARACTERISTICS AND FINANCIAL REPORTING QUALITY IN LISTED CONSUMER GOODS COMPANIES IN NIGERIA

Okika Nkiru Philomena, Oyeneye Temitope Esther, Adedeji Daniel Gbadebo — Mon, 29 Apr 2024 00:00:00 +0000

This study investigates the connection between the CEO characteristics and the quality of financial reporting in Nigerian consumer goods companies. Data used was from the annual report of 10 consumer goods firms listed in the Nigeria Stock Exchange from 2013 to 2022. Using Ordinary least square regression, the research revealed that CEO gender and tenure have a positive and substantial effect on financial reporting quality. CEO financial expertise was found to be insignificant. The study concluded that long-tenure CEOs and female CEOs contribute to better financial reporting quality in the consumer goods industry. The study recommends among others that the board of directors of consumer goods firms in Nigeria should encourage gender diversity at the executive level through policies and initiatives that promote equal opportunities for women.

INFORMATION ASYMMETRY AND COST OF CAPITAL: A REVIEW OF EMPIRICAL EVIDENCE

Sunusi Ridwan Ayagi PhD, Rashida Lawal PhD — Mon, 29 Apr 2024 00:00:00 +0000

This paper reviewed relevant empirical studies that examined the effect of information asymmetry (IA) on corporate cost of capital (COC) over seventeen years (2007 -2023). Critical/integrative review approach was adopted and the paper found that results obtained by the reviewed studies regarding the impact of IA on COE or WACC are in two sets: positive and negative. However, most of them have agreed and corroborated one another on the positive effect of IA on COE or WACC. And, this goes in line with the basic argument of the pecking order theory in its first proposition. Also, regarding IA and COD, the reviewed studies have agreed that IA positively affects COD. Other findings of the paper are that most of the reviewed studies were carried out in Asia, focusing on non-financial firms. Moreover, most of the studies assessed IA's effect on COE by employing Bid-ask spread and Eastos's (2004) PEG ratio models as common measures. Based on the summary of major findings, the paper concluded that corporate firms will be experiencing a rise in financing cost as long as there is an increase in asymmetric information in the capital market. The increase will affect equity financing, debt financing and overall financing costs. Thus, in line with the conclusions drawn, the paper recommended that corporate firms should strive to minimize the level of IA in the capital market through a commitment to providing high-quality financial reports that furnish the capital providers with relevant, reliable and comprehensive information.

OWNERSHIP STRUCTURE AND FEMALE INCLUSION OF LISTED FINANCIAL FIRMS IN NIGERIA

Gbemigun Catherine Omoleye, Alade Muyiwa Ezekiel PhD — Mon, 29 Apr 2024 00:00:00 +0000

The study investigated how ownership structure influence the female inclusion of listed financial firms in Nigeria. Using Longitudinal research design findings revealed that managerial ownership exhibited a direct effect on female inclusion, institutional ownership was significant with a direct nexus with female inclusion, while foreign ownership was non-significant but exhibited an inverse sign. The study concluded that share possession held by managers, as well as, other institution that manage people’s wealth determine the percentage of women that participate in board of directors of listed financial firms in Nigeria; while, low share possession held by foreign ownership reduces it. The study recommended that the director within the listed financial firms should ensure that they make their ownership stakes (shares) attractive for foreign ownership through publicity.

CSR INITIATIVES AND SUSTAINABILITY RESILIENCE IN NIGERIA'S OIL AND GAS INDUSTRY: A PLS-SEM APPROACH FROM LOCAL COMMUNITIES' PERSPECTIVE

Sun, 01 Sep 2024 00:00:00 +0000

Despite its potential for economic growth and sustainable development, Nigeria faces social challenges including poverty, environmental degradation, and economic decline. In 2023, it ranked 146th out of 166 on the SDG index, with a poverty headcount of $2.15/day. Over the past two decades, Nigerian oil and gas companies have faced sustainability criticism, emphasizing the importance of CSR initiatives for triple bottom line sustainability. This study examines how the CSR initiatives of Nigerian energy companies impact the sustainability and resilience of the Niger Delta region. By using an explorative research design guided by positivism philosophy, 460 survey responses were collected from Niger Delta community members via Google Form and analyzed using PLS-SEM since the research framework of the CSR and COM-R model comprises five primary dimensions each. The study discovered that CSR initiatives have a significant impact on sustainability and resilience in the Niger Delta. This underscores that integrating socially responsible initiatives not only enhances the ethical standing of these businesses but also generates high strategic value, bolstering their sustainability and resilience. The research recommendations include reassessing CSR initiatives, increasing community engagement, and collaborating with regulatory bodies. This will foster community cohesion, adaptability, and voluntary compliance with industry standards and social norms within the community. The research's descriptive value lies in its empirical demonstration of the connection between CSR and sustainability resilience. Firms can use these findings to enhance their CSR efforts and improve sustainability and resilience in future business practices. The research acknowledges potential biases in data collection stemming from unequal online access among the members of Niger Delta communities, resulting in a partial representation of the diverse range of respondent behaviours across the continent, as various cultural, economic, and social factors can influence their survey responses.

CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE OF LISTED INFORMATION AND COMMUNICATIONS TECHNOLOGY FIRMS IN NIGERIA

Sun, 01 Sep 2024 00:00:00 +0000

This study seeks to examine the effect of capital structure on financial performance of the listed information and communications technology firms in Nigeria. This study adopted correlation and ex-post facto research design. The population of this study consists of all listed information and communications technology firms in Nigeria. Census sampling technique was employed. Multiple regression model based on pooled ordinary lease square, robust test was adopted in analyzing the panel data obtained from audited financial statement of the listed sampled information and communications technology firms for the periods of 10 years between (2013- 2022). The study reveals that both long term debt financing ratio short term debt financing, and debt to equity financing ratio have positive and significant influence on return on assets of the listed information and communications technology firms in Nigeria. On the other hand, equity financing ratio has a positive but insignificant effect on performance of listed information and communications technology companies in Nigeria. Therefore, it is recommended that the management of the listed information and communications technology firms in Nigeria should initiate coherent and integrated financial policies towards encouraging long-and short-term debt financing and debt to equity financing to ultimately improve the financial performance of the list information and communications technology firms in Nigeria.