This contains research articles published by lecturers in the department of Accounting

Permanent URI for this collectionhttps://repository.nileuniversity.edu.ng/handle/123456789/103

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Start date: 2020

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Now showing 1 - 10 of 17
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    Effects Of Audit Committee Characteristics On The Financial Performance Of Listed Industrial Goods Firms In Nigeria
    (African Journal of Accounting and Financial Research, 2025-02-02) John Adamu; Ugwudioha Ofili
    This study examined the effect of audit committee characteristics (proxy as audit committee size, audit committee composition, audit committee meetings, audit committee frequency of meeting, audit committee financial expertise, and audit committee gender diversity) on the financial performance (ROA) of listed industrial goods firms in Nigeria from 2013 to 2023. The data were analysed using panel regression analysis. Findings revealed that audit committee size has a significant positive effect on ROA of listed industrial firms in Nigeria, while audit committee independence has a significant positive effect on ROA of listed industrial firms in Nigeria. Audit committee meetings have an insignificant effect on ROA of listed industrial firms in Nigeria. The study found that audit committee financial expertise significantly affects financial performance while board gender diversity negatively affects financial performance. Based on the findings, the study recommends that firms within the industrial goods sector should consider optimizing their audit committee size as part of their strategic initiatives to achieve superior financial performance and long-term success.
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    An Empirical Investigation Of The Impact Of Artificial Intelligence On Accounting Practice In Nigeria
    (African Journal of Accounting and Financial Research, 2023-02-02) Ugo Celina
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    Managerial discretions and loan loss provisions in Nigerian banks
    (Central European Review Of Economics And Management, 2022-02-02) Abdulai Agbaje Salami; Uthman Ahmad Bukola; Ruth Oluwayemisi Owoade
    Aim: The high level of non-performing exposures and the existing crisis in the Nigerian banking sector is a source of concern. To create a basis for solving the troubles caused by the loan loss crisis, this study investigated the managerial discretionary use of loan loss provisions (LLPs) by Nigerian deposit money banks (DMBs). This is considered in the context of solvency risk and reforms embedded in the adoption of International Financial Reporting Standards (IFRSs). Design/research methods: Datasets related to the variables of the study were hand-collected from annual reports of a sample of 16 Nigerian deposit money banks over the period of 2007-2017. The analyses were performed using principal components analysis to derive the managerial discretions index (MDI), Prais-Winsten ordinary least square regression to segregate LLP into reported LLPs (TLLP) and discretionary LLPs (DLLP) and appropriate panel data regression models to test the study’s hypotheses subsequent to series of diagnostic tests. Conclusions/findings:The results revealed that managerial discretions negatively influence TLLP and DLLP represented by absolute value of DLLP (ADLLP). This represents an increase in profitability without manipulatingloan loss provisions. However, the reforms embedded in IFRSs revealed the use of LLPs for managerial discretions despite reduction in provisioning level noticeable during IFRS. The situation of Nigerian banks threatened by solvency risk use of LLPs for managerial discretions while attempting to increase profit was exemplified in the increase in ADLLP rather than TLLP. However, improvement was noticeable for risky Nigerian banks during IFRS. The managerial discretionary use of LLPs especially during IFRS was engendered by use of LLPs for capital management and earnings smoothing rather than earnings signalling as further revealed. This shows that adoption of International Financial Reporting Standards reduces reporting quality of Nigerian banks in their loan loss decisions.
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    Owner Characteristics And Access To Bank Financing
    (Timisoara Journal of Economics and Business, 2020-02-02) Lukman Adebayo Oke; Uthman Ahmad Bukola; Alade Ayodeji Ademokoya
    The study examines the influence of owner specific factors on access to bank financing among SMEs in North Central Nigeria. Self-administered questionnaires were employed for data collection from the sampled SME owners/managers in the study area. A sample of 280 SMEs was drawn from the population of 1030 SMEs. Logistic regression was used in analyzing the data. The study found that gender, personal networking and personal relationship with the bank, which are significant at 0.05, 0.1 and 0.1 respectively, are the owner characteristics influencing SMEs’ financial access, whereas the owner’s age, education, experience, financial literacy and personal wealth do not have significant influence on SMEs’ access to bank financing in the region. The study concluded that while all the identified owner’s attributes are complementarily important in financial access, banks are more gender biased, value personal relationship and networking ability of firm owners. The study therefore, recommended among others, the need for SME owners to establish and maintain more improved relationships with their banks and form strong linkages with relevant stakeholders in the external environment for better resource exchange including financial access.
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    Rethinking the periodic audit model; a thought about forensic accounting
    (International Journal of Critical Accounting, 2024-02-02) Uthman Ahmad Bukola; Zayyad Abdul-Baki
    Amidst various concerns about the fidelity of the periodic audit model as an assurance tool for establishing reliability of information, this paper seeks to provide a different dimension to the periodic audit model that may rebuild trust in it as an efficient tool for attesting information reliability. It explores a number of literatures to establish the weaknesses of audit as a fraud control mechanism and adopts a case to prove the potency of forensic accounting as a more viable tool for unveiling fraud. The combination of forensic accountant and an auditor working in an audit team under the guise of periodic audit should reduce if not completely eliminate fraud and other financial crimes. However the appointment and remuneration of the forensic accountant should be under a different authority, say the state. The paper encourages some reflections on an alternative practice of auditing given the increasing criticism of the long established accounting practice.
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    Signalling behaviour and bank provisioning policies in Nigeria
    (Brno University of Technology, Faculty of Business and Management, Brno, 2021-02-02) Salami, Adbulai Agbaje; Uthman Ahmad Bukola; Abdulrauf, Lukman Adebayo-Oke
    Purpose of the article: Based on the propositions of the signalling hypothesis and prospect theory, this study examined the extent of attempt by Nigerian deposit money banks (DMBs) to solve the issue of adverse selection via signalling their financial prospects using loan loss provisions (LLPs). The empirical test was subject to the DMBs’ riskiness and changes in the accounting rule given failure of a number DMBs and the adoption of the International Financial Reporting Standards (IFRSs) respectively in Nigeria in the recent past. Methodology: Bank-level unbalanced panel datasets of a sample 16 DMBs, which are related to the variables of the study, were hand-extracted from their annual reports and account between 2007 and 2017. The analysis was conducted using the Prais-Winsten regression correlated with panel corrected standard errors (PCSE-PW) owing to the presence of heteroscedastic and autocorrelated residuals in the study’s regression models. Scientific aim: The study examined the relationship between LLPs and one-year-ahead changes in earnings before taxes and LLPs to establish whether Nigerian DMBs signal their financial strength via LLPs. Findings: The study largely found that Nigerian DMBs, regardless of accounting regime and risk of insolvency, do not use LLPs to signal their financial strength. However, where the evidence of signalling via LLPs was evident the coefficient of earnings signalling was insignificant, where it was significant signalling was achievable via discretionary LLPs (DLLP) rather than actual LLPs (TLLP) suggesting manipulative provisioning in the use of LLPs to signal. Conclusions: The study’s findings included empirical communication alerts to the regulators and Nigerian DMBs on the need for improvement in earnings signalling, as the present scenario may be interpreted as a sign of a non-going concern by analytical stakeholders. Limits of research: The generalisation of the study’s findings may be limited by the focus on one regime (IAS 39) of IFRS loan loss reporting but mitigated by the partial implementation of the second regime (IFRS 9) for the first four years in the country.
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    Bank-Specific Variables and Banks’ Financial Soundness
    (Zagreb International Review of Economics & Business, 2021-02-02) Abdulai Agbaje Salami; Uthman Ahmad Bukola; Mubaraq Sanni
    This study examines the explanatory power of capital adequacy, asset quality, management soundness, earnings quality, liquidity and sensitivity to market risk (CAMELS) framework as well as a number of other variables on the financial soundness (measured by regulatory capital adequacy ratios) of banks in Nigeria. The findings, using ordinary least squared (OLS) regression subsequent to the establishment of no panel effects among the sampled banks, reveal the significant explanatory potentials of these bank-specific variables though some give a reversal of their prior expectations. Apart from reawakening the investors’ and depositors’ interest, the findings further have policy implications on the regulation and operation of these financial institutions. The study breaks new grounds in the measurement of capital adequacy using gross revenue ratio and leverage ratio, asset quality using in-come statement impairment charges for loan losses, and in the inclusion of the sensitivity to market risk most especially in the Nigerian context.
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    DETERMINANTS OF BANK PERFORMANCE IN NIGERIA
    (VGWU Press, 2020-02-02) Mubaraq Sanni; Abdulai Agbaje Salami; Uthman Ahmad Bukola
    The failure of banks in Nigeria has hitherto become a recurring phenomenon. Worried by the syndrome, this paper examines the determinants of bank performance in Nigeria taking into cognizance the duality of financial measures of bank performance. From an analysis of 115 bank-year observations of a sample of 17 Nigerian deposit money banks and macroeconomic data for the period 2012 2018 using Arellano-Bover one-step system GMM estimation approach, differences in the explanatory potential of these factors between the models with risk-neutral and risk-adjusted measures of performance as dependent variables are empirically established. This suggests that there is a higher probability of investors, depositors and other stakeholders being indecisive when analyzing the performance of banks. However, relying on the assumptions of risk-return hypothesis and level of risk embedded in banks' operations could warrant them opting for determinants of risk-adjusted returns in their decision making. This study is exceptional in the bank performance literature for its long list of measures and drivers of bank performance.
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    Economic Freedom and Bank Stability in the Rich African Economies
    (Journal of Corporate Finance Research, 2024-02-02) Abdulai Agbaje Salami; Uthman Ahmad Bukola; Asiyat Titilope Bello
    This study empirically examines the nexus between economic freedom and bank stability in rich African economies, seeking to uncover the underlying causes of the recent wave of bank failures in these countries. It employs the Heritage Foundation’s Economic Freedom Index, utilizing its four main pillars to offer a more holistic approach compared to existing studies on the continent. Static panel regression analysis is applied to bank-level, economic freedom, and macroeconomic data from ten countries over the period 2013–2022 to test the hypotheses. The results largely support a positive relationship between bank stability and economic freedom, though at a lower intensity, as indicated by the insignificant positive coefficients of the overall economic freedom index. Specifically, the findings show insignificant positive coefficients for the rule of law (RLW) and government size (GVSZ), alongside significantly positive and negative coefficients for regulatory efficiency (REGE) and the open market system (OPM), respectively. These results highlight weaknesses in the OPM’s components, including trade, investment, and financial freedom, despite their average level. The study also points to a need for improving the components of RLW, given its low mean score, which signals insufficient judicial effectiveness, government integrity, and property rights protection – factors essential for attracting business and fostering banking sector growth. While regulatory efficiency is seen as a key factor in enhancing bank solvency in the future, the study emphasizes that significant behavioral and policy changes are needed for other pillars to contribute meaningfully to bank stability in the rich African economies. The findings provide insights into how banks, especially those from wealthier African nations, can maintain global recognition and financial viability through economic liberalization. At the same time, the study’s limited access to bank-specific data presents an opportunity for future research to further build on these findings.
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    Executive Compensation And Financial Performance Of Listed Banks In Nigeria
    (Journal Of Law And Sustainable Development, 2024-02-02) Haleemah Yetunde Zik-Rullahi; Lucky Onmonya; Uthman Ahmad Bukola; Kolawole Ebire
    Objective: The study is on the role of human capital on the relationship between executive compensation and financial performance of banks in Nigeria from 2008 to 2022. The work studies the moderating role of human capital on the relationship between executive compensation and financial performance of listed banks in Nigeria. Method: In establishing the relationship, correlational research design was employed. The research encompasses listed banks in Nigerian for the period of study. Utilizing secondary data from annual reports and accounts, a panel regression was employed to test the hypotheses. The study was supported by pay-performance theory on the financial performance measure as NIM. Results: The findings reveal that highest paid director have a negative and significant relationship with financial performance of banks in Nigeria. In the same vein, the study establishes a positive relationship between total compensation and financial performance. However, human capital moderates the relationship between total compensation and financial performance of banks in Nigeria negatively. Conclusion: The study's findings yield recommendations for enhancing financial performance of Nigerian banks. There is need for control on executive compensation of banks as these are vital to the financial performance of banks in Nigeria.