Department of Accounting

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Accounting ethics education in Nigeria
(Academic journal of economic studies, 2018-02-02) Salami, Abdulai Agbaje; Sanni, Mubaraq; Uthman Ahmad Bukola
The symbiotic relationship between good ethical disposition and accounting profession is incontestable. Aside from the previous infamous global corporate scandals, the recent fraudulent practices revelation in the Nigerian public life is a serious source of concern. This study examines the impact of ethics education on the potential accountants to establish whether the propriety of their conduct in the future is guaranteed. This necessitates the survey of accounting students based on the three forms of ownership of university in Nigeria. The findings of the survey based on the structured questionnaire using Kruskal-Wallis tests show that, the students’ groups agree on the value-relevance of ethics education, its ability to expose them to means of resolving future ethical challenges and their readiness to become whistle-blowers. However, the students’ groups’ failure to agree on the necessity of ethical competence for accountants and their disagreement on their confidence to tackle unfamiliar problems signal what is expected of accounting educators for students to become more ethically equipped. Also, the expectation of the reinforcement of whistle-blower protection is evident from its intertwining with disclosure of unethical practices. The timing and implications of this study on the activities of accounting educators and policy makers accentuate its uniqueness.
An Empirical Investigation into the relationship between Capital Structure and Firm`s Market Value in Nigeria
(Journal of Accounting, Finance and Development, 2019-02-02) Okoye, Peter Anija; Ayogu Sunday
Following the Modigliani and Miller theory (1963), there have been considerable debates on the nature of relationship that exists between a company`s capital structure and its market value. This study seeks to empirically investigate the relationship between corporate capital structure and a firm`s market value in Nigeria.. Dataset from selected companies listed on the Nigerian Stock Exchange for the period of 2013- 2017 were used for analysis. Results from the analysis show a positively significant relationship between a firm`s capital structure and its market value.. Hence, the study recommends that listed companies in Nigeria should optimize their capital structure in order to maximize their market value for the benefit of all the stakeholders.
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
Audit Committee Financial Expertise: Antidote for Financial Reporting Quality in Nigeria?
(MCSER Publishing, Rome-Italy, 2015-02-02) Ojeka Stephen; Francis Odianonsen Iyoha; Taiwo Asaolu
Audit committee financial expertise is vital to the quality of financial reporting. This study empirically investigates the impact of audit committee financial expertise on the quality of financial reporting. The financial reporting quality was measured by reliability (total accrual quality) and relevance (audit report lag). Fifteen money deposit banks were selected and data was collected for the period (2003-2012). Analyses were carried out using Correlation, Ordinary Least Square and Panel Lest Square. The study found, after controlling for firm size, audit type, age of firm, audit committee meeting and audit committee size, that, audit committee financial expertise showed a negative coefficient for total accrual quality and audit report lag. This means financial expertise has a positive significant impact on financial reporting quality in Nigeria. The study, therefore, recommends that more attention should be given to the financial expertise of directors being recommended to the audit committee.
Audit Pricing, Start-Up Cost and Opinion Shopping
(Journal of Accounting and Management Information Systems (JAMIS), 2014-02-02) Tijani, Oladipupo Muhrtala; Uthman Ahmad Bukola; Abdul-Baki, Zayyad; Oke, Lukman Adebayo
The purpose of this paper is to predict the association between the effect of start-up cost and audit opinion shopping on the pricing strategies of medium-sized audit firms. Using a sample of 753 local –office-year observations between 2006 and 2011, we find evidence of a positive association between higher audit pricing of new private client and audit opinion shopping. We also find that start-up cost is a good predictor of higher initial fees charged by auditors for private clients. While earnings risk management (ERM) and financial performance risk (FPR) are significant factors in audit pricing, litigation risk (LR) however failed to evolve as a direct significant predictor. Although this study focused on the effects of start-up costs and opinion reporting, it fails to differentiate between firm cost allocation and apportionment. The model can be used to assist audit firms not only to develop pricing strategies that fully reflect the effective cost allocation, but also to be receptive to the implications of opinion reporting on service pricing.
Bank capital, earnings smoothing and provisioning practices in Nigeria
(Emerald, 2024-02-02) Abdulai Agbaje Salami; Uthman Ahmad Bukola
Purpose – This study empirically tests the use of loan loss provisions (LLPs) for earnings and capital smoothing when emphasis is laid on banks’ riskiness and adoption of the International Financial Reporting Standards (IFRSs) in Nigeria. Design/methodology/approach – Annual bank-level data are hand-extracted between 2007 and 2017 from annual reports of a sample 16 deposit money banks (DMBs), and analysed using appropriate panel regression models subsequent to a number of diagnostic tests including heteroscedasticity, autocorrelation and cross sectional dependence. The use of both reported LLPs (TLLP) and discretionary LLPs (DLLP) for earnings and capital management is tested to advance the practice in the literature. Findings – Generally, the study finds that Nigerian DMBs manage capital via LLPs, while mixed results are obtained for earnings smoothing. However, during IFRS, Nigerian DMBs’ management of capital is identifiable with TLLP, while smoothing of earnings is peculiar to DLLP. Additionally, evidence of the improvement in loan loss reporting quality expected during IFRS for riskier Nigerian DMBs, could not be attained. This is corroborated by the study’s findings of the use of both TLLP and DLLP for earnings and capital management during IFRS by DMBs in solvency crisis against the only use of TLLP to manage capital found for the entire period. Practical implications – The evidential capital and earnings lopsidedness may subject Nigerian DMBs’ going-concern to a lot of questions. Originality/value – The study sets a foremost record in the empirical test of managerial opportunistic behaviour embedded in earnings and capital concurrently while accounting for loan losses by all categories of Nigerian DMBs in terms of riskiness, following accounting regime change.
Bank Capital, Operating Efficiency, and Corporate Performance in Nigeria
(Acta Univ. Sapientiae, Economics and Business,, 2018-02-02) Abdulai Agbaje Salami; Uthman Ahmad Bukola
This study examines the impact of bank capital and operating efficiency on the Nigerian deposit money bank financial performance with a view to resolving risk-based and non-risk-based capitals’ dichotomy existing in the bank literature. Using bank-specific data obtained from the annual reports and accounts of 15 banks listed on the Nigerian Stock Exchange between 2012 and 2015, the panel data regression analyses revealed the superiority of standard capital ratio of equity-to-total-assets, a non-risk-based capital, over other measures. While all measures, both risk-based and non-risk-based capitals, showed significantly positive effects on bank performance as measured by return-on-asset, mixed results were obtained from other indicators: return-on-equity and net-interest-margin. Overall, only equity-to-total-assets influenced all adopted performance indicators positively. It was also found that operating efficiency measured by cost-to income ratio had negative impact on bank performance, but on the average it appeared too high. Thus, incorporating the standard capital ratio of equity-to-total assets into regulatory regime by the banks’ regulator is recommended to ensure its relevance is not overshadowed.
Bank Funding Strategy and Income Smoothing Practices in Nigeria
(Global Journal of Accounting, 2022-02-02) Abdulai Agbaje Salami; Uthman Ahmad Bukola; Rahji Ohize Ibrahim; Kamaldeen Ibraheem Nageri
The regulators’ provision of bailouts to troubled banks accentuates the connection between level of funding and bank financial condition. This scenario has been characteristic of Nigerian deposit money banks (DMBs) in the last decade and followed by a number of reforms including adoption of International Financial Reporting Standards (IFRSs). This prompted the study’s examination of nexus between bank funding strategy and income smoothing practices achievable via adjustments to loan loss provisions (LLPs) considering IFRSs adoption and solvency risk. Bank-level unbalanced panel data were hand-extracted from the annual reports of a sample of 16 DMBs for the period 2007-2017. Data were analyzed using appropriate panel regression model subsequent to derivation of discretionary provision for loan losses (DPL) used to measure income smoothing and index of funding strategy (FSI) as a measure of overall funding strategy. The results showed that bank funding drive prompts Nigerian DMBs’ income smoothing practices via DPL regardless of their solvency status and reflects majorly in their motive for external financing, deposit and non-deposit funding other than internal funding strategy. However, reduction was noticeable during IFRS given the observed inverse relationship between funding strategy and Nigerian DMBs’ income smoothing practices. Despite improved financial reporting quality during IFRS, the mixed results obtained in the funding strategy-DPL nexus of Nigerian DMBs threatened by risk of insolvency call for increased level of oversights and additional reforms by the regulators. The need for regulators to re-sharpen their supervisory tools as Nigerian DMBs switch from IAS 39 to more discretions-inclined IFRS 9 for loan loss reporting was also advocated. This study is unique for derivation of FSI and joint test of IFRS-solvency risk moderating influence.
Bank Loan Loss Cyclicality in Nigeria
(Renaissance University Journal of Management and Social Sciences, 2022-02-02) Abdulai Agbaje Salami; Uthman Ahmad Bukola; Kayode Mohammed Ajape
The occurrence of global and local meltdowns and the subsequent instability experienced by the Nigerian banking sector necessitate empirical test of the nexus between business cycle and loan loss provisions (LLPs). This study examined the loan loss cyclicality behavior of Nigerian deposit money banks (DMBs) taking into consideration economic-boom-bust-cycles. Bank-level and macroeconomic data were obtained from sampled 16 DMBs’ annual reports and CBN Statistical Bulletin respectively between 2007 and 2017 covering both periods of global financial meltdown (2008-2009) and local economic recession (2016-2017). The study’s hypotheses were tested using Prais Winsten regression with correlated Panel Corrected Standard Errors (PW-PCSE). The results generally showed that provisioning behavior by Nigerian DMBs is pro-cyclical. This was based on significantly negative coefficients of loans growth (ΔLOAN) and real GDP growth rate (GDPGR) representing bank-specific and macroeconomic loan loss pro-cyclicality respectively. In contrast, loan loss counter-cyclicality was found during global financial crisis against majority evidence in the literature. Meanwhile, loan loss pro-cyclicality was peculiar to Nigerian DMBs during local economic recession. While the loan loss pro-cyclical behaviour of Nigerian DMBs represents imprudent provisioning policies and might have been incidental to the collapse of some Nigerian banks in the past, the counter-cyclicality during global meltdown is traceable to the fact that the crisis had no substantial negative influence on Nigeria’s financial system. To address the problem of pro-cyclicality, it was recommended that bank regulators ensure that macroeconomic prediction models adopted by Nigerian DMBs be made relative perfect. There is also need for strengthening bank capital buffers in record time and conduct of stress tests for individual DMBs rather extant consolidated approach among others.
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.
Corporate governance attributes and financial performance of listed consumer goods companies in Nigeria
(International Journal of Financial Management and Economics, 2022-02-02) Sani Abdul Rahman Bala; Muhammad Yunusa Salisu; Mohammed Auwal Babangida
This study examined the influence of Corporate Governance Attributes (CGA) on the Financial Performance (FP) of listed Consumer Goods Companies (CGCs) in Nigeria. The objectives were to provide empirical evidence of the influence of Corporate Governance Attributes, proxied by Board Size (BS), Board Independence (BI), and Gender Diversity (GD) on the Dependent variable, Financial Performance (FP), proxied by Return on Assets (ROA), which is widely accepted to show the actual result of profitability in many firms. The study employed a longitudinal research design. A sample of five (5) companies was randomly selected from the population of thirty-five (35) listed CGCs in Nigeria as of 2020. Data was collected from the audited annual accounts and reports of the sampled firms. The study further employed multiple regression techniques to explain and test the data elicited. The statistical result for the variables shows weak FP among the sampled firms, implying that the selected firms reported a low return on assets during the period under consideration. Specifically, BI exerts a significant influence, while GD exerts a negative significant influence on ROA. However, BS reveals a negative and insignificant influence on the ROA of the CGCs in Nigeria. Deducing from the statistics, it can be observed that CEOs of CGCs in Nigeria are carefree with corporate attributes. There is a need for the CEOs and equity owners of the companies to review the fundamental demographic features of the CGCs to improve the quality of decision-making. Specifically, including the number of female directors in their board membership.
CORPORATE LIQUIDITY AND PERFORMANCE OF LISTED INSURANCE COMPANIES IN NIGERIA
(Department of Accounting, Umaru Musa Yaradua University, Katsina, 2022-02-02) Sani AbdulRahman Bala; Muhammad Yunusa Salisu; Idris Sani
This paper determined the influence of firms’ liquidity on the financial performance of quoted insurance companies in Nigeria. The study employed a descriptive research design. The population of the study consisted of twenty (20) insurance firms listed on the floor of the Nigerian Stock Exchange as of 30th September 2021 covering the periods of 2014 to 2019. The sample size of the study is made up of seven (7) insurance and assurance companies in Nigeria. A simple random sampling technique was employed in selecting the sample size of the study. The study used GLS random-effects regression method to analyze the data of the study. The outcome of the study revealed that the capital adequacy ratio is the major factor that influences the financial performance of quoted insurance firms in Nigeria. The study finally recommended that management of quoted insurance firms in Nigeria should offer their shares to the general public for subscription, this will, in turn, increase their capital/ income, and the outcome would be an investment in viable assets and this will enhance the financial performance in the long run.
Curbing Financial Crimes with Anti-Graft Bureaus in Nigeria
(Journal of Accounting and Management Information Systems (JAMIS), 2015-02-02) Uthman Ahmad Bukola; Oke, Lukman Adebayo; Ajape, Mohammed Kayode; Abdul-Baki, Zayyad; Tijani, Murhtala Oladipupo
Corruption, be it financial or non-financial is a global cankerworm that has eaten deep into the fabrics of many nations and war against it has been a recurring decimal in every economy. In Nigeria, recent attempts at nipping corruption in the bud gave rise to some anti-graft agencies such as the Economic and Financial Crimes Commission (EFCC). Against this background, opinion of 140 accountants in various capacities was sought on the efficacy of the anti-graft agencies in curbing financial crimes through a survey questionnaire. The study found that respondents group perceived the anti-graft agencies as highly effective but could not establish that accountants in various walks of life differ significantly in their perception of the efficacy of the Nigerian Anti-graft bureaus (Overall Mean= 2.98, F= 2.263 and P>0.05)using ANOVA as statistical analysis tool. It was recommended that Nigerian government should strengthen the Anti-financial crimes agencies given that the influence of highly placed offenders, the dignity, societal bondage and shame inherent in financial crimes may affect the potency of anti financial crimes measures put in place.
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.
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.
Effect of Non-Current Assets on The Financial Performance of Manufacturing Firms in Nigeria
(Human Resource Management Academic Research Society (HRMARS), 2023-02-02) Enekwe, Chinedu Innocent; Ayogu, Sunday Eze,; Danjuma Bolaji Adeleke
The study examined the effect of non-current assets on the financial performance of manufacturing firms in Nigeria. The independent variable is non-current assets, proxied by the log of non-current assets, with two control variables (firm size and leverage), while the dependent variable is financial performance, proxied by return on assets (ROA). The ex-post facto research design made use of secondary data drawn from the annual reports and accounts of four (4) companies in the listed consumer goods sector of the Nigerian economy, covering a period of ten (10) years from 2010 to 2019, both years inclusive. The theories of this study were anchored in dynamic theory and organic theory. The E-Views version 9.0 software statistical package was used to run the panel ordinary least squares (OLS) for the study. The multiple regression model was applied to determine the extent of the effect of the independent variable (non-current assets) on the dependent variable (financial performance) of the companies under investigation. The regression result revealed that non-current assets (NCA) have a positive but insignificant effect on the return on assets (ROA) of listed consumer goods companies in Nigeria. Based on the findings, the researchers recommended that management ensure that the amount spent on acquiring non-current assets for the company is monitored and controlled in order to increase their financial performance (profit). Also, the government regulatory body for companies (CAMA) should make sure that only a small part of the profit generated will be used in the acquisition of property, plant, and equipment (PP & E) for the company.
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.
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.
EXECUTIVE COMPENSATION AND FINANCIAL PERFORMANCE OF LISTED BANKS IN NIGERIA: MODERATING ROLE OF HUMAN CAPITAL
(Journal of Law and Sustainable Development, 2024-02-02) Haleemah Yetunde Zik-Rullahi; Lucky Otsoge Onmonya; Uthman Ahmad Bukola; Ebire Kolawole
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.
Factors That Affect Tax Compliance among Small and Medium Enterprises (SMEs) in North Central Nigeria
(Canadian Center of Science and Education, 2012-02-02) Ojochogwu Winnie Atawodi; Ojeka Stephen
Tax is an important stream of revenue for government’s development projects. However, tax compliance among SMEs is poor. Therefore, this study was conducted using SMEs in Zaria, North-Central Nigeria to evaluate and rank the factors that encourage non-compliance with tax obligation by SMEs. It was found that high tax rates and complex filing procedures are the most crucial factors causing non-compliance of SMEs. Other factors like multiple taxation and lack of proper enlightenment affect tax compliance among the SMEs surveyed only to a lesser extent. Therefore, it is recommended that SMEs should be levied lower percentage of taxes to allow enough funds for business development and better chances of survival in a competitive market. The government should also consider increasing tax incentives such as exemptions and tax holidays as these will not only encourage voluntary compliance but also attract investors who are potential viable tax payers in the future.