UMM Journal of Accounting and Financial Management

EFFECT OF DORMANT ACCOUNTS AND UNCLAIMED FINANCIAL INSTRUMENTS ON FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Chukwunwike EZEKPEAZU — 2023-11-13

Dormant Accounts and unclaimed financial instruments have been a challenge in the Nigerian banking sector. These unclaimed funds are of concern to both the banking sector and the Nigerian government, as they represent a source of illegitimate revenue for banks and a potential source of financial fraud and money laundering. This study therefore, examined the effect of dormant accounts and unclaimed financial instruments on the financial performance of deposit money banks (DMBs) in Nigeria. The study applied survey research design to obtain primary information from senior officers of DMBs in Nigeria. The population comprised all the 22 DMBs operating in Nigeria and regulated by the Central Bank of Nigeria (CBN) as at December 31, 2020. The study adopted a two-stage sampling technique. The first stage was the purposive selection of 13 DMBs listed on the floor of Nigerian Exchange while the second stage was the convenience selection of 391 senior bank staff of the selected banks. The study applied ordered logistic regression and robust OLS for the estimation of the individual and overall performance metrics. The results indicated that for the overall bank performance, unclaimed financial instruments have a significant effect on bank financial performance (p-value of 0.000), while dormant accounts have an insignificant effect on overall bank financial performance (P-Value of 0.244). Based on these findings, the study concluded that while dormant accounts are responsible for the increase in earnings, it does not affect the overall financial performance of banks. On the other hand, unclaimed financial instruments are largely employed by Nigerian DMBs in raising their financial performance. This study thus recommends among others that regulatory authorities should put in place adequate measures to ensure that deposit money banks in Nigeria comply fully with the provisions of the Finance Act, 2020 for transfer of unclaimed cash deposits to the Unclaimed Fund Trust Fund. Furthermore, Deposit money banks in Nigeria should establish effective processes and systems to identify and track unclaimed financial instruments.

EFFECT OF ENTREPRENEURSHIP GRANTS ON BUSINESS STARTUP AMONG YOUTH IN FCT-ABUJA, NIGERIA

Kayode Ibrahim KADIRI — 2023-10-15

This study examined the effect of entrepreneurship grants on business startup among youth in FCT Abuja, Nigeria. The study adopted a survey research design. The population of the study comprised of all youth in Gwagalada and Kuje Area council FCT-Abuja who have being in business for at least 2 years. Therefore, the population of this study was defined as unknown. Three hundred and sixty-eight (368) was determined using Cochran's (1977) sample size formula and purposive sampling technique was used to select the respondents for this study. The study utilized adapted questionnaire as the instrument for data collection. The data collected for the study was analyzed using Partial Least Square Structural Equation Modeling in determining the measurement, structural models and hypotheses testing through SmartPLS 3.0 software. The study found that Tony Elumelu Entrepreneurship Grant has positive and insignificant effect on Business start Up among Youth in FCT-Abuja, Nigeria. while National Youth Entrepreneurship Grant has positive and significant effect on Business start Up among Youth in FCT-Abuja, Nigeria. Based on the findings, it is concluded that Tony Elumelu Entrepreneurship Grant positively but insignificantly influence Business Start Up among Youth in FCT-Abuja, Nigeria Whiles National Youth Entrepreneurship Grant positively and significantly influences Business Start-Up among Youth in FCT-Abuja, Nigeria. The study thus recommended among others that those in charge in disbursement of Tony Elumelu Entrepreneurship Grant in Nigeria specifically, FCT-Abuja should improve on the disbursement of the said Grant by targeting youths, increase the number of the beneficiaries reasonable and regularly organize programmes that will create more awareness on grant and how to access it.

EFFECT OF SERVICE QUALITY DIMENSIONS ON CUSTOMER SATISFACTION OF TELECOMMUNICATION COMPANIES IN FCT-ABUJA, NIGERIA

Jelili Babatunde SUFIAN — 2023-07-30

The study examined the effect of service quality (tangibility and assurance) dimensions on customer satisfaction of telecommunication companies in FCT-Abuja. The study adopted a descriptive survey research design. The population used for the study comprised adult telecommunication users in FCT, Abuja. A sample of 481 adult telecommunication was between users and determined using Cochran's (1963) sample sizes formula and convenience sampling technique was used for this study. The study utilized adapted questionnaire as the instrument for data collection. The data collected for the study was analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM) in determining the measurement, structural models and hypotheses testing through SmartPLS 3.0 software. The study found that tangibility has positive and significant effect on customer satisfaction, while assurance has negative and significant effect on customer satisfaction of telecommunication companies in FCT-Abuja. The study recommended that the management of telecommunication companies in FCT-Abuja, Nigeria should keep improving the tangibility of their services to their customers by way of intermittent modernization of their communication facilities and other equipment at their outlets, for easy availability of cards and recharge services to the users. It also recommended that the management of telecommunication companies in FCT-Abuja, Nigeria should ensure that their staff improve their politeness in attending and solving customers’ problems satisfactorily in order to cultivate confidence in customers.

TAXATION PRACTICES OF PRE-COLONIAL REPUBLICAN AFRICAN NATIONS: THE IGBO AND TIV NARRATIVE IN PRESENT DAY NIGERIA

Terkura Fella AYEM-FELLA — 2023-10-15

This study investigated the taxation practices of pre-colonial republican African nations, with focus on the Igbo and Tiv, in present day Nigeria. The study adopted ethnographic literature review and content analysis for secondary data collection and analysis respectively. Three formulated research questions guided the study. Findings revealed that among the pre-colonial republican Igbo and Tiv nations of Africa, taxation was generally embraced as a necessary price for civilization, not citizenship. The study also found that in these nations, tax imposition was the responsibilities of republican consultative assemblies (RCAs), not individuals as was the case with monarchies. Furthermore, tax administration was the joint responsibility of village heads and traditional title holders. Additionally, compliance enforcement was jointly discharged by village heads and age grade associations in consultation with the RCAs. The study recommends that consideration should be given by contemporary tax policy makers and administrators to these age-long taxation practices to forestall a reoccurrence of the famous Aba women’s riot of 1929, and enhance tax revenue

EFFECT OF CORPORATE GOVERNANCE ATTRIBUTES ON FINANCIAL REPORTING TIMELINESS OF LISTED COMPANIES IN NIGERIA

Dahiru HUSSAINI — 2023-10-15

The objective of a corporate report is to provide information useful for predicting, comparing, and evaluating firms earning power and growth. A delay in publication of the report can reduce its value. Investors are skeptical about the authenticity of financial reports of firms that waste more than the expected time in publishing their audited financial reports. This study examined the effects of corporate governance attributes on the financial reporting timeliness of listed companies in Nigeria. Specifically, the study examined the governance attributes (board independence, board size, and board gender diversity) on financial reporting timeliness. The study adopted the ex post facto research design. The population of the study consisted of all the consolidated companies listed on the Nigerian stock exchange within the period 2012-2021. However, only 64 firms were sampled. Balanced panel data were extracted from the financial statements of 64 companies in Nigeria for the period 2012-2021. The financial reporting timeliness was measured using audit report lag. The logistics regression result revealed that board independence and board size have significant effects on timeliness while board gender diversity has no significant effect on the financial reporting timeliness of listed companies in Nigeria. The study concluded that corporate governance is a determinant of financial reporting timeliness among listed companies in Nigeria. This study recommended that the board of the listed companies should continually ensure a financial report is prepared timely so as to attract both current investors and potential investors to continue to invest in their organisations. Also, the Financial Reporting Council should encourage firms that disclose accounting information timely through incentives and impose penalties through rebuttal on firms that fail to provide timely financial reports.

IMPACT OF LIVESTOCK FARMING ON ECONOMIC GROWTH IN NIGERIA

Benjamin Iorgema TYOHEN — 2023-10-15

This study examined the impact of livestock farming on economic growth in Nigeria from 1990 to 2021. It specifically examined the impact of livestock produce, value loans guaranteed to livestock farming and livestock exports on the economic growth of Nigeria. The study adopted ex-post facto research design, data were collected using both descriptive and quantitative analytical methods and the data were analysed using Vector Autoregressive (VAR) model. The study used ADF to check for stationarity properties of the variables used in the study. The normalized cointegration estimates were used to examine the long-run relationship between livestock farming and economic growth in Nigeria. Furthermore, the Johansen cointegration Vector Error Correction Mechanism (VECM) was used, specifically to know the speed of adjustment, that is, the possibility of the oscillated variables to random walk back to their equilibrium values. Findings revealed that livestock produce (LTP) has a negative and significant effect on the growth of real Gross Domestic Product in Nigeria in the long-run; that value of loans guaranteed to livestock has positive and significant influence on the growth of the Nigeria economy in the long-run; and that livestock export has negative but significant effect on real gross domestic product in Nigeria during the period of the study. The study therefore recommended among others that the livestock subsector must be given the needed attention through incentives by banks and government and appropriate legislative framework for the protection of infant and weak livestock producers should be put in place to encourage the consumption of domestically produced livestock produce.

EFFECT OF VOLUNTARY ENVIRONMENTAL DISCLOSURE ON FIRM VALUE OF QUOTED FINANCIAL SERVICES COMPANIES IN NIGERIA

Chinedum ORISAKWE-LAWRENCE — 2023-10-15

The study examined the effect of voluntary environmental disclosure on firm value of quoted financial services companies in Nigeria from 2012-2021. The study adopted the longitudinal research design and positivism as the research philosophy with a total population of 52 financial services companies quoted on the Nigerian Exchange Group (NGX) as at 1^st January 2021. Filters were employed to reduce the number to a sample size of 37 financial services companies which had complete data for analysis. Secondary data was obtained from the audited financial statements of the sample companies covering a ten-year period from 2012-2021. Panel multiple regression technique was employed for the analysis and it was found that voluntary environmental disclosure has a positive and significant effect on firm value. The study concludes that by adopting transparent environmental reporting practices, companies can enhance their reputation, attract stakeholders, mitigate risks, improve operational efficiency, and position themselves for long-term sustainability and resilience. Therefore, the study recommends that companies should consider implementing voluntary environmental disclosure practices as part of their overall sustainability strategy. By providing transparent information about their environmental performance and initiatives, companies can build trust, attract stakeholders, and strengthen their competitive position.

INFLUENCE OF MONETARY POLICY ON PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Olufolakemi Oludami AFROGHA — 2023-10-15

This paper examines the intricate relationship between monetary policy and the financial performance of Deposit Money Banks (DMBs) in Nigeria. In light of the central role that DMBs play in the Nigerian financial system, understanding how monetary policy affects their operations is crucial for policymakers, regulators, and financial institutions alike. The study employs an analysis of data spanning 1990-2020 to investigate the dynamic interplay between monetary policy instruments and various indicators of DMBs' financial performance. Also, the study delves into the challenges and opportunities that DMBs face in navigating the evolving monetary policy landscape, characterized by shifting regulatory dynamics and macroeconomic conditions. The findings of this study emphasize the pivotal role of monetary policy in shaping the financial performance of Deposit Money Banks in Nigeria. A well-balanced and data-informed approach to monetary policy decisions is essential to ensure the stability and growth of the banking sector and the broader Nigerian economy. These findings have significant implications for policymakers, central banks, DMBs, investors, and the broader Nigerian economy. Policymakers should carefully consider the implications of monetary policy decisions on DMBs' financial health and the wider economic landscape. DMBs need to adapt their strategies and risk management practices in response to changing monetary policy conditions. Investors should factor in the potential impacts of monetary policy changes when making decisions about the Nigerian banking sector. The Central Bank of Nigeria (CBN) should continue to carefully assess and manage the impact of monetary policy decisions on DMBs. This includes considering the potential consequences of changes in the monetary policy rate (MPR) and money supply (MSP) on deposit levels and financial stability.

EXPLORING THE LIMITS OF THE INFLUENCE OF ADOPTION OF CORPORATE SOCIAL RESPONSIBILITY TOWARDS SUSTAINABILITY OF BUSINESS IN NIGERIA

Mohammed Gaddafi IBRAHIM — 2023-11-13

This paper appraised Corporate Social Responsibility initiatives in the Nigerian banking industry. It considered the vagaries of the drive and the challenges encountered in executing the same. It raises the exposition that in relation to the banking sector, CSR is said to be the obligation of the banks to manage their social, economic, and environmental activities at local and global level. It reiterated the involvement of the bank considering not only their profitability and growth, but also the interest of the society and the environment by taking responsibility for the impact of their business activities on stakeholders, employees, shareholders, customers, suppliers, and the civil society represented by NGOs and x-rays the literature itemised concerning CSR initiatives in financial institutions viz a viz their capacity to ensure sustainable development. It found that although banks are not directly involved with the degradation of the natural environment, they are facilitators as they are suppliers of funds that support production process that ultimately causes environmental degradation and as such, since the activities of banks, such as their lending and investment policies, can be considered as equally environmentally sensitive when compared with the direct effect of polluting industries that are dependent on banks, it behoves on them to perform corporate social responsibility in their domains of operation covering social, economic and environmental well-being and development in order to enhance sustainable development. The paper concludes that despite the debilitating challenges militating against Corporate Social Responsibility initiatives in the Nigerian banking industry, the imperatives for its execution are far more compelling to prevent its continued execution and operations.

EFFECT OF TECHNOLOGY INTELLIGENCE ON PERFORMANCE OF SELECTED MANUFACTURING FIRMS IN FCT-ABUJA, NIGERIA

Ibrahim KOLO — 2023-11-13

The fundamental aim of manufacturing firms adopting technology intelligence is to identify, evaluate and apply latest technologies to cover for the ever-changing technological challenges with the hope to improve the overall level of performance of their enterprises, yet the level performance of most of manufacturing firms in Nigeria is still low as majority of them struggle to get the latest technologies in place. The study examined the effect of technology intelligence on performance of selected manufacturing firms in FCT-Abuja, Nigeria. This study adopted a survey research design with population of 155 employees from 31 selected manufacturing firms in FCT-Abuja, Nigeria. The sample size used was same as population of the study and convenient sampling technique was used to select the respondents. The data collected for the study was analyzed using Partial Least Square Structural Equation Modeling in determining the measurement, structural models and hypotheses testing through SmartPLS 3.0 software. The study found that technology identification and technology evaluation have positive and significant effect on performance; while technology application have negative but insignificant effect on the performance of selected manufacturing firms in FCT-Abuja. Based on its findings, the study concludes that technology intelligence can influence the performance of manufacturing firms in FCT-Abuja, Nigeria. The study thus recommended among others, that manufacturing firms in FCT Abuja, Nigeria should improve on their technology application by way of ensuring that technologies are implemented effectively and integrated seamlessly into existing operations. This may require providing adequate training and support to employees, addressing any resistance to change, and actively monitoring and evaluating the outcomes of technology implementation.

EFFECT OF CORPORATE GOVERNANCE ATTRIBUTES ON TAX PLANNING OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

Joel Kanyi TIVDE — 2023-11-13

This study examined effect of corporate governance attributes on tax planning of listed consumer goods companies in Nigeria. To achieve this objective, descriptive ex-post facto research design was adopted for the purpose of addressing research problem. The data for this study was sourced from the published annual reports and financial statements of sampled consumer goods companies for the period 2016 to 2022. Tobit regression technique of data analysis was adopted as the procedure of analysis with aid of STATA version 16. Following the findings obtained from the analysis, independent variables of board gender diversity was seen to significantly impact positively on corporate tax planning, while the chief executive officer tenure and executive compensation have no significant effect on corporate tax planning among listed consumer goods companies in Nigeria. Based on the empirical findings from the analysis, the study recommended that, the participation and representations of women on boards should be sustained and seriously enhanced in a bid to promote effective tax planning and enhanced financial performance for the companies.

EFFECT OF MANAGEMENT QUALITY, COVERAGE RATIO AND LOAN TO DEPOSIT RATIOON FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Ebenezer Idowu AWOGBEMI — 2023-11-13

Deposit Money Banks in Nigeria play a vital role in the country's financial system, contributing to economic growth and stability. However, the financial performance of DMBs is influenced by various factors, including management quality, coverage ratio, and loan-to-deposit ratio. This study therefore examined the effect of management quality ratio, coverage ratio and loan to deposit ratio on financial performance (measured by return on assets) of selected deposit money banks in Nigeria. The study adopted a descriptive research design. The study covered Fourteen (14) listed DMBs in Nigeria and covered the period of 10 years 2012-2021. The study employed secondary data which was extracted from published annual reports and financial statements of the selected listed DMBs in Nigeria. Ordinary least square Regression analysis was used to test the hypotheses rose for the study. The study found that management quality ratio has positive but insignificant effect on ROA, coverage ratio has negative and significant effect on ROA, while loan to deposit ratio has positive and significant effect on ROA of deposit money banks in Nigeria. The study thus recommended among others that deposit money banks in Nigeria should focus on enhancing their risk management frameworks and credit assessment processes to minimize non-performing loans. By maintaining adequate provisions or reserves to cover potential losses, banks can improve their asset quality, reduce credit risk, and enhance profitability.