UMM Journal of Accounting and Financial Management

EFFECT OF SUSTAINABILITY REPORTING ON FINANCIAL PERFORMANCE OF LISTED TELECOMMUNICATIONS COMPANIES IN NIGERIA

Tse Joseph MBAKPENEV, Maureen Nneka NWALA , Ruth Angbazo ANDAH — Fri, 31 Jan 2025 00:00:00 +0000

This study examined the effect of sustainability reporting on financial performance of listed telecommunications companies in Nigeria. The study's specific objectives were to assess the effect of renewable energy, community development, and risk management disclosure on performance of listed telecommunications companies in Nigeria. This study adopts an ex-post facto research design. The population of this study consists of the two (2) telecommunications companies (Airtel Africa PLC and MTN Nigeria Communications PLC), listed on the Nigerian Exchange Group (NGX) between 2017-2023 using Census sampling technique. This study employed panel data regression techniques using Random Effects (RE) model. The findings obtained from the random effect model revealed that renewable energy has positive but insignificant effect on financial performance of listed telecommunications companies in Nigeria, community development and risk management disclosure positively and significantly affect financial performance of listed telecommunications companies in Nigeria. The study recommends among others that telecommunications companies should continue to pursue these sustainability initiatives as part of their long-term sustainability strategies. The government should encourage these efforts by providing financial incentives, such as subsidies, tax breaks, or low-interest loans, to reduce the upfront costs associated with renewable energy projects among.

NEXUS BETWEEN VALUE ADDED TAX (VAT) AND ECONOMIC DEVELOPMENT IN NIGERIA: IMPLICATION OF CORONAVIRUS DISEASE (COVID-19) DESTRUCTION

Michael Ugeoritse EYIDE , Andrew A. UGHAH, Imuetinyan EGUAVOEN — Fri, 31 Jan 2025 00:00:00 +0000

This study examined the implication of Coronavirus Disease (COVID-19) disruption on the effect of Value Added Tax (VAT) revenue on economic development in Nigeria. Specifically, the study determined the effect of VAT revenue on human development index of Nigeria and whether Covid-19 disruption has a significant implication on the relationship between VAT revenue and human development index of Nigeria. The study employed ex-post facto research design and secondary data were gleaned from the Central Bank of Nigerian (CBN) statistical bulletin as well as tax report of Federal Inland Revenue Service (FIRS) from the year 2011 to 2022. The inferential statistical analysis for this study involved the analysis of the Ordinary Least Square (OLS) regression which was employed to test the first hypothesis. Also, the Chow breakpoint test was employed to find out whether there is a structural break in the time series dataset as a result of Covid-19 disruption in 2020. The study found that: VAT revenue has a significant positive effect on the human development index of Nigeria (p-value = 0.0392); Covid-19 has a significant implication on the relationship between VAT revenue and the human development index of Nigeria, indicating a structural change in this relationship around the year 2020 (p-value = 0.0161). In conclusion, Covid-19 disruption undermined the effectiveness of VAT revenue in driving human development outcomes. The study recommends that policymakers and stakeholders should adopt a holistic approach to economic recovery and development by diversifying revenue sources, implementing targeted social protection measures and fostering innovation and resilience in response to emerging challenges.

CHURCH ACCOUNTING AND ACCOUNTABILITY: A DISCUSS

John Chika ONWUCHEKWA , Sebastine Emmanuel AKPAN , Vincent Ranami ÀDEME — Fri, 31 Jan 2025 00:00:00 +0000

Managing church finances and accounting procedures, such as keeping track of income (like offertory, donations and tithes) and expenses (such as salaries and utilities), is known as church accounting. It involves organizing, recording, and planning church finances in addition to an accounting system where appropriate, accurate, and correct records are maintained to guarantee trustworthy reporting of events or business-related transactions. We adopted the library research method as it focuses on the content review of literatures of a subject matter. This research work was carried out to conceptualize the importance of church accounting to religious organization. Our quest is for all religious organization to take the rendering of accounts as a sacred function and an act of godliness since the concept of church accounting is rooted in the principles of transparency, accountability, and stewardship of resources. This means that church accounting is important as preaching holiness to the people which should not be seen as a voluntary exercise or a characteristic of secularism that are not in line with the ecclesiastical principle of sacredness but as spiritual exercise backed up biblically. Accounting principles and practice should be adopted by the churches religiously and various religious bodies should support the effectiveness of their fund management, administration and development as proper record keeping and rendering is the act of God and godly nature as God is a record keeper being the first Accountant in Revelation 20:12-15(KJV)

EFFECT OF CAPITAL ADEQUACY, FOREIGN EXCHANGE RATE AND OPERATIONAL RISKS ON FINANCIAL PERFORMANCE OF SELECTED LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abdullahi Ibrahim AHMED , Mohammed Aris HARUNA — Fri, 31 Jan 2025 00:00:00 +0000

This study examined the effect of capital adequacy, foreign exchange rate and operational risks on financial performance of selected listed deposit money banks in Nigeria. The study used an ex post facto design, targeting 19 listed deposit money banks in Nigeria as of 31st December 2022. A sample of 14 banks was purposively selected, meeting the criteria of being listed before 31st December 2014 and having complete annual reports for the 2014-2023 period. Descriptive statistics and regression analysis were used to analyze the data obtained. The study found that Capital Adequacy Ratio has positive and significant effect on the financial performance (Return on Assets) of the selected listed deposit money banks in Nigeria. while Foreign Exchange Rate Risk and operational risk has a positive but statistically insignificant effect on the financial performance (Return on Assets) of selected listed deposit money banks (DMBs) in Nigeria at 5% level of significant. The study concluded that capital adequacy ratio, foreign exchange rate risk and operational risks influence the financial performance of deposit money banks in Nigeria. The study therefore study recommends among others that deposit money banks in Nigeria should improve on their operational risk control by way of investing in internal controls system, adopting advanced technologies, and enhancing staff training to mitigate risks associated with human error, fraud, and system failures.

MODERATING EFFECT OF EXTERNAL FACTORS ON THE RELATIONSHIP BETWEEN CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE OF LISTED AGRICULTURAL COMPANIE IN NIGERIA

Joel Kanyi; Dahiru HUSSAINI — Fri, 31 Jan 2025 00:00:00 +0000

This study examined the moderating effect of external factors on the relationship between capital structure and financial performance of listed agricultural companies in Nigeria. The study adopted ex-post factor research design with moderated regression model, used to analyze the data of dependent and independent variables used. The population comprised of all the agricultural companies listed on the Nigerian Exchange Group. There are five (5) agricultural companies quoted on the Nigerian Exchange Group as at December 31, 2024. Due to small nature of the population, all the five companies were used. Secondary data was extracted from the audited financial reports and accounts of the listed agricultural companies for the period of 2018 to 2022. With the aid of SPSS version 23 as technique for data analysis, the study concluded that external factors influence the relationship between capital structure and financial performance of agricultural companies in Nigeria. Therefore the study recommended amongst others that, agricultural businesses should use moderate debt levels in their capital structure to avoid paying a high cost of capital. High levels of interest payments reduce the availability of internal funds for investment.

EFFECT OF TAX SHELTERING ON EARNINGS QUALITY OF LISTED OIL AND GAS FIRMS IN NIGERIA

Terhemba NYIKWAGH — Fri, 31 Jan 2025 00:00:00 +0000

This paper assessed the effect of tax sheltering measured using cash effective tax rate, tax savings and book tax gap on earnings quality (the modified Jones earnings model) of listed oil and gas firms in Nigeria from2017 -2021. Data was sourced from 10 listed oil and gas firms. The paper adopted ex-post facto design. Multiple regression was conducted and the result shows that cash effective tax rate and tax savings have insignificant effect on earnings quality of the sampled firms while book tax gap significantly affect earnings quality of the sampled firms. Based on the findings, the paper concluded that cash effective tax rate and tax savings insignificantly affects earnings quality while book tax gap has a significant effect on earnings quality of the sampled firms. Arising from the conclusion above, the paper recommended that prospective investors as well as business managers should access the book tax gap to find out the quality of earnings in a firm before investing. Even as investors aspire for higher returns, an increase in the tax book gap might give rise to higher returns.

EFFECT OF TAX OPTIMIZATION ON FINANCIAL PERFORMANCE OF AIRLINES IN NIGERIA

Abdullahi Ibrahim AHMED , Nasiru MOHAMMED — Fri, 31 Jan 2025 00:00:00 +0000

This study explored the effect of Tax optimization on the Financial Performance of Airlines in Nigeria. The study's specific objectives were to examine the influence of capital intensity and research & development on the Financial Performance of Airlines in Nigeria. The population of this study is 7 leading and serviceable domestic airlines (Air Peace, Arik Air, Dana Air, Aero Contractors, Overland Air, Max Air, and Ibom Air) operating within the Nigerian aviation industry. Census sampling was used for the study. The study utilized secondary data. Data for this study was obtained from the published annual reports of seven purposively selected leading domestic airlines in Nigeria and National Bureau of Statistics (NBS). The secondary data were collected from income statement and statements of financial position of the selected airlines over a period of five years (2018–2022). Descriptive statistics was used to define the data, measure the central tendencies and dispersions. Inferential statistics such as pooled Ordinary Least Squares (OLS) regression was used to estimate concepts and test formulated hypotheses. The results show that capital intensity has positive significant effect on the financial performance of airlines in Nigeria, while research & development have a negative but insignificant effect on financial performance of airlines in Nigeria. The study recommends that Government and/or private investors should encourage and support increased investment in capital assets within the aviation sector through policies that provide financial incentives or subsidies for purchasing and maintaining physical assets like aircraft and infrastructure. Airlines and Government should implement a balanced approach to managing R&D expenditures by providing targeted support and incentives for airlines and/or businesses to invest in innovation while ensuring that these investments are aligned with long-term strategic goals.

ASSESSMENT OF THE ROLE OF MONETARY POLICY IN FOSTERING THE STOCK MARKET IN NIGERIA

Richard Oye ALAO, Francis A. AKAWU, Joseph M. IBBIH — Fri, 31 Jan 2025 00:00:00 +0000

This investigation evaluates the influence of monetary policy on the evolution of stock market dynamics within the Nigerian context, employing a Vector Autoregression methodology with data encompassing the timeframe from 1986 to 2023. The study utilizes an ex-post facto methodology, drawing upon secondary data obtained from the Central Bank of Nigeria's annual statistical bulletin and the World Development Indicator (WDI) database for the fiscal year 2023. A unit root test was performed utilizing the augmented Dickey-Fuller (ADF) methodology to assess the stationarity of the variables, with the outcomes confirming that all variables exhibit stationarity. A co-integration analysis was conducted, yielding empirical support for a long-term relationship among the examined variables. The outcomes indicate considerable associations between monetary policy strategies and stock market signals, with Open Market Operations and the Monetary Policy Rate playing a critical role in shaping the All Share Index. The variance decomposition analysis elucidates that the forecast error variance of the All Share Index is mainly driven by its own shocks, complemented by subsequent impacts from shocks pertinent to Open Market Operations and the Monetary Policy Rate. The outcomes of this analysis are important for policymakers, stakeholders, and researchers, accentuating the critical role of thoughtful monetary policy strategies in the stabilization of the stock market. This investigation augments the current corpus of literature pertaining to the mechanisms of monetary policy transmission in emerging economies.

FINANCING DECISION RATIOS AND FINANCIAL PERFORMANCE: EVIDENCE FROM THE NIGERIA INDUSTRIAL GOODS SECTOR

Dahiru HUSSAINI , Timothy Terver UGOH , Kanyi Joel TIVDE — Fri, 31 Jan 2025 00:00:00 +0000

The crux of this study is to evaluate the impact of financing decision ratios on the financial performance of listed industrial goods companies in Nigeria. The study aligned with the ex post facto research design. Data was collected from the thirteen (13) listed industrial goods companies on the Nigerian Exchange Group. All the companies were considered as the population of the study. Data was collected from the annual financial statements of the companies for a period of ten (10) years from 2014 to 2023. One hundred and thirty observations were made and, on those observations, the Generalized Method of Moment (GMM) technique was applied for the analysis of data. The study measured financial performance using the return on assets (ROA) while different measures were used to measure the independent and control variables. The study found that the impacts of total debt to total assets and dividend to total debt are significant on return on assets. It was also seen that firm size, firm age, and leverage also play a significant role as control variables. From the findings, the study concluded that focusing closely on the dynamics and interplay of debt financing and the proportion of dividend paid in the face of existing debt structure significantly help out the firms make the right financing decisions as the success of companies mostly depends on the combination of capital obtained and dividend decisions. This percentage decides the level of return on assets. From the findings and conclusion, the study recommended that the management of industrial goods firms should balance the quality of the financial structure through rational financing decisions because appropriate debt capacity and rational dividend payments offer the best advantage to the companies through maximizing return on assets.

TALENT MANAGEMENT AND EMPLOYEE PRODUCTIVITY IN FOODS AND BEVERAGE MANUFACTURING COMPANIES IN NIGERIA: THE MEDIATING ROLE OF ORGANISATIONAL COMMITMENT

Shiebee Sunday IORGEMA — Fri, 31 Jan 2025 00:00:00 +0000

This study examined talent management and employee productivity in foods and beverage manufacturing companies in Nigeria: The mediating role of organisational commitment. The study specifically focus on the effect of talent management on employee productivity, effect of talent management on organisational commitment and the mediating role of organisational commitment in the relationship between talent management and employee productivity. The population of the study comprises of 6172 employees drawn from the selected foods and beverage manufacturing companies in Nigeria with the sample size of 399 using Taro Yamane’s formula. Correlation and regression was used as a method of data analysis. The findings of the study revealed that, there is a significant and positive relationship between talent management, employee productivity and organisational commitment, and organisational commitment significantly mediate the relationship between talent management and employee productivity. The study recommend that management of foods and beverage manufacturing companies in Nigeria should adopt good policies of talent identification, attraction and retention of employees by providing financial and non –financial monetary rewards that will encourage employees to stay in a company and become committed to improve organizational productivity.

EFFECT OF FIRM ATTRIBUTES ON ENVIRONMENTAL DISCLOSURE OF LISTED OIL AND GAS FIRMS IN NIGERIA

Terhemba NYIKWAGH; Sesugh IGYUSE — Fri, 31 Jan 2025 00:00:00 +0000

This paper examined the effect of firm attributes on environmental disclosure of listed oil and gas firms in Nigeria from 2017 to 2021. The paper used firm size, firm age and firm financial performance as (firm attributes) independent variables and environmental disclosure index as dependent variable. The paper adopted the ex-post facto design to achieve its objectives. Secondary data was sourced from audited annual reports of the ten (10) sampled oil and gas firms through content analysis. Panel data regression techniques were carried out and the results reveal that firm size has a significant effect on environmental disclosure of the sampled firms. Also, the result show that, firm age has a significant effect on environmental disclosure. The result further reveals that firm financial performance has a significant effect on environmental disclosure of the sampled firms. Based on the findings, the paper recommends that listed oil and gas firms in Nigeria should put measures in place to increase their profitability as they age and grow so as to enable them accommodate the expenses associated with disclosing information about their efforts in preserving the environment as this will help them to acquire legitimacy status from stakeholders. Also, financial Reporting Council of Nigeria and other financial regulatory bodies should hasten their efforts in making environmental disclosure mandatory so as to track firms’ commitments towards preserving the environment.