JOURNAL OF BUSINESS AND ECONOMY
ISSN NUMBER: 627-44669| 1 | Title: AUDITOR INDEPENDENCE AND AUDIT EXPECTATION GAP IN POLYTECHNICS IN OGUN STATE Author: Abiodun Olatunde Omotayo & Nurudeen Olanrewaju Abdulfatai Abstract: This study was carried out to examine the effect of auditor independence on the closure of the expectation gap in respect of the financial reports of Polytechnics in Ogun State, Nigeria, . This study examines auditor independence on audit expectation gap with a view to enhancing the credibility of the financial reports. It uses survey, descriptive, and multiple regression analyses. The study showed a significant effect of auditor’s independence on users’ expectation gap on financial statements of polytechnics in Ogun state, Nigeria. in relation to auditor’s performance and standards. This study on auditor independence and the audit expectation gap in Polytechnics provides a deeper understanding and intimate knowledge of the specific challenges and complexities faced by stakeholders in appreciating the financial statements of Polytechnics in Ogun state. the in this sector. This knowledge can help identify the unique factors influencing the need for real independence of auditor for minimizing the expectation gap in the financial reports of Polytechnics. These factors are governance structures, funding models, and stakeholder dynamics. The study establishes that auditor’s independence has positive significant effect on audit expectation gap. This study recommends that to reduce audit expectation gap and to maintain public confidence on the financial reports of polytechnics, auditors should continually assess their independence in the performance of their professional duties and take necessary measures to improve the quality of their audit work. their assessment falls short of expectation. Keywords: Audit Expectation Gap, Auditors Independence, Financial Statements, audit quality, polytechnic.... more |
|
| 2 | Title: TAXATION AND MANUFACTURING SECTOR PERFORMANCE IN NIGERIA Author: Okorie Charlees Dennis., Prof. C. O. Ofurum & Dr. C. C. Ebere Abstract: This research undertakes to explore how revenue from taxation affect the economy of Nigeria. This research takes deeper look into the economic effects of taxation on the contributions of the manufacturing sector to the economy. Focal tax components were on value added tax (VATX), petroleum profit tax (PPTX), and corporate income tax (CITX) as these constitute the major tax revenue sources. The research also considers total public debt (TPDT) to be a critical source of financing economic activities and thus is included as a moderating variable. The research data is collected from several sources including the FIRS, the NBS, and CBN. The period under review is twenty-eight (28) years from 1994 to 2021. Several statistical and econometric methods were adopted for data analysis, viz., descriptive statistics; augmented DickeyFuller (ADF) and Philip-Perron unit tests; the auto-regressive distributed lag (ARDL) technique; and Granger causality test. Findings of this research revealed that all three tax revenue components, viz., value added tax, petroleum profit tax and corporate income tax had a positive relationship with manufacturing sector GDP. This implies that revenue from taxation components help to improve the performance of the manufacturing sector in Nigeria. It is suggested that government sustain its policy efforts in developing the manufacturing sector of the company. Policies in the sector should be designed to encourage small manufacturers to be captured in the formal sector and expand their manufacturing capacity. This will help to capture more manufacturing organisations in the tax nets and thus further improve revenue generations.... more |
|
| 3 | Title: PRIVATIZATION OF PUBLIC ENTERPRISES AND ECONOMIC GROWTH IN NIGERIA Author: Iyabo M. Okedina & Toluwalope E. Bada Abstract: This study examined privatization of public enterprises and its impact on economic growth using secondary data from 1995 to 2021. The data used were obtained from Central Bank of Nigeria Statistical Bulletin and World Development Indicators. The data used for this study were Total Privatization Proceeds, Domestic Private Investment, Domestic Credit to Private Sector and Real Gross Domestic Product. The study used descriptive statistics, the Augmented Dickey Fuller test, and the Phillip-Perron tests to determine the stationarity level of the variables, trend analysis, and the Bounds cointegration test to test for the long run relationship between the variables. The Auto-Regressive Distribution Lag (ARDL) was used to detect the variables short and long run relationships. The serial correlation test, heteroscedasticity test, Ramsey RESET test, and normality tests were used to confirm the robustness and validity of the ARDL result. The results of the test concluded that the variables had a long run and a short run relationship. According to the results, the short-run ARDL model shows that all the explanatory variables have positive coefficients in their present period but negative at lag period. The Jarque-Bera Normality Test revealed that the variables are normal. The study recommended that the government could consider providing more incentives, such as tax breaks or lower interest rates, to commercial banks to encourage them to increase lending to the private sector. Key word: Economic Growth, Public Enterprises, Privatization.... more |
|
| 4 | Title: EFFECT OF AUDIT REPORT QUALITY ON THE INVESTORS’ CONFIDENCE IN THE VALUE OF NIGERIAN BANKS Author: Oladutire Elijah Oladeji, PhD. Abstract: A number of the businesses concerned are forced out of business as an immediate or indirect result of the scandals, international organization of Securities Commissions. Together, these financial crises have led both professionals as well as scholars to wonder about the confidence of shareholders in the valuation of the company and the credibility of businesses. This study set out to pinpoint whether investors’ confidence in the value of firms especially in banking industry is being affected in anyway by the audited report quality. The quality of an audit report depends simultaneously on several factors that influence it such as auditor type, board composition, and firm age. The study adopted expo facto research design. The population of this study captured all the deposit money banks listed on the Nigeria stock exchange as at 2022. The study used the twelve (12) listed banks as at 31st December 2018 as they are randomly selected using simple random techniques. The study will cover a (5) years period ranging from year 2014 -2018. Empirical findings revealed that board composition has a negative and significant effect on investors’ confidence in the value of Nigerian Banks implying that the more the number of non-executives’ members of the board, the less the investors’ confidence in the value of Nigerian Banks. Likewise, audit type has a negative and significant influence on investors’ confidence in the value of Nigerian Banks. In addition, firm age (AGE) revealed a negative but insignificant relationship with the share price of listed banks in Nigeria. This study concluded from the findings of this study that there is negative and significant relationship between audit report quality and investors’ confidence in the value of Nigerian Banks. The study recommends banks in Nigeria should concentrate on using one audit firm in the evaluation of their financial statement and maintain a balance between their executives and non-executives board member in order optimum result from both ends. Keywords: Audit Quality, Firm Age, Board Composition, Auditor’s Type, Firm Value.... more |
|
| 5 | Title: SHARE PRICE AND EARNINGS QUALITY OF QUOTED FIRMS IN NIGERIA Author: Beauty Ekiomado J.A. PhD., Joy Omeghie O.E. PhD & Obehi P. A. Abstract: The objective of this study is to ascertain the impact of earnings quality on share price. The population of the study covers the entire listed firms in the financial sector in Nigeria. Consequently, this study employed a sample size of 10 banks for ten years, 2012-2021 financial years. The outcomes of this study revealed that earnings surprise and earnings predictability have positive effect on share price in the Nigerian banking sector. The result additionally revealed that earnings smoothness has no significant effect on share price. This study recommended that regulators should embark on random stress test in order to curtail discretionary behaviour of managers. Keywords: Earnings quality, share price, earnings smoothness, earnings predictability, earnings surprise, earnings persistence.... more |
|
| 6 | Title: HUMAN RESOURCE CONSIDERATIONS AND SUSTAINABILITY DEVELOPMENT IN RIVERS STATE Author: Emmanuel Ethel Ifeyinwa Abstract: This study examines the relationship between human resource considerations and sustainability development in selected organizations in Rivers State. The aim is to understand how specific dimensions of human resources, namely Recruitment and Selection, Training and Development, Performance Management, and Compensation and Benefits, contribute to sustainable development practices in the region. The study adopts primary data which was gotten from questionnaires to collect data from a sample of 400 employees across various sectors in Rivers State. The questionnaires employ a 5-point Likert scale to measure respondents perceptions of HRM practices and sustainable development outcomes. The findings reveal that there is a positive and significant relationship between the dimensions of human resources and sustainable development. Training and Development emerged as the most influential dimension, followed by Performance Management, Recruitment and Selection, and Compensation and Benefits. The results highlight the importance of integrating sustainability considerations into HRM practices and aligning them with organizational goals. Furthermore, the study identifies several key factors that contribute to successful HRM practices for sustainability, including the need for sustainability-focused recruitment processes, the availability of comprehensive training programs, the alignment of performance goals with sustainability targets, and the implementation of fair compensation and benefits systems that recognize sustainability contributions. The implications of this study are significant for organizations in Rivers State and beyond. By incorporating sustainability into HRM practices, organizations can enhance their competitive advantage, attract and retain talented employees, and contribute to the overall sustainable development of the region. The findings also emphasize the need for collaboration and knowledge-sharing among different sectors to accelerate the adoption of sustainable HRM practices. The study offers recommendations for organizations to improve their HRM practices and enhance their contribution to sustainability outcomes. Keywords: Human Resource, Sustainability, Organizatioal, Performance, Green.... more |
|
| 7 | Title: AN APPRAISAL OF PENSION REFORM ACT AND ITS IMPLEMENTATION IN NIGERIAN PUBLIC SECTOR Author: Ephraim Augustine Mina., Siaisiai S. Timipa & Ajenu S. Augustine Abstract: The paper examine appraisal of pension reform act and its implementation in Nigerian public sector, using Rivers State Agricultural Development Programme Port Harcourt as a case study. The urgent need of reform necessitated measure due to the fact that public sector organization at both the federal, state and local government levels have woefully failed to meet their pension liabilities thereby groaning under the heavy burden of paying the retirement benefits of retirees. The scourge of “ghost pensioners, has further aggravated the lingering pension crisis. Strict regulation of the activities of pension fund Administrators and Nation pension commission is to be established and charge with the responsibility for the regulation, supervision and effective administration of all pension matters in Nigeria. Rivers State Agricultural Development Programme Port Harcourt was the population and 50 personnel drawn from various departments were used as the sample size. The researcher used primary and secondary methods of data and obtained through questionnaires were presented in tables and analyzed using the simple percentage method.The findings have shown that factors which militate against successful pension reform act and its implementation in Nigeria public sector: knowledge gap and general misconceptions, widening the coverage in the informed and private sector, many of the public sectors are not yet to key in the idea, securing system wide buy-in and initial reluctance form employees for register with PFAs and capacity building in the new pension industry.The paper recommends that workers should invest in fixed income. The Nigeria government should intensify effort to ensure financial safety net for older persons in general; through social pension of foxed stipends for individual above the age of 65 years. Key words: Pension, Reform, Administration, Public sector, Allowance.... more |
|
| 8 | Title: SANITY CONTROL AND ETHICAL ISSUES IN THE ADMINISTRATION OF TERTIARY INSTITUTION IN NIGERIA Author: Nnodim, K. A. PhD., Prof. Nnodim, A. U & Victoria O. S.K. PhD. Abstract: The study was carried out to examine Sanity control and ethical challenges facing the Nigerian educational system especially tertiary institutions and the expected role of administrators as well as the importance of ethic norms and dynamics of corruption. This is because the overall goals of tertiary institutions in Nigeria as enunciated in the National Policy of Education can hardly be achieved without strict conformity and adherence to the rules and regulations and the ideals of the entire society. This paper viewed the ethical issues in tertiary institutions in Nigeria. Such issues includes corruption, research, teaching, human relations, academic misconduct among lecturers, laxity in academic control, administrative ethics and other responsibilities. The study that ethical conducts have not been given proper attention by administrators in the Nigerian education sector and suggested that government should enforce strict adherence or compliance to professional ethics as a way to install sanity in our tertiary institutions in Nigeria.... more |
|
| 9 | Title: ESG SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA Author: Ekpete Committee., Prof. C. O. Ofurum & Dr. C. C. Ebere Abstract: In this research, sustainability reporting is measured using three variables relating to the disclosure of environmental sustainability performance indicators (ENVSR); social sustainability performance indicators (SOCSR); and governance sustainability performance indicators (GOVSR). These are extracted from the audited annual reports of 18 listed consumer goods companies using content analysis technique. In addition, financial performance of the selected companies was measured in terms of net profit margin (NPM); and return on assets (ROA) while firm size was included in the analysis as a moderating variable. The panel least square method was adopted for the research. Among the analytical tools implemented in the research includes descriptive statistics, the Hausman test and the panel estimated generalized least squares (EGLS) random effects model. Findings of the study are discussed below. Findings of the study revealed that ENVSR had a positive and non-significant relationship with both measures of financial performance used in the research. On the other hand, the relationship between SOCSR and the measures of financial performance was negative and non-significant. Finally, the relationship between GOVSR and the measures of financial performance was positive and non-significant. From the findings of the research, it was concluded that there is no definitive evidence that sustainability performance indicators makes important contribution to the financial performance of of listed consumer goods companies in Nigeria. It is thus recommended that companies be more committed and proactive towards implementing policies that promote sustainable operations. For example, data collected for this research showed that the aforementioned companies disclose less than 30% of the GRI environmental sustainability performance indicators. The obvious implication of the above is that they only disclose the issues for which action is taken to the detriment of others. Thus, it is recommended that being proactive in recognising and taking remedial steps in issues relating to sustainable operations, its impact will be better reflected in the financial performance measures. It is further recommended that companies re-evaluate their sustainability activities in order to be more effective in delivering the desired outcomes. Finally, there is need for companies to improve their governance mechanisms to contribute more to the growth of the organisations.... more |
|
| 10 | Title: COMMUNITY BANKING AND FINANCIAL INCLUSION IN NIGERIA Author: Deebii Nwaido & King Ezebunwa Onu Abstract: This paper is conceptually couched to examine the appeals of community banking as a tool in addressing the huge gap between the financially sophisticated urban sector and the adroitly poverty shrinking rural Nigeria. Our concern arises from the acknowledgment that, despite some progress made, significant portions of the Nigeria population, including the corporate sector, continue to be excluded from financial services (Hannig & Jansen 2010). We examine community banking as a tool of financial inclusion in Nigeria. Armed with up-to-date data, and statistics on access to and utilization of financial services, this paper examines the progress, obstacles, and propose strategies for advancing financial inclusion in Nigeria. Our finding suggests that forging collaboration and partnership between community banks and government agencies, non-profit organizations, and private sector entities could help leverage resources, expertise, and networking in expanding financial inclusion initiatives and help overcome some of the challenges facing financial inclusion in Nigeria. Also, implementation of financial education programs, launch initiatives to improve financial literacy among individuals, particularly in underserved communities, target population to enhance their understanding of financial services offerings could improve financial inclusion. Keywords: Community Banking, Financial Inclusion, Financial Intermediation, Microcredit, Financial Services and Products.... more |
|
| 11 | Title: CAPITAL MARKET AND INDUSTRIAL SECTOR GROWTH IN NIGERIA (1981-2021) Author: Abraham Anthony (PhD) Abstract: This study examined the relationship between Nigerias industrial sector growth and the capital market from 1981 to 2021. The World Development Indicator 2021 and the Central Bank of Nigerias (CBN) Statistical Bulletin provided secondary data. Using the Augmented Dicey Fuller unit root technique, the developed model was put through a unit root test. The results of the Augmented Dickey Fuller unit root analysis showed that the variables integration order is jumbled. This suggests that although some variables were stable after the initial difference, others remained fixed at levels. Because of this, the Auto-regressive Distributive Lag (ARDL) has to be used in the study. The Auto-regressive Distributive Lag (ARDL) bound test indicated that there was a long-term relationship between the expansion of Nigerias industrial sector and the capital market. Additional findings demonstrated that deal value has a long- and short-term beneficial, statistically significant influence on the growth of the industrial sector. Similarly, both in the short and long terms, gross fixed capital creation was shown to have a favourable and considerable influence on the expansion of the industrial sector. Furthermore, during the current years short run, there was a favourable relationship recorded between market capitalization and industrial sector growth. There is statistically substantial relationship between market capitalisation and industrial growth. Lastly, it is discovered that the industrial sectors growth over the preceding short-run period has a positive and substantial correlation with the all-share index. Therefore, throughout the course of this study, it was determined that capital market activities enhance the expansion of Nigerias industrial sector. Among other things, it was recommended that, in order to help listed businesses in the capital market fulfil their short- and long-term obligations, the Security and Exchange Commission work with them to maintain or grow the number and value of deals in market transactions. Keywords: Share of Industrial Sector to Gross Domestic Product, Market Capitalisation, All Share Index, Value of Deals, Gross Fixed Capital Formation.... more |
|
| 12 | Title: IMPLICATIONS OF BANK CREDITS IN DEEPENING SMALL AND MEDIUM SCALE ENTERPRISES (SMES) PERFORMANCE IN NIGERIA Author: Ibeinmo Friday Cookey (Ph.D), Victor Akidi (Ph.D) & Isaac Olubiyi Oladosu Abstract: This research assesses the implications of bank credits in deepening small and medium scale enterprises (SMEs) performance in Nigeria, spanning the period from 1990 to 2022. The indicators used for bank credits are private sector credit, agricultural sector credit, manufacturing sector credit, credit to SMEs, and the lending rate while SMEs output is used as proxy for small and medium scale enterprise (SMEs) performance. The study was anchored on Pecking Order Theory. Annual time data series for the study were gathered from the Central Bank of Nigeria (CBN) Statistical Bulletin and reports from the National Bureau of Statistics (NBS), and were analyzed using Augmented-Dickey Fuller (ADF) unit root test, the Bound cointegration test statistic, and the Autoregressive Distributive Lag (ARDL) approach. The research established that providing market friendly credit to the private sector and the agricultural sector positively but insignificantly influenced SMEs’ output in Nigeria. Conversely, credit to the manufacturing sector and the SMEs positively and significantly impacted on SMEs output while lending rate had negative and significant impact on the regressand. The study concluded that bank credits play significant positive role in deepening small and medium scale enterprises (SMEs) performance in Nigeria over the sampled period. It is recommended among others that deposit money banks should favourably extend more market friendly credits to small and medium scale enterprises (SMEs) to enhance their performance in the economy. Keywords: Bank Credits, SMEs Output, Credit to Private Sector, Credit to Agricultural Sector, Credit to Manufacturing Sector, Credit to SMEs, Lending Rate.... more |
|
| 13 | Title: MARKET CAPITALISATION AND ECONOMIC GROWTH IN NIGERIA: QUARTERLY DATA APPROACH Author: Christian Gbarawae Nwikina (Ph.D) & Chukwuemeka R. Amadi (Ph.D) Abstract: This study seeks to determine the relationship between capitalization and economic growth in Nigeria using quarterly data. Data was collected from central bank of Nigeria (CBN) publications and National Bureau of Statistics (NBS). Panel data was used for analysis. It related quarterly market capitalization to quarterly GDP sectoral values. The selected sectors include; oil and gas, manufacturing, insurance, and banking sectors. The sectoral values constitute the dependent variables while GDP data constitutes dependent variables. The augmented dicked fuller (ADF) test was done and found to be stationary in different orders in 16 cross sections. The models were estimated on quarterly basis. Probability values of Fisher’s statistics were significant and integrated. This means that long-run relationship exist between market capitalization and GDP of the four selected sectors of Nigeria’s economy (oil and gas, manufacturing insurance and banking). Error correction model and Hausman test was conducted. The result of test conducted showed t-statistic = - 0.36803, p.value = 0.7134. t-table = +0.02524 = 2.064. t.statistic is less than t-table value at 5% level of significance. We therefore accept the hypothesis and conclude that no significant relationship exists between quarterly market capitalization and growth of selected sectors of the economy. This implies a positive and significant relationship in the second quarter. The explanatory power of the model is 92%. The overall model is significant at 5%. In the third quarter, all the estimates are positive and significant at 5% significance level. This shows that there is a significant and positive relationship between the oil and gas, banking, insurance and manufacturing sectors and market capitalization in the first quarter of the period under review. The explanatory power of the model is 84% and the overall model is significant at 5%. In the fourth quarter, all the estimates are positive and significant at 5% significance level. This shows that there is a significant and positive relationship between the oil and gas, banking, insurance and manufacturing sectors and market capitalization in the fourth quarter of the period under review. The explanatory power of the model is 94% and the overall model is significant at 5%. The panel cross-section dependence test results show that, there is a cross-sectional dependence between the performances of the indicators (variables) in the four quarters. Keywords: Stock Market, Capitalisation, Economic Growth, Sectorial approach, Nigeria.... more |
|
| 14 | Title: TAXATION AND ECONOMIC GROWTH: EXPERIENCE FROM NIGERIA Author: Chukuemeka Robert Amadi (Ph.D) & Kennedy Ikechukwu Imudia Abstract: This study investigates the impact of taxation on economic growth in Nigeria. The formulated model was subjected to unit root using Augmented Dickey Fuller (ADF) and Auto-Regressive Distributive lag (ARDL) bound test, long-run and error correction forms. The ADRL bound test revealed that that there is a long-run relationship between taxation and economic well-being. Further finding indicates that company income tax (CIT) had a positive and significant relationship with gross domestic product per capita growth (GDP PCG) in the long-run and current year period of the short-run, while capital gain tax (CGT) had a negative and insignificant relationship with gross domestic product per capita growth (GDP PCG) in the previous and second year period of the short-run. Also, it revealed that gas income tax (GIT) had a positive but in insignificant relationship with gross domestic product per capita growth (GDP PCG) in the long-run. Similarly, foreign direct investment (FDI) exert a positive and significant relationship with gross domestic product per capita growth (GDP_PCG) in the long-run as well as the current year period of the short-run while inflation (INF) had a negative and significant relationship with gross domestic product per capita growth (GDP PCG) in the current year period of the short-run. The study recommends that the federal government, through the federal Inland Revenue service, should improve on the policies bordering on the company income tax so as to improve the government revenue through the companies affected. Keywords: Impact, Taxation, Economic, Growth, Nigeria.... more |