The Impact of Creative Accounting and Fraudulent Financial Reporting on Investors Behaviour in the Nigeria Security Market: An Overview

Recent reports of high-profile company failures have cast the spotli ght on creativ E' accounting and ren ewed the call for published financial statements that show a full and accurate picture of a company's performance And position. Ira company fails to provide meaningful disclosure to investors about where it has been, where it is and where it is going, the value of the company may be eroded, and shareholders will lose confidence in the company Af1er the collapse of Enron in 200 I. creative accounting and fraudulent financial reporting have become issues of concern in the nation's llnancial environment. It is clear that the age-old profession of accounting owns its share of creative thinkers. It is also clear that no profession or occupation should be excluded tl·om creativity. Today's news is rift with case after case of mis-reporting of finrlllcial results. Many were a direct result of lim111cial managers taking advantage of "loop holes" in today's accounting standards. There are significant cases of accounting irregularities that resulted in landmark changes in accounting standards. There are weaknesses in today's accounting standards and this makes it easy to manipLilate figures. Every set of financial statements presents its own unique set of "Red-Flags" in accounting crimes. There is a need to knov.' how to review financial reports. identify signals of creative accounting and to equip investors and depositors so as not to loose their investment

MERGER AND ACQUISITION IN NIGERIA: ANALYSIS OF PERFORMANCE PRE-AND-POST CONSOLIDATION

Abstract The banking reform pronounced on the 6th of July, 2004 had been a major wave towards a diversified, strong and reliable banking sector in Nigeria. This paper examined the mega banks by evaluating their performance four years after the consolidation exercise in Nigeria. It examined the impact of consolidation on performance and considers if there had been considerable improvement on their profitability, liquidity and solvency. In this study, we analyzed the performance ratio of a sample of thirteen (13) mega banks. A descriptive analysis of these performance ratios was carried out. Correlation Analysis was used to test the impact of the consolidation on the performance measurement parameters. We found that, on average, bank consolidation resulted into improved performance. The paper therefore suggests that the bank management should embrace broad product strategies, which could help in generating more income for the banks. They should also embrace diversification and financial innovation in order to produce new products and services. Keywords: Consolidation, Bank reforms, Performance measures, Ratios JEL Classification: G21, G28, G3

Influence of Macroeconomic Variables on Capital Structure Decision of Manufacturing Companies in Nigeria

Tvariables and stock market development on the capital structure decisions of manufacturing companies in Nigeria for the period from 1998 to 2013. The study was conducted under three independent periods the same period, one quarter after and one year after the announcement of the macroeconomic variables. Data from sample of 40 manufacturing companies quoted in the Nigeria Stock Exchange were analyzed using descriptive statistics and Newey and West (1987) standard error. The findings indicate that changes in gross domestic product (GDP) significantly influence capital structure decision of manufacturing companies in Nigeria only in the quarter after the announcement of the GDP figure, while interest rate, inflation and stock market development did not support capital structure decision making by manufacturing companies in Nigeria in all the three periods. This support the salient notion that there is actually a marginal delay in the adaptation of GDP as determinant for financing decision making. The study recommends that, those in charge of making such decisions should monitor and follow the trend of GDP and probably other monetary policies of the Federal Government and regulatory authority that affects GDP in their decision making. Government should also initiate policies that will discourage manufacturing company from over dependence on equity but encourage the use of long term debts that could guarantee growth in the real sector

ICT and E-governance at the Grassroots:Devising an Enabling Law

The innovation of e-governance enhances good governance, strengthens the democratic process, facilitates access to information, improves citizen participation and the quality of life, using the instrument of Information and Communications Technology (ICT). There is growing concern that e-governance at the local government level can: improve the quality of services to its constituents, improve efficiency, effectiveness, transparency of government operations, build the capacity of civil society to participate in the government policy, reduce corruption and foster accountability. This paper discusses the concept, benefits, state and challenges of e-governance in developing countries, using the empirical analysis of a local government in Ogun State, Nigeria. Findings show that there is real need for harvesting the potential to streamline administrative systems and improve the delivery of government services. It concludes that although e-governance holds great prospects across Nigeria, vast majority of local governments in Nigeria are miles away from e-governance and recommends, amongst others, that local governments should be mandated under law to use electronic means in their operations

Capital Market and Economic Development in Nigeria

This paper empirically shows the link between capital market and economic development. The study covers a period of 32 years (1970-?pgj) using two different regressions. The first regression covers the period 1970-1985: a period before Structural Adjustment Programme (SAP), and the second regression covers the period 1986-2001: a period after SAP. Ordinary Least Squares Estimation technique is used in analyzing the data. In our study we observe that stock market development significantly correlates with real gross domestic product. The paper therefore suggests that great effort is required to improve upon the efficiency of the Nigerian capital market to engender a speedy economic development

Determinants Of Creative Accounting

The resurgence of creative accounting has become an issue of concern globally. The conflicts of interest among different interest groups amongst others represent the real causes of creative accounting. This study focused on determinants of creative accounting to determine whether the identified causes such as employees and top management compensation package tied to performance, loophole in GAAP, flexibility in accounting standard, agency rating, shareholders' demand for regular dividend and improved earning, actually encourage creative accounting or that they are a product of intuition that have no empirical basis. The study made use of primary survey data sourced through the administration of questionnaires on 200 respondents using random sampling. Three hypotheses were tested using Chi square test statistic. The three null hypotheses were rejected. The researchers therefore conclude that the identified factors actually correlate with creative accounting. It is recommended amongst others that the policy makers and regulators should ensure the bridging of the gap and loopholes inherent in GAAP and accounting standards. Investing public should also be enlightened to frown at creative accounting under any guise because of its remote consequences on their investments

Stock Market, Financial Reforms and Economic Growth in Nigeria: An Empirical Analysis

The paper investigates the relationship between stock market and economic growth. It also examines the contribution of the Nigerian Stock market to the real activity before and after the introduction of financial reforms. This paper empirically shows the link between stock market and economic growth. The study covers a period of 32years (1970-2001} using two different regressions. The first regression covers the period 1970- 1985: a period before Structural Adjustment Progrmme (SAP}/ and the second regression covers the period 1986-2001: a period after SAP. The SAP period corresponds with the period when the deregulation of the financial market was in vogue in the Nigerian economy. Ordinary Least Squares Estimation technique is used in analyzing the data. In our study we observe that stock market development significantly correlates with real gross domestic product. This finding suggests tha0 policy measures that improve efficiency of the Nigerian stock market would promote economic growth

Assessment of Road Development in Abak Local Government Area, Nigeria

The poor quality of infrastructure in terms of network density, connectivity and accessibility levels and general conditions of road affect not only the rural economy but also triggers internal migration to urban areas. This study aim at assessing road development in Abak local government taking into consideration road connectivity and accessibility levels and the general conditions of existing roads using data obtained from field and map analysis.The study area was stratified into five (5) clans using stratified random sample. The Gamma and Shimble index techniques were used to analyze the data. Three hundred and ninety eight (398) copies of questionnaire were collected out of the 400 copies distributed. The result indicated that the study area has a total of 152.4km length of roads. 36km are paved federal roads, 84km unpaved state roads, and 1.69 km paved local roads and 30.7km unpaved local roads. The current status of road development coupled with poor conditions of road infrastructure is devasting and counter-productive to economic development of the study area. The roads in the area have been identified as deplorable. Thus, it is recommended that more roads should be opened and paved and properly maintained so as to achieve adequate level of accessibility and connectivity in the study area.Key words: Road, Development, Connectivity, Accessibility

Analysis of Empirical Relationship among Agricultural Lending, Agricultural Growth and Non-Performing Loans in Nigerian Banking System

Increasing levels in Non-Performing loans (NPLs) which has remained an area of great concern contributed to issue of declining agribusiness activities in Nigeria in the 1990s and thereafter. The study examined non-performing loans relationship with agricultural lending and agricultural productivity from 1980 to 2015 in Nigeria. Time series data obtained from CBN were analyzed using, Granger causality test, Pearson correlation, and co-integration as well as error correction models. The empirical analyses revealed that, bilateral Granger causality existed between loans and advances granted to agricultural sector and non-performing loans in Nigeria. Also, growth in GDP has a positive and significant correlation with NPL in Nigeria. In the long run, NPL is positively related to agricultural productivity, growth in the GDP and value of loans and advances offered to agricultural sector. Whereas, in the short run, NPL reacted significantly to the negative influence of interest rate and positive impact of GDP growth rate. The adjustment coefficient of 52% was discovered for the NPL long run equation in Nigeria. It is recommended that short and long- term banking reform policies be adopted to reduce fluctuations in NPLs in the banking system and efforts should be geared towards increased participation of specialized financial institutions as to accelerate investments in agriculture sector