An assessment of Nigeria's capital structure and its determinants from global recessions

Capital structure is a very important component of business organizations.It is an index of many variables that may affect both short-run and long-run decisions as interested parties both within and outside the organization may use it to determine many future activities.In Nigeria our economy is highly in need of foreign capital for the long-term financing of businesses.The 2008 recession adversely affected the capital structure of most of the businesses operating in Nigeria especially financial institutions.Foreign investments were withdrawn to finance deficits abroad.This paper aims at investigating the causes of the global economic meltdown and how it helps shaped Nigeria’s capital structure’s relationship with determinant variables.Documentary sources were the main source of data used for this paper.The massive level of poverty in the country served as a favorable breeding ground for the impacts of the global economic meltdown to be very effective.In addition, the openness of our economy which is import dependent makes it vulnerable to global economic impacts. Thus the result was massive outflow of capital and drastic restructuring in most financial institutions which lead to unemployment and high inflation rates.It is therefore, advisable for the government to set up a committee on global economic matters to advice from time-to time on global economic performances so as to avert being taken unawares in case of future occurrence of economic crisis

The influence of social norms on the consumption pattern of Hausa-Fulani people in Nigeria

Customs and traditions have for long shaped the consumption patterns and habits of so many societies.Social values that range from historic, traditional, customary, religious, etc. have played a great role in what people eat, wear, and use generally.This work is an attempt to validate the assertion that social norms are not responsible for the consumption pattern of the Hausa-Fulani ethnic group of Nigeria. Using the Hausa-Fulani population in Kano State, a survey was carried out on 150 residents of each of the 44 local governments of the State. Kano State was chosen because it gives a fair reflection of the Hausa and Fulani spread in Nigeria and the West African sub-region.The data, analysed through OLS regression showed among other things that traditional and modern values have significant influence on Hausa-Fulani consumers.However, while traditional values have direct impact modern values have an inverse effect. Religion has no significant influence on their consumption pattern.This is mainly due to the high rate of poverty.Conclusively, though religious values are considered very highly in Hausa-Fulani societies; traditional and modern social values are what determined their consumption behavior

Determinants of sustainability reporting by environmentally sensitive firms in Nigeria

The effects of man’s actions and industrialization on the bio-system have not been pleasant. The effect of environmental challenges likes drought, desertification, erosion, gas flaring, and pollution is suffering by Nigerian now. Indirectly, it affects the social and political landscape of Nigeria. Hence, this research has been made to investigate the relationship between sustainability reporting and its determinants like environmental policy administrators, corporate financial performance, board independence and corporate foreign ownership concentration. The research primarily targeted the nature and trend of sustainability disclosure in compliance with the Global Reporting Initiative (GRI-4 or G4) which is internationally recognized for sustainability reporting standards and guidelines. Concentrating on environmentally sensitive companies in Nigeria, the research covered 67 firms over a 6-year period (2009-2014). Data were analyzed through content analysis, descriptive statistics, and robust random effect regression after embarking on proper data screening and diagnostic tests. The results showed an appreciably higher level of sustainability disclosure by environmentally sensitive firms. However, on matters of influence only board independence and duality showed significant relationships. Both of which have inverse relationship with sustainability information disclosure indicating that an independent board and division of the CEO’s duty does not encourage higher disclosure of sustainability information. The significance of these results is to enable the appropriate authorities to maintain the increasing trend in disclosure with the prospect of future improvements through mandatory disclosure. In addition, the research could serve as a basis for a major overhaul of the “Code of Corporate Governance - 2011”

The practicability of activity-based costing in service firms

The study of Activity-Based Costing (ABC) system is a recent phenomenon in accounting. Modern management requires details of costs and other statistical information which will enable it not only to distinguish efficient departments from inefficient ones and profitable products from unprofitable ones, but to also relate good and bad results to individual managers or those directly responsible for them.The availability of such information in a convenient form enables management to judge the efficiency of past efforts, control current operations, make future plans and above all cut down heavily on its operating costs.ABC is among the latest tools designed to perform such functions.A concept mostly associated with the manufacturing sector, this paper reviews ABC and tests the extent to which it is practicable in service industries. Specifically, the conditions necessary for effective ABC and the reasons for its preferred application was looked into.It is also intended to bring to light the nature and techniques used in its application.To attain this a thorough review was done through conceptual analysis to show the extent to which it is practicable in service firms.It was discovered that ABC can be successfully practice by firms providing services with varying degree of acceptability and positivity.Moreover, its successful application is not only limited to the private sector but includes the public sector as well. This notwithstanding, some service firms shy away from applying ABC while others preferred an alternative system known as activity-based management (ABM)

Assessing the relationship between banking capitalization and sustainable development in Nigeria

The fact that the banking industry is not a polluted or environmentally sensitive sector does not immune it from its consequences, because as members of the community they equally owe a responsibility to society.Our major aim in this study is to assess the relationship between banks capital structure and sustainable development in Nigeria.While the manufacturing and other environmentally sensitive sectors are expected to contribute positively towards sustainable development, it is also logical that major creditors (banks) to these industries do same. Scarce literature's on the role of service industries on sustainability reporting is what motivated the researcher to investigate the role banks have been playing in promoting sustainable development given the strength of their capital base. Using 75% of banks quoted in the NSE, the variables were regressed to see the difference in the mean within the periods 2010 to 2013. The result from the F-Change test showed that there is no significance relationship between the capital base of banks and their reporting of social and environmental information. The long-term consequences of such action on the economy may depend on future reporting nature, trend and level.Government should therefore, make sustainability disclosure mandatory and encourage quantitative reporting as opposed to qualitative (pictorial) ones, since there are government agencies charged with the responsibility of enforcing social and environmental Acts.If possible a special tax law like the Global Carbon Tax, be enacted to serve as the contribution of banks and other firms towards sustainable development in the country

The Influence of Environmental Supervisory Agencies on Environmental Information Disclosure in Nigeria

Purpose: - Environmental reporting based on triple bottom line (TBL) reporting consists of three basic elements of profit, people and planet depicting economic, social and environmental information respectively.Past studies have tend to examine relationships between these three collectively and other variables especially corporate characteristics.Of greater concern to environmentalists however, are environmental information dissemination, which has been greatly ignored.This study is therefore, an attempt to examine exclusively the relationship between pure environmental information disclosure and environmental monitoring agencies.Methodology: - Using environmentally sensitive firms operating in Nigeria, the study employed content analysis and regression to determine the relationship covering the period 2009-2014.Findings: - It concluded that both significant positive and negative relationships exists between environmental reporting and monitoring agencies.Research Implications: - This shows that while NSE contributes positively to environmental information disclosure, DPR and NESREA are having a negative impact on environmental information dissemination. Practical Implications: - There is a clear indication that the DPR & NESREA are inefficient/ineffective.Originality/Value: - The lack of treating environmental information dissemination independently from other elements of sustainability is what this study capitalized on.Furthermore, studying the influence of environmental monitoring agencies (NSE, DPR and NESREA) on environmental reporting is mostly overlooked by scholars

Sustainability reporting by firms in the Nigerian economy: social versus environmental disclosure

Purpose: There is need for specialization on individual categories of sustainability information disclosure. An attempt has been made in this study to make a comparison between the environmental and social categories of sustainability disclosure.Methodology:Guided by the G4 sustainability reporting guidelines, environmentally sensitive companies in the Nigerian economy were analyzed for 6 years (2009-2014).Separate assessments and comparisons were made between environmental reporting and social reporting on the impact, influence and significance of the relationships using Stata13SE analytical tool. Findings: The results shows that firms performed better on social reporting than on environmental reporting in terms of higher sustainability disclosure rates and significant relationships.Research Implications: The current trend of reporting sustainability information disclosure under both social and environmental reporting is encouraging considering the fact that disclosure on sustainability issues in Nigeria is voluntary. Practical Implications:Firms in environmentally sensitive sectors are disclosing sustainability information than expected. Originality/Value:The uniqueness in comparing sustainability disclosures between environmental information and social information

Sustainability Reporting by Firms in the Nigerian Economy: Social versus Environmental Disclosure

Purpose: - There is need for specialization on individual categories of sustainability information disclosure.Attempts has been made in this study to make a comparison between the environmental and social categories of sustainability disclosure.Methodology: - Guided by the G4 sustainability reporting guidelines, environmentally sensitive companies in the Nigerian economy were analysed for 6 years (2009-2014).Separate assessments and comparisons were made between environmental reporting and social reporting on the impact, influence and significance of their relationships using Stata13SE analytical tool.Findings: - The results shows that firms performed better on social reporting than on environmental reporting in terms of higher sustainability disclosure rates and significant relationships.Research Implications: - The current trend of reporting sustainability information disclosure under both social and environmental reporting is encouraging considering the fact that disclosure on sustainability issues in Nigeria is voluntary.Practical Implications: - Firms in environmentally sensitive sectors are disclosing sustainability information than expected.Originality/Value: - The uniqueness in comparing sustainability disclosures between environmental information and social information

Board Characteristics and Sustainability Reporting: Environmental Agencies' Moderating Effects

The Paris “Climate Deal” is an indication of the seriousness at international level, being attached to environmental degradation.  The efficiencies of government environmental agencies in the disclosure of environmental information by sensitive firms in Nigeria, is what the study to examine.  Covering the periods 2009 to 2014, secondary data was obtained from firms' financial, sustainability and TBL statements selected at random from six sectors of the economy.  Through the use of Stata13 analytical tool, regression of the variables was carried out.  The result showed an encouraging disclosure index of about 55%.  In particular, all the relationships measured had significant relationships and applied the latest version of GRI (G4).  Environmental agencies were also tested for their role in sustainability reporting.  The study recommends nonexecutive members of the board of Directors be educated on environmental matters so as to offset their negative impact on the disclosure of environmental information.       Keywords: Board Characteristics, Environmental Protection Agencies, Sensitive firms JEL Classifications: H23, R11

Corporate Ownership and Sustainability Reporting: Environmental Agencies' Moderating Effects

In third world economies like Nigeria, the role of foreign ownership of businesses compared to local ownership on environmental issues has been given very little attention.  Foreign investors may assist in the fight against environmental degradation.  This research determines the relationship between environmental information disclosure and ownership structure in combination with environmental agencies using the latest version of GRI (G4).  The study is a pioneer application of environmental agencies' role in sustainability reporting and considers 81 companies in 6 environmentally sensitive industries of the economy.  From a stratified random selected sample of 67 firms, the study tested for the relationship from 2009 to 2014.  The outcome showed an inverse and significant relationship between environmental disclosure and ownership structure.  This forced the recommendation that local ownership should be encouraged to grow at a faster rate so that a positive impact will be reflected on environmental information disclosure. Keywords: Corporate Ownership Structure, Environmental Disclosure, Environmental Agencies JEL Classifications: G31, H23, R1