Policy Support and Performance of Small and Medium Scale Enterprises in South-West Nigeria

This study sets out to investigate the impact of technological, infrastructure and financial supports on the performance of small and medium scale enterprises (SMEs) in Nigeria. Because of the largeness of the number of SMEs in different sectors of Nigeria, the coverage of the research work is narrowed down to bakery enterprises in South West Nigeria. Primary data were employed to elicit information from 144 bakery firms from South West Nigeria. The primary data were sourced using interview schedule and questionnaire administration. A model of three (3) linear equations was formulated capturing the variables of performance, technology, infrastructure and finance. In all, a total of twelve (12) variables were used in the analysis; they are: output (OUT), asset (AST), Employees (EMP), acquisition mode of machines (ACQ), energy expenditure (ENR), initial capital (CAP), training (TRA), water expenditure (WAT), bank credit (BNK), education (EDU), age of enterprise (AGE), and non-bank credit (NBK). The Ordinary Least Square (OLS) regression analysis was used to estimate the model. The findings of the study revealed that technological and financial supports impact positively on the performance of SMEs while infrastructural support is negatively related to the performance of SMEs in Nigeria. The study therefore concluded with empirical evidence that policy supports having bearing on technology, infrastructure and finance affect the performance of SMEs to a great extent in Nigeria. Keywords: Policy support, SMEs, Ordinary Least Square regression analysis.

Information Content of Dividend: Evidence from Nigeria

This paper seeks to investigate whether dividend payments possess significant information content capable of causing changes in stock prices in Nigerian stock exchange. Applying the panel model of the Generalized Least Square (GLS) regression which allows for the influence of individual firm's industrial characteristics, this study has helped in contributing to the basket of knowledge needed globally especially from a developing country like Nigeria. The findings indicate that changes in dividend payment merely create occasions for changes in stock prices. There is no sufficient evidence to suggest that stock price changes are caused by dividend payments. However, the study reveals that records of dividend payments Granger cause stock prices and causation runs from dividend payment to stock prices. Keywords: Causality; Stock Prices; Dividend Payments; Information Content; Stock Marke

Exchange Rate Volatility and Stock Market Behaviour: The Nigerian Experience

This study examines the long-run and short-run effects of exchange rate on stock market development in Nigeria over 1985:12009:4 using the Johansen cointegration tests. A bi-variate model was specified and empirical results show a significant positive stock market performance to exchange rate in the short-run and a significant negative stock market performance to exchange rate in the long-run. The Granger causality test shows a strong evidence that the causation runs from exchange rate to stock market performance; implying that variations in the Nigerian stock market is explained by exchange rate volatility. Keywords: Johansen Cointegration Tests; Granger Causality Test; Exchange Rate Volatility; Stock Market performance

The Impact of Macroeconomic Indicators on Stock Prices in Nigeria

This study set out to investigate the impact of macroeconomic indicators on stock prices in Nigeria. Since none of the previous writers in this area looked at the study at the individual firm's level, the research work is therefore unique as it uses a different methodology to consider it at the micro level. Secondary data on stock prices of selected firms and six macroeconomic variables between 1985:1 and 2009:4 were used for the analysis. The macroeconomic indicators used in the research work are: money supply (BRDM), interest rate (INTR), exchange rate (ECHR), inflation rate (INF), oil price (OIL) and gross domestic product (GDP).The pooled or panel model was used to examine the impact of macroeconomic variables on stock prices of the selected firms in Nigeria. This model was considered appropriate for its ability to combine both time series and cross-sectional data.  The empirical findings of the study revealed that macro economic variables have varying significant impact on stock prices of individual firms in Nigeria. Apart from inflation rate and money supply, all the other macroeconomic variables have significant impacts on stock prices in Nigeria The study therefore concluded with empirical evidences that trends in macroeconomic variables can be used to predict movement of stock prices to a great extent in Nigeria. Keywords: Macroeconomic Indicators, Stock Market, Pooled or Panel Model

Interaction Between Real And Financial Sectors In Nigeria: A Causality Test

This study investigates the interrelationship between industrial productivity and money supply as proxies for the real and financial sectors by testing for causality under a Vector Auto-Regression (VAR) structure. In the study, it was revealed that Nigeria over the 35-year period between 1970 and 2005 like many other LDC's has a unidirectional causality running from the financial sector to the real sector growth. This indicates that the country still operates in the short-run and to take advantage of long-run changes, such variables as technology and factor productivity should to be taken into cognizance

Value Relevance of Financial Accounting Information of Quoted Companies in Nigeria: A Trend Analysis

This research paper examines the value relevance of accounting information of quoted companies in Nigeria using a trend analysis. Secondary data were sourced from the Nigerian Stock Exchange Fact Book, Annual Financial Reports of Sixty six (66) quoted companies consisting of financial and non-financial firms in Nigeria and the Nigerian Stock Market annual data. The Ordinary Least Square (OLS) regression method was employed in the analysis. The study reveals that accounting information on quoted companies in Nigeria is value relevant. However, the study reveals further that the value relevance of accounting information does not follow a particular trend within the period under study. While the value relevance was weak in the periods of political crisis caused by military dictatorship (1992-1998) and global economic crisis (2005-2009), it was high in the other periods. Based on the finding that accounting information directly influences the value of securities in the capital market, it is therefore recommended that Accounting Standards should be complied with by Nigerian companies and that more standards that can curtail information overload should be introduced. As a result of the trend experienced between 1992 and 1998, the study also advocates stable political atmosphere in Nigeria. Keywords: Value Relevance; Accounting Information; Book Value; Cash Flow; Financial Statemen

Synergistic Effect of Recent Mergers and Acquisitions in Nigerian Banking Industry

Precisely in 2010 in Nigeria, Intercontinental Bank; Oceanic Bank; Finbank and Equitorial Trust Bank were acquired by Access Bank; Ecobank; First City Monument Bank and Sterling Bank respectively as the only option against distress. The unpalatable experience that greeted the industry after the most notable consolidation of 2005 through mergers and acquisitions has become a course for concern for researchers in this area. In the light of the above, this study is aimed at investigating into the synergistic effect of the recent mergers and further confirming the position of economic theory which cites synergy as one the many possible reasons why mergers might occur. Using Enyi model and technique, the study analysed the pre and post-merger financial statements of three (3)of the four (4) merger groups whose data were available between 2006 and 2012. Our results showed that of the three merger groups only one showed evidence of synergy in the growth of shareholders funds while none of the groups achieved synergy in the growth of total assets. Suffice to say that not all mergers and acquisitions in Nigeria result into true financial synergy Keywords: Synergy; Acquisition; Merger; Performance

Long and Short Run Relationship between Stock Market Development and Economic Growth in Nigeria

We examined the long and short run association subsisting between stock market development(market capitalisation, value of transactions, number of deal and all share index), and Nigerian economicgrowth (RGDP) with quarterly data from 1986 to 2017. The Autoregressive Distributed Lag (ARDL) model isapplied for the purpose of estimation. The ARDL bound test result revealed that all the indicators of marketdevelopment exert positive effect on the RGDP in the short run. Further, all the indicators except number ofdeals, have direct and significant relationship with economic growth. Moreover, we find that marketdevelopment causes economic growth. Consequently, we recommend a need for the implementation ofpolicies and procedures capable of enhancing investors’ confidence and boosting market because of theirperceived multiplier impacts on economic growth. Effort should also be focused on the enhancement of stockmarket size which in turn will provide the needed fund for investment and thus resulting in rise in the RGDP

Tax Structure and Economic Growth in Nigeria: A Disaggregated Empirical Evidence (1986–2012)

This study examines the Tax Structure and Economic Growth in Nigeria: A Disaggregated Empirical Evidence using a time series data spanning from 1986 through 2012. The data for the analysis were collected from CBN statistical bulletin and federal Inland Revenue services. The Engel–Granger cointegration technique was used to ascertain the relationships between the variables in the model employed in this study. The study finds a linear relationship between economic growth and tax revenue. It suggests a “tax and growth” ranking of taxes, confirming results from earlier literature but providing a more detailed disaggregation of taxes. Petroleum Income Tax, Corporate Income Tax are found to be most beneficial to growth in Nigeria. On the contrary, Personal Income Tax as well as the custom and excise duties do not promote growth as empirically examined in this study. Revenue neutral growth-oriented tax reform therefore, is to shift part of the revenue base from Personal Income Tax as well as the Custom and Excise Duties to less distortive taxes aimed at inducing local consumption. A major contribution of the study to knowledge is that it has been able justify empirically that taxation-economic growth nexus is both per capital income and consumption induced in Nigeria. This therefore closes the knowledge gap induced by inconclusive evidence on the growth effects of taxation composition which most often has resulted in situations where empirical findings of researches done in developed economies are generalized to developing countries. It is therefore recommended that Nigeria should restructure the Personal Income Tax and the Custom and Excise Duties to induce consumption to achieve growth. Furthermore, the level of tax evasion in Petroleum Profit Tax, Corporate Income Tax and Value Added Tax which proved to be very beneficial to growth in Nigeria should be reduced through an efficient and effective tax administration. Keywords: Tax Burden, Tax Rate,  Value Added Tax, Tax Evasion, Petroleum Income Tax, National Tax Polic

Impact of Privatisation on the Development of Nigerian Capital Market: A Reassessment

This article examined the impact of privatisation on the development of Nigerian capital market. Market capitalisation (MCAP) is the dependent variable while Number of Listed Companies (NOLC), Number of Deals (DEAL), Number of Listed Securities (NOLS) and Gross Capital Formation (GCF) are the explanatory variables.  The data used in this study were obtained from secondary sources, namely the Nigerian Stock Exchange Fact book and Central Bank of Nigeria statistical bulletin. The data covered a period of 30 years ranging from 1986 to 2015 during which privatization was prominent in Nigeria. Unit root test, cointegration test, error correction model (ECM) were employed as the analytical techniques. ADF test showed that the MCAP, NOLC, DEAL, NOL and GCF are stationary at first difference while Johansen Cointegration test showed that there is a long-run relationship among the variables. Findings from the ECM revealed that GCF and NOLC have positive and significant impacts on MCAP; NOLS has positive and insignificant impact on MCAP while DEAL has a negative and insignificant impact on MCAP. The study concluded that privatisation has a significant impact on the development of Nigerian capital market. Hence, government and regulatory authorities should formulate policies aim at promoting domestic investment in the country; encourage listing of unquoted companies by removing stringent listing requirements; ensure the introduction of arrays of financial instruments with which savings could be effectively mobilised and channeled to productive investment; create awareness and sensitize Nigerian investing public of the benefits attendant to share/stock ownership in order to increase participation and Securities and Exchange Commission should be more involved in the determination of the allotment of securities during privatization in order to ensure wider spread