Corporate Social Accounting and the Enhancement of Information Disclosure among Firms in Nigeria: A Case of Some Selected Firms in Nigeria

This study  evaluates Corporate Social Accounting and Enhancement of Information Disclosure among selected  some quoted firms in Nigeria. Questionnaires were administered to  randomly selected respondents made up of accountants of management cadre from the selected firms. The data collated from respondents were analysed and tested using  One-Way ANOVA and Chi-square statistical tools. The study among other things revealed that the   inclusion of corporate accounting  reports as an additional but distinct report  in the annual statements will significantly enhance information disclosure to stakeholders. The study also found out that  most companies in Nigeria  presently disclose social accounting information in their annual reports via the Directors’ Report, Chairman’s Statement and Notes to the Accounts while  these report are shown with very short/scanty qualitative information. This paper therefore recommends among others that companies should consider social accounting reports imperative and make it  a distinct but an integral part of the financial statements to be presented annually; suitable accounting  framework  should be propounded  by relevant accounting bodies to guide and steamline the reportage on  social accounting information by corporate organisations  while the government should put in place the neccessary legislations to compel organisations to disclose social accounting information in Nigeria. Keywords: corporate social accounting, social accounting, social costs, social performance, financial statements

Effects of IFRS Adoption on Inventory Valuation and Financial Reporting In Nigeria

The IFRS has streamlined the basis for valuing inventory against that which was hitherto posited by the Statement of Accounting Standards (SAS) or the US GAAP. These methods   have far reaching implications for the value of inventory firms would report in their financial statements. This paper has examined those methods adopted by the International Financial Reporting Standards (IFRS) and there would be implication on financial reporting in Nigeria. The study was conceptual and empirical with most data sourced from the relevant text book and the internet.  A survey was also carried out to know the level of awareness of this adoption and level of compliance.  The study revealed that though some companies has adopted the use of FIFO method but a good number  are still using the LIFO method which was proscribed by IFRS. The study recommends that firms should adopt the use of FIFO and Weighted Average Methods as prescribed by IASB and the others permitted by IFRS. This will make their financials comparable under the IFRS while firms should embark on intensive training of their accounting staff to get them to becoming IFRS compliant. Key words: Inventory, Valuation, Financial Reporting, IASB, IFR

Relevance of International Financial Reporting Standards on Accounting Quality in Nigeria

This study appraised the effect of International Financial Reporting Standards (IFRS) on the Financial Reporting and Accounting Quality in Nigeria. Data were sourced  through  Likert- Scaled Questionnaire. The instrument were administered to a sample size of  220 respondents comprising of the different firms who are believed to be versatile in accounting. Data were presented in tables and analysed with simple percentages. Hypotheses were tested using Chi-Square Statistical Tool. The analysis shows that IFRS adoption positively affect the reliability of it financial reporting.  IFRS has significantly effect on the financial reporting of Nigerian firms. Sequel to the findings, the study recommends that Nigerian firms should invest massively in the Human Capital Development and infrastructure needed to entrench and deepen the adoption and implementation of International Financial Reporting Standards for the  enhancement of   quality of   financial reporting in Nigeria. Keywords: International Financial Reporting Standards, Financial Reporting, Accounting Quality, Nigeria

Financial Risk Management: A Review of the Role of the Central Bank of Nigeria

This study  reviews the risk management  practices  among banks in Nigeria with particular reference to the role of the Central Bank of Nigeria .  Data were gathered through structured questionnaires, the banks’ annual reports and accounts, relevant CBN publications  and other related literature. The study revealed among others that poor risk awareness and management practices among banks  has  led to the intermittent turmoils  experienced  in Nigeria’s banking sector. It also revealed that many banks adopted a reactive approach to risk instead of being proactive and this has eroded to a reasonable extent depositors funds .  The study recommends that Central Bank of Nigeria and other banks'  managements should  establish proactive  risk management strategies while necessary infrastructure are put in  place to enforce them. There should also be adequate  provision of  the needed risk  infrastructures like the  state of the art  technologies, personnel and processes in the banks. The apex  regulators  should set out strategies that will sternly regulate the risk culture and appetite of the banks, conduct  periodic recertification of banks on risk management and put the neccessary framework that will ensure compliance .  The hitherto firebrigade approach to risk management should be eschewed as this sends an undeserved panic on stakeholders and erodes public's confidence in the banking system in Nigeria. Keywords: Financial Risk, Risk Appetite, Risk Disclosure, Risk Management, Central Bank of  Nigeria

Does Corporate Social Responsibility Predicate Good Financial Performance? Evidence from the Nigeria Banking Sector

This research examines the cointegration, magnitude and strength of the relationship between corporate social responsibility and key financial performance indicators in Nigeria with a focus on the Nigeria banking sector. The ex post facto research design was adopted because the study made use of secondary data obtained from annual reports and accounts of the two market leaders in the sector- First Bank Plc and Zenith Bank Plc. The study covered from the year 1988-2011 for the First Bank of Nigeria and from 2002–2011 for Zenith Bank Plc. The research made use of the ordinary least square (simple linear regression) for the analysis of collected data in order to evaluate the magnitude of association of the variables. Findings from the analysis show that the two banks invested less than ten percent (10%) of their annual profit in Corporate Social Responsibility (CSR) initiatives. The co-efficient of determination of the result obtained show that the explanatory variables account for changes or variations in the key financial performance indicators of the selected banks. Performance in their profit before taxes and the gross annual revenues were caused by changes in investment Corporate Social Responsibility (CSR) while no linear relationships could be established between the price for the shares and amount invested in CSR. The study therefore recommends that laws and regulations to obligate firms to invest a percentage of their annual profit to CSR be enacted by relevant government agencies. Keywords: Corporate Social Responsibility, Corporate Accounting, Financial Reporting, Financial Performance

Evaluation of Firms’ Corporate Financial Indicators and Operational Performance of Selected Firms in Nigeria

The study examined the effect of firms’ growth indicators on operational performance of selected firms in Nigeria. Firm size  and profitability  firms’  are the proxies for operational performance while Return on Assets was the measure for financial performance. The study adopted the ex-post facto research design. Data were sourced from the financial statement of firms studied. Multiple regressions were used for analysis. Results show that firm size and profitability have significant a negative and insignificant effect on Return on Assets. The paper recommends that firms should strive to increase firms size and profitability at a level that will positively and significantly affect Return on Assets. Keywords: Firms’ Financial Indicators , Firms’ Size, Profitability,  Operational Performance,  Return on Assets

Analytical Review of the Effect of Corporate Social Reporting Disclosures on Performance of Firms in the Financial Sector in Nigeria

This research appraised the effect of corporate social reporting disclosure on the financial performance of banks in Nigeria. Gross Earnings, Profit after Tax and Share Price were the proxies for financial performance while expenditure disclosure constituted the measurement for social cost disclosure. The researcher made use of Eview in the data analysis. The study reveals that Social Responsibility Expenditure does not have significant effect on the Gross Earnings of banks in Nigeria. It was also observed that Social Responsibility Expenditure does not have any significant effect on Profit after Tax of banks in Nigeria. The result of this study equally revealed that Social Responsibility Expenditure has little or no effect on the Share Price of banks in Nigeria. The study recommends that companies should take social accounting disclosure as part of their normal reporting mandate in order to better inform stakeholders and the report must be separately disclosed and form part of the content report statements and government should provide rebates for companies that incurred social costs as a way of encouraging good corporate reportage. Keywords: Corporate Social Reporting, Financial Performance, Return on Assets, Return on Equity, Market Price per Shar

Effect of Firms’ Growth Variables on Corporate Valuation of Manufacturing Sector in Nigeria

The main objective of this study is to effect of firms’ growth variables on corporate valuation of manufacturing sector in Nigeria. A sample of five (5) firms was selected from the thirty seven (37) manufacturing firms quoted on the Nigeria Stock Exchange Market (NSE). Secondary data were collected from the firms for ten years period (2007 to 2016). The data were analyzed using multiple regression analysis whereby sales growth, assets growth, cost of sales growth were the independent variables and proxies firm growth while net assets per share was the dependent variable and proxy for firm valuation. Findings show that sales growth, assets growth of manufacturing firms in Nigeria positively and strongly affect net assets per share of the firms during the period. Finding also shows that cost of sales growth of manufacturing firms in Nigeria positively, but insignificantly affects net assets per share of the firms. It was recommended that manufacturing firms in Nigeria should increase their sales in order to improve their net assets per share and hence their firm value, that Nigeria manufacturing firm managers can improve their firm net asset per share by increasing its total assets. Lastly, that manufacturing firms in Nigeria should improve their firm value by increasing its productivity. Keywords: Firm, Growth Variables, Firm’s Valuation, Manufacturing Sector, Nige

Evaluation of the Effect of Federal Government External Debts and Reserves on Economic Growth in Nigeria

This study is to evaluated the effect of federal government external debts and external reserve on economic growth in Nigeria. The study spanned 2007– 2016. Gross Domestic Product formed the basis for economic growth The study adpoted the ex post facto as research design. The analytical tools used were unit root test and ordinary least square. The study found out that external debt stock had a negative and significant effect on real gross domestic product with the studied period and external debt service payment had a negative and non-significant influence on real gross domestic product with the sampled period. The study therefore recommended that external debts should be contracted solely for economic reasons and not for social or political reasons. This is to avoid accumulation of external debt stock overtime and prevent an obscuring of the motive behind external debt. The authorities responsible for managing Nigeria’s external debt should adequately keep track of the debt payment obligations and the debt should not be allowed to pass a maximum limit so as to avoid debt overhang. Keywords: Federal government, External Debts, External Reserve, Economic Growth,  Nigeria

Effect of Liquidity on Financial Performance of Deposit Money Banks in Nigeria

This study appraised effect of liquidity on financial performance of deposit money banks in Nigeria. A sample of five (5) banks was used for the study. Secondary data were collected from the firms for ten years period, 2007 - 2016. The data were analyzed using multiple regression analysis. Results show that Liquidity has positive and significant effect on banks’ profitability ratios and that liquidity also has positive and significant effect on Return on Capital Employed.  The study recommends that there is need to replace being practiced in the advance economies of the world. Investing on human capital may be beyond just employees but also frequently creating an interactive forum where bank clients could be sensitize on a variety of activities they indulge in that are capable of hindering effective liquidity management,  need to invest on human capital by banks as it offers the highest returns in terms of increasing performance and it also enhances the level of competence of the employee and that the regulatory authorities should put in place appropriate policy with compliance measures to check high volume cash transaction and cash hoarding prevalent in the economy. The Central Bank of Nigeria must critically review and follow-up or monitor the effectiveness of liquidity policy tools in banks and where necessary, appropriate sanctions placed on erring banks to ensure effective implementation of these policy tools in an attempt to achieve desired liquidity level. Keywords: Liquidity, Financial Performance, Profitability, Return on Assets,  Banks,  Nigeria