Implication of Economic and Financial Crimes Commission and Corruption on the Consolidation of Democracy and Sustainable Development and Growth in Nigeria from 2004-2008

Nigeria’s inability to consolidate her democracy is blamed largely on the high level of corruption in the country. Corruption is efforts to secure wealth or power through illegal means for private gain at public expense; or a misuse of public power for private benefit. Corruption like cockroaches has coexisted with human society for a long time and remains as one of the problems in many of the world’s developing economies with devastating consequences. Corruption as a phenomenon, is a global problem, and exists in varying degrees in different countries (Agbu, 2001). Corruption is not only found in democratic and dictatorial politics, but also in feudal, capitalist and socialist economies. Christian, Muslim, Hindu, and Buddhist cultures are equally bedeviled by corruption (Dike, 2005). Corrupt practices are not an issue that just begins today; but the history is as old as the world (Lipset and Lenz, 2000). Corruption not only distorts competition, hinders economic growth and endangers the stability of democratic institutions; it pulls down the moral foundation of society (Inokoba and Ibegu, 2011). In Nigeria, it is one of the many unresolved problems (Ayobolu, 2006) that have critically hobbled and skewed development. It remains a long-term major political and economic challenge for Nigeria (Sachs, 2007). It is a canker worm that has eaten deep in the fabric of the nation. It ranges from petty corruption to political / bureaucratic corruption or Systemic corruption (International Center for Economic Growth, 1999). World Bank studies put corruption at over $1 trillion per year accounting for up to 12$188 million, up from $15 million, with a deadline for compliance at the end of December 2005. This resulted in a record number of bank mergers and acquisitions. As a result, the number of banks in Nigeria has shrunk from 89 in 2004 to 25 in December 2005. The institutions charged to fight corruption in Nigeria have not done enough to contain the upsurge of his this menace up to expectation. Thus, the paper is tempted to ask the following questions: Why have the various anti-corruption agencies of various administrations failed to reduce the menace of corruption? Are the methods applied to confront corruption inadequate? Can the present anti-corruption commission (EFCC) effectively confront corruption as a step to the consolidation of democracy? Lastly, does the role played by the EFCC justify why it was established? It is against this background that this study seeks to investigate the implication of Economic and Financial Crimes Commission (EFCC) and corruption on the consolidation of democracy and sustainable development and growth in Nigeria from 2004-2008

Tax Return and Economic Growth: Evidence from Nigerian Experience (2000-2017)

This paper determined the effect of tax return on gross domestic product. Data were collected using secondary source only. The technique employed was multiple regressions as tool of analysis for the study. The findings of the study show that Tax Returns on Customs and Excise Duty, Value Added Tax and Aggregate Tax Revenue have positive significance growth rate on Gross Domestic Product. Based on this, the paper recommended among others that government should also ensure that they remove impediments to investment in form of legal and regulatory barriers. There is need to ensure stable macroeconomic environment. The Government should ensure that Value Added Tax Growth Rate is boosted in order to improve the economy. Keywords:Tax return, Customs and Excise Duty (CED), Value Added Tax (VAT), Aggregated Tax revenue, Gross Domestic Product (GDP) and Nigerian tax DOI: 10.7176/RJFA/11-18-16 Publication date:September 30th 202

Board governance mechanisms and sustainability reporting quality: A theoretical framework

The presumed poor performance in terms of sustainability commitments and Sustainability Reporting Quality (SRQ) of quoted companies have incentivized stakeholders’ agitation relating to the Economic, Environmental, and Social (EES) impacts of companies’ operations. Business activities have generated several threats in the form of climate change, pollution, GHG emission as well as natural disasters, and several other problems that have negatively affected the environment and stakeholders. Companies are expected to report their sustainability performance to stakeholders. However, the quality of such sustainability reports has been critically criticized as they are mostly assumed to fall below stakeholders’ expectations. This study aims to conceptually examine the association between board governance mechanisms and SRQ in Malaysia. The method adopted by this study is the review of previous literature on sustainability reporting practices and SRQ to gain insight into drawing a proposition regarding the relationship between board attributes and SRQ of PLCs in Malaysia. Through this method, the study generally verifies the SRQ of firms and how it is influenced by board attributes. Based on the insight from the reviewed past investigations, the study concludes in its proposition that there is a positive association between the examined board governance elements and SRQ based on multiple theories. The study has practical implications for the companies, regulators, government, and other stakeholders in their policy considerations and investment decisions. The study recommends an empirical study to re-investigate SRQ employing the variables used in this study and more board attributes to enhance the generaliz ability of the findings

Board governance mechanisms, external assurance, and sustainability reporting quality: the moderating role of family-controlled firms

The objective of this study is to examine the relationship between board governance mechanisms (i.e. female director leadership, board communication, board integrity, and political connection), external assurance, and Sustainability Reporting Quality (SRQ) in Malaysia. The study further examines the interacting effect of family controlled firms. The study employed the top 500 companies listed on the main board of Bursa Malaysia from 2015 to 2019. Descriptive statistics and panel data regression are utilized in this study. The results of the descriptive statistics indicate that the quality of sustainability disclosure has slightly improved, compared to the reports of previous Malaysian sustainability studies. Using Feasible Generalized Least Square (FGLS), the results showthat female director leadership, board communication, board integrity, politically connected firms, and external assurance are positively and significantly associated with SRQ. Therefore, the management of firms needs to consider these variables as they are highly useful especially in emerging economies with not very strong institutions. Further, interacting effects were found for family-controlled firms in the relationships between female director leadership, board integrity, politically connected firms, external assurance, and SRQ. While no interacting effect was found for family-controlled firms in the relationship between board communication and SRQ. The results of the study indicate that an effective board can help ameliorate agency issues thereby enhancing corporate reporting quality. Hence, compliance with Bursa Malaysia guidelines (e.g. the Practice Note 9 Updates) and the Malaysian Sustainability Reporting Guide could be reinforced to further increase the quality of sustainability disclosures in Malaysia. The findings provide valuable input for the management of corporate organizations in their unrelenting efforts to remain competitive and satisfy the needs of stakeholders as a means of better performance and corporate legitimization

Does institutional investor influence information technology investment decisions and corporate performance?

AbstractThis paper examines the role of institutional investors foreign-owned firms and government-linked companies, in improving firm performance through the channel of IT investment decision. The data sample comprises information collected from the annual reports of 231 companies listed on Bursa Malaysia, spanning the years 2010 to 2019. This study concludes, on the basis of the Generalized Method of Moments (GMM) dynamic model, which mitigates the endogeneity issue linked to the equity multiple value model, that institutional ownership moderates the relationship between IT investment and firm performance in a positive direction. The results of the study shed light on the capacity of institutional investors to allay apprehensions regarding agency problems that arise from the rent-seeking conduct of managers. The implications of this finding are both theoretical and practical, given that IT expenditures continue to constitute a substantial proportion of the capital budgets of organisations. However, several studies indicate that there is no direct relationship between firm IT investment levels and firm performance. This study contributes to the body of knowledge by examining the influence of institutional investors on IT investment decisions. It does so by integrating agency theory, which explains performance shortfalls, and corporate governance, which oversees and controls managers’ inappropriate investment choices, thereby illuminating the antecedents of IT investment decisions. The present investigation would furnish significant insights for stakeholders, investors, and the general public, thereby augmenting their understanding of the pivotal significance of institutional ownership and guaranteeing that investments in IT are adequately regulated

Corporate social responsibility and firm market performance: the role of product market competition and firm life cycle

Purpose- This study empirically investigates the role of product market competition and mature-stage firm life cycle on the relation between corporate social responsibility (CSR) and market performance in an emerging market context – Malaysia.
 Design/methodology/approach- The authors construct a comprehensive CSR index toward the economy, environment and society (EES) and apply both Ordinary Least Squares (OLS) and Two-Stage Least Squares (2SLS) instrumental variables (IV) approaches to test the hypotheses of the study.
 Findings- The authors find that EES-based CSR generally enhances firms' market performance; however, the level of product market competition undermines the market performance of socially and economically responsible firms. In addition, the study results indicate that mature-stage firm life cycle with more involvement in CSR activities shows better market performance. However, the endogeneity check of CSR suggests that both CSR and mature-stage firms are mutually exclusive in influencing market performance. The study findings are robust to alternative measures and different identifications of high and low default risk situations of sample firms.
 Practical implications- This study carries practical policy implications for the listed firms, regulators and stakeholders in general. For example, regulatory bodies may promote greater involvement in CSR activities by listed companies in the Malaysian stock market. Investors and other market participants should be aware of factors influencing socially responsible firms' market performance such as the corporate life cycle and the level of competition in product markets.
 Originality/value- This research work responds to the call of regulatory bodies in Malaysia at a time when the Malaysian economy is under threat of environmental distraction practices by the palm oil industry and import ban by the largest export market, i.e. the European Union by 2030. The study also contributes to the theoretical literature by refining the moderating role of product market competition and mature-stage life cycle on the relationship between CSR and market performance from the perspectives of resource-based and stakeholder theories in emerging economy settings