The impact of mandatory adoption of international financial reporting standard on accounting quality in Nigeria

This study was aimed to empirically evaluate the impact of mandatory adoption of IFRS on accounting quality in Nigeria using the publicly quoted companies. The study utilized the annual reports and accounts of 108 companies quoted in Nigerian Stock Exchange for the period of 2011 to 2012. After review of relevant literatures related to this field of study, conceptual framework was formulated and research hypotheses were developed to enable good examination of the relationship between research variables. Multiple regression analysis was employed in analyzing the data generated for the study. Based on the data analyses, the study revealed a significant increase in the value relevance of financial statement in Nigeria after the mandatory adoption of IFRS. The study found that earnings management has reduced with the adoption of IFRS as reporting standard in Nigeria and large loss recognitions have also increased in the post adoption period. Based on the research findings, the researcher recommends that developing nations should adopt IFRS as their financial reporting standard as it is capable of increasing their accounting quality. The researcher also recommends that research should be conducted to analyze why IFRS improves the accounting quality based on standard by standard, not the whole package as whole

Related party transaction disclosure: compliance, determinants, value-relevance and real earnings management

Expropriation through Related Party Transaction (RPT) has been identified as one of the key factors that led to the collapse of several firms globally. Hence, its regulation becomes necessary. This study examines the extent and the determinants of compliance with the disclosure requirements on RPTs by Malaysian listed firms. It also investigates the value-relevance of Malaysian Financial Reporting Standard (MFRS) 124 adoption, real earnings management (REM) in RPTs and the moderating effect of compliance with MFRS 124 on the relationship between REM in RPTs and firm value. The study uses the data collected from the firms with significant RPTs from 2009 to 2015. Findings from the weighted disclosure index indicate a moderate level of compliance with MFRS 124. Furthermore, the regression results reveal that board independence, audit committee financial expertise, family ownership, managerial ownership and firm growth have significant positive relationships with the compliance of MFRS 124. Moreover, the study documents that RPTs disclosure is value-relevant. Findings of price model provide evidence that with the adoption of MFRS 124, capital market participants value the EPS of the RPT firms over its BVPS. The study documents that firms use RPTs to perpetrate REM. The results of the Roychowdhury models show that RPTs firms are characterized by low cash flow from operations, high production costs and low discretionary expenditures. It is also established that capital market discounts the stock price of firms that perpetrate REM in RPTs. Also, compliance with disclosure requirements on RPTs mitigates the negative relationship between REM in RPTs and firm value. The study reveals the need for the relevant authorities to increase the level of enforcement to achieve full compliance which will result to increase transparency of financial reporting and investor protection. The results of this study contribute to the agency, resource dependency and capital market theories

Impact of Accounting Record-Keeping on the Sustainability of Small-Scale Enterprises in Kano Metropolis

This study examined the impact of accounting record keeping on sustainability of small-scale enterprises (SSEs) in Kano metropolis. The population of this study comprised of all SSEs operating in the eight local government areas that constitute Kano metropolis. Four hundred and thirty-nine (439) questionnaires, using 5-point Likert scale, were administered on the sampled owners of SSEs across the eight local government areas in Kano metropolis. Out of this, four hundred and thirty-seven (437) questionnaires were completed and returned, while two respondents did not return their questionnaires.  The statement on the questionnaire covers accounting record keeping, business performance, environmental attitude and community attitude. Structural equation modelling (SEM) analysis using Partial Least Square (PLS) was employed to analyze the data generated for the study. The finding of study shows that record keeping has a significant positive relationship with sustainability. This indicates that an increase in the record keeping behavior will lead to an increase in the sustainability of a business entity. The study, therefore, recommends that SMEs owners should learn basic record keeping knowledge or engage the service of bookkeepers to enable them to keep proper books of accounts which will in turn increase the sustainability of their businesses

Financial attributes, real earnings management and corporate tax planning of listed manufacturing firms in Nigeria

The purpose of this study is to investigate the influence of financial attributes on the tax planning strategies of publicly listed manufacturing companies in Nigeria from 2012 to 2022. Additionally, it examines the moderating role of real earnings management (REM) in the relationship between financial attributes and tax planning. Data for this research were gathered from the annual reports of 41 publicly listed manufacturing firms in Nigeria. The study employed a correlational design using panel data analysis, with a fixed effects estimation applied to a simplified model and a moderated model. The results show that financial leverage positively and significantly affects the tax planning strategies of the listed manufacturing firms, and REM has a positive and significant influence on tax planning. Furthermore, REM was observed to significantly moderate the relationship between financial attributes and tax planning. Firms should engage in ethical and legal tax planning practices while taking their financial attributes into consideration. Companies need to be aware of the impact of REM on financial reporting and tax compliance and ensure that their tax planning aligns with relevant regulations

Compte-rendu de lecture de l'ouvrage de Rousseaux Xavier et Lévy René (dir.). Le pénal dans tous ses Etats. Justice, Etats et sociétés en Europe (XIIe-XXe siècles), Bruxelles, Publications des Facultés universitaires Saint Louis, 1997, 462 p.

en ligne à l'adresse suivante : http://www.reds.msh-paris.fr/publications/revue/biblio/ds039-c.htm#11International audienceC'est à l'issue des travaux du séminaire qui s'est tenu de 1992 à 1994 aux Facultés Universitaires Saint Louis de Bruxelles sur Les Etats et le pénal : acculturation juridique et intégration nationale que s'est élaboré cet ouvrage sous la direction de René Lévy et Xavier Rousseaux qui poursuivent ainsi une collaboration déjà fructueuse. L'introduction des deux auteurs, sur une thématique particulièrement aussi riche et complexe que celle de l'Etat, réussit une double performance : allier la densité d'informations et de références au service d'une problématique, claire, épurée, efficace. L'idée est bien de situer ces contributions au cœur d'un ensemble de recherches sur l'Etat, d'en spécifier la teneur et d'approfondir le ou les rapports liant ce dernier aux « fonctions traditionnellement considérées comme formant le cœur même de l'Etat

Earnings Management: A Case of Related Party Transactions

This study was conducted on the related party transaction and earnings management. Agency theory provides that managers may engage into self-enrichment transactions to maximize their benefits at the detriment of the shareholders of the firm. Though, management or concentrated ownership was suggested as the possible solution to this problem, this form of ownership structure has its peculiar problems which are termed as type II agency problem. Controlling shareholders are found to be using their voting power to extract extra benefits from the firm through the insider information and in many instances engage in detrimental related party transactions at the expense of minority shareholders. This study have identified how and why controlling shareholders or managers use related party transaction as a means to perpetrate accrual-based or real activity earnings management. It was recommended that empirical study be conducted to investigate whether disclosure regulation can constrain the controlling shareholders or management against the use of real-activity management through related party transaction. Keywords: Related Party Transactions, Accrual-Based Earnings Management and Activity-Based Earnings Management. JEL Classifications: G34, G38, G18

Broadening Nigeria’s Revenue Base: Exploring Blue Economy Activities

The study explores appropriate mechanism for diversifying Nigeria’s revenue to tap from the opportunities offered by the blue economy. The study conceptually reviewed extant literature as a basis for acquiring an in depth understanding of the phenomenon with a view to offer practical recommendations on the issue. The study discovered that blue economy has the potential of augmenting government revenue if the financial and environmental issues bedeviling the development of the sector are properly addressed. Thus, the study recommends political will and strong institutions for effective running and implementation of blue economy strategies in the nation based on the existing international standards. It also suggested that, to boost revenue from blue economy, Area-based Management needs to be established

Executive Compensation and Value of Listed Deposit Money Banks in Nigeria

The increasing failure of banks has made it important to seek for ways to enhance its value in order to attract investors and potential investors. To make this reality, scholars have argued from various quarters that the people who manage the banks must be adequately compensated if the desired value needs to be achieved. Therefore, the study examines the relationship between executive compensation and value of listed deposit money banks (DMB) in Nigeria. The study adopted correlational research design with balanced panel data of 14 listed banks which served as population of the study for the period of 2010-2021 using Generalized Least Square (GLS) regression as a tool of analysis. The study found that CEO Pay and Chairman’s compensation have positive effect on the value of listed banks, while the highest paid director exact negative influence on the banks’ value. This implies that the CEO Pay and Chairman’s compensation improves the value of banks. Therefore, it is recommended among others that the management of banks should increase the CEO pay and place more emphasis on performance as a basis of increased pay to guarantee continuous improvement in the value of the banks

Natural Capital Accounting and Profitability of Listed Manufacturing Firms in Nigeria

This study examines the impact of natural capital accounting on profitability of listed manufacturing firms in Nigeria and it adopts correlational research design. The population of the study consists of sixty-four manufacturing firms listed on the Nigerian Exchange Group (NGX) for thirteen years between 2010- 2022. The study used the purposive sampling method, to obtain a sample of forty-nine manufacturing firms that meet the criteria. Return on Asset (ROA) is considered as proxy of profitability while natural capital accounting index (scores) were generated using 7 items in line with International Initiative on Integrated Reporting Council (IIRC). Data for the study was extracted from the annual reports and accounts of the sampled firms for the period under study, and analyzed using multiple regressions. The result revealed that natural capital accounting has significant and positive effect on return on asset (ROA). Based on these findings, this study therefore, concludes that natural capital accounting influence profitability of listed manufacturing firms in Nigeria. This study recommends among others that, listed Nigerian manufacturing firms should emphasize more on reporting their natural capital accounting as it is capable of improving their profitability. This can be achieved through proper and accurate reporting of their environmental information, because it affects profitability significantly. Also, in line with global best practices, regulatory agencies in Nigeria should issue reporting standards that would make reporting of all sustainable capital items and particularly environment/natural capital accounting mandatory