Studying the Influence of Board Size on the Financial Performance of Selected Manufacturing Firms in Nigeria

This study examined the effect of board size on financial performance (proxied by both economic value added (EVA) and return on assets (ROA) of the manufacturing sector in Nigeria using publicly listed firms.  The study investigated the extent and nature of the relationship between board size and profitability of publicly listed manufacturing firms; and nature and extent of the relationship between board size and firm size of same firms. The study adopts quantitative panel methodology in analyzing secondary (panel) data collected and collated from the audited financial statements of 46 quoted manufacturing firms drawn from 95 subsectors of (NSE) for the twelve year period (2003-2014). It revealed that manufacturing firms with smaller board size are more viable than those with larger board size.  It also reported that firms within the sector with larger boards recorded lesser profits in contrast.  The implication of the findings can be deduced from the problem associated with free rider syndrome characteristic of chief executive officer dualizing as managing director for firms in Nigeria.  Further, stricter regulating of corporate institutions is imperative because of the significant role that these institutions play in the stock markets and negative repercussions that are experienced when their risk-taking is not properly regulated.  The study, recommends, among others, that firms seeking some improvement in their performance should constitute smaller sized boards of directors composed of few independent directors.  Moreover, there may be a need to revisit regulation with respect to constituting board size which would balance the interest of executives and shareholders. Key words: Board size, Financial Performance, Quoted Manufacturing Firm

Effectiveness of the Economic and Financial Crimes Commission (EFCC) in Enhancing Accountability in the Nigerian Public Sector

The study is aimed at identifying strategies and measures that will strengthen the effectiveness of the commission in their fight against corruption in the Nigerian public sector to ensure accountability and transparency. The research adopted content analytical method and revealed that lack of societal cooperation, poor staff training, pre-bargaining and systemic disorder affect the effectiveness of the Economic and Financial Crimes Commission (EFCC) in their fight against corruption in the Nigerian public sector. The implication of the findings is that, it will be difficult for the government to succeed in the fight against corruption in Nigeria if the identified problems are not addressed. The study, suggests, that concerned and enlightened individuals should collaborate with the EFCC to get rid of corruption in Nigeria. Further, the government should adopt appropriate measures no matter how bitter, to root-out these causes of corruption if Nigeria is really serious about the fight against corruption. Government should ensure that the public sector officials discharge their duties in compliance with the code of conduct guiding the public sector. Key words: Effectiveness, EFCC, Accountability, Public Secto

An Empirical Analysis of Inflationary Impacts on Profitability and Value of Selected Manufacturing Firms in Nigeria

The study investigated the nature of the relationship between inflation and the value of firms in the manufacturing sector of a developing economy like Nigeria. It also tried to discern the nature of the relationships between inflation and profitability (proxied by return on assets) and economic value added and return on assets. The study employed secondary data collated from the audited financial statements of the sampled firms. These were analyzed using multiple regressions and analysis of variance. Results indicate a strong negative relationship between inflation and firm value and an insignificant negative relationship between inflation and return on assets (proxy for profitability). Further, the relationship between return on assets and economic value added is insignificant. Inflation, even at low level, seriously understates the true value of the firm. The implication of the findings is deducible from the fact that accurate estimation of the real value of the firm necessitates incorporating inflation element to arrive at the value of investments in fixed assets and other long term investments. It also highlights the fact that most business failures are caused by unwise investments in fixed assets that could easily have been detected if inflation rate is incorporated to get at the real cost of investible funds. Keywords: Inflation, Return on Assets, Firm Valuation, Manufacturing Firm

Evaluating the Effect of Intangible Assets on Economic Value Added of Selected Manufacturing Firms in Nigeria

This study tries to ascertain the impact of total intangible assets on the financial performance of manufacturing firms publicly listed on the Nigerian Stock Exchange (NSE). Intangible assets are not accorded the same relevance as tangible assets. Studies has proven that total intangible assets including human capital is the reason behind the survival of ‘firm A’ in this era of persistent economic recession and liquidity squeeze in lieu of ‘firm B’ that submerged albeit in the same industry and sub-sector. In Nigeria, the value of total intangible assets (less than 1%) for all the manufacturing firms studied results from the volatility of this asset. The study made use of secondary data collected and collated from 46 manufacturing firms audited annual reports. Both descriptive and inferential statistics were employed in data analysis. In particular, Prais Winsten Regression Correlated Panels Corrected Standard Errors (PCSEs) is used to test the relationship between the variables given that panel (cross-sectional and time series) data are used for the study. Findings indicate the existence of a strong negative relationship between EVA and IA as P = 0.011 < 0.05 significant level. The systematic variation is explained by 55.13% coefficient of determination (R2) which is above average and significant for panel data. In addition, there is a significant negative relation between EVA and LnTA at P = 0.026. Conversely, there is perfect positive relationship between EVA and ROA at P = 0.000. These results explain the behavior of firms in minimizing the value of intangible assets given that the relationship between intangible assets and financial performance proxied by EVA is very significant and negative. Key words: Economic Value Added, Intangible assets, Firm Value, Manufacturing Firm

An Evaluation of the Effectiveness of Tax Incentives on Economic Growth: Evidence from Nigeria

Assessing the Relationship between Tax Incentives and Economic Growth in Nigeria is aimed at determining the effect of tax incentives on economic growth in Nigeria. The study adopted Ex Post Facto Research Design and time-series data was used. Relevant secondary data for this study were collected from the Central Bank of Nigeria (CBN) Statistical Bulletin and the National Bureau of Statistics (NBS) and the Federal Inland Revenue Service (FIRS). The study employed ordinary least square estimation and used regression analysis to test the relationship between Tax Incentives and Economic Growth in Nigeria. The study shows that tax incentive policy is positively and significantly related to gross domestic product. The findings showed that there is a degree of relationship between corporate income tax and gross domestic product; and that there is degree of co-variability between investment allowance and gross domestic product in Nigeria. The implication of this finding is that since tax incentives have positive and significant impact on gross domestic product, policy reform in other factors that affect economic growth is needed also to complement these incentives so that a better result can be achieved. The study recommends that tax incentive policy should be designed bearing in mind the economy’s macroeconomic objectives like rapid economic growth and development. Keywords: Tax incentives, Economic growth, Corporate Income Tax, Investment Allowance DOI: 10.7176/RJFA/11-14-13 Publication date:July 31st 202