Bank-Specific Variables and Banks’ Financial Soundness: Empirical Evidence from Nigeria

This study examines the explanatory power of capital adequacy, asset quality, management soundness, earnings quality, liquidity and sensitivity to market risk (CAMELS) framework as well as a number of other variables on the financial soundness (measured by regulatory capital adequacy ratios) of banks in Nigeria. The findings, using ordinary least squared (OLS) regression subsequent to the establishment of no panel effects among the sampled banks, reveal the significant explanatory potentials of these bank-specific variables though some give a reversal of their prior expectations. Apart from reawakening the investors’ and depositors’ interest, the findings further have policy implications on the regulation and operation of these financial institutions. The study breaks new grounds in the measurement of capital adequacy using gross revenue ratio and leverage ratio, asset quality using income statement impairment charges for loan losses, and in the inclusion of the sensitivity to market risk most especially in the Nigerian context

Prospect for accounting academics: examining the effect of undergraduate students’ career decision / Ahmad Bukola Uthman , Mubaraq Sanni and Abdulai Agbaje Salami.

The future of accounting education rests on the development of accounting academics. In the social space of competing job opportunities for both graduate and professional accountants, this paper considers how the interest of prospective accounting graduates in Nigerian universities could reshape the widely reported shortage of accounting academics. Viewing through the lens of the Circumscription Theory, it examines how career choices of undergraduate accounting students affect the prospect of accounting education. The survey technique was adopted to sample students’ opinions across three universities in their career decisions, the factors that affect such decisions and their key referents. The respondents were divided based on their preference for academic jobs and the Mann-whitney U test was conducted to examine the differences in factors that affect their preferences. The study revealed that financial rewards account for students’ preference for non-academic jobs. Hence, only 10% of the respondents showed an intention to pursue a career in the academia. Other factors such as job leisure, ambitiousness and career prestige are also responsible for students’ preference for non-academic jobs. The results of the study confirmed the prediction of the Circumscription Theory. It is therefore recommended that academic jobs should be made attractive for accounting graduates by improving the financial rewards of academic staff generally. More so, attention should be further directed towards factors such as job leisure, holiday travels, prestige and easy achievement of ambitions since students get swayed from academic jobs because of those factors

Managerial Dynamics as a Deciding factor for Corporate Social Disclosures among Quoted Manufacturing Companies in Nigeria

The continuous growth and expansion in the global economy with its attendant consequences on the environment and society have necessitated the increasing push by stakeholders for companies’ world over to disclose their social impacts on society. Consequently, the persistent increase in the demand for increase in social information has resulted to loss of credibility by stakeholders in the annual report of companies. The Nigerian business climate is no exception to this dilemma which serves as motivation for this research. Hence, this study investigates the extent to which managerial efficiency influences corporate social disclosures among listed Manufacturing companies in Nigeria. Using Krejcie and Morgan sample selection criteria, the sample size for the ex-post factor research design with a population of seventy-six (76) listed industrial businesses was sixty-three (63). However, because of irregular company listings and inadequate data availability, only forty-nine (49) of the companies were chosen to be included in the sample size spanning seven (7) sectors.  Data were analyzed using Panel Corrected Standard Error Estimation. The results showed a significant level of 0.000 and a positive correlation of 0.019 between management effectiveness and corporate social disclosure of Nigerian listed industrial companies. Consequently, the study unquestionably showed that while managerial performance is beneficial, corporate social disclosure is significantly impacted by it. Therefore, the study suggested that the Nigeria Exchange Group (NGX) should implement additional regulations and controls to guarantee that all listed manufacturing companies continue to disclose information on product responsibility, human rights, and the social impact of manufacturing operations

BANK CREDIT ACCESSIBILITY AND PERFORMANCE OF SMES IN KWARA STATE, NIGERIA: A PLS-SEM ANALYSIS

This study examines the effect deposit money banks credit accessibility on SMEs performance in Kwara State, Nigeria. The population of the study consists of three hundred and eighty-two (382) respondents and one hundred and ninetyeight (198) were randomly selected as the sample size of the study. Data were drawn from the primary source to elicit responses from SME owners/managers. Descriptive statistics and Partial least square - Structural Equation Model (PLS-SEM) estimation techniques were employed to analyse the data collected. The study revealed that deposit money banks credit accessibility has a positive significant effect on SME performance (T=10.795, β=0.043) at 5% significance level and credit related charges (interest) also has a positive significant effect on SME performance (T=10.690, β =0.458). This implies that provision of finance by deposit money banks at relatively low cost play an important role in boosting the performance of SMEs. The study therefore concluded that SMEs in Kwara State are faced with the problem of access to finance as they are not fully benefiting from the credit facilities of the deposit money banks. The study therefore recommended that deposit money banks should put in place a more SME friendly credit administration system for SMEs to enable them access fund easily and affordably

Determinants of Bank Performance in Nigeria: Do they Behave Differently with Risk-Adjusted Returns?

The failure of banks in Nigeria has hitherto become a recurring phenomenon. Worried by the syndrome, this paper examines the determinants of bank performance in Nigeria taking into cognizance the duality of financial measures of bank performance. From an analysis of 115 bank-year observations of a sample of 17 Nigerian deposit money banks and macroeconomic data for the period 2012-2018 using Arellano-Bover one-step system GMM estimation approach, differences in the explanatory potential of these factors between the models with risk-neutral and risk-adjusted measures of performance as dependent variables are empirically established. This suggests that there is a higher probability of investors, depositors and other stakeholders being indecisive when analyzing the performance of banks. However, relying on the assumptions of risk-return hypothesis and level of risk embedded in banks’ operations could warrant them opting for determinants of risk-adjusted returns in their decision making. This study is exceptional in the bank performance literature for its long list of measures and drivers of bank performance