Publisher: ZARSMI, UAE, and Regent Business School

Abstract This study examines the financial performance of Jaiz Bank Plc, the only Islamic bank licensed to operate in Nigeria, over a period of two years (2013 -2014). It examines the financial performance of the bank in terms of profitability, liquidity, leverage and growth. Time series data were collected and analysed by way of Gray Comparative Index. The study finds positive relationship between profitability, leverage, growth ratios and financial performance. There is sufficient evidence also that shows that the relationship between liquidity and financial performance is negative. The study therefore recommends that bank managers should take measures to improve profitability by taking advantage of leverage and growing their banks. They should be careful in keeping liquidity beyond desirable level since liquidity and financial performance have negative relationship. Bank regulators should take measures to ensure stable economic conditions

Bank-Specific Attributes and Operational Efficiency: Evidence from Efficient-Structure Hypothesis

Corporate stakeholders are concerned about the operational efficiency of banks for obvious reasons. Banks play important intermediation role between the deficit and surplus sectors of the economy. Yet, there are limited empirical studies in Nigeria that examine the effects of bank attributes on their operational efficiency. This paper is an attempt to bridge this empirical gap in finance literature in Nigeria by examining the effects of bank-specific characteristics on operational efficiency. Data was extracted from the website of the Nigerian Stock Exchange. The dependent variable is operational efficiency and the independent variables are bank-specific attributes. The regression models indicate that asset turnover is superior to operating expenses to sales ratio. The results further indicate that only profitability, leverage, intellectual capital and capital expenditure ratio show significant effects. In view of these results, we suggest that bank managers should pay greater attention to profit, total assets, debt structure, intellectual capital (human, structural, relational and capital employed), cash from operations and capital expenditures. This is one of the few empirical studies that examine the impact of bank-specific traits on bank operational efficiency in Nigeria. The paper considers that the influences of bank-specific features on their operational efficiency are worth studying

Firm Life Cycle and Financial Performance: Evidence from Nigeria

Purpose: There are limited scholarly works in Nigeria which examinethe influence of firm life cycle on financial performance. This studyhas filled this gap by examining the effects of firm life cycle onfinancial performance of listed firms in Nigeria.Design/Methodology/Approach: Correlational research design wasused and data were extracted 91 listed firms over a ten-year period(2010-2019) and analyzed using descriptive statistics (mean, standarddeviation, minimum mean and maximum mean) and inferentialstatistics (correlation coefficients and multiple regression analysis).Diagnostic checks such as normality, multicollinearity,heteroskedasticity, serial (auto) correlation and panel effects tests werecarried out and the results were used to decide the appropriate methodsof regression analysis.Findings: We find maturity stage to have positive and significanteffect on financial performance. However, we fail to find anysignificant effect at introductory, growth and shake-out stage.Implications/Originality/Value: The study, therefore, concludes thatthe maturity phase is the most critical stage and recommends thatmanagers should pay greater attention to their businesses, particularlyduring the period of maturity to avoid shakeout or decline

Board of directors and corporate social responsibility reporting of quoted companies in Nigeria

Purpose: Despite significance of boards of directors, very few studies have examined their influences. This paper investigates the effect of board on corporate social responsibility reporting of quoted companies in Nigeria.Methodology: Although, the study is empirical, the research design is correlational in nature. Panel data of 329 observations was extracted from 47 firms over 7 years (2013-2019). The data was tested for descriptive analysis (mean, number of observations, standard deviations, minimum and maximum means, normality, multicollinearity, and heteroskedasticity.Findings: Results reveal that board size, diligence and independence failed to show significant effects. However, board gender diversity, firm size and leverage show significant effect. It also shows that social disclosure index is superior to corporate social responsibility disclosure model.Originality/Value: The paper concludes that female directors, firm size and debt are the key elements of corporate social responsibility reporting of quoted firms in Nigeria. Therefore, shareholders should appoint more women on the board. Management should increase firm size by acquiring additional assets and take advantage of cheap debt opportunities in the capital market.peer-reviewe

The Correlation between Risk Management and Organizational Performance: An Empirical Investigation using Panel Data

The study analyzes risk management and organizational performance in deposit money banks in Nigeria. Two measures of organizational performance concentration are used. The first is the return on assets, while the second is return on equity. Determination of the relationship between risk management and organizational performance is done using panel data regression models. Explanatory variables, such as standard deviation of return on assets, standard deviation of return on revenue, current ratio, quick ratio, equity over total assets, equity over loan ratio, debt over equity and debt over total assets are used. Five hypotheses are tested and overall, organizational performance is positively affected by the risk management mechanisms of the bank and its liquidity policies. However, the relationship between financial leverage, size and age of the bank and financial performance is negative. The study concludes that risk and liquidity management policies are important to high financial performance. However, banks should put in place sound risk management mechanisms and policies to guide their operations. Also, banks should adhere strictly to sound liquidity management practices to guide against lack of liquidity. They should utilize earnings rather than seeking for external financing. Finally, banks should reduce their level of noncurrent assets and invest more in current assets in order to earn more profits from operations. Keywords: Risk management, organizational performance, deposit money banks, liquidity, financial leverage, size, age, Nigeri

Empirical Investigation of Fiscal deficits and Inflation in Nigeria

The study examined the relationship between inflation and fiscal deficits in Nigeria. Annual time series data spanning 42 years on inflation, fiscal deficits, agriculture, money supply and gross domestic product were sourced from central bank statistical bulletin special edition 2008 and volume 23 of 2012. The study applied unit-root test for stationary test, cointegration, Granger causality and error correction regression analysis. CUSUM and CUSUMQ statistics test was adopted for stability of the model. The study found out that fiscal deficits had a long run equilibrium relationship with inflation. The causality test showed a unidirectional relationship that run from fiscal deficits to inflation. The error correction model estimate reveals that fiscal deficits exert positive pressure on inflation. It was also discovered that the speed of adjustment of the dynamic short run process to long run equilibrium was very slow. The CUSUM and CUSUMQ test revealed that the model is stable. A fiscal management process that encourages increase revenue and reduction of external debt as well as a high practice of transparency in financial obligation will reduce the level of inflation; moreover, increase production of agricultural goods will retard the growth rate of inflation in Nigeria.   Key Word: fiscal deficits, inflation, money supply, agriculture, econometric tools, Nigeria

International Financial Reporting Standards and Earnings Management Behaviour of Listed Deposit Money Banks in Nigeria

This paper investigates the effect of International Financial Reporting Standards adoption on earnings management behavior of listed deposit money banks in Nigeria. The study examines how the change in the recognition and measurement of banks’ loan loss provision, affects earnings management behaviour. A sample of 15 deposit money banks listed on the floor of the Nigerian Stock Exchange (NSE) was used. Financial data in respect of the periods before and after adoption of the IFRSs (i.e., 2004 to 2008 and 2009 to 2013) were used. The banks under investigation experience a significant growth of their loan portfolio, on average, 16.65 % (median 14.77 %) during IFRS period as compared to 10.12 % (8.79 %) before IFRS adoption. Non-performing loans (NPLit-1) remain relatively stable over the whole time period, and represent, on average, 3.44 % (median 2.21 %) of loans before and 3.19 % (median 1.99 %) after IFRS adoption. Regulatory capital ratios (RegCapit) remain basically similar in both time periods. Earnings before taxes and loan loss provisions (EBTLLPit) increase slightly; however, this increase is statistically not significant. Besides the impressive loan growth the most significant change between the two time periods relates to our dependent variable the level of loan loss provisions (LLPit). LLPit decreases significantly from a mean of 0.72 % (median 0.54 %) to 0.49 % (median 0.32 %) after IFRS adoption. Taken the descriptive statistics together, the study concludes that the restriction to incurred losses under IFRS significantly reduces the ability of banks to engage in earnings management. Keywords: IFRS, IAS, financial reports, loan loss provisions, earnings management, non-performing loans, loss recognition, bank regulation, earnings before taxes and loan loss provisions.

Institutional Factors and Personal Income Tax Compliance in Kaduna State-Nigeria

This study investigates the Institutional factors and Personal income tax compliance in Kaduna State- Nigeria. The population consist of all 991 registered self-employed business men and women that registered with the Directorate of Poverty Alleviation and lives in Kaduna, kafanchan  and Zaria cities of the State. Stratified random sampling was used to select the 285 respondents that form the sample size. Data were collected through administering of questionnaire while the techniques for data analysis are the descriptive statistics and multiple regressions. The study finds among others that good governance and taxpayers’ awareness have a positive significant relationship with the level of taxpayers’ compliance in the State. The study, therefore recommends that effective communication is necessary in order to publicize tax activities, mainly on compliance issues to the general public. Also, transparency and accountability should be the guiding principles in thought and action of government as the basis for good governance in the State. This can be achieved through aggressive human capital development, as this will go a long way in encouraging taxpayers to be more compliant in the state. Keywords: Institutional Factors. Personal Income Tax, Tax Complianc

Financial Structure and Financial Performance of Listed Firms in Nigeria

The instability and fluctuations in the financial performance of firms listed on the floor of the Nigerian Stock Exchange has continued to trigger researchers mind on the factors influencing it. In view of this, the study examined the impact of financial structure on financial performance of listed firms in Nigeria Stock Exchange. Data for the study were obtained from the audited annual report of the seventy-one sampled firms for a period of 10 years covering 2009 to 2018. Return on asset (ROA) was used as a measure of financial performance while long term debt to equity, long term debt and short term debt to total asset were used as financial structure variables. The study employed dynamic system generalized method moment (GMM) as technique of analysis and testing of hypotheses. The result shows that long term debt to equity ratio has positive and insignificant impact on ROA while short term debt to total assets ratio have negative and significant impact on return on assets. The study concludes that higher long term and short term debt in the financial structure influences the financial performance of listed firms in Nigeria Stock Exchange. The study recommends among others, managers of firms listed in the Nigeria Stock Exchanges in determination of optimal financial structure should seek for debt with less cost to the firms. Keywords: financial structure, financial performance, long term debt, short term debt, Nigeria Stock Exchange. DOI: 10.7176/RJFA/11-14-15 Publication date:July 31st 202

International Financial Reporting Standards’ Adoption and Value Relevance of Accounting Information of Listed Deposit Money Banks in Nigeria

Nigeria recently recognized the need to participate in opportunities offered by globalization and accordingly, adopted the International Financial Reporting Standards (IFRS). This paper examines post-IFRS adoption value relevance of accounting information using two models. First, a price model which used proxies such as market price per share, book value of equity per share, earnings per share and cash flow per share. Second, a return-model which used proxies such as annual return, earning per share, change in earning per share, were used.  The results show that the explanatory power R2 for the price model specification is 84% for the total sample and that all coefficients are statistically significant. A comparison of coefficients indicates that the EPS of 3.47 has a higher explanatory power than any other variables. The results also demonstrate that explanatory power of accounting numbers increased from pre-adoption (60%) to post-adoption (78%). Similarly, Explanatory power (R2) for the return model specification is 13.4% for the total sample and just coefficient of EPS level is statistically significant. The explanatory power for the return model increased from pre-adoption (15.6%) to post-adoption (16.4%). According to both sub-samples just a coefficient of EPS level is statistically significant. So, the result of the return model also indicates adoption of IFRS improved relevance of accounting numbers in the deposit money banking sector. In view of these results, there is need for further study to explore the reasons for the superiority of EPS over BVEPS. Keywords: Value Relevance, Accounting Information, Deposit Money Banks, Nigeria