A Perception Based Analysis of the Mandatory Adoption of International Financial Reporting Standards (IFRS) in Nigeria

__________________________________________________________________________________________ Abstract Since the international financial reporting standards (IFRS) have been developed and accepted internationally, the decision of a country to embrace IFRS becomes a vitally important topic for researchers and standard setters

The impact of financial literacy and frequency of meetings of members of audit committee on financial reporting quality in Nigerian quoted companies

The main objective of this study was to evaluate the impact of Financial Literacy (FL) and Frequency of Meetings(FM) of members of Audit Committee on financial reporting quality in Nigerian quoted companies. Data for the study were derived from annual reports of one hundred and thirty one (131) companies quoted on the Nigerian Stock Exchange over the period of 2006 to 2012. The data were analyzed using descriptive, correlation and Ordinary Least Square (OLS). The multivariate regression technique was utilized to estimate our model. The findings showed that audit committee financial literacy and audit committee frequency of meetings had a positive significant influence on financial reporting quality. Based on these findings, some recommendations were made, prominent amongst them, was that, in order to strengthen the impact of financial literacy on financial reporting quality, regulatory authorities such as SEC, CBN and NDIC, should give special attention to audit committee members with high status with a view to making it mandatory for all companies to comply with it. Status, in this context, implies an aspect of personal power reflecting the ability to influence outcomes based on perceived skills, qualities and personal attributes.peer-reviewe

Financial structure and the profitability of manufacturing companies in Nigeria

Finance mix is a major factor that affects the liquidity and the going concern of a business enterprise. After an idea has been conceived by an entrepreneur, there is need to also analyse the capital required for startup and means of financing the project. A good combination of sources of finance is expected to boost the profitability of an organization, but if not properly mixed, could have a negative effect on the profitability of the organization. The main objective of the study is to evaluate the effects of financial structure on the profitability of manufacturing companies in Nigeria. This study employed the use of secondary data. The Spearman’s Rank correlation and regression techniques were used for analysis, using the STATA Package for a sample of 25 manufacturing companies quoted on the Nigerian Stock Exchange for the period 2008-2012. The study showed that equity has a significant positive relationship with the profitability of manufacturing companies in Nigeria. The study recommends that managers should place greater emphasis on the facilitation of equity capital and policy makers should encourage manufacturing companies by reducing the cost of debt.peer-reviewe

Assessing the connectedness between corporate governance mechanisms and financial performance of listed oil and gas companies in Nigeria

This research examines the nature of relationships that exist between corporate governance mechanisms (board composition, audit committee, board size and corporate governance disclosure) and financial performance (return on equity, profit margin and return on asset) in the Nigerian oil and gas industry. Secondary data from the audited financial statements of the fifteen listed oil and gas companies in Nigeria were employed. The test of hypotheses and other analysis of data were done using Pearson Correlation and regression analysis generated from SPSS, version 17. Findings from the study revealed that insignificant but positive relationship does exist between board composition and the performance of oil and gas companies in Nigeria. Evidence also exist that corporate governance disclosure level has a positive and significant impact on the ROE. This study therefore suggests that board of directors and stakeholders of oil and gas companies in Nigeria should pay more attention towards enhancing the independence of their audit committees and the extent of their corporate governance disclosure in order to enhance their level of profitability.peer-reviewe

Financial Inclusion and Information Communication Technology on Tax Performance in Sub-Saharan Africa

Purpose: The main objective of this paper is to determine empirically the impact of financial inclusion and Information Communication Technology (ICT) on tax performance in Sub-Saharan African countries; determine the extent to which the elements of financial inclusion have influenced tax performance of countries in Sub-Saharan Africa; and examine the role technology plays in impacting the performance of taxes in Sub-Saharan African countries.   Theoretical Framework: The existing theories that serve as a roadmap for the development of this study are Theory of Digital Diffusion and Theory of Margins. Digital transformation has an important impact on the operations and systems of every economy, which often triggers a positive effect on taxes. Diffusion innovation theory was initiated by Rogers in 1962. The Theory of Margin on the other hand, is a theoretical school that gives validity to the impact of financial development on product output. It suggests that more access to financial services and products is vital for high output and economic advancement.   Design/Methodology/Approach: The population considered in this study was 48 sub-Saharan African Countries from the period of 1999 to 2019. The methods used for the analysis consists of the descriptive and correlation analysis on the identified variables and a creation of financial inclusion index using the Principal Component Analysis to deal with multiclonality challenge amongst the financial inclusion proxies, it also adopted the two-staged least square estimation technique for the empirical analysis.   Findings: The study reveals inter alia that the variables for financial inclusion and ICT proxies are overwhelmingly positive and significantly impact on the tax performance (i.e., total tax revenue and the non-resource tax revenue as percentages of GDP), in sub-Saharan Africa and that the financial inclusion index has positive effect on tax performance in  sub-Saharan Africa. We also observed that there   is a positive relationship between technology and tax performance in sub-Saharan Africa.   Research Practical & Social implications: Policies should be formulated to engender enhancement of technology and more investment should be allocated to technology as it is discovered to drive financial inclusion and promotes tax revenue mobilization. In general, the findings indicate that policies are needed to engender an enhancement of technology and more investment should be channeled to technology as it affects financial inclusion and by logical extension, the promotion of tax revenue mobilization.   Originality/value: The challenge of tax implementation can be directly ascribed to an ineffective tax system.  A tax management that is of high in superiority, helps to make the tax mobilization process more transparent and efficient, and also reduce the level of shadow economy, which main feature is non- remittance or payment of tax. This study reveals that a tax administration system can only operate effectively with the use of modern information technologies

Domestic Investment, Capital Formation and Population Growth in Nigeria

Capital formation issues had hardly received attention of the Nigerian academic until recently, though it is a measure of capital accumulation that impacts the productive capacity of the economy. Population growth in the face of dwindling and inadequate real investment in assets and capital formation for the country can lead to increase in poverty. This paper shows that the rate of investment does not assist the rate of growth of per capital GDP in Nigeria. Secondary data employed are from the Central Bank of Nigerian, for capacity utilisation, capital expenditure bank credit and capital formation while growth and investment rates are from World Economic Information database. It is also observed that investment rates of the country have fluctuated wildly. Investment has not translated into capital formation and has not aided growth in Nigeria. The paper tests on the curve estimation regression models confirm that growth is in existence but is found to be insignificant. The linear result indicates the importance of government expenditure, capacity utilisation and bank credit in increasing the income of Nigerians.  The results also show that there is negative relationship between growth rates of the population and capital formation. With the curve estimation method results, investment rate can engender growth in the economy though slowly, on a linear path. It makes useful recommendations on how to increase and sustain capital formation to increase income and to avoid further poverty in the country. Keywords: Per capital GDP, investment, Capital expenditure, Bank credit