An ordinary least squares regression test of sample of firms in manufacturing and services indust... more An ordinary least squares regression test of sample of firms in manufacturing and services industries sorted into overall, low and high managerial and controlling interests (MCOWN), shows financial leverage (FL) as an increasing (decreasing) function of MCOWN, for firms with low (high) MCOWN and service (manufacturing) industry, and negatively (positively) related to profitability and size for firms with high (low) MCOWN. Result suggests increasing (decreasing) use of debt capital when MCOWN is low (high) and that the higher (lower) the MCOWN, the greater (lesser) the agency cost contradicting the notion that FL is a governance mechanism that mitigates agency problem.
The study examined the relationship between financial performance and corporate social responsibi... more The study examined the relationship between financial performance and corporate social responsibility using secondary data from the financial statement of firms quoted on the Nigeria Stock Exchange between 2005 and 2015 spanning ten-year period and operating in the manufacturing, petroleum marketing, healthcare, and food and beverage sub sectors. The study was conducted using content analysis and logit regression. The independent variable performance was represented by accounting methods; return on asset and return on capital employed and also by market based method; P/E ratio and Tobin Q, The dependent variable in the study CSR was represented by Employee management and Community development. Findings indicate that ROA and ROCE relate positively with employee management and negatively with community development. Furthermore, firms with higher ROA are likely to disclose CSR than firms with higher returns on capital employed. Market price of a share have negative relationship with CS...
This paper examines whether economic performance indices of nations signals accrual accounting re... more This paper examines whether economic performance indices of nations signals accrual accounting reform or whether they have random effect. The secondary analysis of accrual accounting data distilled from the report of the PWC global survey of accounting and financial reporting practices of 100 central governments was done using the logistic multiple regression model. Economic performance proxied by gross domestic product per capita positively signaled the likelihood of accrual accounting reform with OECD countries 10 times more likely to implement full accrual accounting than non-OECD countries. Growth rate of gross domestic product and debt as percentages of gross domestic product both negatively signaled the adoption accrual accounting reform while tax revenue as percentage of gross domestic product returned a mixed result. The results suggest that poorer non-OECD countries may be constrained by the cost of implementing accrual accounting reform and may therefore require assistance...
Firms employing additional debt finance often do so with the expectations that future profits wil... more Firms employing additional debt finance often do so with the expectations that future profits will more than compensate for the fixed cost of borrowing. Similarly additional investment of equity capital indicates management confidence that the future profitability of the firm will be greater than the fixed operating cost. Therefore the mapping of financing, investing and operating decisions to current earnings provides a more rounded view of likely future earnings. Following the decomposition of return on equity into financing, investing and operating leverages components by Agburuga & Ibanichuka (2016), we explore the ability of these components of corporate profitability to predict future earnings. We found that future earnings (FTE) was negatively related to financing leverage component (FLC) and investing leverage component (ILC) and positively related to operating leverage component (OLC). This study thus provides evidence consistent with the trade-off theory. The negative rela...
The intensification of oil and gas production activities occasioned by the drive for more revenue... more The intensification of oil and gas production activities occasioned by the drive for more revenue to meet growing expectations of the populace for socio-economic development has entrenched the reliance on oil and gas revenue by the government of Nigeria and with consequential negative implication for environmental sustainability. Using archival data this paper examines the nexus between the demand for tax revenue, oil and gas revenue and environmental sustainability in Nigeria and shows evidence that the goals of environmental sustainability can best be more likely attained in Nigeria through the government shifting from oil and gas revenue to tax revenue as the main source of finance for meeting the socio-economic goals. Keywords : Taxation, sustainable development, Dutch Disease, public finance and environmental accounting
This study examined whether corporate tax (CT) is a substitute of and mutually exclusive to corpo... more This study examined whether corporate tax (CT) is a substitute of and mutually exclusive to corporate social responsibility (CSR), or a complement thereof, using secondary data obtained from firms listed on the Nigeria Stock Exchange. It also sought to determine the nature of CSR practiced in Nigeria. Result confirmed that CT is positively and complementarily related to CSR of firms that practice environmental remediation, and is negatively related to, mutually exclusive and a substitute to CSR of firms that embark on poverty alleviation and enhancement of educational development. This later inverse relationship imply that such firms have the potential to indulge in aggressive tax planning behaviors. Also, firms that practice poverty alleviation as a form of CSR activity are more dominant in Nigeria with the mean of such firms higher than that of firms practicing environmental remediation. Interestingly, the size of firms are positively and significantly related to CSR for firms pra...
The management of public expenditure is crucial due to its effect on people’s standard of living.... more The management of public expenditure is crucial due to its effect on people’s standard of living. In line with this, this study investigated public expenditure growth and national consumption costs using a vector error correction approach. The objective is to determine the effect of capital and recurrent expenditure on the consumer price index. The dependent variable in this study is national consumption measured by the consumer price index, while the independent variable is public expenditure measured by capital and recurrent expenditures. An ex post facto research design was adopted, and data for the study spanning from 1981 to 2019 was sourced from the World Bank. Descriptive statistics, unit root tests, cointegration tests and vector error correction estimates were all conducted with the aid of EViews 9. Based on the results, we concluded that there is a positive but insignificant relationship between the consumer price index and capital and recurrent expenditures of the governm...
The impact of technology on commerce cannot be denied, especially in relation to trade. This stud... more The impact of technology on commerce cannot be denied, especially in relation to trade. This study was conducted to examine the impact of electronic banking on the financial performance of Nigerian deposit money banks. The data for the study was obtained from the Central Bank of Nigeria’s Statistical Bulletin and the National Bureau of Statistics’ Statistical Bulletin for various years, as well as from published financial statements of the banks under study. An ex-post facto research design was used and a normality test was carried out to establish the goodness of the data; descriptive statistics and a multicollinearity test were conducted in which the independent variables were found good. Regression was adopted to test two hypotheses. It was found that ATM has a positive and significant association with Earning EPS and ROA; POS and NEFT significantly affect ROA only, while WEB has an insignificant impact on both EPS and ROA. It is concluded that electronic banking significantly af...
Every entity operates with the entity concept, which endues management to strategize for survival... more Every entity operates with the entity concept, which endues management to strategize for survival. This study examined optimal tax behaviour and corporate survival with a focus in Nigeria. Ex-post-facto was adopted and data computed from annual accounts of 52 out of 198 quoted companies were used. Descriptive Statistics, test of normality, outliers, and multi-collinearity tests were carried out to establish the normality of the data. Both fixed and random effects of the generalized least square multiple regressions were conducted and the outcome of the test showed that ETR is a positive but insignificant determinant of EPS while EATS were found to be a positive and significant determinants of EPS of companies in Nigeria. The study concluded that quoted companies are yet to effectively and efficiently explore loopholes in tax laws. The study recommended that companies in Nigeria should urgently explore these loopholes and improve their performance and experts with professional skills...
In this paper has been investigated tax savings behaviour of firms in Nigeria with the objective ... more In this paper has been investigated tax savings behaviour of firms in Nigeria with the objective of finding out how it affects firm size. The ex-post facto research design was employed, and secondary data obtained from the annual reports of firms listed on the Nigeria Stock Exchange was used. Descriptive statistics and panel data regression tests were conducted. The data were further subjected to unit root test to establish the stationarity of the data. The result revealed that interest tax savings behaviour and depreciation savings behaviour have negative but significant relationship with firm size while effective tax rate has negative and insignificant relationship with firm size. The study concluded that the lower the firm size the higher the tax savings behaviour and vice versa of quoted companies in Nigeria. The paper recommended that tax regulatory authorities should focus their searchlight on tax aggressiveness of small sized companies as a strategy to reduce tax evasion whil...
An ordinary least squares regression test of sample of firms in manufacturing and services indust... more An ordinary least squares regression test of sample of firms in manufacturing and services industries sorted into overall, low and high managerial and controlling interests (MCOWN), shows financial leverage (FL) as an increasing (decreasing) function of MCOWN, for firms with low (high) MCOWN and service (manufacturing) industry, and negatively (positively) related to profitability and size for firms with high (low) MCOWN. Result suggests increasing (decreasing) use of debt capital when MCOWN is low (high) and that the higher (lower) the MCOWN, the greater (lesser) the agency cost contradicting the notion that FL is a governance mechanism that mitigates agency problem.
The study examined the relationship between financial performance and corporate social responsibi... more The study examined the relationship between financial performance and corporate social responsibility using secondary data from the financial statement of firms quoted on the Nigeria Stock Exchange between 2005 and 2015 spanning ten-year period and operating in the manufacturing, petroleum marketing, healthcare, and food and beverage sub sectors. The study was conducted using content analysis and logit regression. The independent variable performance was represented by accounting methods; return on asset and return on capital employed and also by market based method; P/E ratio and Tobin Q, The dependent variable in the study CSR was represented by Employee management and Community development. Findings indicate that ROA and ROCE relate positively with employee management and negatively with community development. Furthermore, firms with higher ROA are likely to disclose CSR than firms with higher returns on capital employed. Market price of a share have negative relationship with CS...
This paper examines whether economic performance indices of nations signals accrual accounting re... more This paper examines whether economic performance indices of nations signals accrual accounting reform or whether they have random effect. The secondary analysis of accrual accounting data distilled from the report of the PWC global survey of accounting and financial reporting practices of 100 central governments was done using the logistic multiple regression model. Economic performance proxied by gross domestic product per capita positively signaled the likelihood of accrual accounting reform with OECD countries 10 times more likely to implement full accrual accounting than non-OECD countries. Growth rate of gross domestic product and debt as percentages of gross domestic product both negatively signaled the adoption accrual accounting reform while tax revenue as percentage of gross domestic product returned a mixed result. The results suggest that poorer non-OECD countries may be constrained by the cost of implementing accrual accounting reform and may therefore require assistance...
Firms employing additional debt finance often do so with the expectations that future profits wil... more Firms employing additional debt finance often do so with the expectations that future profits will more than compensate for the fixed cost of borrowing. Similarly additional investment of equity capital indicates management confidence that the future profitability of the firm will be greater than the fixed operating cost. Therefore the mapping of financing, investing and operating decisions to current earnings provides a more rounded view of likely future earnings. Following the decomposition of return on equity into financing, investing and operating leverages components by Agburuga & Ibanichuka (2016), we explore the ability of these components of corporate profitability to predict future earnings. We found that future earnings (FTE) was negatively related to financing leverage component (FLC) and investing leverage component (ILC) and positively related to operating leverage component (OLC). This study thus provides evidence consistent with the trade-off theory. The negative rela...
The intensification of oil and gas production activities occasioned by the drive for more revenue... more The intensification of oil and gas production activities occasioned by the drive for more revenue to meet growing expectations of the populace for socio-economic development has entrenched the reliance on oil and gas revenue by the government of Nigeria and with consequential negative implication for environmental sustainability. Using archival data this paper examines the nexus between the demand for tax revenue, oil and gas revenue and environmental sustainability in Nigeria and shows evidence that the goals of environmental sustainability can best be more likely attained in Nigeria through the government shifting from oil and gas revenue to tax revenue as the main source of finance for meeting the socio-economic goals. Keywords : Taxation, sustainable development, Dutch Disease, public finance and environmental accounting
This study examined whether corporate tax (CT) is a substitute of and mutually exclusive to corpo... more This study examined whether corporate tax (CT) is a substitute of and mutually exclusive to corporate social responsibility (CSR), or a complement thereof, using secondary data obtained from firms listed on the Nigeria Stock Exchange. It also sought to determine the nature of CSR practiced in Nigeria. Result confirmed that CT is positively and complementarily related to CSR of firms that practice environmental remediation, and is negatively related to, mutually exclusive and a substitute to CSR of firms that embark on poverty alleviation and enhancement of educational development. This later inverse relationship imply that such firms have the potential to indulge in aggressive tax planning behaviors. Also, firms that practice poverty alleviation as a form of CSR activity are more dominant in Nigeria with the mean of such firms higher than that of firms practicing environmental remediation. Interestingly, the size of firms are positively and significantly related to CSR for firms pra...
The management of public expenditure is crucial due to its effect on people’s standard of living.... more The management of public expenditure is crucial due to its effect on people’s standard of living. In line with this, this study investigated public expenditure growth and national consumption costs using a vector error correction approach. The objective is to determine the effect of capital and recurrent expenditure on the consumer price index. The dependent variable in this study is national consumption measured by the consumer price index, while the independent variable is public expenditure measured by capital and recurrent expenditures. An ex post facto research design was adopted, and data for the study spanning from 1981 to 2019 was sourced from the World Bank. Descriptive statistics, unit root tests, cointegration tests and vector error correction estimates were all conducted with the aid of EViews 9. Based on the results, we concluded that there is a positive but insignificant relationship between the consumer price index and capital and recurrent expenditures of the governm...
The impact of technology on commerce cannot be denied, especially in relation to trade. This stud... more The impact of technology on commerce cannot be denied, especially in relation to trade. This study was conducted to examine the impact of electronic banking on the financial performance of Nigerian deposit money banks. The data for the study was obtained from the Central Bank of Nigeria’s Statistical Bulletin and the National Bureau of Statistics’ Statistical Bulletin for various years, as well as from published financial statements of the banks under study. An ex-post facto research design was used and a normality test was carried out to establish the goodness of the data; descriptive statistics and a multicollinearity test were conducted in which the independent variables were found good. Regression was adopted to test two hypotheses. It was found that ATM has a positive and significant association with Earning EPS and ROA; POS and NEFT significantly affect ROA only, while WEB has an insignificant impact on both EPS and ROA. It is concluded that electronic banking significantly af...
Every entity operates with the entity concept, which endues management to strategize for survival... more Every entity operates with the entity concept, which endues management to strategize for survival. This study examined optimal tax behaviour and corporate survival with a focus in Nigeria. Ex-post-facto was adopted and data computed from annual accounts of 52 out of 198 quoted companies were used. Descriptive Statistics, test of normality, outliers, and multi-collinearity tests were carried out to establish the normality of the data. Both fixed and random effects of the generalized least square multiple regressions were conducted and the outcome of the test showed that ETR is a positive but insignificant determinant of EPS while EATS were found to be a positive and significant determinants of EPS of companies in Nigeria. The study concluded that quoted companies are yet to effectively and efficiently explore loopholes in tax laws. The study recommended that companies in Nigeria should urgently explore these loopholes and improve their performance and experts with professional skills...
In this paper has been investigated tax savings behaviour of firms in Nigeria with the objective ... more In this paper has been investigated tax savings behaviour of firms in Nigeria with the objective of finding out how it affects firm size. The ex-post facto research design was employed, and secondary data obtained from the annual reports of firms listed on the Nigeria Stock Exchange was used. Descriptive statistics and panel data regression tests were conducted. The data were further subjected to unit root test to establish the stationarity of the data. The result revealed that interest tax savings behaviour and depreciation savings behaviour have negative but significant relationship with firm size while effective tax rate has negative and insignificant relationship with firm size. The study concluded that the lower the firm size the higher the tax savings behaviour and vice versa of quoted companies in Nigeria. The paper recommended that tax regulatory authorities should focus their searchlight on tax aggressiveness of small sized companies as a strategy to reduce tax evasion whil...
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