PurposePrior studies have shown that heterogeneity plays a crucial role in addressing soft issues... more PurposePrior studies have shown that heterogeneity plays a crucial role in addressing soft issues linked to a firm’s corporate social responsibility stance. The purpose of this paper is to extend the prior literature on the effect of gender heterogeneity on environmental, social and economic performance dimensions, specifically, whether the female boardroom presence weakens or strengthens the performance along the three dimensions, commonly referred to as the corporate sustainability.Design/methodology/approachThe study from a positivist philosophy adopts a quantitative approach, and the final sample consisted of forty-six companies listed on the Nigerian Stock Exchange for the year 2011–2018. The final sample was a balanced panel of 344 firm years. The dependent variables were return on assets (ROA), environmental performance (ENV) and donations made for social causes (SOP). The ENV was measured using a content scoring system, with range of 1 to 5. The data were analysed using the ...
PurposeThe study investigated the relationship between residual audit fee and real income smoothe... more PurposeThe study investigated the relationship between residual audit fee and real income smoothening, proxied as real operating cash flow and production expenditure smoothing of non-financial firms in Nigeria.Design/methodology/approachThe study relied on secondary data from annual financial statements of 75 firms in the non-financial sector from 2010 to 2019. The study estimated the residual audit fee using a modified model from several contexts to suit the Nigerian environment. The hypotheses were tested using the dynamic panel GMM estimation procedure.FindingsThe results showed a significant negative effect of residual audit fee on (real) operating cash flow smoothing and production expenditure smoothing of non-financial firms. The control variables showed mixed effects for the industry-related (firm size and profitability), auditor attribute (audit quality and audit report lag) and the board related (board size and board independence).Research limitations/implicationsThe firms ...
International Journal of Financial, Accounting, and Management
: Purpose: This study examined the effect of debt financing on the firm valuation of quoted non-f... more : Purpose: This study examined the effect of debt financing on the firm valuation of quoted non-financial firms on the Nigerian Stock Exchange (NSE). The study specifically evaluated the effect of short-term debt to equity, long-term debt to equity, and total debt to assets on Tobin’s Q for the period 2011 to 2019. Methodology: The study adopts the ex post facto research design. The sampling technique utilized in the study was non-probability sampling. The final sample comprised seventy-five firms quoted non-financial firms on the Nigerian Stock Exchange (NSE). The secondary data obtained from MachameRATIOS®were analyzed using panel regression techniques. Unlike prior studies, the study also employs the Arellano Bond Dynamic Panel-data Estimation Model for robustness analysis. Results: There is a negative effect of short-term debt to equity on Tobin’s Q. The effect of long-term debt to equity and total debt to assets was positive and significant. Limitations: The main limitation is the unbalanced nature of some sectors due to data unavailability. Contribution: The study contributes to the literature in the context of developing countries, on the effect of long-term debt on firm valuation; consistent with the trade-off theory of the cost of long-term debt financing as an alternative to internal funding. Keywords: 1. Debt financing 2. Short-term debt 3. Long-term debt 4. Tobin’s Q
In order to function properly organizations utilize resources, this can either be from internal o... more In order to function properly organizations utilize resources, this can either be from internal or external sources. In most organisations, human resource forms one of the key internal resources available to the management (Pandurangarao, Basha & Rajasekhar, 2013). In today’s highly competitive and globalised knowledge era, human resource has been considered as the most important asset in any organization (Huui, 2012; Maindargi, 2012). No company can exist without its employees (Huui, 2012) and presently stakeholders demand the valuation, recording and fair disclosure of human resource information in financial statements (Islam, Kamruzzaman & Redwanuzzaman, 2013), which is considered relevant to a variety of decisions made by external and internal users. Approaches to human resource accounting were first developed in the United States of America in the year 1691. Research into true human resource accounting began in the year 1960s by Rensis Likert. The main objective of human resou...
Purpose:The main objective of this study is to examine the effect of earnings management on EPS a... more Purpose:The main objective of this study is to examine the effect of earnings management on EPS and BVPS. The issue of earnings management is becoming quite rampant in organisations, following notable failures of companies as Enron, WorldCom, Tyco, etc. and moreover, the Cadbury, African Petroleum, and failed Banks in Nigeria. Design/Methodology: The study was descriptive in nature and made use of ex-post facto research design. The population of the study was drawn from companies quoted under the conglomerates section of the Nigerian Stock Exchange (NSE) as shown in the Stock Exchange Factbook of 2013. Earnings Management was estimated using Jones (1991) Model. Our dependent variables were Earnings Per Share (EPS) and Book Value Per Share (BVPS). Findings:The results show that for firms with high discretionary accruals, earnings management positively affects earnings per share; and, book value per share of the firms. Recommendations:Based on this the study recommends that ...
The Purpose of this paper is to ascertain the perception of Auditors, Accountants and Accounting ... more The Purpose of this paper is to ascertain the perception of Auditors, Accountants and Accounting Academics on the vexed issue of mandatory rotation of auditors in Nigeria. A hand administered questionnaire survey of 106 accounting professionals operating as auditors, accountants and accounting academics was undertaken. Descriptive statistics were used to find out the most common reasons why respondents were agreeable or disagreed with the idea of introduction of mandatory rotation of auditors in Nigeria. Multiple linear regression analysis and the ANOVA test statistics were used to test the two hypotheses of study. The questionnaire findings suggest that four factors ranked high in the respondents desire to see mandatory rotation of auditors enthroned in Nigeria. They are that it will enhance the independence of the auditor; it will give opportunity for periodic fresh look into an institution by another auditor; it will help the auditor maintain his professional skepticism and it wi...
Advocates of CSR argue that transparency and accountability are essential components of a success... more Advocates of CSR argue that transparency and accountability are essential components of a successful sustainability strategy. In this context, sustainability reporting is one such tool for communicating organisational performance with respect to organisational CSR practices. This empirical paper examines the connection between such reporting practices and corporate performance from a stakeholder perspective. Using a sample of 141 respondents, comprising 21 corporate managers; 55 corporate employees and 65 consumers and investors, this study examined the connection between sustainability reporting and corporate performance. Four hypotheses were formulated and tested in the study. In addition to descriptive statistics, Kolmogorov-Smirnov (K-S), One Sample t-test and Multiple Regression Technique (MRT) were used in analyzing the primary data. The results of the data analysis showed a positive connection between sustainability reporting and corporate performance. Both consumers and inve...
This work empirically investigates the effect of foreign direct investment on Nigeria’s economic ... more This work empirically investigates the effect of foreign direct investment on Nigeria’s economic growth over the period 1990 to 2012. The study made use of ordinary least squares (OLS) estimation techniques in analyzing the secondary data. The secondary data were mainly sourced from Central Bank of Nigeria statistical bulletin (CBN), Annual report and Statement of accounts. The result shows that Export assumes a positive sign which implies that there is a positive relationship between Economic growth and Export; in conclusion FDI has led to increase in Export in Nigeria. Keywords : Foreign direct investment, Economic growth, Gross domestic product
The main objective of this study is to ascertain the influence of corporate board attributes on v... more The main objective of this study is to ascertain the influence of corporate board attributes on voluntary social disclosure of selected quoted manufacturing firms in Nigeria. The study shall specifically examine the influence of board size, board ownership, board structure, proportion of women in the board, CEO duality, proportion of non-executive directors, and directors’ remuneration on voluntary corporate social disclosure. The study adopted a correlational research design, in order to ascertain the direction and magnitude of relationship between the variables. The population of the study is made up of Manufacturing Companies quoted on the Nigerian Stock Exchange. The scope of the study limited attention to Conglomerates, Consumer goods, and, Industrial Goods companies. The study made use of Pooled OLS and Heteroskedasticity-Corrected, Ordinary Least Squares to test the hypotheses. The study finds a significant positive influence of board size, a significant negative influence of...
Globalization and technology diffusion are at the heart of the 21st century. Cloud computing fram... more Globalization and technology diffusion are at the heart of the 21st century. Cloud computing frameworks, which provide storage and information sharing mediums for organisations, and social media platforms, which provide means for product advertisements and sales order placement, etc. have led to significant changes in the way organisations obtain and process data. However, the adoption of modern day technologies is not only beneficial but also poses threats to auditors in business organisations.This study examines emerging technologies as a risk factor in internal audit environment.
The purpose of this paper is to determine the direct relationship between cash conversion cycle (... more The purpose of this paper is to determine the direct relationship between cash conversion cycle (CCC) and corporate profitability of quoted non-financial firms in Nigeria. The study adopted the ex-post facto research design. The population comprised all quoted manufacturing companies on the Nigerian Stock Exchange as at 31 st December 2017. Purposive sampling was used to select twenty-one firms all in the consumer goods sector. The study employed the Generalised Least Squares (cross- section weights). The empirical results showed that CCC had a positive but non- significant effect on gross profit margin (GPM) and net profit margin (NPM). However, CCC had a negative non-significant effect on return on assets (ROA) and return on equity (ROE). The study demonstrates the ability of managers to create a positive value for shareholders by reducing the days customers settle their accounts, ensuring that they sell off their inventories as quickly as possible and delaying the payments to the...
This study examines the relationship between corporate social responsibility and financial perfor... more This study examines the relationship between corporate social responsibility and financial performance of quoted companies in Nigeria (a case study of Guinness Nigeria plc). The study made use of ex-post facto research design. Data was collected from the annual reports of Guinness Nig plc covering a period of 2007-2016. CSR was measured using the donations made by the company while financial performance was measured using net profit margin, return on equity, return on assets and earnings per share. Data were analysed using simple linear regression analysis, with the aid of SPSS version 23. It was found out that CSR has a negative and insignificant effect on NPM, positive but insignificant effect on ROE, positive but insignificant effect on ROA, positive but insignificant effect on EPS. It was recommended that Nigerian corporate organizations need to establish social responsibility unit to ensure that organization responsive to social responsibility is in accordance with internationa...
Purpose:The main objective of this study is to examine the effect of earnings management on EPS a... more Purpose:The main objective of this study is to examine the effect of earnings management on EPS and BVPS. The issue of earnings management is becoming quite rampant in organisations, following notable failures of companies as Enron, WorldCom, Tyco, etc. and moreover, the Cadbury, African Petroleum, and failed Banks in Nigeria. Design/Methodology: The study was descriptive in nature and made use of ex-post facto research design. The population of the study was drawn from companies quoted under the conglomerates section of the Nigerian Stock Exchange (NSE) as shown in the Stock Exchange Factbook of 2013. Earnings Management was estimated using Jones (1991) Model. Our dependent variables were Earnings Per Share (EPS) and Book Value Per Share (BVPS). Findings:The results show that for firms with high discretionary accruals, earnings management positively affects earnings per share; and, book value per share of the firms. Recommendations:Based on this the study recommends that the establ...
Indonesian Journal of Contemporary Accounting Research
This research work examines the factors that determine the selection of external auditor among Gl... more This research work examines the factors that determine the selection of external auditor among Global Brand listed companies in Nigeria. The variables of Audit Big 4 firms which include Deloitte, Klynveld Peat Marwick Goerdeler, (KPMG) and Price Water House Coopers (PWC) where selected as choice target for this research work. Big four audit firm of Ernst’s & Young (E&Y) was excluded in the sample as it is found not to have provided audit services to any of the selected global brand listed company in Nigeria during the period covered by this study. The study employed the methodology of Multinomial Probit Regression (MPR) analysis in X-raying the data. Empirical evidence shows that there is a significant positive relationship between firm size and choice of external auditor’s selection for the big four audit firms of KPMG and Deloitte. The study also provides a revelation that the relationship between the variable of firm size is negative and statistically significant with audit firm ...
Climate change is a major threat to agricultural food production globally and locally. It poses b... more Climate change is a major threat to agricultural food production globally and locally. It poses both direct and indirect effects on soil functions. Thus, agricultural management practices has evolved to adaptation strategies in order to mitigate the risks and threats from climate change. The study concludes with a recommendation the coconut farmers should explore the idea of soil biodiversity in a bid to mitigate the potential negative impact of climate related risk on the farming. The study proffers the need for adopting sustainable agricultural practices to boost local coconut production. This can contribute to the simultaneous realisation of two of the Sustainable Development Goals (SDGs) of the United Nations: SDG 2 on food security and sustainable agriculture and SDG 13 on action to combat climate change and its impacts. The study findings has implications for tackling climate change in Sub-Saharan Africa and in particular Nigeria in order to boost local agricultural production...
PurposePrior studies have shown that heterogeneity plays a crucial role in addressing soft issues... more PurposePrior studies have shown that heterogeneity plays a crucial role in addressing soft issues linked to a firm’s corporate social responsibility stance. The purpose of this paper is to extend the prior literature on the effect of gender heterogeneity on environmental, social and economic performance dimensions, specifically, whether the female boardroom presence weakens or strengthens the performance along the three dimensions, commonly referred to as the corporate sustainability.Design/methodology/approachThe study from a positivist philosophy adopts a quantitative approach, and the final sample consisted of forty-six companies listed on the Nigerian Stock Exchange for the year 2011–2018. The final sample was a balanced panel of 344 firm years. The dependent variables were return on assets (ROA), environmental performance (ENV) and donations made for social causes (SOP). The ENV was measured using a content scoring system, with range of 1 to 5. The data were analysed using the ...
PurposeThe study investigated the relationship between residual audit fee and real income smoothe... more PurposeThe study investigated the relationship between residual audit fee and real income smoothening, proxied as real operating cash flow and production expenditure smoothing of non-financial firms in Nigeria.Design/methodology/approachThe study relied on secondary data from annual financial statements of 75 firms in the non-financial sector from 2010 to 2019. The study estimated the residual audit fee using a modified model from several contexts to suit the Nigerian environment. The hypotheses were tested using the dynamic panel GMM estimation procedure.FindingsThe results showed a significant negative effect of residual audit fee on (real) operating cash flow smoothing and production expenditure smoothing of non-financial firms. The control variables showed mixed effects for the industry-related (firm size and profitability), auditor attribute (audit quality and audit report lag) and the board related (board size and board independence).Research limitations/implicationsThe firms ...
International Journal of Financial, Accounting, and Management
: Purpose: This study examined the effect of debt financing on the firm valuation of quoted non-f... more : Purpose: This study examined the effect of debt financing on the firm valuation of quoted non-financial firms on the Nigerian Stock Exchange (NSE). The study specifically evaluated the effect of short-term debt to equity, long-term debt to equity, and total debt to assets on Tobin’s Q for the period 2011 to 2019. Methodology: The study adopts the ex post facto research design. The sampling technique utilized in the study was non-probability sampling. The final sample comprised seventy-five firms quoted non-financial firms on the Nigerian Stock Exchange (NSE). The secondary data obtained from MachameRATIOS®were analyzed using panel regression techniques. Unlike prior studies, the study also employs the Arellano Bond Dynamic Panel-data Estimation Model for robustness analysis. Results: There is a negative effect of short-term debt to equity on Tobin’s Q. The effect of long-term debt to equity and total debt to assets was positive and significant. Limitations: The main limitation is the unbalanced nature of some sectors due to data unavailability. Contribution: The study contributes to the literature in the context of developing countries, on the effect of long-term debt on firm valuation; consistent with the trade-off theory of the cost of long-term debt financing as an alternative to internal funding. Keywords: 1. Debt financing 2. Short-term debt 3. Long-term debt 4. Tobin’s Q
In order to function properly organizations utilize resources, this can either be from internal o... more In order to function properly organizations utilize resources, this can either be from internal or external sources. In most organisations, human resource forms one of the key internal resources available to the management (Pandurangarao, Basha & Rajasekhar, 2013). In today’s highly competitive and globalised knowledge era, human resource has been considered as the most important asset in any organization (Huui, 2012; Maindargi, 2012). No company can exist without its employees (Huui, 2012) and presently stakeholders demand the valuation, recording and fair disclosure of human resource information in financial statements (Islam, Kamruzzaman & Redwanuzzaman, 2013), which is considered relevant to a variety of decisions made by external and internal users. Approaches to human resource accounting were first developed in the United States of America in the year 1691. Research into true human resource accounting began in the year 1960s by Rensis Likert. The main objective of human resou...
Purpose:The main objective of this study is to examine the effect of earnings management on EPS a... more Purpose:The main objective of this study is to examine the effect of earnings management on EPS and BVPS. The issue of earnings management is becoming quite rampant in organisations, following notable failures of companies as Enron, WorldCom, Tyco, etc. and moreover, the Cadbury, African Petroleum, and failed Banks in Nigeria. Design/Methodology: The study was descriptive in nature and made use of ex-post facto research design. The population of the study was drawn from companies quoted under the conglomerates section of the Nigerian Stock Exchange (NSE) as shown in the Stock Exchange Factbook of 2013. Earnings Management was estimated using Jones (1991) Model. Our dependent variables were Earnings Per Share (EPS) and Book Value Per Share (BVPS). Findings:The results show that for firms with high discretionary accruals, earnings management positively affects earnings per share; and, book value per share of the firms. Recommendations:Based on this the study recommends that ...
The Purpose of this paper is to ascertain the perception of Auditors, Accountants and Accounting ... more The Purpose of this paper is to ascertain the perception of Auditors, Accountants and Accounting Academics on the vexed issue of mandatory rotation of auditors in Nigeria. A hand administered questionnaire survey of 106 accounting professionals operating as auditors, accountants and accounting academics was undertaken. Descriptive statistics were used to find out the most common reasons why respondents were agreeable or disagreed with the idea of introduction of mandatory rotation of auditors in Nigeria. Multiple linear regression analysis and the ANOVA test statistics were used to test the two hypotheses of study. The questionnaire findings suggest that four factors ranked high in the respondents desire to see mandatory rotation of auditors enthroned in Nigeria. They are that it will enhance the independence of the auditor; it will give opportunity for periodic fresh look into an institution by another auditor; it will help the auditor maintain his professional skepticism and it wi...
Advocates of CSR argue that transparency and accountability are essential components of a success... more Advocates of CSR argue that transparency and accountability are essential components of a successful sustainability strategy. In this context, sustainability reporting is one such tool for communicating organisational performance with respect to organisational CSR practices. This empirical paper examines the connection between such reporting practices and corporate performance from a stakeholder perspective. Using a sample of 141 respondents, comprising 21 corporate managers; 55 corporate employees and 65 consumers and investors, this study examined the connection between sustainability reporting and corporate performance. Four hypotheses were formulated and tested in the study. In addition to descriptive statistics, Kolmogorov-Smirnov (K-S), One Sample t-test and Multiple Regression Technique (MRT) were used in analyzing the primary data. The results of the data analysis showed a positive connection between sustainability reporting and corporate performance. Both consumers and inve...
This work empirically investigates the effect of foreign direct investment on Nigeria’s economic ... more This work empirically investigates the effect of foreign direct investment on Nigeria’s economic growth over the period 1990 to 2012. The study made use of ordinary least squares (OLS) estimation techniques in analyzing the secondary data. The secondary data were mainly sourced from Central Bank of Nigeria statistical bulletin (CBN), Annual report and Statement of accounts. The result shows that Export assumes a positive sign which implies that there is a positive relationship between Economic growth and Export; in conclusion FDI has led to increase in Export in Nigeria. Keywords : Foreign direct investment, Economic growth, Gross domestic product
The main objective of this study is to ascertain the influence of corporate board attributes on v... more The main objective of this study is to ascertain the influence of corporate board attributes on voluntary social disclosure of selected quoted manufacturing firms in Nigeria. The study shall specifically examine the influence of board size, board ownership, board structure, proportion of women in the board, CEO duality, proportion of non-executive directors, and directors’ remuneration on voluntary corporate social disclosure. The study adopted a correlational research design, in order to ascertain the direction and magnitude of relationship between the variables. The population of the study is made up of Manufacturing Companies quoted on the Nigerian Stock Exchange. The scope of the study limited attention to Conglomerates, Consumer goods, and, Industrial Goods companies. The study made use of Pooled OLS and Heteroskedasticity-Corrected, Ordinary Least Squares to test the hypotheses. The study finds a significant positive influence of board size, a significant negative influence of...
Globalization and technology diffusion are at the heart of the 21st century. Cloud computing fram... more Globalization and technology diffusion are at the heart of the 21st century. Cloud computing frameworks, which provide storage and information sharing mediums for organisations, and social media platforms, which provide means for product advertisements and sales order placement, etc. have led to significant changes in the way organisations obtain and process data. However, the adoption of modern day technologies is not only beneficial but also poses threats to auditors in business organisations.This study examines emerging technologies as a risk factor in internal audit environment.
The purpose of this paper is to determine the direct relationship between cash conversion cycle (... more The purpose of this paper is to determine the direct relationship between cash conversion cycle (CCC) and corporate profitability of quoted non-financial firms in Nigeria. The study adopted the ex-post facto research design. The population comprised all quoted manufacturing companies on the Nigerian Stock Exchange as at 31 st December 2017. Purposive sampling was used to select twenty-one firms all in the consumer goods sector. The study employed the Generalised Least Squares (cross- section weights). The empirical results showed that CCC had a positive but non- significant effect on gross profit margin (GPM) and net profit margin (NPM). However, CCC had a negative non-significant effect on return on assets (ROA) and return on equity (ROE). The study demonstrates the ability of managers to create a positive value for shareholders by reducing the days customers settle their accounts, ensuring that they sell off their inventories as quickly as possible and delaying the payments to the...
This study examines the relationship between corporate social responsibility and financial perfor... more This study examines the relationship between corporate social responsibility and financial performance of quoted companies in Nigeria (a case study of Guinness Nigeria plc). The study made use of ex-post facto research design. Data was collected from the annual reports of Guinness Nig plc covering a period of 2007-2016. CSR was measured using the donations made by the company while financial performance was measured using net profit margin, return on equity, return on assets and earnings per share. Data were analysed using simple linear regression analysis, with the aid of SPSS version 23. It was found out that CSR has a negative and insignificant effect on NPM, positive but insignificant effect on ROE, positive but insignificant effect on ROA, positive but insignificant effect on EPS. It was recommended that Nigerian corporate organizations need to establish social responsibility unit to ensure that organization responsive to social responsibility is in accordance with internationa...
Purpose:The main objective of this study is to examine the effect of earnings management on EPS a... more Purpose:The main objective of this study is to examine the effect of earnings management on EPS and BVPS. The issue of earnings management is becoming quite rampant in organisations, following notable failures of companies as Enron, WorldCom, Tyco, etc. and moreover, the Cadbury, African Petroleum, and failed Banks in Nigeria. Design/Methodology: The study was descriptive in nature and made use of ex-post facto research design. The population of the study was drawn from companies quoted under the conglomerates section of the Nigerian Stock Exchange (NSE) as shown in the Stock Exchange Factbook of 2013. Earnings Management was estimated using Jones (1991) Model. Our dependent variables were Earnings Per Share (EPS) and Book Value Per Share (BVPS). Findings:The results show that for firms with high discretionary accruals, earnings management positively affects earnings per share; and, book value per share of the firms. Recommendations:Based on this the study recommends that the establ...
Indonesian Journal of Contemporary Accounting Research
This research work examines the factors that determine the selection of external auditor among Gl... more This research work examines the factors that determine the selection of external auditor among Global Brand listed companies in Nigeria. The variables of Audit Big 4 firms which include Deloitte, Klynveld Peat Marwick Goerdeler, (KPMG) and Price Water House Coopers (PWC) where selected as choice target for this research work. Big four audit firm of Ernst’s & Young (E&Y) was excluded in the sample as it is found not to have provided audit services to any of the selected global brand listed company in Nigeria during the period covered by this study. The study employed the methodology of Multinomial Probit Regression (MPR) analysis in X-raying the data. Empirical evidence shows that there is a significant positive relationship between firm size and choice of external auditor’s selection for the big four audit firms of KPMG and Deloitte. The study also provides a revelation that the relationship between the variable of firm size is negative and statistically significant with audit firm ...
Climate change is a major threat to agricultural food production globally and locally. It poses b... more Climate change is a major threat to agricultural food production globally and locally. It poses both direct and indirect effects on soil functions. Thus, agricultural management practices has evolved to adaptation strategies in order to mitigate the risks and threats from climate change. The study concludes with a recommendation the coconut farmers should explore the idea of soil biodiversity in a bid to mitigate the potential negative impact of climate related risk on the farming. The study proffers the need for adopting sustainable agricultural practices to boost local coconut production. This can contribute to the simultaneous realisation of two of the Sustainable Development Goals (SDGs) of the United Nations: SDG 2 on food security and sustainable agriculture and SDG 13 on action to combat climate change and its impacts. The study findings has implications for tackling climate change in Sub-Saharan Africa and in particular Nigeria in order to boost local agricultural production...
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Papers by Chinedu Egbunike