Emmanuel Eragbhe

The focus of this study is to investigate taxpayers’ income, taxpayers’ attributes and how these affects their level of tax compliance in Nigeria. The study adopted a survey research design in which copies of questionnaires were distributed to self-employed respondents. The data gathered were analysed descriptively while the hypotheses were tested using the Ordinary Least Square technique. The analysis and testing were done electronically using the SPSS 20 software. Findings from the study show that taxpayers’ gender significantly affect the level of compliance; taxpayers’ attitude also significantly affect their personal income tax compliance; taxpayers’ income has a significant impact on the relationship between taxpayers attributes & their tax compliance; and the perception of taxpayers has no significant impact on their personal income tax compliance. In summary, the study concludes that social/psychological aspects of taxpayers are significantly affected by the level of their income and this also affects their tax compliance level. Based on these, the study recommends that since the attitude and gender of taxpayers fundamentally affect their tax compliance level, tax administrators can shape these positively by using education, enlightenment programmes, and carrying out value for money audit on taxes collected.

This paper examines the relationship between the market value added and internal performance characteristics in corporate Nigeria. The study is a cross-sectional examination of twenty-five firms quoted in the Nigeria Stock Exchange in the 2004 financial year. We employ a regression analysis and found that there is a strong positive relationship between MVA and EVA and some internal performance characteristics. It is consequently imperative for managers that those variables that influence shareholder value be stimulated in a positive way in order to maximize shareholder value.

This study empirically examines the impact of regulation, financial Development and financial soundness on bank performance in Nigeria for the period 1985-2015. The study uses two regulatory indicators (cash reserve ratio and monetary policy rate) as measures of regulation; the ratio of broad money supply to Gross Domestic Product (M2/GDP) for financial development; bank non-performing loans to total gross loans for financial soundness while bank performance was proxy by earnings of bank after tax. It adopted a multivariate OLS analysis for the estimation process, co-integration analysis for long-run equilibrium relationship and the associated error correction model to determine the short-run impact of the variables. The findings of the study are that cash reserve ratio, monetary policy rate, financial developments and financial soundness largely impact on bank performance both in the short run and long-run. It is recommends that regulation and supervision of banks should be strengthened in other to improve the performance of banks in Nigeria. Also, we recommend that the ongoing reforms in the banking system should be intensified so as to ensure safe, sound and stable banking system that is a sine qua non for long run financial performance of banks in Nigeria.

This study empirically examines the impact of regulation, financial Development and financial soundness on bank performance in Nigeria for the period 1985-2015. The study uses two regulatory indicators (cash reserve ratio and monetary policy rate) as measures of regulation; the ratio of broad money supply to Gross Domestic Product (M2/GDP) for financial development; bank non-performing loans to total gross loans for financial soundness while bank performance was proxy by earnings of bank after tax. It adopted a multivariate OLS analysis for the estimation process, co-integration analysis for long-run equilibrium relationship and the associated error correction model to determine the short-run impact of the variables. The findings of the study are that cash reserve ratio, monetary policy rate, financial developments and financial soundness largely impact on bank performance both in the short run and long-run. It is recommends that regulation and supervision of banks should be strengt...

This paper examines the relationship between the market value added and internal performance characteristics in corporate Nigeria. The study is a cross-sectional examination of twenty-five firms quoted in the Nigeria Stock Exchange in the 2004 financial year. We employ a regression analysis and found that there is a strong positive relationship between MVA and EVA and some internal performance characteristics. It is consequently imperative for managers that those variables that influence shareholder value be stimulated in a positive way in order to maximize shareholder value.

The usefulness of accounting information to the investors can be measured by the relevance of such information. In literatures relevance is operationalized by the value relevance which is the extent to which accounting information summarises the information in stock prices. The primary objective of this paper was to ascertain the relevance of financial derivates instruments. The paper uses a sample of fourteen quoted banks in the Nigerian stock Exchange over the period 2012 to 2015. Using a modification of the standard Ohlson model which regresses earnings and book value deflated by shares outstanding at year end, the variables of financial derivative assets and liabilities are in included in the standard model. The paper employes a Panel regression method to accommodate the heterogeneity of the sample data. Findings in this study indicate that derivative assets do not have a statistical significant association with share prices of listed commercial banks in Nigeria. The analysis re...

Over the years, many developed economies have made considerable investment in legislative tax reforms, taxpayer education programs, tax enforcement strategies, and increasingly sophisticated systems of tax administration using new technologies. Undoubtedly, there are lessons to be learnt from studying best practices in developed economies. However, compared to their counterparts in developed economies, policy makers and revenue authorities in developing economies face quite different challenges and constraints that require careful consideration in designing appropriate and effective tax systems. This paper examines the effects of deterrent tax measures on tax compliance in Nigeria. Following the introduction, we reviewed the existing tax policies and reforms in Nigeria. This is followed by a discussion of the various compliance strategies prescribed in the literature from where we developed our hypotheses. The method of data analysis used in the study is the ordinary least square (O...

This paper examines the effects of deterrent tax policies on tax compliance in Nigeria. Following the introduction, we reviewed the existing tax policies and reforms in Nigeria. This is followed by a discussion of the various compliance strategies prescribed in the literature from where we developed our hypotheses. The method of data analysis used in the study is the ordinary least square (OLS) regression technique. This method was adopted because of its properties of consistency, unbiasedness and efficiency. The OLS regression technique was estimated using a computer software (Microfit 4.1). It was observed that the existing deterrent tax policies in Nigeria are inadequate and have not helped to promote tax compliance in the country. It was also discovered that fostering voluntary compliance and enhancing taxpayer’s morale will enhance tax compliance. We recommend that the Nigerian revenue authorities should strive to adopt the approach that will encourage voluntary compliance and ...

The paper investigated accounting ratios and false financial statements detection among firms quoted in the Nigerian Stock Exchange. Accounting data were obtained from the reported financial statements of 30 sampled firms in financial and non financial sectors covering a time frame of five (5) years (2007-2011).The statistical instrument employed was Pooled Data Binary Logit regression. Data collected were run with E-Views 7 and SPSS 20. The findings revealed that investment and liquidity ratios were significantly related to financial statements fraud. It was recommended that accounting ratios should be critically examined by investors and stakeholders so as to detect probabilities of financial statements fraud occurrences, and also Government regulatory authorities like the Nigerian Stock Exchange, Security and Exchange Commission, Central Bank of Nigeria, Financial Reporting Council of Nigeria and others should ensure that financial statements of firms are properly screened and en...

This study empirically examines the impact of regulation, financial Development and financial soundness on bank performance in Nigeria for the period 1985-2015. The study uses two regulatory indicators (cash reserve ratio and monetary policy rate) as measures of regulation; the ratio of broad money supply to Gross Domestic Product (M2/GDP) for financial development; bank non-performing loans to total gross loans for financial soundness while bank performance was proxy by earnings of bank after tax. It adopted a multivariate OLS analysis for the estimation process, co-integration analysis for long-run equilibrium relationship and the associated error correction model to determine the short-run impact of the variables. The findings of the study are that cash reserve ratio, monetary policy rate, financial developments and financial soundness largely impact on bank performance both in the short run and long-run. It is recommends that regulation and supervision of banks should be strengt...

The focus of this study is to investigate taxpayers’ income, taxpayers’ attributes and how these affects their level of tax compliance in Nigeria. The study adopted a survey research design in which copies of questionnaires were distributed to self-employed respondents. The data gathered were analysed descriptively while the hypotheses were tested using the Ordinary Least Square technique. The analysis and testing were done electronically using the SPSS 20 software. Findings from the study show that taxpayers’ gender significantly affect the level of compliance; taxpayers’ attitude also significantly affect their personal income tax compliance; taxpayers’ income has a significant impact on the relationship between taxpayers attributes & their tax compliance; and the perception of taxpayers has no significant impact on their personal income tax compliance. In summary, the study concludes that social/psychological aspects of taxpayers are significantly affected by the level of their i...

This study examines the nexus between government accountability and voluntary tax compliance based on the theoretical framework that there exist a relational fiscal/social contract between the state and the citizens. Specifically, the hypothesis that voluntary tax compliance is influenced by the individuals’ perception of government accountability was specified and tested. Primary data elicited using structured likert scale questionnaire was used for the study while the Z- scores were computed and used to test the hypothesis. The Findings were in the affirmative indicating that the citizens’ perception of government accountability is an instrumental factor that shapes the emergence and maintenance of tax morale resulting in voluntary tax compliance. The study recommends is that to reduce tax gap, voluntary compliance should be motivated by improving the quality of public governance. Keywords: voluntary tax compliance, tax morale, government accountability.

Capital structure decision poses a lot of challenges to firms. Determining an appropriate mix of equity and debt is one of the most strategic decisions public interest entities are confronted with. A wrong financing decision has the tendency of stalling the fortunes of any business. Therefore, if managers are to achieve the goal of wealth maximization, conscious steps must be taken in the right direction and at the right time to identify those factors that must be taken into cognizance in determining appropriate financing mix. It is upon this premise that this conceptual piece is designed to guide the top echelons of corporate managers in capital structure decisions. The paper explores a vast body of literature in articulating critical issues in capital structure decision. INTRODUCTION Capital structure refers to the different options used by a firm in financing its assets (Bhaduri, 2002). Generally, a firm can go for different levels/mixes of debts, equity, or other financial arran...

The objective of this study was to provide an evidence on the existence or otherwise of a relationship between the tenure of auditor and audit quality in Nigeria. The Binary Logit Model estimation technique was use to analyze the relationship between the tenure of an auditor and audit quality. Findings reveal that there is a negative relationship between auditor tenure and audit quality though the variable was not significant. The other explanatory variables (ROA, Board Independence, and Director Ownership and Board size) considered alongside auditor tenure were found to be inversely related to audit quality aside from Returns on Assets which exhibited a positive effect. The recommendation is that there is the need for the financial reporting council and other regulatory bodies in line with best practices to look critically into the issue of auditor tenure and the impact on audit quality in Nigeria. Keywords: Audit quality, Audit tenure, Auditing and financial reporting

This paper examines relationship between audit delay and several company characteristics in Nigeria. The objective of this study is to measure the extent of audit lag in Nigeria and to establish the impact of selected corporate attributes on audit delay in Nigeria. A sample of 20 quoted companies was selected for a period of 2009 to 2011. The audit delay for each of the companies revealed that it takes a minimum of 30 days and a maximum of 276 days for Nigerian companies to publish their annual reports. Nigeria listed companies take approximately two months on the average beyond their balance sheet date before they are finally ready for the presentation of the audited accounts to the shareholders at the annual general meetings. The results from the panel data which was estimated using Ordinary Least Square regression showed that the major determinants of audit delay in Nigeria include multinationality connections of companies, company size and audit fees paid to auditors. We therefo...

This study investigates the estimated cost of tax compliance for SMEs in Nigeria. The sum of internal compliance cost, external compliance cost and incidental cost; including bribery/psychological cost related to the different taxes paid by SMEs in Nigeria was utilized in estimating the tax compliance costs. Our analyses revealed that on the average the SMEs overall tax compliance cost in Nigeria is about N 108,594 per annum and the values range from N14, 500 to N725, 000 per annum. Smaller SMEs were found to have an average TCC of N219,601 per annum as against N123,047 TCC per annum for larger SMEs which implies the existence of tax compliance costs regressivity in Nigeria. It was also discovered that Value Added Tax (VAT) has the highest TCC accounting for about 33% of the total average tax compliance costs. Furthermore, the study shows that SMEs in manufacturing industry have the highest relative average tax compliance cost while those in business services have the lowest average...