International Review of Financial Studies
International Review of Financial Studies (IROFS) is an open access journal indexed in Google scholar. It is a leading association of scholars with specialists in Accounting, Auditing, Artificial Intelligence in Business, Finance, Economics, Entrepreneurship, Business Management, Commercial law, Social sciences, Agricultural Economics, studies on Sustainable Development Goals (SDG) et cetera. The journal joins the global community to help facilitate and promote discussions and publications of ideas among scholars from around the globe at the virtual platform where researchers and business executives get to know each other, opening opportunities for collaboration and jointly seeking solutions for business and real-world problems. The journal publishes six times a year in February, April, June, August, October, and December, respectively. The Editorial team is exclusively inviting you to submit your contemporary and well articulated original research works at the International Review of Financial Studies (IROFS) through its editorial e-mail address: editor.irofs@journals.unizik.edu.ng Authors’ submissions are timely acknowledged and the peer review reports as well as the editorial board’s decision on such manuscripts are communicated within four weeks of submission. Following the paper’s acceptance and authors’ satisfaction of publication requisites, a gallery proof is sent to the authors for their perusal and consequent publication in the next issue. To fast-track a manuscript’s peer review and publication, authors are advised to structure their manuscript in line with IROF’s guideline and format for manuscript preparation. Visit the SUBMISSION menu on https://journals.unizik.edu.ng/irofs for concise details.
Department of Accountancy, Nnamdi Azikiwe University Awka Anambra State Nigeria
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EFFECT OF RISK COMMITTEE DIVERSITY ON FINANCIAL PERFORMANCE OF LICENSED DEPOSIT MONEY BANKS IN SELECTED SUB SAHARAN AFRICAN COUNTRIES
This study investigated the effect of risk committee diversity on financial performance of licensed deposit money banks in selected sub saharan African countries. In specific terms, it investigated the effects of risk committee independence diversity, risk committee gender diversity, and risk committee tenure diversity on total assets of selected commercial banks in Nigeria, Ghana and South Africa. Adopting the ex post facto research design, a total of 12 commercial banks out of 29 commercial banks with license for international operations in Nigeria, Ghana and South Africa was judgmentally sampled for the years 2014 – 2024. Data extracts from the audited financial reports of the sampled commercial banks were analysed for test of hypotheses purpose using the panel least square statistical tool through STATA ver 17 statistical software. The findings showed that board risk management committee independence diversity has a positive but non-significant effect on the return of assets of commercial banks in Sub-Saharan Africa (t-statistic 0.97; p-value 0.335); board risk management committee gender diversity has a positive but very weak insignificant effect on the return of assets of commercial banks in Sub-Saharan Africa (t-statistic 0.04; p-value 0.967); and board risk management committee tenure diversity has a strong and positive significant effect on the return of assets of commercial banks in Sub-Saharan Africa (t-statistics 2.03; p-value 0.045). The study concluded that deep-level diversity attributes especially tenure structure plays a more meaningful role in strengthening the performance of commercial banks in the sub Saharan Africa. It therefore recommends that Banks should improve board independence by adopting stricter conflict-of-interest policies, ensuring independent directors have full access to risk information, and reducing practices that limit independent oversight. Also, banks should ensure that gender-diverse appointees are assigned meaningful functional roles within BRMCs rather than symbolic positions. Lastly, commercial banks should therefore adopt staggered board renewal policies, ensuring a mix of long-serving and newly appointed directors in BRMCs to facilitate knowledge continuity and fresh perspectives.
Copyright (c) 2026 International Review of Financial Studies https://creativecommons.org/licenses/by-nc/4.0
VALUE ADDED INTELLECTUAL COEFFICIENT AND SUSTAINABLE GROWTH RATE OF LISTED SERVICE FIRMS IN NIGERIA
This study assessed the effect of value added intellectual coefficient on sustainable growth rate of listed service firms in Nigeria for eleven (11) years period covering from 2015-2025. Ex-Post facto research design was employed. Fifty one (51) quoted service firms constituted the sample size of this study. Secondary data were extracted from the annual reports and accounts of the sampled firms and were analysed using E-Views 10.0 statistical software. The study employed inferential statistics using Panel Least Square (PLS) regression analysis. Finding from the empirical analysis showed that VAIC has a significant and positive effect on sustainable growth rate (β1 = 0.063268; p-value = 0.0000) of listed service firms in Nigeria at 5% level of significance. Conclusively, this study upholds that an increase in value-added intellectual coefficients exerted 6.33% increase on sustainable growth rate. It was recommended that strategic human resources policies must also be carefully formulated and properly implemented to x-ray the possibility of including human assets in the statement of financial position of corporate entities and to promote intellectual capital reporting
ENVIRONMENTAL DISCLOSURE AND MARKET CAPITALISATION OF LISTED OIL AND GAS FIRMS IN NIGERIA
This study assessed the effect of environmental disclosure on market capitalization of listed oil and gas firms in Nigeria for a sixteen (16) year period spanning from 2009-2024. Environmental challenges such as the massive logging of primary forest which results in the loss of wildlife habitats, soil erosion and the displacement of native communities necessitated the need for this study. The specific objectives of this study were to determine the effect of emissions disclosure, environmental remediation disclosure and compliance disclosure on market capitalization. Ex-post facto research design was employed. The population of this study was nine (9) listed oil and gas firms and the entire nine (9) firms were purposively sampled. Secondary data were extracted from the annual reports and statements of account, stand alone reports of the sampled listed oil and gas firms. The study employed inferential statistics using Pearson correlation and Panel Least Square (PLS) regression analysis. Findings from the empirical analysis showed that emissions disclosure (β1 = 2.652227; p-value = 0.0000); environmental remediation disclosure (β2 = 3.666423, p-value = 0.0000); environmental prevention disclosure (β3 = 2.367617; p-value = 0.0000) have a significant and positive effect on market capitalization respectively. Conclusively, environmental disclosure has a significant and positive effect on market capitalization of listed oil and gas firms in Nigeria. It was recommended inter alia that firms should be encouraged to produce environmental reports with emphasis on the disclosure of environmental activities on regular basis to manifest their commitment towards sustainable development which in the long run would bolster firms’ performance. The implication of the findings is that a unit change in environmental disclosure will exert a corresponding increase or decrease in market capitalisation.
INVESTIGATING THE POTENTIAL OF BLOCKCHAIN TECHNOLOGY TO ENHANCE TRANSPARENCY, EFFICIENCY AND SECURITY IN CAPITAL MARKETS
This paper explored the possibility and prospects of blockchain-based technology to increase transparency, efficiency, and security within capital market by conducting a quantitative survey cross-section across 142 professionals in capital markets. The study applied structured questionnaires and a statistical test to examine the perceptions in three main dimensions. Findings showed a high level of agreement on the transformative potential of blockchain where composite scores of efficiency (M=4.19), transparency (M=4.05), and security (M=4.04) had scores exceeding 4.0. Blockchain knowledge and organization adoption status were found to be the important variables of the positive perceptions in all dimensions by regression analysis. Yet, the most significant barrier to adoption was regulatory uncertainty (31.7%), which is in favor of the technical assessment. The results show that the problems of blockchain adoption are not so much technological but institutional and that to achieve the potential of the technology in the modernization of the capital markets infrastructure, detailed regulatory frameworks and stepwise implementation strategies are necessary.
CAPITAL STRUCTURE AND FIRM VALUE OF LISTED FIRMS IN NIGERIA: CONSUMER GOODS FIRMS EXPERIENCE
This study investigated the effect of capital structure on the firm value of listed consumer goods firms in the Nigerian Exchange Group. Amid Nigeria’s challenging economic environment, marked by high interest rates, unstable regulatory frameworks, and limited access to long-term financing, firms often struggle to strike a balance between leveraging debt for growth and mitigating the risks of financial distress. The study specifically seeks to ascertain the effect of debt-to-equity ratio and debt ratio on firm value. Ex-post facto design was used, using panel data derived from annual financial reports of listed consumer goods firms, from 2014-2024. This study uses purposive sampling technique to select thirty-two (32) manufacturing firms sample size. Ordinary Least Square regression technique was used to evaluate the effect of capital structure on firms value through E-view version 10.0 software for data analysis. The study found that Debt-to-equity ratio has significant effect on firm value while Debt ratio has no significant effect on firm value of listed Consumer goods firms in Nigeria. Tis study recommends among others that management of listed Consumer goods firms in Nigeria should aim to reduce their debt-to-equity ratio by seeking alternative financing options such as equity financing or retained earnings. This can help decrease financial risk and improve cash flow stability, ultimately enhancing firm value.
AUDIT REPORT FILING RESPONSE OF PUBLIC NON FINANCE FIRMS LISTED IN NIGERIA: THE CORPORATE STRUCTURE VARIABILITY
This study evaluated the effect of corporate structure variability on audit report filing response of non finance firms listed in Nigeria. Specifically, it investigated the effect of institutional ownership and free float ownership on audit report filing of early and late filers of audited financial report among listed non-finance firms on Nigerian Exchange Group. Adopting the ex post facto research design, the secondary data source such as the audited annual reports of 68 non-finance firms out of 101 non-finance firms listed on the floor of the Nigerian Exchange group sampled using the sample filtering non-probability sampling technique over a ten-year period ranging from 2015-2024, were extracted. Utilising the STATA ver 17 statistical software, relevance correlation and regressional analysis was conducted. Empirical findings showed that 2. Institutional ownership (IOWN) had strong significant and positive effect on audit report filing of late filers of annual financial report among listed non-finance firms in Nigeria, and the early filers maintained weak and negative effect (p-values 0.002 and 0.02; coefficients -0.064 and 1.854). Also, Free float ownership (FFLOAT) had a positive but no significant effect on audit report filing of early and late filers of annual financial report among listed non-finance firms in Nigeria. (p-values 0.151 and 0.086; coefficients 0.093 and 2.438 for early and late filers).. In essence, this study concluded that corporate ownership variability plays a differentiated and context-sensitive role in determining the audit report filing actions of listed non-finance firms in Nigeria. The study therefore recommends that key stakeholders in the non-finance sector, particularly regulators and corporate governance enforcers such as the Securities and Exchange Commission (SEC) and the Nigerian Exchange Limited (NGX), should adopt differentiated oversight strategies in relation to institutional ownership. Specifically, these Enforcers should strengthen institutional Investors’ engagement through the promulgation of stewardship codes and mandatory disclosure of institutional monitoring activities. This is essential to ensure that institutional ownership consistently promotes audit report timeliness across all filing categories.
TAX PLANNING AND FINANCIAL PERFORMANCE: A COMPARATIVE ANALYSIS OF LISTED MANUFACTURING FIRMS AND DEPOSIT MONEY BANKS IN NIGERIA
This study comparatively analyzed the effect of tax planning on the financial performance of listed manufacturing firms and deposit money banks in Nigeria. The specific objectives determined the effect of effective tax rate, book-tax difference and cash effective tax rate on asset turnover ratio and return on investment among listed manufacturing firms and deposit money banks in Nigeria. It also determined if sectoral differences exist between listed manufacturing firms and deposit money banks in Nigeria. Thus, the study employed the ex-post facto research design. Using a population of twenty (20) listed manufacturing firms and thirteen (13) listed deposit money banks in Nigeria, the stratified sampling technique was adopted to select a sample size of twenty-four (twelve firms from each sector). Secondary data sourced from the audited financial statements and annual reports of the listed firms over 11 years period (2014 to 2024) were analysed and used to test the relevant hypotheses formulated using the Robust Least Squares method at a 5% level of significance, as facilitated by E-Views Version 11 statistical software. The combined sector findings revealed that: effective tax rate and cash effective tax rate positively and significantly affect return on investment of listed manufacturing firms in Nigeria. However, only book-tax difference has a significant but negative effect on asset turnover ratio of listed manufacturing firms and deposit money banks in Nigeria while effective tax rate and cash effective tax rate positively and significantly affect asset turnover ratio of listed manufacturing firms in Nigeria. Comparative analysis revealed that: effective tax rate had non-significant and negative effect on asset turnover ratio in manufacturing firms (β = -0.012344, p = 0.0864) and a non-significant and positive effect in banks (β = 0.003010, p = 0.7061); but had a significant and positive effect on return on investment in manufacturing firms (β = 0.019225, p = 0.0000) and in banks (β = 0.049980, p = 0.0000). The book-tax difference had a non-significant and positive effect on asset turnover ratio in manufacturing firms (β = 0.388356, p = 0.4862) and in banks (β = 0.286093, p = 0.0758) but a significant and positive effect on return on investment in manufacturing firms (β = 0.648056, p = 0.0000) and in banks (β = 1.446025, p = 0.0000). The cash effective tax rate had a non-significant and negative effect on asset turnover ratio in manufacturing firms (β = -0.013477, p = 0.4394) and a non-significant positive effect in banks (β = 0.014257, p = 0.2253) but had a significant and positive effect on return on investment in manufacturing firms (β = 0.017409, p = 0.0004) and in banks (β = 0.012742, p = 0.0000). IThe study concluded that tax planning helps both manufacturers and banks make more profit, but does not help as much with how efficiently they run their day-to-day operations. The study recommends that the Federal Inland Revenue Service (FIRS) should strengthen its oversight mechanisms to ensure that firms are not exploiting aggressive tax planning practices, while refining existing tax policies and incentive structures that encourage investment and growth, so that firms can legally benefit from tax allowances without compromising fiscal integrity.
IROFS, Volume 3, Issue 1, February 2026 edition
HUMAN RESOURCE ACCOUNTING AND FINANCIAL PERFORMANCE OF SELECTED MANUFACTURING FIRMS IN NIGERIA
The essence of this work is to examine human resource accounting and financial performance of selected manufacturing firms in Nigeria from 2014 to 2024. Human resource accounting was disaggregated into staff training and development, salaries and welfare and pension cost while Return on investment, profit after tax and return on assets were used as proxies for the performance of the selected manufacturing firms. The objectives of the study were developed along the line of the identified variables. Nine hypotheses were formulated in line with the objectives of the study and secondary data were collected for the variables based on the assertions of the hypotheses. The data were analyzed using multiple regression analysis, ordinary least square model (OLS) and t-statistics employed in testing the hypotheses. It was observed that, human resource has significant effect on the financial performance of manufacturing firms in Nigeria. Staff Training & Development cost has positive and insignificant effect on return on investment (ROI)., while staff Training & Development cost has negative and significant effect on profit after tax (PAT) and return on assets (ROA). Pension cost has negative and significant effect on return on investment (ROI) and positive and insignificant effect on profit after tax (PAT) and return on assets (ROA-). The study recommended that firms should consider cost benefit approach in their recruitment, training and employee welfare development in order not to lower the company’s profit.
Copyright (c) 2025 International Review of Financial Studies https://creativecommons.org/licenses/by-nc/4.0
IMPACT OF AUDIT QUALITY ON FINANCIAL REPORTING TRANSPARENCY OF MEDIUM SCALE ENTERPRISES IN KANO-NIGERIA
This study examined the impact of audit quality on financial reporting transparency of Medium Scale Enterprises (MSEs) in Kano State-Nigeria. The study employed survey research design using structured questionnaire. The population of the study comprised of entire self-employed individuals who engaged in trade, profession or vocation who are registered with Small and Medium Enterprises Development Authority (SEMEDA) in Fagge Local Government Area of Kano State-Nigeria on or before December, 2024 who are engaged in various Small and Micro Scale Enterprises in Fagge LGA in Kano State, Nigeria that cut across manufacturing, trading, and service sectors. The managers or owners of MSEs in Fagge LGA in Kano State of Nigeria who are responsible for decision making are the participants in this study. The respondents include three hounded (300) self-employed individuals owners of the business in Fagge LGA. Both descriptive and inferential statistics were employed for the purpose of the data analysis. Descriptive statistics include frequency tables and percentage count while inferential statistics such as regression analysis was used to examine the effect of audit quality on financial reporting transparency of MSEs in Kano State-Nigeria. Findings from the regression analysis showed that audit quality has positive and significant impact on financial reporting transparency of MSEs in Kano State-Nigeria. It was concluded that audit quality influence financial reporting transparency of MSEs in Kano State-Nigeria. The study recommended, among other things managers should view audit quality and financial reporting transparency not only as regulatory compliance requirements but also as strategic imperatives for long-term value creation and stakeholder trust.
EFFECT OF MANUFACTURING, HUMAN AND NATURAL CAPITAL DISCLOSURES ON MARKET CAPITALIZATION OF LISTED COMPANIES ON THE NIGERIAN EXCHANGE GROUP
The study was explicitly to determine the effect of manufacturing capital disclosure, human capital disclusore and natural capital disclosure on market capitalization of listed companies on Nigerian Exchange Group. The research design adopted was ex post facto research design. The population of the study was the one hundred and fifty-eight (158) companies listed on the Nigerian Exchange Group as at 31st December 2023. The study used purposive sampling technique to select the sample size of one hundred and sixteen (116) listed companies. The tool used for analysis was ordinary least square regression. The findings showed that manufacturing capital disclosure, human capital disclosure and natural capital disclosures had significant effects on market capitalization of listed companies on Nigerian Exchange Group. The study recommended among others that since manufacturing capital disclosure had a significant effect on market capitalization. Therefore; The NGX and regulatory bodies such as the Financial Reporting Council of Nigeria should require listed manufacturing firms to adopt standardized and detailed disclosure frameworks for manufacturing capital. This could include reporting on plant capacity, equipment upgrades, production efficiency, technology adoption, and sustainability practices in manufacturing. Such transparency will help investors better assess operational strength and growth potential, leading to more accurate company valuations. The study recommended among others that hence human capital disclosure had a significant effect on market capitalization; the policymakers should encourage initiatives that enhance employees’ development, diversity, inclusion and disclose information about their human capital practices. Since the finding showed that natural capital disclosure had significant effect on market capitalization, the study recommended that the NGX, in collaboration with the Financial Reporting Council of Nigeria and environmental agencies, should mandate comprehensive and standardized natural capital disclosures. This should cover resource use efficiency, biodiversity protection, waste management, carbon emissions, and climate risk mitigation. Such transparency will help investors factor environmental performance into company valuations, boosting market confidence and capitalization.
EFFECT OF WATER EFFLUENT, OCCUPATIONAL HEALTH AND SAFETY DISCLOSURE ON EARNINGS MANAGEMENT OF LISTED MANUFACTURING FIRMS ON NIGERIA EXCHANGE GROUP
The study evaluated the effect of occupational health and safety disclosure with water and effluent disclosure on discretionary accrual earnings of listed manufacturing firms on Nigeria Exchange Group. The research design adopted for this study was ex- post facto design. The population of the study was made up of forty - two (42) manufacturing firms listed on the Nigerian Exchange Group floor as at 31st December, 2023. Judgmental sampling technique was used to select thirty – eight (38) manufacturing firms as the sample size. Data were obtained from secondary sources for a period of twelve years covering 2012 to 2023. The data obtained were analyzed by Ordinary Least Square (RLS) regression technique through E-view version 10.0 software. The study found that occupational health and safety disclosure with Water and effluent disclosure have significant effect on discretionary accrual earnings management.
FRAUD PENTAGON MODEL AND CORPORATE REPORTING QUALITY OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA
This study investigates the impact of the Fraud Pentagon Model on corporate reporting quality in quoted Deposit Money Banks (DMBs) in Nigeria. The increasing prevalence of financial statement fraud has undermined investor confidence and highlights the need for enhanced fraud detection frameworks. Building upon the traditional Fraud Triangle and Diamond theories, the Fraud Pentagon incorporates five critical elements: Pressure, Opportunity, Rationalization, Capability, and Arrogance. These factors were empirically examined to determine their influence on discretionary accruals, a proxy for corporate reporting quality. The study employed an ex post facto research design, utilizing secondary data extracted from the published annual reports of 13 listed DMBs over a thirteen-year period (2012–2024). Discretionary accruals were measured using the Modified Jones Model. Panel data regression techniques, including Panel EGLS with cross-sectional weights, were adopted for analysis. The results reveal that Pressure and Rationalization have a significant positive effect on discretionary accruals, indicating their contribution to reduced reporting quality. Opportunity, Capability, and Arrogance, however, showed statistically insignificant effects on discretionary accruals, suggesting that these factors do not strongly influence earnings manipulation in the sampled banks. The study recommends among others such as the reinforcement of internal controls, ethical training, and the integration of forensic accounting techniques. The study contributes to the literature by providing evidence from a developing economy and highlights the need for stronger oversight, effective corporate governance, and continuous auditor vigilance.
NIGERIAN TAX POLICIES AND FINANCIAL SUSTAINABILITY OF SMALL AND MEDIUM SCALE ENTERPRISES IN ANAMBRA STATE
The study examined the effect of Nigerian tax policies on the sustainability of SMEs in Anambra state, Nigeria. The specific objective was to ascertain the extent to which direct tax policy, indirect tax policy and tax reliefs affect the financial sustainability of SMEs in Anambra state. The study adopted survey research design. The population of the study was 481 registered owners of general service SMEs in Anambra State. The sample size was 218 general service SMEs owners in Anambra state selected using random sampling. Primary data were collected using structured questionnaire. Descriptive analysis was used to analyse the research questions. The hypotheses were tested using multiple regression analysis. The study found that: Direct Tax Policy has a significant negative effect on financial sustainability of SMEs in Anambra state (β = -0.218, p = .001); Indirect Tax Policy has a significant negative effect on financial sustainability of SMEs in Anambra state (β = -0.472, p = .000); Tax Reliefs have a significant positive effect on financial sustainability of SMEs in Anambra state (β = 0.129, p = .038). In conclusion, when businesses receive tax-related financial breathing room, whether through exemptions, holidays, or deductions, they are better positioned to reinvest profits, expand their operations, and improve long-term survival rates. The study recommends that the Anambra State Internal Revenue Service (AIRS) and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) should work collaboratively to create awareness of tax reliefs and ensure ease of access, and integrate them into broader enterprise support programs for enhanced long-term business survival and reinvestment potential.
ARTIFICIAL INTELLIGENCE AND ACCOUNTING PRACTICES OF PROFESSIONAL ACCOUNTANTS IN SOUTH EAST NIGERIA
The study examined the effect of artificial intelligence (AI) on accounting practice among professional accountants in South East Nigeria. The specific objective was to examine the effect of artificial intelligence expert system on financial accounting practice, management accounting practice, auditing practice and forensic accounting practice in South East Nigeria. The study adopted a cross-sectional survey design. The target population for this study comprises 2,557 professional accountants working in the 74 accounting firms in South East Nigeria, from which a sample size of 346 respondents was selected using snowballing technique. Primary data for this study were collected using self-administered questionnaires. Descriptive statistics, including percentages, means, and frequency distributions, were used to summarize the responses. Hypotheses were tested using ordinal regression technique. It was found that: AI expert system has a positive and significant effect on financial accounting practice; AI expert system has a positive and significant effect on management accounting practice; AI expert system has a positive and significant effect on auditing practice; AI expert system has a positive and significant effect on forensic accounting practice. In conclusion, the integration of AI into accounting practices has reached a level where its impact is both measurable and transformative, shaping the operational dynamics of professional accountants. The study recommends among others that audit regulators should mandate the standardization of AI-assisted audit protocols across all audit engagements to ensure uniformity, scalability, and compliance with international audit data analytics practices.
CAPITAL STRUCTURE, ASSET LIQUIDITY AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
The study determined the effect of capital structure and asset liquidity on bank financial performance. The specific objective was to examine the effect of debt to asset ratio, debt to equity ratio, and debt to market capitalisation on the return on equity of listed deposit money banks in Nigeria. The study equally analysed the extent to which current ratio moderates the effect of debt to asset ratio on the return on equity of listed deposit money banks in Nigeria. Ex-post facto research design was adopted in the study. The study population was made up of thirteen listed deposit money banks in Nigeria. Purposive sampling was used to select a sample size of eleven. Secondary data spanning from 2012 to 2024 were collected from the banks’ annual reports over a thirteen-year period. Descriptive analysis was conducted using mean, standard deviation and other measures of dispersion. Hypotheses were tested using moderated panel estimated generalised least squares. It was found that: Debt-to-Asset Ratio has a positive and significant effect on return on equity of listed deposit money banks in Nigeria (β = 1.8352; p = 0.0000); Debt-to-Equity Ratio has a negative and significant effect on return on equity of listed deposit money banks in Nigeria (β = -0.0229; p = 0.0000); Debt-to-Market Capitalisation has a negative and significant effect on return on equity of listed deposit money banks in Nigeria (β = -0.0028; p = 0.0000); Current ratio significantly and negatively moderates the effect of debt to asset ratio on the return on equity of listed deposit money banks in Nigeria (β = -0.0186; p = 0.0018). It concluded that although liquidity typically represents financial health and the ability to meet short-term obligations, it may, in the presence of high debt levels, signal underutilized capital or overly conservative financial management, which could dampen equity returns. The study recommends that financial managers should avoid maintaining excessively high current ratios in highly leveraged banks, as it can weaken the positive effects of debt on performance by tying up capital in low-return liquid assets.
FINANCIAL DISTRESS AND CORPORATE VALUATION OF NON-FINANCIAL FIRMS IN NIGERIA
This study investigated the effect of financial distress on the corporate valuation of non-financial firms listed in Nigeria, with a specific focus on firms within the consumer goods sector. The research assessed how liquidity ratio, cumulative profitability, asset productivity, and corporate insolvency influenced firm value, as proxied by Tobin’s Q. An ex-post facto research design was adopted to analyse historical data without manipulating variables, making it particularly suited for examining retrospective financial conditions and their long-term implications on valuation. The study drew its population from the 21 listed consumer goods companies on the Nigerian Exchange Group (NGX) as of December 2024. Using purposive sampling, 16 companies were selected based on operational consistency, listing history since 2012, and the availability of complete financial reports spanning from 2012 to 2023. Data were sourced from audited financial statements and analysed using a panel data methodology, integrating both time-series and cross-sectional dimensions to enhance the robustness of findings. The regression results revealed that liquidity ratio, cumulative profitability, asset productivity, and corporate insolvency all exert significant effects on Tobin’s Q at a 5% significance level. Specifically, adequate liquidity and strong profitability enhance firm valuation, while higher levels of corporate insolvency reduce it. Asset productivity also shows a positive and significant influence, underscoring the importance of operational efficiency in driving firm value. The study recommended that corporate financial managers adopt liquidity benchmarking tools and proactive working capital policies to maintain optimal solvency. Profitability should be sustained through strategic reinvestment and transparent financial reporting, while asset utilisation must be optimised via technology and lean practices. To mitigate insolvency risks, firms should implement financial early warning systems and adopt prudent capital structure policies. Regulatory bodies such as the Nigerian Exchange Group and the Securities and Exchange Commission (SEC) are encouraged to institutionalise stress testing and financial resilience disclosures to improve transparency and investor protection.
Internatiponal Review of Financial Studies (IROFS), Volume 2, Issue 5, October 2025 edition
BOARD CHARACTERISTICS AND ENVIRONMENTAL REPORTING QUALITY: EVIDENCE FROM AN EMERGING ECONOMY
This study examined the effect of board characteristics on environmental reporting quality among listed industrial goods firms in Nigeria from 2014 to 2024. Specifically, it investigated the influence of board gender diversity, board financial expertise, and board meeting frequency on the quality of environmental disclosures, while controlling for firm size. The study adopted an ex post facto research design, using panel data derived from content analysis of annual reports of nine purposively selected firms. Descriptive statistics, correlation analysis, and panel regression techniques were employed for data analysis. The findings revealed that board gender diversity, board financial expertise, and board meeting frequency each had a positive and statistically significant influence on environmental reporting quality. Additionally, firm size showed a significant positive effect, suggesting that larger firms disclose more extensive environmental information. The study concludes that certain board attributes significantly enhance environmental transparency in Nigeria’s industrial goods sector. It recommends that firms should prioritise diverse and financially literate boards that meet regularly to strengthen sustainability governance and disclosure practices.
PUBLIC EXPENDITURES TREND AND THE NIGERIA ECONOMY
The study investigated how prevalent annual dynamism in the public expenditures of the government affects the Nigeria economy. Specifically, the study investigates the extent to which changes in capital expenditures level leads to changes in the gross domestic product growth in Nigeria. It also evaluated how changes in recurrent expenditures leads to changes in Nigeria’s Gross domestic product growth. Data from the Central Bank of Nigeria's Statistical Bulletins since the return of Nigeria to democratic regime (1999 – 2022) was utilized and subjected to further statistical analysis. As a result, the Ordinary Least Squares (OLS) regression method was employed to test the relevant hypotheses formulated. The findings revealed that changes in capital expenditures level, although positive but weak, do not lead to significant changes in the gross domestic product growth in Nigeria (t-statistics = 0.087074; p-value = 0.9314). It equally found out that changes in recurrent expenditures, although positive and strong, do not lead to significant changes in Nigeria’s Gross domestic product growth (t-statistics = 0.714036; p-value = 0.4827). In conclusion, while recurrent expenditure maintained a rather dramatic posture towards the nation’s GDP growth possibilities perhaps due to the high external borrowings habitually taken by successive administrations in Nigeria from time to time to run personnel and administrative costs cum high cost of governance, the size of the nation’s capital expenditure overtime has failed to demonstrate a positive effect, thus also reflecting potential inefficiencies in its implementation. The study therefore recommended that The National Assembly should conduct a review of capital expenditure projects, ensuring better planning and monitoring to enhance its contribution to GDP growth over time. Also, relevant government Agencies should increase the transparency and effectiveness of recurrent expenditures by addressing inefficiencies to unlock its full growth-contributive potential.
SOCIAL MEDIA ENGAGEMENT AND CUSTOMER LOYALTY IN BENIN CITY: EVIDENCES FROM JUMIA NIGERIA
This study investigated the influence of social media engagement on consumer behaviour in the Nigerian e-commerce sector, with a specific focus on Jumia Nigeria. The objective was to examine how four key social media activities customization, trendiness, word-of-mouth, and interaction affect customer loyalty and purchasing behaviour in the digital marketplace. The study responds to the increasing relevance of social media as a strategic marketing tool within Nigeria's growing e-commerce environment. A descriptive survey research design was employed, targeting 93 staff members at Jumia Nigeria’s Benin-City Pick-up Station. Data were collected via structured questionnaires and analyzed using regression analysis. The results revealed statistically significant positive relationships between all four social media activities and consumer behaviour. Customization, word-of-mouth, interaction, and trendiness were found to strongly influence customer engagement, purchase intent, and loyalty, with the regression model explaining over 71% of the variation in consumer behaviour. The study recommends that e-commerce firms like Jumia should invest in personalized social media content, actively engage in trending topics, foster customer interaction, and leverage customer testimonials. Doing so can significantly enhance customer loyalty and improve competitive positioning in Nigeria’s dynamic digital marketplace.
ENHANCING FIRM PERFORMANCE: THE INFLUENCE OF SUSTAINABILITY PRACTICES ON RETURN ON CAPITAL EMPLOYED IN NIGERIA’S INDUSTRIAL GOODS SECTOR
The study examined the effect of sustainability practices on the return on capital employed of industrial goods firms listed in Nigeria. The study specifically ascertained the effect of social sustainability reporting, economic sustainability reporting and environmental sustainability reporting affects return on capital employed of listed industrial goods firms in Nigeria. Ex-post facto research design was used in the study. Thirteen (13) listed industrial goods firms made up the population of the study, from which a purposive sample of seven (7) firms were chosen based on data availability. Secondary data were collected from the annual reports of the firms over a ten year period, from 2014 to 2023. Descriptive and Pearson Correlational analyses were used to give a summary of the nature of the data. Panel data regression was used in testing the hypotheses and the findings showed the following: Social Sustainability Reporting (SSR) has a significant positive effect on return on capital employed among listed industrial goods firms in Nigeria (β = 0.111156, p = 0.0000); Economic Sustainability Reporting (ECSR) has a significant positive effect on the return on capital employed among listed industrial goods firms in Nigeria (β = 0.953084, p = 0.0000); Environmental Sustainability Reporting (ENSR) has a significant negative effect on return on capital employed among listed industrial goods firms in Nigeria (β = -0.101237, p = 0.0000). In conclusion, by embedding sustainability into the fabric of their business operations, firms not only address stakeholder concerns but may also secure a competitive edge that supports sustained financial growth. The study recommends that managers of listed industrial goods firms in Nigeria should leverage social sustainability reporting by focusing on initiatives that align with community engagement and workforce development.
GREY DIRECTORS ATTRIBUTE AND IDIOSYNCRATIC RISK OF LISTED MANUFACTURING FIRMS IN NIGERIA: MODERATING EFFECT OF TAX OPTIMIZATION STRATEGY
The broad objective of this study was to investigate the nexus between grey directors’ attribute and idiosyncratic risk of listed manufacturing firms in Nigeria using a ten (10) year time frame that span through 2014 to 2023. In addition to the broad objective, this study also determined the moderating effect of tax optimization strategy on the relationship that exists between grey directors’ attribute and idiosyncratic risk. To achieve the stated broad objectives, specific attributes of grey directors’ which have been widely employed in related extant literature to include grey director size, and grey director gender diversity were selected to ascertain the extent to which they affect idiosyncratic risk. This study employed ex-post facto and descriptive research design on a panel data set sourced from annual financial reports of a sample of forty-six listed manufacturing firms in Nigeria. Further, Iterated Generalized Least Squares (IGLS) Random Effects with Heteroskedastic Panels regression model was employed to test the formulated hypotheses after fulfilling the necessary conditions for obtaining non-spurious regression estimates. The findings of this study have been broadly categorized into two. First, while certain grey director attributes to include gender diversity, director size, and overlapping roles did not exhibit significant relationship with firm-specific risk. Second, when the moderating influence of tax optimization measured through debt tax shields, gender diversity becomes significantly related to decreased risk. Therefore, based on the foregoing empirical outcomes, this study recommends among others that stakeholders in Nigeria’s manufacturing industry should avoid relying on grey director board size or their overlap function with risk committees as standalone levers for managing idiosyncratic risk, as these variables showed no significant direct effect. Instead, emphasis should be placed on strengthening more effective governance structures.
MACRO ECONOMIC INDICATORS AND BUSINESS SUSTAINABILITY OF LISTED MANUFACTURING FIRMS IN NIGERIA
This study examined the effect of macroeconomic indicators on business sustainability of listed manufacturing firms in Nigeria from 2015 to 2024, using return on asset (ROA) of selected industrial and healthcare manufacturing companies as proxy for business sustainability while exchange rate and inflation rate were used as proxies for macro-economic indicators. The study utilized an ex-post facto research design. Time series data were sourced from the Central Bank of Nigeria (CBN) statistical bulletin and annual audited report of the sampled companies. The population of the study consists of all the 20 industrial goods and healthcare manufacturing firms listed on the Nigerian Exchange Group floor as of 31st December 2024, while 13 companies were selected as sample size using purposeful sampling techniques. Ordinary Least Square Regression Analysis was applied in hypotheses testing with the aid of SPSS version 20.0. The findings revealed that exchange rate (EXGR) and inflation rate (INFR) have no significant effect on the return on asset of selected manufacturing firms in Nigeria. It was concluded that, macroeconomic policy has insignificant and negative effects on the business sustainability of industrial goods and healthcare manufacturing companies in Nigeria. Based on the above findings, the study recommends that the government should ensure that the Naira keeps on appreciating against the dollar by ensuring that the Nigerian products become more attractive to the outside world, lowering the exchange rate will impact the manufacturing sector positively, as it will help the sector easily import plants and machinery to support production, the regulatory authorities including the Central Bank of Nigeria should find ways of having stable prices even in moments of crises or economy shocks to shield both the consumers and producers effectively and manufacturers should monitor local and global inflation.
EFFECT OF AUDITOR INDEPENDENCE ON LIQUIDITY MANAGEMENT IN COMMERCIAL BANKS IN NIGERIA
This study examined the effect of auditor independence on liquidity management in Nigerian commercial banks. Auditor independence is proxied by audit fees, audit firm tenure, audit firm size, and auditor competence, while liquidity management is measured by the current ratio. Data were collected from 10 commercial banks over the period 2014 to 2024, resulting in 110 observations. Using panel data analysis with fixed effects regression, the results reveal that audit fees (β = 0.0022, p < 0.01) and audit firm size (β = 0.0420, p = 0.052) have positive effects on the current ratio, while audit firm tenure (β = 0.0043, p = 0.305) and auditor competence (β = 0.0046, p = 0.764) do not show significant effects. The model explains 79.0% of the variance in liquidity management (R² = 0.790). Anchored on agency theory, the findings suggest that stronger auditor independence enhances liquidity oversight and bank stability. Recommendations include strengthening regulatory frameworks for auditor selection and fee structures to improve financial reporting quality and liquidity practices in Nigerian banks.
BOARD COMMITTEE CHARACTERISTIC AND BANKRUPTCY RISK OF LISTED DEPOSIT MONEY BANKS IN NIGERIA AND SOUTH AFRICA
The study ascertained the effect of board committee on bankruptcy risk in deposit money banks in Nigeria and South Africa. The specific objectives are to: assessed the effect of remuneration committee on bankruptcy risk of deposit money banks in Nigeria and South Africa; and evaluated the effect of risk management committee on bankruptcy risk of deposit money banks in Nigeria and South Africa. This study adopted the ex-post facto research design. A sample of eight deposit money banks, each from the two countries was purposively selected while other banks were inevitably excluded for incomplete data. The data were extracted from the annual reports and accounts of the selected banks in Nigeria and South Africa. The panel data were analyzed with descriptive statistics, and inferential statistics using Pearson correlation, and panel regression analysis. The study indicated that the remuneration committee had a negative and insignificant effect for Nigerian deposit money banks, while that of South African showed a negative and significant effect on bankruptcy risk. The study revealed that the risk management committee had a positive and significant effect for Nigerian deposit money banks, while the South African showed a negative and significant effect on bankruptcy risk. Based on the findings, The remuneration committee is recognizing the significance of growth and profitability of a bank, there is need for both countries to focused on this committee of their banks, hence the committee can influence executive behavior by structuring compensation that balance short-term and long-term goals, potentially reducing excessive risk-taking that could need to bankruptcy.
POST-IFRS INTANGIBLE ASSET RECOGNITION AND CORPORATE VALUE OF LISTED FOOD AND BEVERAGES FIRMS IN NIGERIA
The study ascertained how post-IFRS intangible asset recognition affects the corporate value of listed food and beverages firms in Nigeria. Specifically, the study determined the extent to which post-IFRS intangible asset recognition affects the Tobin’s Q of listed food and beverages firms in Nigeria. The study employed an ex-post facto research design. Its population consisted of 16 publicly listed food and beverage companies in Nigeria. Using purposive sampling, 12 companies that had maintained continuous listing between 2012 and 2024 were selected. Data were sourced from the annual reports of these firms covering the thirteen-year period from 2012 to 2024. Descriptive statistics were applied to summarize the data, while panel estimated generalized least squares (EGLS) was used to test the hypotheses. The study revealed that Post-IFRS intangible asset recognition has a positive and significant effect on Tobin’s Q (β=0.2284, p=0.0000). In conclusion, the market places value on the recognition of intangible assets in accordance with IFRS, implying that investors interpret such recognition as a credible reflection of underlying economic benefits expected to flow to the firm. The study recommends that management of listed food and beverage firms in Nigeria should strengthen their internal processes for identifying, valuing, and reporting intangible assets in strict compliance with IFRS. This involves ensuring that accounting teams are adequately trained on IFRS provisions related to intangible assets and that robust documentation supports recognition decisions.
EFFECT OF SUSTAINABILITY REPORTING ON FINANCIAL PERFORMANCE OF LISTED NON-FINANCIAL FIRMS IN NIGERIA
The study evaluated the effect of sustainability reporting on financial performances of non financial firms listed in Nigeria. Specifically, the study ascertained the effect of economic sustainability reporting practices on financial performance of listed non-financial firms in Nigeria. It further analyzed the effect of social sustainability reporting practice on financial performance of listed non-financial firms in Nigeria. Sampling a total of 55 non financial firms selected from ten sectors, the secondary data collated from the firms’ audited annual report of 2015 – 2024 were subjected to relevant hypotheses analysis using Robust Least Squares Regression Model operated with E-Views 12. It was found that Economic sustainability reporting has a positive and significant effect on financial performance of listed non-financial firms in Nigeria (β = 1.11; p = 0.0000). Moreso, the study discovered that Social sustainability reporting has a positive and significant effect on financial performance of listed non-financial firms in Nigeria (β = 0.27; p = 0.0000).). In conclusion, there is evolving expectations within Nigeria's investment and regulatory environment, where stakeholders now regard sustainability disclosures as indicators of operational efficiency, risk mitigation, and future profitability. The study recommends that Executives should institutionalize regular and comprehensive reporting on economic contributions—such as value-added statements, local sourcing, employee compensation, and infrastructure investments—to demonstrate long-term financial resilience and value creation to investors and regulators. Also, the HR and CSR units should design measurable social programs—such as employee development schemes, community health initiatives, and inclusive workplace policies—and ensure their timely disclosure in annual reports to reflect the firm’s commitment to societal well-being and its alignment with stakeholder expectations.
CARBON EMISSION DISCLOSURE AND FINANCIAL PERFORMANCE OF LISTED OIL AND GAS COMPANIES IN NIGERIA
The study examined the effect of carbon emission disclosure on the financial performance of listed oil and gas companies in Nigeria. The specific objective was to assess the effect of carbon dioxide disclosure, nitrogen oxide disclosure, hydrocarbon disclosure and carbon mono-oxide disclosure on the operating cashflow ratio of listed oil and gas firms in Nigeria. Ex-post facto research design was deployed. The population comprised eight (8) listed oil and gas firms in Nigeria. A sample size of seven (7) firms were selected using purposive sampling technique. Secondary data were collected from firms’ annual reports over a ten year period (2015-2024). The data were analysed using descriptive test while hypotheses were tested using panel least square regression. The findings revealed the following: carbon dioxide disclosure has a positive and significant effect on operating cashflow ratio of listed oil and gas firms in Nigeria (β = 0.1542, p = 0.0078); nitrogen oxide disclosure has a positive and significant effect on operating cashflow ratio of listed oil and gas firms in Nigeria (β = 0.4695, p = 0.0018); hydrocarbon disclosure has a positive and significant effect on operating cashflow ratio of listed oil and gas firms in Nigeria (β = 0.2688, p = 0.0000); carbon monoxide disclosure has a positive and significant effect on operating cashflow ratio of listed oil and gas firms in Nigeria (β = 0.4695, p = 0.0018). In conclusion, for oil and gas companies in Nigeria, embracing carbon emission disclosure is not only a response to environmental imperatives but also a strategic move to secure their long-term viability and competitiveness in a rapidly evolving global setting. The study recommends that the Nigerian Exchange Group (NGX) and the Financial Reporting Council of Nigeria (FRCN) need to strengthen compliance requirements by mandating the disclosure of carbon monoxide emissions as part of listed companies' financial and environmental reports. This would standardize reporting practices and enhance market-wide transparency in the oil and gas sector.
EFFECT OF FORENSIC ACCOUNTING ON FRAUD DETECTION AND PREVENTION IN THE NIGERIAN PUBLIC SECTOR
This study examined the effect of forensic accounting on fraud detection and prevention in Nigerian public sector. Specifically, the study determined the effect of forensic litigation, forensic mediation and forensic arbitration on fraud control efficiency, respectively. In this study, survey research design was deployed. The population for this study comprised 6,393 staff working across federal ministries, departments, and agencies in Anambra State. A random sample of 266 staff was sampled for the study. Primary data were collected using a structured questionnaire. Descriptive statistics, such as mean scores and frequency distributions, were used to summarise the data. Pearson correlation was used to analyse the research questions. Multiple regression analysis was used in the test of the hypotheses. The findings revealed that: forensic litigation has a positive and significant effect on fraud control efficiency in the Nigerian public sector; forensic mediation has a significant positive effect on fraud control efficiency in the Nigerian public sector; forensic arbitration has a significant positive effect on fraud control efficiency in the Nigerian public sector. In conclusion, forensic accounting plays a key role in reducing financial leakages, which in turn supports government institutional trust. The study recommends that the National Assembly and the Nigerian Ministry of Justice should take the necessary steps to strengthen the legal framework around forensic litigation by working to implement dedicated forensic units within public sector legal teams, provide additional training for prosecutors and investigators on the importance and execution of forensic litigation, and allocate sufficient resources to these units to ensure timely and effective handling of fraud cases.