Journal of Global Accounting

Volume 10 Issue 1

Nestor Ndubuisi Amahalu, Ugochukwu John Nwoye — Fri, 26 Apr 2024 00:00:00 +0100

Journal of Global Accounting (JOGA)

EFFECT OF GOVERNMENT SPENDING AND INFLATION ON NATIONAL OUTPUT IN NIGERIA

Gina O. Olufemi, Emmanuel C. Okoh, Oseghale Irete — Fri, 26 Apr 2024 00:00:00 +0100

This study has examined what effect government spending and inflation have national output in Nigeria. Secondary data was used for analysis which was obtained from the Statistical Bulletin of the Central Bank of Nigeria 2022 (Real Sector and Public finance) and world bank data. In scope, this study covered the period 1981-2022. Time series data used in the model were those of gross domestic product (GDP), annual general inflation rates and components of government expenditure including capital and recurrent. Real GDP was used as the variable to measure national output, public expenditure, classified into capital and recurrent expenditure served as variables of government spending and annual inflation rates was used for inflation. To measure relationship between national output and public spending, Real GDP was the dependent variable; capital and recurrent components of public expenditure and inflation rate were the independent variables. Multivariate Analysis of Variance (MANOVA) model using IBM SPSS Statistical package was applied for analysis, based on the perceived causal relationship between government spending, national production output and inflation. Results of the analysis showed that capital and recurrent expenditure have strong positive association and significant correlation with national output while inflation rate has a positive but insignificant relationship with national output for the study period. Based on findings, it is recommended that government should use expenditure as a fiscal policy instrument to influence economic productivity and pursue macroeconomic objectives by paying special attention to expenditure components that impact more on national output and that productivity alone should not be used as an economic tool to control inflation as there is positive but insignificant relationship between both variables.

CORPORATE GOVERNANCE MECHANISM ON THE FINANCIAL STATEMENT FRAUD AMONG LISTED NON-FINANCIAL FIRMS IN NIGERIA

Femi Joshua Falope, Isiaka I. Ogala, Obioma James — Fri, 26 Apr 2024 00:00:00 +0100

This study assesses the effect of corporate governance mechanism on financial statement fraud among listed non-financial firms in Nigeria. The study specifically examined the effect of managerial ownership and ownership concentration on financial statement fraud among listed non-financial firms on Nigerian Exchange Group. The study used an ex post facto research design. Ninety-five (95) listed non-financial firms as at 31st December 2022. The study used a purposive sampling technique to select the sample size of seventy-four (74) non-financial listed firms from the population. The study relied on secondary source of data from annual reports and accounts covering a period of 12 years (2011-2022). Ordinary Least Square multiple regression and Binary Logit Regression Technique were used to analyze the data collected for this work through the aid of E-View 9.0 software. The results of the study revealed that managerial ownership and ownership concentration have significant effects on the financial statement fraud among listed non-financial firms in Nigeria. Based on the results and analyses, this study concludes that managerial ownership and ownership concentration have significant effect on the financial statement fraud among listed non-financial firms on the Nigerian Exchange Group (NGX). This study recommended among others based on the findings of this study that management team should be encouraged to invest in the company by buying shares and be part owner of the company and ownership concentration should be encouraged because it has positive significant effect on financial statement fraud among listed non-financial firms in Nigeria.

CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE OF CONSUMER GOODS FIRMS LISTED IN NIGERIA

Victor C. Aghaebe, Patricia Chinyere Oranefo — Fri, 26 Apr 2024 00:00:00 +0100

This study examined the effect of capital structure on the firms’ financial performance of consumer goods firms listed in Nigeria. The specific objective was to assess the effect of short term debt to equity, long term debt to equity and total debt to equity on return on asset of consumer goods firms listed in Nigeria. The study adopted the ex-post facto research design and the population comprised of twenty-one listed consumer goods firms in Nigeria. The sample was purposively selected a sample size of 16 firms from the consumer goods sector of the Nigerian Exchange Group (NGX), from 2012-2022. The data were obtained from annual reports of the firms included in the sample. The data were analyzed using descriptive tools, correlational and regression analyses. The pooled ordinary least square regression technique was used in testing the hypotheses of the study. The results showed that: short term debt to equity ratio has a significant negative effect on the return on assets of consumer goods firms listed in Nigeria in Nigeria (p-value = 0.0003); long term debt to equity ratio has a non-significant positive effect on return on assets of consumer goods firms listed in Nigeria in Nigeria (p-value = 0.6002); total debt to equity ratio has a non-significant negative effect on return on assets of consumer goods firms listed in Nigeria in Nigeria (p-value = 0.4628). In conclusion, a high leverage ratio indicates a mismatch between short-term obligations and the firm's inability to generate sufficient cash flows. The study recommends that the finance department of consumer goods firms, particularly the Chief Financial Officer (CFO) and financial managers, prioritize the prudent management of short-term debt levels through careful monitoring of short-term borrowing activities, exploring alternative sources of financing with lower interest rates, and implementing effective working capital management practices to reduce reliance on short-term debt, thereby enhancing overall financial performance.

EFFECT OF EMPLOYEE WELFARE AND OCCUPATIONAL HEALTH AND SAFETY REPORTING ON AUDIT QUALITY OF LISTED FIRMS IN NIGERIA

Vincent Aiyeole Aderobaki, Nestor Ndubuisi Amahalu, Segun Idowu Adeniyi — Fri, 26 Apr 2024 00:00:00 +0100

This study aims to determine the effect of employee welfare and occupational health and safety reporting on audit quality of listed non-financial firms in Nigeria. The study used an Ex-Post Facto research design. Ninety five companies as of December 2022 that were listed on the Nigeria Exchange Group make up the study’s population. A purposive sampling technique was adopted in selecting the seventy four listed non-financial firms that form the unit of analysis for this study. The panel data were derived from company’s annual reports and accounts with the Nigeria Exchange Group Factbook for the period of eleven years spanning from 2012 to 2022. The ordinary least square statistical technique was adopted in the analysis of data with the aid of E-View 10.0 Software. The study revealed that occupational health and safety and employees’ welfare has no significant effect on audit fees. The study recommends among others that managers might need to focus more on providing the needs of their employees by improving on its disclosure on occupational health and safety and employee welfare in their reporting.

BOARD DIVERSITY AND FINANCIAL LEVERAGE OF LISTED COMMERCIAL BANKS IN NIGERIA (2012 - 2022)

Fri, 26 Apr 2024 00:00:00 +0100

This study ascertained the effect of board diversity on financial leverage of listed deposit money banks in Nigeria for the period of eleven (11) years spanning from 2012 to 2022. Board size, and board independence were used to proxy board diversity while debt-to-equity ratio was used to measure financial leverage. In line with the objectives of the study, two hypotheses were formulated. Ex-Post facto research design was employed. Thirteen (13) listed deposit banks 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 both descriptive and inferential statistical. The inferential statistics was applied using Pearson correlation and Panel Least Square (PLS) regression analysis. Findings from the empirical analysis showed that Board Size has a significant and positive effect on debt to equity ratio (β1 = 0.105965; P-value = 0.0030); Board Independence has a significant and positive effect on debt to equity ratio (β1 = 0.015668; P-value = 0.0000). Conclusively, board diversity has a significant and positive effect on financial leverage of listed deposit money banks in Nigeria at 5% level of significance. The study recommended that since gender-diverse boards influences the financial leverage of firms through better monitoring which is likely to increase confidence and encourage ownership by uninformed investors, hence, there is need for more female directors on the Board

FRAUD PENTAGON MODEL AND DISCREATIONARY ACCRUALS IN DEPOSIT MONEY BANKS IN NIGERIA

Olalere O. Shina, Chitom R. John-Akamelu , Sagin O. Super — Fri, 26 Apr 2024 00:00:00 +0100

This study examined the effect of fraud pentagon model and discretionary accruals in deposit money banks in Nigeria. Notably, in spite of banking regulation and examination by Central Bank of Nigeria Deposit Bank insurance Corporation, and the Chartered Institute of Bankers of Nigeria, there is still a growing concern about fraud and other unethical practices in the commercial practices in the commercial banks. Specifically, the study intends to determine the effect of; pressure on discretionary accruals, opportunity on discretionary accruals, rationalization on discretionary accruals , capability on discretionary accruals, arrogance on discretionary accruals all on deposit money banks. Secondary data was used in this study and OLS multiple regression was used to analysed the data with the aid of E- View 10 output statistical software. The study employed an ex post factor research design. The sample comprised thirteen (13) Deposit Money Banks listed in the Nigerian Exchange Group as at 31st December, 2022. Findings, pressure, opportunity, rationalization and capability positively relate to discretionary accruals of deposit money banks; while, arrogance was positive and non-significant., the study therefore recommended that Shareholders and managers should be effective in mitigating pressure, Managers should mitigate opportunity, Managers should constantly look at rationalisation risk, Managers should constantly monitor firms’ accounting systems to mitigate capability and Forensic accountants and anti-graft agencies should look at arrogance potential.

TAX REFORMS AND GROSS DOMESTIC PRODUCT OF NIGERIA

John C. Umunnakwe, Nestor Ndubuisi Amahalu — Fri, 26 Apr 2024 00:00:00 +0100

This study ascertained the effect of tax reforms on gross domestic product of Nigeria for eighteen years ranging from 2005-2022. Specifically, this study ascertained the effect of changes in Personal Income Tax Revenue, Company Income Tax Revenue, and Petroleum Profit Tax Revenue on Gross Domestic Product. The time series data sets used in this study were obtained from Central Bank of Nigeria Statistical Bulletin, Securities and Exchange Commission Office publications, National Bureau of Statistics publications and World Bank Statistical Bulletin for the study period. Ex-post facto research design was employed. Inferential statistics using Augmented Dickey-Fuller (ADF) test, Pearson correlation coefficient, and Ordinary Least Square regression analysis were applied to test the hypotheses of the study. The specific findings showed that Personal Income Tax has a significant but negative effect on Gross Domestic Product of Nigeria (β1 = -0.582688; p-value = 0.0020<0.05); Companies Income Tax has a significant but negative effect on Gross Domestic Product (β2 = -0.101213; p-value = 0.0118<0.05); Petroleum Profit Tax has a significant and positive effect on Gross Domestic Product (β3 = 0.100654; p-value = 0.0325<0.05). In conclusion, this study found that Tax Reform has a significant effect on Gross Domestic Product of Nigeria at 5% level of significance respectively. It is suggested amongst others that there is need to promote tax awareness, understanding and compliance among both potential and existing tax payers. Government and her agencies should bring to fore the knowledge, the nature and types of tax under the Nigerian tax laws; so as to achieve increased revenue and economic growth in Nigeria.

TAXES AND NET INVESTMENT OF LISTED COMMUNICATION FIRMS IN NIGERIA

Samuel Oshiole, Pius Vincent C. Okoye, Nestor Ndubuisi Amahalu — Fri, 26 Apr 2024 00:00:00 +0100

This study examined the nexus between taxes and net investment of listed Communication firms in Nigeria for eleven (11) years period spanning from 2012-2022. Specifically, this study ascertained the relationship between company income tax, tertiary education tax, value added tax, national information technology development levy and net investment. Panel data were used in this study, which were obtained from the annual reports and accounts of eight (8) listed Communication companies for the periods 2012-2022. Ex-Post Facto research design was employed. Inferential statistics using Pearson correlation coefficient and Panel least square regression analysis were employed to test the hypotheses of the study. The results showed that there is a significant but negative relationship between company income tax and net investment (β₁ = -0.387363; p-value = 0.0000 < 0.05); a significant but negative relationship between tertiary education tax and net investment (β₂ = -0.715158; p-value = 0.0001 < 0.05); a significant but negative relationship between value added tax and net investment (β₃ = -0.276994; p-value = 0.0000 < 0.05); a significant but negative relationship between national information technology development levy and net investment (β₄ = -0.605823; p-value = 0.0119 < 0.05). Conclusively, the study found a statistically negative relationship between taxes and net investment of listed Communication firms in Nigeria at 5% level of significance. The study recommended amongst others that the tax rate paid by firms should be reduced in order to discourage tax avoidance as VAT payers are ever willing to take advantage of loopholes in the tax system to reduce their tax liabilities

DEBT FINANCING AND ENVIRONMENTAL RESEARCH AND DEVELOPMENT DISCLOSURE OF LISTED OIL AND GAS FIRMS IN NIGERIA

Nestor Ndubuisi Amahalu, Fatai E. Aruna, Tochukwu G. Orji-Okafor — Fri, 26 Apr 2024 00:00:00 +0100

This study examined the effect of debt financing on environmental research and development disclosure of listed oil and gas firms in Nigeria for a period of eleven (11) years covering from 2012-2022. Specifically, this study ascertained the effect of debt to equity ratio, debt to asset ratio, debt to capital ratio, short term debt ratio and long term debt ratio on environmental remediation disclosure. Panel data were used in this study, which were obtained from the annual reports and accounts of nine (9) sampled listed oil and gas firms for the periods 2012-2022. Ex-Post Facto research design was employed. Inferential statistics using Pearson correlation coefficient and Panel Least Square (PLS) regression analysis were applied to test the hypotheses of the study. This study revealed that Debt to equity ratio has a significant but negative effect on environmental research and development disclosure (β₁ = -0.028870; p-value = 0.0000); debt to asset ratio has a significant but negative effect on environmental research and development disclosure (β₂ = -0.639728; p-value = 0.0004); debt to capital ratio has a significant but negative effect on environmental research and development disclosure (β₃ = -0.035584; p-value = 0.0000). In conclusion, the study upholds that debt finance significantly affects environmental research and development disclosure of listed Oil and Gas firms in Nigeria at 5% level of significance. It was recommended amongst others that firms should lever on the amount of debt they undertake to finance their undertakings, as it enhances firms’ bottom line. Also, that firms should operate with a capital structure mix that would minimize the cost of capital and reducing the reputational risks associated with the company's operations.

BOARD DIVERSITY AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Obianuju Aziekwe, Theophilus Okonkwo Okegbe — Fri, 26 Apr 2024 00:00:00 +0100

The main objective of the study is to examine the effect of board diversity on the financial performance of listed consumer goods firms in Nigeria. The specific objective was to determine the effect of nationality diversity (BND), gender diversity of corporate board (BGD) and age diversity of corporate board members (BAD) on cashflow return on investment (CROI) of listed consumer goods firms in Nigeria, with firm size (FSZ) as the control variable. The study adopted ex-post facto research design on a population of twenty-one listed consumer goods firms on the Nigerian exchange group. The sample size of fifteen firms used in the study was determined through purposive sampling. Secondary data were sourced from the firms’ annual reports over a period of ten (10) years, covering the years 2013 to 2022. Panel-corrected standard errors (PCSE) regression was applied in testing the hypotheses, which revealed that: Nationality diversity has a negative but insignificant effect on cashflow return on investment of listed consumer goods firms in Nigeria (p-value = .359); Gender diversity has a positive but non-significant effect on the cashflow return on investment of listed consumer goods firms in Nigeria (p-value = 0.080); Age diversity has a positive and significant effect on the cashflow return on investment of listed consumer goods firms in Nigeria (p-value = 0.007). In conclusion, the negative impact of nationality diversity on cashflow return on investment shows the need for organizations to carefully manage the challenges associated with diverse national backgrounds, emphasizing effective communication and cultural alignment. It is recommended that organizations should carefully evaluate and manage the composition of their leadership teams with regard to nationality by fostering inclusive leadership practices and providing cross-cultural training to mitigate potential challenges associated with nationality diversity and enhance overall financial performance.

BANKS AND WAR AGAINST FINANCIAL CRIME IN NIGERIA DIGITAL PAYMENT SYSTEM

Amara P. Ozoji, Beatrice O. Ezechukwu, Nwariaku S. Ihechiluru — Fri, 26 Apr 2024 00:00:00 +0100

The study on banks and war against financial crime in Nigeria, primarily aimed at assessing the effectiveness of the banks’ security measures in fighting financial crimes in Nigerian digital payment system. Bi-monthly data of the entire Deposit Money Banks operating in Nigeria as at 2012-2021 computed from the extracts from NDIC annual reports (2013, 2017, 2019 and 2021) and CBN Statistics Database (2012-2020) were used. Auto regression Distributed Lag (ARDL) model estimation was utilized for data analysis/test of hypotheses. Findings disclosed that banks' security measures are partially effective in the fight against frauds and forgery in Nigeria’s digital banking system, as digital payment transactions (with the existing fraud prevention tools) through ATM and mobile phones have depressed the opportunity to commit fraud, while reverse is the case with POS transactions and internet banking. The study recommended among others that banks should install a good fraud linking software in all electronic payment channels with more focus on POS terminals and internet, which can aid the bank view relationships between transactions through identifiers like passwords, usernames, and others. This would help to disclose with relative certainty that a transaction may be fraudulent since the individual carrying out the transaction has previously carried out a confirmed fraudulent transaction, thereby facilitating fraud prevention..

DIGITAL DISRUPTION AND PERFORMANCE OF TERTIARY INSTITUTIONS IN NIGERIA: A CASE STUDY OF NNAMDI AZIKIWE UNIVERSITY, AWKA

George Ezeala, Anulika U. Ajuonu, Anthony B. Afolabi — Fri, 26 Apr 2024 00:00:00 +0100

The study verified if technological innovations have, in anyway, impacted upon the pedagogical landscape of Nigeria institutions of higher learning. It specifically identified the various school activities which includes student affairs activities, staff matters activities, teaching and learning activities and then use them to proxy institutional performance. The study generated primary data through online questionnaire administered on a population consisting of all registered students and all academic staff of Nnamdi Azikiwe University, Awka, Nigeria. The researchers employed one sample T-test aided by SPSS to analyze the research data so generated. Findings showed that digital innovations have positive significant effect on the various school activities. In order to sustain the positive effect of digital technology on educational performance, the study recommended regular training of academic staff with a view to keep updating their knowledge and skills in the use of technology for enhance performance.

INFLUENCE OF FORENSIC ACCOUNTING SKILLS ON FRAUD INVESTIGATION IN NIGERIAN ELECTRICITY DISTRIBUTION FIRMS

Joseph O. Okorafor, Felix N. Awa, Chikaodili U. Nkemdilim, Nnam H. Ikechukwu — Fri, 26 Apr 2024 00:00:00 +0100

This study investigated the influence of forensic accounting skills on fraud investigation in Nigerian electricity distribution firms, with a focus on the Enugu Electricity Distribution Company. A descriptive survey research approach was used in this study. The accountants and whole internal audit personnel of EEDC across the eighteen company's business districts, as well as the internal audit employees at the company's corporate headquarters in Enugu, Nigeria, were the subjects of this study. The population of the aforementioned staff members was 52, according to a pilot study. The entire population size of the sampled Enugu Electricity Distribution Company was purposively studied. This is because the population (52) was manageable, and as such, there was no need for sampling. Multiple regression analysis was used to test the hypotheses at a significance level of 5%, and establish the statistical significance of the hypothetical link between the independent and dependent variables. SPSS, Version 20.0, aided this analysis. According to data analysis and regression analysis, The study found that forensic accounting skills of investigative flexibility, accounting and auditing expertise, analytical proficiency, and communication skills have positive and significant impacts on fraud examination in Enugu electricity Distribution Company, Based on the results, Internal Auditors and fraud examiners of the Nigerian electricity distribution companies should be encouraged by the top management and professional bodies to develop more interest on the application of investigative flexibility to enable them carry out effective fraud examination.

EMPLOYEE COST AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA

Lois C. Chikaire-Ofoego, Priscilla Uchenna Egolum — Fri, 26 Apr 2024 00:00:00 +0100

The study determined the effect of employee cost on the financial performance of listed manufacturing firms in Nigeria. The specific objective were to ascertain the effect of employee salaries, employee retirement benefits and employee bonuses on earnings before tax margin of listed manufacturing firms in Nigeria. Ex-post facto research design was deployed in the study based on a population of seventy-five listed manufacturing firms. Purposive sampling was applied in selecting the twenty-six firms that made up the sample size. Secondary data were sourced from the firms’ annual reports from 2013 to 2022. Employing a Pooled Ordinary Least Squares (OLS) regression model for hypotheses testing, the study found the following: Employee salaries have a non-significant but positive effect on the earnings before tax margin of listed manufacturing firms in Nigeria (p-value = 0.3777); Employee retirement benefits have a non-significant but positive effect on earnings before tax margin of listed manufacturing firms in Nigeria (p-value = 0.0544); Employee bonuses have a non-significant and negative effect on earnings before tax margin of listed manufacturing firms in Nigeria (p-value = 0.1077). In conclusion, designing and implementing bonus structures that do not align with long-term wealth-maximization goal makes it impossible for financial incentives to contribute positively to overall performance. The study recommends the following: manufacturing firms should regularly benchmark its salary structures against industry standards to ensure it remains competitive; managers should engage in periodical review and adjust retirement benefit offerings to align with changing employee expectations and market trends so as to help in sustaining the positive impact on financial performance of firms; manufacturing firms should implement a transparent and well-communicated bonus system that clearly outlines the criteria for bonus eligibility and the link between performance and rewards.

PERSONAL INCOME TAX REFORMS AND REVENUE GENERATION IN ANAMBRA STATE

Ifunanya C. Igwegbe, Onyinye M. Eneh — Fri, 26 Apr 2024 00:00:00 +0100

This study examined the effect of personal income tax reforms on revenue generation in Anambra State. The specific objectives of the study were to ascertain the extent to which electronic tax filing system, electronic tax payment system, the adoption of Anambra State Identity Number (ASIN) and tax rate reform enhances the internal revenue generated by Anambra State government. This study used triangulated research design. A sample size of 238 was determined using purposive sampling technique and consists of tax officials working with Anambra State Internal Revenue Service, Accountants and company representatives interfacing with the Board. The study made use of both primary data and secondary data for the study. The primary data for the study were collected through questionnaire administration. Secondary data for the study were collected from the Joint Tax Board (JTB) and Nigerian Bureau of Statistics between 2011 to 2022. Regression analysis was used in testing the study’s hypotheses. The findings were: electronic tax filing system significantly improves the internal revenue generated by Anambra State government (p-value =0.000); electronic tax payment system significantly contributes to the internal revenue generated by Anambra State government (p-value =0.000); the adoption of Anambra State Identity Number (ASIN) significantly enhances the internal revenue generated by Anambra State government (p-value =0.000); Tax rate reform significantly enhances the internal revenue generated by Anambra State government (p-value =0.000). In conclusion, the personal income tax reform in Anambra State, including the adoption of electronic systems, the introduction of unique identification numbers, and adjustments to tax rates, have collectively contributed to a more robust and efficient tax system that generates more revenue for the state while laying a foundation for potential sustainable economic development. The study recommended among others that the Anambra State Internal Revenue Service should actively promote and provide training programs for tax professionals, businesses, and individuals to encourage widespread adoption of the electronic tax filing system. This ensures a seamless transition and maximizes the benefits of efficiency and transparency offered by the digital platform..

CHIEF EXECUTIVE OFFICER CHARACTERISTICS AND FINANCIAL REPORTING QUALITY OF QUOTED MANUFACTURING FIRMS IN NIGERIA

Daniel Ifeanyi Nwokolo, Chinedu Francis Egbunike — Fri, 26 Apr 2024 00:00:00 +0100

This study investigated the effect of Chief Executive Officer (CEO) characteristics on the financial reporting quality of quoted manufacturing firms in Nigeria. However, the study specific objective was to examine the effect of CEO gender, CEO duality, CEO education, and, CEO tenure effect on the accruals quality of quoted manufacturing firms. The research design used in this study was the ex post facto research design. The population comprised quoted firms on the Nigerian Exchange Group (NGX). The study relied on secondary data from annual financial reports from 2012 to 2022. The data were analysed using descriptive and inferential statistical methods. The hypotheses were tested using fixed effect regression analysis which revealed that CEO gender diversity has a significant and positive effect on accruals quality of the firms; CEO duality and CEO tenure have a significant but negative effect on accruals quality of the firms; while CEO education has a non-significant but negative effect on financial reporting quality of quoted manufacturing firms, at 5% level of significance. In conclusion, companies could benefit from promoting gender diversity in CEO appointments to potentially enhance financial reporting standards. It was therefore recommended that management of consumer goods manufacturing firms should endeavour to recognize the importance of having diverse perspectives and experiences at the top leadership positions, including gender diversity.