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Auditor Scepticism and Financial Crises: The Nigerian Factor
Umoren Adebimpe Otu,
Asogwa Ikenna Elias
Issue:
Volume 5, Issue 4, July 2017
Pages:
123-130
Received:
3 April 2017
Accepted:
18 April 2017
Published:
3 June 2017
Abstract: This research is carried out in order to examine auditor scepticism with respect to Nigerian financial crises. The study employed survey research method based on threats to professional scepticism at different structural levels as identified by [14]. The primary data was supplied by 270 respondents who are professional accountants and bankers in Akwa Ibom State, Nigeria. The study utilized principal component factor analysis to identify the component factors in the twenty item questionnaire. Correlation, Kaiser-Meyer-Olkin (KMO) and Bartlett’s test of sphericity was performed to assess the factorability of the data. The tests revealed among others; that factors of professional scepticism responsible for financial crises in Nigeria can be first traced to engagement team lapses, followed by individual auditor lapses and then profession/audit firm lapses. The study recommends that effort should be made by audit engagement team leaders in order to set a clear direction of audit work. They should also employ adequate audit planning, supervision and good time management skills.
Abstract: This research is carried out in order to examine auditor scepticism with respect to Nigerian financial crises. The study employed survey research method based on threats to professional scepticism at different structural levels as identified by [14]. The primary data was supplied by 270 respondents who are professional accountants and bankers in Ak...
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Tax Information, Administration and Knowledge on Tax Payers’ Compliance of Block Moulding Firms in Ekiti State
Clement Olatunji Olaoye,
Abiodun Rafiat Ayeni-Agbaje,
Abiola Peter Alaran-Ajewole
Issue:
Volume 5, Issue 4, July 2017
Pages:
131-138
Received:
23 March 2017
Accepted:
19 April 2017
Published:
14 June 2017
Abstract: This study examined the impact of tax information, administration and knowledge on tax payers’ compliance of Block Moulding Firms in Ekiti State, Nigeria using a survey research design. The data obtained from questionnaire were analysed using the ordinary least square regression method. The results showed that tax information and knowledge had positive significant impacts on tax compliance while tax administration had an insignificant impact on tax compliance with unstandardized beta coefficients of 0.251 (t = 2.038, p<0.05), 0.322 (t= 3.682, p<0.05) and 0.077 (t = 1.021, p>0.05) accordingly. Thus, the study indicated that tax information, tax knowledge has higher tendency to promote tax compliance than tax administration. The study recommended that government should through its agencies educate the potential tax payers on tax laws and regulations by direct free symposia and seminars.
Abstract: This study examined the impact of tax information, administration and knowledge on tax payers’ compliance of Block Moulding Firms in Ekiti State, Nigeria using a survey research design. The data obtained from questionnaire were analysed using the ordinary least square regression method. The results showed that tax information and knowledge had posi...
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Test of the Semi-Strong Efficiency Theory in the Nigerian Stock Market: An Empirical Analysis
Ajayi John Ayodele,
Ogbulu Onyemachi Maxwell
Issue:
Volume 5, Issue 4, July 2017
Pages:
139-146
Received:
20 October 2016
Accepted:
16 November 2016
Published:
21 June 2017
Abstract: This study investigates the semi- strong efficiency theory in the Nigerian stock market. The study used daily returns from the Nigerian stock market over the period of January 1, 2005, to December 31, 2013, of which about 80 companies that retained their quoting status were used as the sample for the study. A modified transfer function approach was built to show a cause and effect relationship between the output index represented by the All-Share Index of the Nigerian Stock Exchange and the input series represented by the computed index of the selected securities in the Nigerian stock market. Findings from the study showed that the coefficient of the input index is significantly different from zero implying that investors can outperform the market based on published information hence making the market be semi-strong inefficient.
Abstract: This study investigates the semi- strong efficiency theory in the Nigerian stock market. The study used daily returns from the Nigerian stock market over the period of January 1, 2005, to December 31, 2013, of which about 80 companies that retained their quoting status were used as the sample for the study. A modified transfer function approach was...
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Empirical Test of the Martingale Property in Stock Market: Evidence from Nigeria
Ajayi John Ayodele,
Ojo-Agbodu Ayodele,
Adesina Nathaniel Olanrewaju
Issue:
Volume 5, Issue 4, July 2017
Pages:
147-150
Received:
26 October 2016
Accepted:
4 January 2017
Published:
21 June 2017
Abstract: This paper investigates whether the martingale property holds in the Nigerian stock market. A transfer function approach was utilized for the study in which a martingale specification framework was constructed to check if the martingale property holds in line or against the specification conditions for the transfer function technique in the Nigerian stock market. Daily returns from the Nigerian stock market spanning January 1, 2005 to December 31, 2013 were used for the study. Findings from the study revealed that the Nigerian stock market does not exhibit martingale property and hence is weak- form inefficient.
Abstract: This paper investigates whether the martingale property holds in the Nigerian stock market. A transfer function approach was utilized for the study in which a martingale specification framework was constructed to check if the martingale property holds in line or against the specification conditions for the transfer function technique in the Nigeria...
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The Moderating Effect of Firm Size on the Relationship Between Capital Structure and Financial Distress of Non-Financial Companies Listed in Kenya
Robert Gitau Muigai,
Jane Gathigia Muriithi
Issue:
Volume 5, Issue 4, July 2017
Pages:
151-158
Received:
28 April 2017
Accepted:
10 May 2017
Published:
23 June 2017
Abstract: This paper sought to establish the moderating effect of firm size on the relationship between capital structure and financial distress of listed non-financial firms in Kenya. Firm size was measured using the natural logarithm of total assets while capital structure was operationalized by total debt, long-term debt and short term debt financing. The degree of financial distress was measured using the Altman’s Z-score index as reviewed for the emerging markets. Secondary data from audited and published financial statements was collected on the 40 listed non-financial firms between year 2006 and 2015. The study estimated the specified panel regression model for fixed effects as supported by the Hausman test results. Feasible Generalized Least Squares (FGLS) regression results revealed that firm size has a significant moderating effect on the relationship between capital structure and financial distress of non-financial firms. Specifically, the study found that although generally debt has a negative and significant effect on financial distress of the studied companies, this effect becomes positive and significant as the size of the firm increases. The study further found that use of long term debt has a positive and significant effect among large-scale firms while short term debt is significantly detrimental. On the basis of these empirical findings, the study recommended that managers of listed non-financial companies should always consider the size of the firm in making leverage choice decisions for their entities.
Abstract: This paper sought to establish the moderating effect of firm size on the relationship between capital structure and financial distress of listed non-financial firms in Kenya. Firm size was measured using the natural logarithm of total assets while capital structure was operationalized by total debt, long-term debt and short term debt financing. The...
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State-Owned Enterprise: Debts as Tools and Governmental Intervention – Evidence from China
Issue:
Volume 5, Issue 4, July 2017
Pages:
159-164
Received:
10 March 2017
Accepted:
28 April 2017
Published:
6 July 2017
Abstract: We examine the impacts of governmental intervention on firms’ leverages ratios based on Chinese state-owned enterprises (SOEs) from 1998 to 2016. Research finds: 1) Governmental intervention is positively correlated with SOEs’ leverage ratios, and this relationship is more notable when there are higher levels of governmental intervention; 2) SOEs’ leverage ratios are negatively correlated with actual tax rates, and this relationship is more noteworthy for more profitable SOEs. These results also indicate: 1) In transitional countries such as China, government may serve as an important factor in firms’ financing decisions. Firms can raise leverage ratios to escalate their bargaining powers with government and resist loss from governmental intervention; 2) SOEs may use debt as a tool to reduce their tax burdens in this way.
Abstract: We examine the impacts of governmental intervention on firms’ leverages ratios based on Chinese state-owned enterprises (SOEs) from 1998 to 2016. Research finds: 1) Governmental intervention is positively correlated with SOEs’ leverage ratios, and this relationship is more notable when there are higher levels of governmental intervention; 2) SOEs’ ...
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The Impact of Exchange Rate Fluctuations on Foreign Direct Investment in Nigeria
Issue:
Volume 5, Issue 4, July 2017
Pages:
165-170
Received:
9 May 2017
Accepted:
22 May 2017
Published:
18 July 2017
Abstract: This study seeks to find out the relationship between foreign exchange rate and foreign direct investment (FDI) and the impact of FDI on the gross domestic product (GDP) in Nigeria, this is important in view of the recent and past devaluation of Nigeria currency as well as the exchange rate changes over the years to be precised 26years coverage (1990-2015). This underscores the need to assess how foreign investors through FDI respond to changes in the exchange rate, and how this relationship affects GDP with a view to identifying gaps and provide policy recommendations and direction to the policy makers and the Nigeria government. To achieve this, data of FDI, exchange rate, and GDP were obtained from the Central Bank of Nigeria (CBN) website for the period under review and analyzed using regression and correlation analysis techniques. Findings from the analysis show that there is a strong positive relationship between FDI and exchange rate in Nigeria on one hand and there is a weak positive relationship between FDI and GDP on the other hand. The researcher also found that there was a significant inflow of FDI from 2005-2014 due to rise in exchange rate in the same period. The study concludes that exchange rate, FDI, and GDP are positively correlated. The study recommended that Government of Nigeria should fully liberalized exchange rate regime devoid of fixed multiple exchange rates so as to attract more FDI and contribute to GDP, this is because commercial viability of any FDI is based on exchange rate stability.
Abstract: This study seeks to find out the relationship between foreign exchange rate and foreign direct investment (FDI) and the impact of FDI on the gross domestic product (GDP) in Nigeria, this is important in view of the recent and past devaluation of Nigeria currency as well as the exchange rate changes over the years to be precised 26years coverage (19...
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The Relationship Between Corporate Social Responsibility and Profitability: The Case of Dangote Cement Plc
Issue:
Volume 5, Issue 4, July 2017
Pages:
171-176
Received:
9 May 2017
Accepted:
22 May 2017
Published:
26 July 2017
Abstract: This study seeks to find out the relationship between corporate social responsibility (CSR) investment and profitability of Dangote Cement Plc using secondary data. The study assesses the impact of CSR investment on Dangote’s increase in revenue, profit after tax (PAT), and earnings per share (EPS) over a period of 5years. To achieve this, data were obtained from Dangote’s annual sustainability reports and accounts for the period of 2012-2016 and analyzed using content analysis such as tables, percentages and using the trend line analysis to get the linear correlation coefficient (R-square). Findings from the analysis show that there is a positive relationship between CSR investment and profitability. Thus, Revenue shows 67.81% degree of positive relationship, profit after tax (PAT) depicts 54.28% degree of positive relationship and 60.79% is attributed to the degree of positive relationship between Earning per share (EPS) and CSR investment of Dangote cement Plc within the observed period (2012-2016). The study concludes that Dangote’s CSR investment is positively correlated with the profitability performance indicators.
Abstract: This study seeks to find out the relationship between corporate social responsibility (CSR) investment and profitability of Dangote Cement Plc using secondary data. The study assesses the impact of CSR investment on Dangote’s increase in revenue, profit after tax (PAT), and earnings per share (EPS) over a period of 5years. To achieve this, data wer...
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