DSpace Collection: These are publications by academic staff and postgraduate students of Accounting programme

Impact of environmental cost on the performance of quoted manufacturing companies in Nigeria (2007-2017)

Wed, 01 Jan 2020 00:00:00 GMT

Title: Impact of environmental cost on the performance of quoted manufacturing companies in Nigeria (2007-2017) Authors: Worimegbe, Temitope Mariam Abstract: The study examined the impact of environmental cost on the performance of quoted manufacturing companies in Nigeria from 2007 to 2017. The specific objectives were to evaluate the trend of performance profile, assess the extent of environmental accounting disclosure practices, and examine the impact of environmental cost moderated by firm age and firm size on financial (DuPont return on equity) and non-financial performance (market share) of quoted manufacturing companies from 2007 to 2017. The ex-post facto research design was adopted for the study. The selected sample was drawn from the population of sixty quoted manufacturing companies on the floor of the Nigerian Stock Exchange as at 31 December, 2017 using a non-probability (judgmental) sampling technique. The data for the study variables were sourced from the annual reports and accounts, as well as the stand-alone environmental reports of the selected companies over an eleven-year period from 2007-2017. Data were analysed using trend analysis, t-statistic and the Panel Ordinary SquareLeast method. Findings showed that the performance trend of manufacturing companies fluctuated over time. Also a statistically non-significant difference existed in the extent of environmental accounting disclosure practice of the quoted manufacturing companies from 2007 to 2017. Furthermore, the study showed that cost of donation and medical aids to the host community (MEDON) significantly impacted on asset use efficiency (t = -2.62, p < 0.01) and equity multiplier (t = 1.71, p < ,10); measures of DUPont return on equity. However, operating efficiency was not significantly impacted by environmental cost. As such, in this study, the asset use efficiency and equity multiplier are the main drivers of significant increase in the financial performance measure of quoted manufacturing companies in Nigeria. Finally, the study showed that environmental cost, TRAED (t = 2.56, p < .05) and MEDON (t = -3.10, p < .01), had significant impact on market share; implying that the more quoted manufacturing companies incur costs on activities geared at improving on the environment, the larger their market share. The study therefore concluded that environmental cost significantly impacts the performance of quoted manufacturing companies in Nigeria.

Influence of environmental accounting practices on the financial performance of selected quoted manufacturing companies in Nigeria

Fri, 01 Jan 2021 00:00:00 GMT

Title: Influence of environmental accounting practices on the financial performance of selected quoted manufacturing companies in Nigeria Authors: Imohiosen, A. B. U. Abstract: Environmental pollution has taken a toll on the global land as manufacturing companies generates wastes every day. Globally, awareness is now very high of the pollution potential of these industrial wastes and the need for these corporations to account for them via an environmental report embedded in the annual financial environmental report. This research decided to investigate the ‘Influence of Environmental Accounting Practice on the Financial Performance of Quoted Manufacturing Companies in Nigeria for the period between 2001 to 2018’. The independent variables proxies used were POC, WRD, RCY, CPC, CFR, CUE, the control variable were AOC and SOC while the dependent variables were ROCE and ROE. This research work used an ex-post-facto-research-design which extracted empirical data from the annual accounts of twelve (12) selected manufacturing companies hoisted on thier website. A sample of 2 companies each was chosen from six groups of manufacturing companies classified by SEC as follows: Consumer Services, Consumer goods, Industrial Services, Oil and Gas, Basic Goods, and Health Services to arrive at the 12 companies. The total selected items were 216. The descriptive statistics used for the analysis were mean, median, mode and standard deviation, while multiple regression analysis, Hausman specification test, Breusch-Pagan LM test,Durbin Watson statistic, the PP Plot for linearity test and Pearson correlation coefficient matrix were employed for the inferential statistic. The findings revealed that there was a lot of volatility in the results of ROCE and ROE during the period from 2001 to 2018 as they fluctuated widely. The models used were statistically significant at 0.01, 0.05 and 0.1 alpha levels. The Beta coefficient for pollution control (POC) is 0.513, while that of waste reduction (WRD) is 0.579, that of size of company (SOC) was 0.324, while that of the age of the company (AOC) was -0.22 suggesting that some of the variables were positively correlated while some were negatively correlated. The study concluded that the dependent variables ROCE and ROE were influenced by the independent and control variables of: POC, WRD, RCY, CUE, CPC, CFR: SOC and AOC respectively.This implies that the more a company invests in this Environmental Accounting Practice and reports them the better its financial performance.

The effects of corporate social responsibility practices on financial performance of deposit money banks in Nigeria (2008-2017)

Wed, 01 Jan 2020 00:00:00 GMT

Title: The effects of corporate social responsibility practices on financial performance of deposit money banks in Nigeria (2008-2017) Authors: Adewumi, J. A. Abstract: This study investigated the effects of Corporate Social Responsibility (CSR) practices on the Financial Performance of deposit money banks in Nigeria. Four proxies of CSR (community involvement, environmental sustainability, customers’ welfare and charitable cash donation), one control variable (firm size) were used as the explanatory variables while three measures (returns on assets, returns on equity and earnings per share) of financial performance were used as the dependent variables. The study analysed the trend of financial performance of deposit money banks in Nigeria for the period 2008 to 2017 and determined the effects of CSR proxies and assets size on the ROA of these banks. Also, the study investigated the effects of CSR proxies and assets size on the ROE of the banks and assessed the effects of CSR proxies and assets size on the EPS of deposit money banks in Nigeria. Secondary data was used in the course of this study. The data were extracted from the annual reports and accounts of the deposit money banks in Nigeria. In addition the stand alone corporate social responsibility or sustainability reports of some of these banks, where applicable, were examined in order to extract the data used in this study. Various editions of the Nigerian Stock Exchange Fact Books were also used to compliment the other source documents of data especially for listed deposit money banks. All the twenty licensed deposit money banks in Nigeria as at 31st December, 2017 were included in the study. Descriptive statistics (mean, standard deviation, minimum and maximum values), trend analysis and multiple regression random effect model were used to analyse the panel time series data gathered from the relevant documents of the deposit money banks. Diagnostic tests such as autocorrelation, homoscedasticity, multicollinearity, normality and stationarity were run on the data. Random Effects Regression Model was found appropriate for the panel multiple regression analysis after carrying out Breusch-Pagan Lagrange Multiplier and Hausman Specification tests. The findings indicated that CSR proxies and assets size collectively had significant effect on ROE, ROA, EPS at 5% level of significant. While ROE and EPS had positive relationship with CSR, ROA had negative association with it. It was discovered that 58.23% of the variation in ROA could be explained jointly by CSR proxies and the control variable i.e R2 = 0.5823. The variations in ROE and EPS could be explained collectively by CSR proxies and assets size to the values of 69.21% (R2=0.6921) and 31.46% (R2=0.3146) respectively. It is concluded that the findings of this study support stakeholders’ theory which epitomises that the financial performance of a business entity can be boosted by the social responsibility activities of the entity. Therefore, majority of the deposit money banks in Nigeria have imbibed CSR as part of their strategic business policy. This is evident in the volume of CSR activities these banks engaged in during the period of this study (2008 to 2017). Thus it is confirmed in this study that CSR has statistical and significant effect on the banks’ financial performance as measured by ROA, ROE and EPS.

Enterprise risk management practices and financial performance of listed insurance companies in Nigeria

Wed, 01 Jan 2020 00:00:00 GMT

Title: Enterprise risk management practices and financial performance of listed insurance companies in Nigeria Authors: Atanda, O. Abstract: Risk management as an element of corporate governance is becoming an integral part for the success and survival of almost every organisation, more importantly imperative for the insurance companies where managing risk is their core and primary functions on daily basis.The study examined the impact of risk management practices on financial performance of listed insurance companies in Nigeria. Specifically, the trend of financial performance was analysed over the period of 2007 - 2018. Consequently,this study examined the impact of risk management practices on financial performance as proxy (ROCE and EPS) of listed insurance companies in Nigeria. It also studied the effect of some control variables (Audit Quality and Firm Size) on the financial performance of listed insurance firms in Nigeria. This study employed“an ex-post” factor research design which is empirical in nature to obtain data.Out of the total population of fourty nine (49) insurance firms listed on the Nigerian Stock Exchange as at the end of 2018, a sample of twenty eight (28) firms with consistent and completed financial information were selected.The study used secondary source of data collection obtained from companies’ annual report and financial statements and the Nigeria Security and Exchange Commission factbooks. Descriptive statistics employed consist of mean, median, mode and standard deviation while the inferential statistics include panel regression analysis (pooled OLS, random effect and fixed effects models) with both (EPS) and (ROCE) as dependent variables for measuring financial performance while (underwriting risk, reinsurance risk, market risk, solvency risk for explanatory variables and control variables of audit quality and firm size. The findings revealed flunctuationin trend in the financial performance of insurance companies in Nigeria within the period considered for both earning per share (EPS) and return on capital employed (ROCE).The result also confirmed that risk management practices employed have positive and statistically significant relationship with financial performance except solvency risk with significant negative impact with coefficient of -0.0029.The explanatory variables such as underwriting risk with coefficient of 0.85, reinsurance risk 0.50 and market risk with coefficient of 0.035 have positive significant effectwhile the control variables of audit quality and firm size with coefficient of 0.072 and 0.280 have positive and significant effect on financial performance of listed insurance firms in Nigeria. The overall random effect regression R-squared(R2) for EPS and ROCE at 5% level of significant were 0.45 and 0.33 which depicts the degree of variation in financial performance that can be explained by joint effect of all explanatory variables employed in the study. In conclusion, Enterprise risk management practices have significant impact on the financial performance (return on capital employed and earning per share)of listed insurance firms in Nigeria.