Sunday Kajola

This study assessed the effect of three board attributes on corporate social responsibility practices (CSRP) in ten Nigerian oil and gas companies for the period, 2011-2020. Relevant information was obtained from the companies’ published annual financial

The paper examined the relationship between managerial share ownership and leverage of 35 non-financial firms listed on the floor of the Nigerian Stock Exchange. The study covered the period 2005-2014. Using panel data regression analysis and fixed effects model (with least squares as an estimation technique), result revealed a positive and significant relationship between leverage and managerial share ownership. This suggested that managerial share ownership, an important internal corporate governance mechanism, played an important role in a company’s capital structure decision. The outcome of this study was supported by some prior empirical studies and provided evidence of alignment of the interests of management and shareholders as proposed by the Agency theory. It is recommended that Nigerian companies should encourage management to own shares in companies where they serve as directors as this will reduce managerial incentives to consume perquisites and expropriation of sharehol...

Dividend policy is primarily concerned with the decision regarding the distribution of a firm's profit between dividend and retention. The determinants of this important financial decision have been a subject of debate among financial management researchers for over six decades. This study examines the determinants of dividend policy decisions of twenty-five non-financial firms listed on the Nigerian Stock Exchange between 1997 and 2011. Panel data methodology was employed, while fixed and random effects models were used as estimation techniques. Result reveals that profitability, firm size, leverage and changes in the dividend payout are significant factors that affect dividend policy decisions of the sampled firms during the period of the study. It is hereby recommended that profitability, size, leverage and changes in dividend payout should be considered by Board of Directors of listed firms in Nigeria when designing their dividend payout policy decisions. The outcome of this...

Corporate tax is obligatory and constitutes an unbalanced transfer of resources to the government with a negative impact on firm performance. However, organizations adopt tax planning strategies to curtail tax liability without adverse effect on firm performance. Thus, this study examined the relationship between tax planning and performance of Nigerian listed Oil & Gas firms. The study adopted a descriptive research design and secondary data were collected from selected five firms over a period of six years (2012-2017). Descriptive Statistics and simple pooled Ordinary Least Square regression analysis were used to evaluate the probable relationship among the identified variables. The indices of determination for corporate tax planning are: Effective Tax Rate (ETR); Firm Size (FS); Firm Age (FAGE); Financial Leverage (FL) and Return on Assets (ROA) for performance. The results of the study showed that ETR, FS, and FAGE have significant relationship with ROA of Nigerian listed Oil & ...

he study investigates the influence of currency depreciation on the financial performance of Nigerian deposit money banks. Ex-post facto research design was adopted and ten (10) banks were selected using convenience sampling technique. Secondary data were collected from the annual financial reports of the selected deposit money banks and the Central Bank of Nigeria (CBN)publications over a period of ten years(2008-2017).The analysis was done using a panel EstimatedGeneralized Least Square method (EGLS) in the form of multiple regressions. The indices of determination for currency depreciation are Inflation Rate (INFR); Interest Rate (INTR); and Exchange Rate (EXCHR).The Return on Asset (ROA) serves as a surrogate for performance. The results of the study show a negative and significant effect of INFR on ROA (p 0.05).It is recommended that effective fiscal and monetary policies are required by the Federal Government of Nigeria through the Central Bank of Nigeria and the Ministry of F...

Determination of the correct mix of dividend and retained earnings and its effect on profitability has been a subject of controversy in financial management literature. This paper seeks to contribute to the on-going debate by examining the relationship between dividend pay-out policy and financial performance of 25 non-financial firms listed on the Nigerian Stock Exchange between 2004-2013. Panel data methodology was employed and pooled Ordinary Least Squares (OLS) was used to estimate the coefficients of explanatory and control variables. The Return on Assets (ROA) served as surrogate for the dependent variable, profitability, while Dividend Pay-out ratio proxied for dividend policy and was the only explanatory variable. Control variables include firm size, asset tangibility and leverage. Regression result reveals a positive and significant relationship between dividend pay-out policy (DPO) and firm performance (ROA). It is recommended that companies should endeavour to put in plac...

Stock Price Volatility with Dividend Policy pose relevant factors to an investor’s choice in stock investment. The focus of the study was intelligent view on the long-run and short-run causal significance of dividend management on stock price volatility. Panel Auto Regressive Distribution Lag was conducted on listed non-financial firms in Nigeria. The result showed that Stock Price Volatility in the long-run based on a threshold of 1% level of significance is significant as movement of Dividend Payout Ratio, Dividend Yield, Earnings Volatility and Firm Size causes about 0.15%, 0.76%, and 0.008% increase and about 3% decrease respectively on change in stock price on the long run while in the short-run, all the variables except Earnings Volatility have insignificant effect. The study recommended that low dividend payout ratios at a stable rate serve as a good signal out to all investors for expectation of returns which in turn increases firm value and stabilize stock price.

Dividend policy is primarily concerned with the decision regarding the distribution of a firm’s profit between dividend and retention. The determinants of this important financial decision have been a subject of debate among financial management researchers for over six decades. This study examines the determinants of dividend policy decisions of twenty-five non-financial firms listed on the Nigerian Stock Exchange between 1997 and 2011. Panel data methodology was employed, while fixed and random effects models were used as estimation techniques. Result reveals that profitability, firm size, leverage and changes in the dividend payout are significant factors that affect dividend policy decisions of the sampled firms during the period of the study. It is hereby recommended that profitability, size, leverage and changes in dividend payout should be considered by Board of Directors of listed firms in Nigeria when designing their dividend payout policy decisions. The outcome of this stu...

This paper examines the determinants of corporate capital structure of thirty-five firms listed on the Nigerian Stock Exchange between 2006 and 2012. Panel data methodology was employed and pooled Ordinary Least Squares was (OLS) used to estimate the coefficients of six firm-specific determinants. Results reveal that the three leverage ratios (Total Leverage Ratio, Long-Term Leverage Ratio and Short-Term Leverage Ratio) are negatively and significantly related with profitability. Firm size and asset tangibility are however, positively and significantly related with leverage proxies. The outcome of the study shows that Nigerian firms rely heavily on the use of retained earnings (internal source) and where funds raised are insufficient, they then seek for external source. This is in line with financial theory and provides evidence in support of Pecking Order Theory. Key Words : Capital structure, Leverage, Pecking order, Static trade off, Nigeria

The study examines the determinants of profitability of ten deposit money banks in Nigeria over the period 2007-2016. Five potential bank-specific factors (non-performing loan, capital adequacy, size, deposit growth and age) and three macroeconomic factors (real interest rate, growth in GDP and inflation rate) were considered. Using Random Effects Generalized Least Squares estimation technique, the findings suggest that banks’ profitability is only affected by bank-specific factors while macroeconomic variables seem to have no influence. Consistent with theoretical expectation, results show a negative and statistically significant relationship between non-performing loan ratio and bank profitability as well as a direct relationship between profitability and capital adequacy ratio. The three macroeconomic variables have insignificant relationship with bank profitability. It is recommended that bank management consider non-performing loan and capital adequacy as relevant factors when ...

This paper assessed the effect of proportion of female directors in corporate boards on dividend policy of 19 Nigerian listed consumer goods and industrial companies for the seven-year period, 2010–2016. Using Random Effects Generalised Least Squares (REGLS) model as estimation technique, the result indicated a positive and significant association between the number of women in corporate boardrooms and dividend policy. The outcome is consistent with the view that female directors are more involved in monitoring activities than their male counterpart in boardrooms. The finding also provides empirical evidence in support of outcome hypothesis where dividend payment is related to the corporate governance regime that is in place in an organization.

The study examines the effect of liquidity management on profitability in ten deposit money banks in Nigeria between 2008 and 2017. Return on asset served as a proxy for profitability while four variablescurrent ratio, loan to deposit ratio, deposit to asset ratio and liquidity ratio surrogated for liquidity management. Using Random effects generalised least squares as estimation technique, results reveal a positive and statistically significant relationship between two liquidity management proxies (current ratio and liquidity ratio) and return on asset. The study did not find empirical evidence in support of loan to deposit ratio (t = 1.0650, p = 0.2896) and deposit to asset ratio (t = -0.6507, p = 0.5168) as having influence on profitability of the selected banks, as results produced insignificant relationship with profitability (t. The study recommends that for sustainable profitability to be achieved, board of directors and top financial managers of banks should put in place rob...

Corporate governance has become a worldwideconcern over the year due to numerous corporatefinancial failures which has redirected theattention of policy makers to the significance ofboard characteristics. This study examined therelationship between board characteristics andperformance of quoted Nigerian consumergoods firms. This study adopted historicalresearch design and ten firms were selected fromthe population of twenty-seven Nigerian listedconsumer goods firms, as at 2017, using simplerandom sampling technique. Secondary dataover a period of seven years (2011-2017) wasobtained from the annual reports of the selectedfirms. Analysis was performed on data collectedadopting Auto Regressive Distributed Lag(ARDL) Regression and other post estimationtechniques to determine the existence ofrelationship between the variables. The resultsof the study showed significant relationshipsbetween board independence, board diligenceand performance of consumer goods firms(p 0.05). The study concl...

The study examined the determinants of liquidity management in twelve Nigerian banks during 2009–2018. Liquidity ratio (LQR) and deposit to asset ratio (DAR) were used as surrogates for liquidity management. As the potential liquidity management determinant indicators, five bank-specific variables (capital adequacy, size, asset quality, profitability and deposit growth) and three macroeconomic variables (GDP growth rate, inflation rate and interest rate) were used as proxies. Results from balanced fixed effects least square regression analytical technique show that size, profitability, GDP growth rate and inflation rate are important liquidity determinants in Nigerian banks. Specifically, bank size has a positive and significant influence on LQR, while GDP growth rate and inflation rate exhibit a negative and significant relationship with LQR. It further reveals a positive and significant relationship between profitability (ROA) and DAR. It is recommended that banks’ management shou...

The study examines the factors that determine audit quality among listed insurance companies in Nigeria. The study adopts Ex-post facto research design, and 15 companies are purposively selected, out of 25 listed insurance companies in Nigeria as of 2018. Panel data is extracted from the annual account and reports of the selected companies over a period of ten years (2009–2018). Pearson correlation analysis, Ordinary Least Square (OLS) and Regression are the statistical tools used for the analysis. The results of the study reveal a significant relationship between the audit firm size, audit tenure, audit fee, cash flow and audit quality (p < 0.05). However, there is no significant relationship between auditors independence, joint audit and audit quality (p > 0.05). The study concludes that audit fees, audit firm size, audit tenure and cash flow from operations are major determinants of audit quality as each of them has significantly contributed to audit quality of listed insur...

Aim/purpose-This study examines the relationship between leverage and financial performance of Nigerian firms between the years 2007 and 2016. Design/methodology/approach-The study adopted ex-post facto research design to retrieve and study data for events which were already in existence. Inferential statistics adopted econometrics models with a concentration on panel data using regression analysis to achieve the three specific objectives of the study. The surrogates for the independent variable (financial leverage) were Debt Ratio (DR); Debt-Equity Ratio (DER); and Interest Cover Ratio (ICR) while Return on Capital Employed (ROCE), the only dependent variable, was used as financial performance proxy. Three control variables-Firm Size (SZ), Sales Growth (SG) and Growth in Gross Domestic Product (GGDP) were included in the model to capture other firms-specific and macroeconomic variables that may have an influence on the financial performance of the selected firms. Findings-The Random Effects Generalised Least Squares (REGLS) revealed a positive and significant effect between leverage (DR and DER) and ROCE (p < 0.05). However, ICR has a positive but insignificant effect on ROCE (p > 0.05). The outcome of the study was consistent with the Static trade-off theory of capital structure. A. Afolabi, J. Olabisi, S. O. Kajola, T. O. Asaolu 6 Research implications/limitations-The study suggests that firms should continuously employ debt capital in order to benefit from available tax shields which ultimately enhance profitability. The limitation of the study is that only firms in the food and beverage sector in Nigerian business environment were covered by the study. Originality/value/contribution-The study contributed to the existing theory and literature by using empirical evidence from an emerging market to bridge the existing gap in knowledge of the effect of leverage on the performance of firms.