- Lagos, Lagos, Nigeria
Prof. Akinyomi O . John
Mountain Top University, Accounting and Finance, Faculty Member
- Professor of Accounting, with specialization in the areas of management accounting, corporate governance, and financial management.edit
The relevance of the traditional volume-based cost allocation practices in today's manufacturing environment has been questioned and strongly criticized. In other to overcome the deficiencies of the traditional volume-based costing... more
The relevance of the traditional volume-based cost allocation practices in today's manufacturing environment has been questioned and strongly criticized. In other to overcome the deficiencies of the traditional volume-based costing system and to provide more accurate information for management planning and control, activity-based costing was proposed. However, till date, there is virtually little or no study that has reported the extent of activity-based costing implementation in the Nigerian manufacturing sector. Thus, this study sets out to ascertain the extent of activity-based costing implementation in the Nigerian manufacturing sector. The population of the study comprises the 86 manufacturing companies quoted in the Nigerian Stock Exchange Market. Using survey design, data were obtained 24 randomly selected manufacturing companies through the administration of structured questionnaire. Descriptive statistics was employed in the analysis. The result of the analysis revealed that there is 74.2% activity-based costing system implementation rate in Nigeria manufacturing sector. It is recommended for future researchers to investigate the factors that facilitate the implementation of activity-based costing system.
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Product diversity facilitates a higher possibility for cost distortion and applies when products consume activity-resources in different proportions. Greater product diversity requires more complex costing systems to capture the variation... more
Product diversity facilitates a higher possibility for cost distortion and applies when products consume activity-resources in different proportions. Greater product diversity requires more complex costing systems to capture the variation in resource utilization by different products (Ahmadzadeh, Etemadi, & Pifeh, 2011). Activity-based costing system represents one of the complex costing system innovations. Using a survey research design, this study examines the effects of product diversity on activity-based costing implementation in the Nigerian manufacturing sector. Data were obtained using structured questionnaire administered to 500 Accountants, Cost Accountants, Management Accountants and Financial Managers who are in full-time employment of 24 randomly selected manufacturing firms listed in the Nigerian Stock Exchange. The result of regression analysis revealed that there is a significant relationship between the extent of activity-based costing implementation and product diversity in the Nigerian manufacturing sector. It is recommended that future studies should seek to investigate the influence of other contextual variables such as top management support and competition.
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ABSTRACT Dividends decision constitutes one of the most crucial business decisions as it affects the organization's value and shareholders' wealth. This study examines the opinions of managers on factors... more
ABSTRACT Dividends decision constitutes one of the most crucial business decisions as it affects the organization's value and shareholders' wealth. This study examines the opinions of managers on factors influencing dividends decision in Nigerian listed firms. The study employs survey research design and obtained primary data from selected managers through the administration of questionnaire. The result of the study reveals that pattern of past dividends, level of current earnings, current degree of financial leverage, availability of alternative source of capital; liquidity constraints such as availability of cash, growth and investment opportunities have significant influence on dividend decision in Nigeria. The study recommends that future researchers should investigate the relationship between dividend payment and firms' value.
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The success of any business venture is predicated on how the management has planned and controlled its cash flows. Cash shortage will disrupts the firm's smooth operation and can even lead to insolvency. Excessive cash will tie down... more
The success of any business venture is predicated on how the management has planned and controlled its cash flows. Cash shortage will disrupts the firm's smooth operation and can even lead to insolvency. Excessive cash will tie down unnecessarily long-term capital with a result that the return on capital employed will be low. Thus, cash management assumes more significance than other current assets because cash is the most important asset that a firm holds. However, literature revealed that only limited studies have investigated the relationship between cash management and profitability in Nigeria. Therefore, this study examined the relationship between cash management and profitability in the Nigerian manufacturing firms. Correlation and regression analysis were carried out. The results reveal a positive and significant relationship between CCC and ROE on one hand and a non significant negative relationship between CCC and ROA. From the results of the study, it is recommended that future researchers should expand the scope of their studies to include multiple sectors of the economy.
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Board diversity is a corporate governance issue which has of late caught the concentration of policymakers, managers, directors, business owners, and the academic world. This study examines the effect of board gender diversity on... more
Board diversity is a corporate governance issue which has of late caught the concentration of policymakers, managers, directors, business owners, and the academic world. This study examines the effect of board gender diversity on profitability in Nigeria. Using correlational research design, the study randomly selected ten money deposit banks in Nigeria. Data were obtained from audited annual reports of the selected banks. Return on equity was used as a proxy for profitability (dependent variable); meanwhile, two indicators of gender diversity including: the presence of female in the board of directors and the proportion of female in the board of directors were used. Four control variables of: bank size, board size, loan to total assets and age of bank were incorporated into the model, in line with previous studies. The results of the regression analysis revealed that the presence of female director on the board has a positive but insignificant relationship with banks’ profitability...
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This paper provides a conceptual framework for auditing in digital operations. It aims to create and position digital auditing framework as a pragmatic lens for organisations in the embryonic, growth and established stage of... more
This paper provides a conceptual framework for auditing in digital operations. It aims to create and position digital auditing framework as a pragmatic lens for organisations in the embryonic, growth and established stage of digitalisation. The paper applies a conceptual approach by engaging in a brief conceptual review, thereafter, relying on extant literature and professional documents, the paper creates a maiden framework for digital auditing, which contributes to the literature on information technology auditing. Accordingly, this paper provides a digital auditing framework for professionals, academics, and researchers; in addition, it provides an agenda for further research to develop this initial framework by adding more encompassing nodes of digital auditing technological imperatives.
Research Interests:
This paper provides a conceptual framework for auditing in digital operations. It aims to create and position digital auditing framework as a pragmatic lens for organisations in the embryonic, growth and established stage of... more
This paper provides a conceptual framework for auditing in digital operations. It aims to create and position digital auditing framework as a pragmatic lens for organisations in the embryonic, growth and established stage of digitalisation. The paper applies a conceptual approach by engaging in a brief conceptual review, thereafter, relying on extant literature and professional documents, the paper creates a maiden framework for digital auditing, which contributes to the literature on information technology auditing. Accordingly, this paper provides a digital auditing framework for professionals, academics, and researchers; in addition, it provides an agenda for further research to develop this initial framework by adding more encompassing nodes of digital auditing technological imperatives.
Research Interests:
Independence is critically important to an auditor as it is regarded as being one of the fundamental principles underlying the auditor‘s work. The financial markets must have confidence in the integrity and objectivity of auditors.... more
Independence is critically important to an auditor as it is regarded as being one of the fundamental principles underlying the auditor‘s work. The financial markets must have confidence in the integrity and objectivity of auditors. Without definite independence, audits have little value. This study examines factors affecting auditor’s independence in Nigeria. Survey research design was employed in carrying out the study. Data were collected using Likert- rated questionnaire; which was administered to 150 Chartered Accountants in 15 Audit firms in Lagos. Sampled audit firms were selected randomly. Analysis was carried out using descriptive statistics, while the 5 hypotheses formulated were tested for significance using the chi-square test. The results revealed a significant relationship between the variables of: size of audit firm, level of competition in the audit services market, tenure of an audit firm serving the needs of a given client, size of audit fees received by audit firm ...
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Independence is critically important to an auditor as it is regarded as being one of the fundamental principles underlying the auditor‘s work. The financial markets must have confidence in the integrity and objectivity of auditors.... more
Independence is critically important to an auditor as it is regarded as being one of the fundamental principles underlying the auditor‘s work. The financial markets must have confidence in the integrity and objectivity of auditors. Without definite independence, audits have little value. This study examines factors affecting auditor’s independence in Nigeria. Survey research design was employed in carrying out the study. Data were collected using Likert- rated questionnaire; which was administered to 150 Chartered Accountants in 15 Audit firms in Lagos. Sampled audit firms were selected randomly. Analysis was carried out using descriptive statistics, while the 5 hypotheses formulated were tested for significance using the chi-square test. The results revealed a significant relationship between the variables of: size of audit firm, level of competition in the audit services market, tenure of an audit firm serving the needs of a given client, size of audit fees received by audit firm ...
Research Interests:
Independence is critically important to an auditor as it is regarded as being one of the fundamental principles underlying the auditor‘s work. The financial markets must have confidence in the integrity and objectivity of auditors.... more
Independence is critically important to an auditor as it is regarded as being one of the fundamental principles underlying the auditor‘s work. The financial markets must have confidence in the integrity and objectivity of auditors. Without definite independence, audits have little value. This study examines factors affecting auditor’s independence in Nigeria. Survey research design was employed in carrying out the study. Data were collected using Likert- rated questionnaire; which was administered to 150 Chartered Accountants in 15 Audit firms in Lagos. Sampled audit firms were selected randomly. Analysis was carried out using descriptive statistics, while the 5 hypotheses formulated were tested for significance using the chi-square test. The results revealed a significant relationship between the variables of: size of audit firm, level of competition in the audit services market, tenure of an audit firm serving the needs of a given client, size of audit fees received by audit firm ...
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This paper is on the effect of budgeting on the financial performance of chemical and paints manufacturing industry. Four (4), out of the seven (7) quoted Chemical and Paints companies in the Nigerian Second-Tier Security Market were... more
This paper is on the effect of budgeting on the financial performance of chemical and paints manufacturing industry. Four (4), out of the seven (7) quoted Chemical and Paints companies in the Nigerian Second-Tier Security Market were randomly selected for the study. The data were obtained from secondary sources. Simple correlation analytical technique, specifically the Pearson product movement correlation coefficient with the aid of excel package was used for the analysis. In most of the cases considered, the presence of strong relationship between turnover as a variable of budget and performance indicators – EPS, DPS and NAS, of the selected chemical and paints companies was established. Following the findings, managers and business operators in the manufacturing industry are advised to pay more attention to their budgetary control systems, for those without an existing budgetary control system, they should put one in place, and those with a passive budgetary control system, it is ...
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The efficiency of working capital management (WCM) has implications for firms’profitability. This paper empirically investigates the effects of WCM on the profitability of a sample of 48 large manufacturing firms quoted on the Nigerian... more
The efficiency of working capital management (WCM) has implications for firms’profitability. This paper empirically investigates the effects of WCM on the profitability of a sample of 48 large manufacturing firms quoted on the Nigerian Stock Exchange (NSE) for the period 1993 to 2005. It is aimed at filling the gaps in a previous study and contribute to expanding and enriching the literature particularly on Nigeria and at large. The analysis examined the responses of the firms’ profitability to WCM and a number of augmenting factors. Profitability was alternatively measured by gross operating profit (GOI), net operating income (NOI) and return on assets (ROA). Likewise, WCM was measured by the average collection period (ACP), average pay period (APP), inventory turnover days (ITID) and comprehensively by the cash conversion cycle (CCC). The results indicate that the firms’ have been inefficient with WCM and caused significant reductions in profitability. The paper concludes that imp...
Research Interests: Business, Economics, Nigeria, Applied Economics, Economics for Business and Management., and 11 moreBusiness and Management, Application of Project Management Tools to Enterprise Development, Profitability, Efficiency, Manufacturing Firms, Working Capital, Wcm, Ccc, Finance and Investment Banking Area, Finance and Investment Banking, and Profitability Index
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The general public and specific stakeholders have expressed apprehension as regards the degraded quality of the external audit report. The concept of audit quality and its determinants has been a debatable issue over the decades. The... more
The general public and specific stakeholders have expressed apprehension as regards the degraded quality of the external audit report. The concept of audit quality and its determinants has been a debatable issue over the decades. The current study examined the determinants of audit quality in the context of the Nigerian listed consumer goods companies. Using the ex-post facto research, a sample of six (6) companies were randomly selected from a population of twenty existing companies as at 31st December 2020. Necessary data for the study was spooled from the audited annual financial statement of the considered companies for an eight-year period from 2012 when IFRSs became operational in Nigeria to the 2019 financial year. Correlation and regression analysis were carried out using SPSS version 22. The outcome of the study revealed a statistically non-significant but positive relationship with the board size as a proxy for corporate governance, audit firm size and company size on one hand, and audit quality on the other hand. However, a negative and statistically insignificant relationship is established between the tenure of the audit firm and audit quality in the Nigerian consumer goods sector. The following recommendations are proposed: (i) Policy measures should be put in place to regulate the activities of auditors so as to checkmate unreasonably long-term auditor-client relationship which may jeopardize objectivity and independence. (ii) Small audit firms should be encouraged to form partnerships so as to boost their capacity so as to enhance their audit engagement quality to big client companies.
Research Interests:
Research Interests:
The general public and specific stakeholders have expressed apprehension as regards the degraded quality of the external audit report. The concept of audit quality and its determinants has been a debatable issue over the decades. The... more
The general public and specific stakeholders have expressed apprehension as regards the degraded quality of the external audit report. The concept of audit quality and its determinants has been a debatable issue over the decades. The current study examined the determinants of audit quality in the context of the Nigerian listed consumer goods companies. Using the ex-post facto research, a sample of six (6) companies were randomly selected from a population of twenty existing companies as at 31st December 2020. Necessary data for the study was spooled from the audited annual financial statement of the considered companies for an eight-year period from 2012 when IFRSs became operational in Nigeria to the 2019 financial year. Correlation and regression analysis were carried out using SPSS version 22. The outcome of the study revealed a statistically non-significant but positive relationship with the board size as a proxy for corporate governance, audit firm size and company size on one hand, and audit quality on the other hand. However, a negative and statistically insignificant relationship is established between the tenure of the audit firm and audit quality in the Nigerian consumer goods sector. The following recommendations are proposed: (i) Policy measures should be put in place to regulate the activities of auditors so as to checkmate unreasonably long-term auditor-client relationship which may jeopardize objectivity and independence. (ii) Small audit firms should be encouraged to form partnerships so as to boost their capacity so as to enhance their audit engagement quality to big client companies.
Research Interests:
This paper provides a conceptual framework for auditing in digital operations. It aims to create and position digital auditing framework as a pragmatic lens for organisations in the embryonic, growth and established stage of... more
This paper provides a conceptual framework for auditing in digital operations. It aims to create and position digital auditing framework as a pragmatic lens for organisations in the embryonic, growth and established stage of digitalisation. The paper applies a conceptual approach by engaging in a brief conceptual review, thereafter, relying on extant literature and professional documents, the paper creates a maiden framework for digital auditing, which contributes to the literature on information technology auditing. Accordingly, this paper provides a digital auditing framework for professionals, academics, and researchers; in addition, it provides an agenda for further research to develop this initial framework by adding more encompassing nodes of digital auditing technological imperatives.
Research Interests:
ABSTRACT Tax evasion and avoidance are both phenomena that are probably as old as taxation itself. Literature revealed that tax avoidance and evasion represent some of the perplexing problems facing the Nigerian economy. The result of tax... more
ABSTRACT Tax evasion and avoidance are both phenomena that are probably as old as taxation itself. Literature revealed that tax avoidance and evasion represent some of the perplexing problems facing the Nigerian economy. The result of tax evasion and avoidance is tax revenue loss which may cause serious damage to the proper performance of the public sector, threatening its capability to finance public expenditure. Therefore, this study examined the factors that are influencing tax evasion and tax avoidance in Nigeria. The study adopts a survey research design. Six-point rating scaled questionnaire starting from strongly agree to strongly disagree was used to collect primary data from 120 selected small and medium scale businesses in Lagos. The results of the analysis revealed that the low quality of the service in return for tax does significantly influence tax avoidance and evasion in Nigeria. Furthermore, tax system and perception of fairness, low transparency and accountability of public institutions, and high level of corruption do significantly influence tax avoidance and evasion in Nigeria. The study recommends that urgent steps should be taken by public office holders to live up to expectation when it comes to transparency, accountability and the war against corruption.
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Product diversity facilitates a higher possibility for cost distortion and applies when products consume activity-resources in different proportions. Greater product diversity requires more complex costing systems to capture the variation... more
Product diversity facilitates a higher possibility for cost distortion and applies when products consume activity-resources in different proportions. Greater product diversity requires more complex costing systems to capture the variation in resource utilization by different products (Ahmadzadeh, Etemadi, & Pifeh, 2011). Activity-based costing system represents one of the complex costing system innovations. Using a survey research design, this study examines the effects of product diversity on activity-based costing implementation in the Nigerian manufacturing sector. Data were obtained using structured questionnaire administered to 500 Accountants, Cost Accountants, Management Accountants and Financial Managers who are in full-time employment of 24 randomly selected manufacturing firms listed in the Nigerian Stock Exchange. The result of regression analysis revealed that there is a significant relationship between the extent of activity-based costing implementation and product diversity in the Nigerian manufacturing sector. It is recommended that future studies should seek to investigate the influence of other contextual variables such as top management support and competition.
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ABSTRACT This study reviews the current practice of Capital Investment Appraisal Techniques in Nigerian companies. The objective is to ascertain the common appraisal techniques being adopted by these companies. The data used for the study... more
ABSTRACT This study reviews the current practice of Capital Investment Appraisal Techniques in Nigerian companies. The objective is to ascertain the common appraisal techniques being adopted by these companies. The data used for the study were obtained through the administration of questionnaire to Finance/Account staff and Management staff of the 50 sampled quoted companies in the Nigerian Stock Exchange. A total of 300 questionnaires were administered, out of which 282 were retrieved and used for the study. The findings revealed that in Nigeria, firms favoured a combination of investment appraisal techniques but the payback period is ranked highest among other techniques. The study also revealed that simplicity, understandability and effectiveness to be the major preferential factors in the choice of a particular project appraisal technique. It is recommended that coordination, authorization, documentation and communication of capital expenditure plans should be transparent and in line with the business interest of the firm.
ABSTRACT Information technology has tremendously stimulated expansion of the banking networks and range of the offered services during recent years. This paper examines the impact of information technology on the operations of Nigerian... more
ABSTRACT Information technology has tremendously stimulated expansion of the banking networks and range of the offered services during recent years. This paper examines the impact of information technology on the operations of Nigerian banks five banks were randomly selected for the study, while three hundred and fifty (350) questionnaires were distributed to respondents, but only two hundred and sixty (260) were retrieved. The study revealed that information technology has significant effect on the bank productivity, cashiers’ work, banking transactions, bank patronage, bank services delivery, customer services and bank services. These affect the growth and development of the banking industry positively. Customers can now withdraw cash through the ATM machines in any part of the country. Customers do not need to move about with large sums of cash anymore; customers are also being attended to within a short period of time. The recommendation is that the power sector should be deregulated..
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This paper examines the relevance of Corporate Governance in Nigerian Banks. The study became necessary as a result of recent events both globally and locally in which we witnessed massive failure of large companies, including banks,... more
This paper examines the relevance of Corporate Governance in Nigerian Banks. The study became necessary as a result of recent events both globally and locally in which we witnessed massive failure of large companies, including banks, which have been mainly attributed to fraud and mismanagement by directors and managers of such companies. The study being a theoretical analysis, it employed the secondary source of data on corporate governance and its application in Nigerian banks. The study revealed that poor corporate governance, poor risk management practices, inability to manage expansion, low assets quality, inadequate supervisory framework and unethical practices among top banking chiefs who gave out loans without required collateral were identified as some of the reasons for the current financial crisis in the country. The key recommendation is that the banks should be made to provide a certain minimum amount of information requirement on corporate governance.
The world has witnessed several instances of corporate scandals and failure in resent past. This has brought to the fore the inadequacy of the statutory audit in the prevention and detection of fraud and financial mismanagement. The... more
The world has witnessed several instances of corporate scandals and failure in resent past. This has brought to the fore the inadequacy of the statutory audit in the prevention and detection of fraud and financial mismanagement. The professional accountancy bodies are beginning to have a new perception that goes beyond the scope of the statutory audit. Forensic accounting seems to provide the needed solution to the problem of fraud and financial mis-management in corporate organizations. This article discusses the concept of forensic accounting, the need for it and its role in providing solution to the problem of fraud in corporate organizations.
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This study evaluates the relationship between liquid assets and working capital management among the Food and Beverage Companies in Nigeria. There are 50 of such companies quoted in the Nigerian Stock Market. Ten companies were randomly... more
This study evaluates the relationship between liquid assets and working capital management among the Food and Beverage Companies in Nigeria. There are 50 of such companies quoted in the Nigerian Stock Market. Ten companies were randomly selected for the study. To determine the relationship, descriptive approach was adopted coupled with the use of correlation coefficient to establish the nature of the relationship. Using the current ratio as an analysis of the liquidity positions of the companies, the study revealed that all the companies were liquid over the period. However, none of the companies was liquid enough to cover its current liabilities when considered under quick ratio. It was recommended that companies should strive to maintain optimal stock level; short term bank facilities should be a last resort; and companies are encouraged to exploit more cost-effective funding like rights issue to raise the needed working capital.
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A system of effective internal control has been described as critical component of an organization’s management (banks inclusive) and a foundation for its safe and sound operations. This study examined the effect of internal control... more
A system of effective internal control has been described as critical component of an organization’s management (banks inclusive) and a foundation for its safe and sound operations. This study examined the effect of internal control system on Nigerian banks. Three banks were randomly selected for the study, while three hundred and sixty (360) questionnaires were distributed to respondents, but only three hundred and forty-two (342) were retrieved. The study revealed that the lack of a good internal control system is a major cause of fraud in banks. It was also discovered that banks with effective internal control system can prevent and stand against the menace of fraud. One of the major recommendations is that adequate internal control system should be put in place at all level of banks’ operation. Also, it is recommended that an effective internal audit department should be established possibly with qualified Chartered Accountants as the head.
Taxation is one of the major fiscal policy instruments used by government in regulating the economy, boosting investments and regulating inflation. Many developing nations formulate tax policies aimed at stimulating rapid economic growth.... more
Taxation is one of the major fiscal policy instruments used by government in regulating the economy, boosting investments and regulating inflation. Many developing nations formulate tax policies aimed at stimulating rapid economic growth. One of such policies in Nigeria is the Pioneer Income Tax Relief with the main goal of enhancing investment. This paper examined the relevance of Pioneer Income Tax Relief as an investment incentive. The study revealed that taxation in Nigeria dates back to the 800 A.D. It highlights the various tax incentives available in Nigeria among which are Capital Allowances and Pioneer Income Tax Relief among others. An attempt was made to highlight the benefits of the pioneer status. It was observed that the pioneer income tax relief is beneficial both to the individual company and the nation’s economy. Investors are encouraged to take advantage of the incentives to boost their business performance.
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The goal of a statutory audit is to ascertain whether an organization provides a fair and accurate representation of its financial position by examining relevant information. Corporate scandals confirmed a need for high-quality audit and... more
The goal of a statutory audit is to ascertain whether an organization provides a fair and accurate representation of its financial position by examining relevant information. Corporate scandals confirmed a need for high-quality audit and considerable attention to different factors that may affect audit quality. Sequel to the aforementioned, this study examined the relationship between board structure indices and audit quality of Deposit Money Banks (DMBs) in Nigeria. Using ex-post facto research design, the study assessed a population of 9 DMBs in Nigeria with international authorization as of 31st December 2018. A sample size of 4 DMBs was randomly selected. The results of the regression analysis indicated the existence of a positive and statistically significant relationship between board size and audit quality of DMBs in Nigeria (p < 0.002); the existence of a positive but not statistically significant association between board independence and audit quality of DMBs in Nigeria (p < 0.278); and the existence of a positive but not statistically significant relationship between board heterogeneity and audit quality of DMBs in Nigeria (p < 0.641). Overall, the results indicated the existence of a positive association between board structure and audit quality. The study recommended that board size should be reasonably large enough to guarantee quality oversight function; board members should include a considerable number of females, and the proportion of the non-executive directors in the board should be substantial to encourage impartial and objective decisions by the board.