NSUK Repository :: Browsing by Author "Abdulkarim, Shaibu Alhassan"

Browsing by Author "Abdulkarim, Shaibu Alhassan"

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Open Access
An Assessment Of Credit Risk And Financial Performance Of Deposit Money Banks In Nigeria
(Department of Accounting, Nasarawa State University, Keffi., 2016-01-02) Ismaila, Olotu Abdullahi; Abdulkarim, Shaibu Alhassan
The recent cases of bank failure and financial crises in Nigeria call for assessment of credit risk of Deposit Money Banks. This study empirically assesses the effects of credit risk and financial performance of deposit money banks in Nigeria. The period covered by the study is 2005-2014 while the population of the study comprises of all Deposit Money Banks in Nigeria. Credit risk measures used in the study include liquidity ratio, non-performing loan ratio, risk weighted capital ratio and provisions for non-performing loan ratio while return on asset was used as proxy for financial performance. Using aggregate banking data, multiple regression analysis was employed to examine the relationship between credit risk and financial performance of Deposit Money Banks. Results of the study show that the relationship between non-performing loans and financial performance of deposit money banks in Nigeria is negative and statistically significant. The study however found a positive relationship between provision for non-performing loan and financial performance although not statistically significant. The study therefore recommends stricter banking regulation and supervision by the regulatory authorities by ensuring good corporate governance through increasing transparency of records and accounts of deposit money banks in Nigeria thus improving credit risk management.
Open Access
ASSESSMENT OF MACROECONOMICS DETERMINANTS OF LOAN LOSS PROVISIONING BY MONEY DEPOSIT BANKS IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2015-03-03) Abdulkarim, Shaibu Alhassan
This study empirically assesses the macroeconomics determinants cf loan loss provisioning by deposit money banks in Nigeria The objective cf the study is to imestigtte the rdatwnshipcf GDP growth rate and loan growth mth loan loss pivusions as wdl as assess whether or not bank managers lend prudently in Nigpia The studyused banking and economic data fora panel cf deien banks quoted on the Nigprian Stock Exchange cner the period 2002-2011. Using dynamic panel data econometric technique, the study find eudence that shorn positive relationship between GDP growth rate and loan loss profusions. The study also find eudence cf pro-cydical behaviour cf banks in loan loss prousioning as loan growth is negttbtdy associated mth loan loss profusions. This study therefore recommends the need for bank regidatcns to monitor rapid loan growth by the deposit money banks in Nigeria to ensure that they are growth-supportize and the credit quality arising from such credit growth does not distort profitability and solvency cf banks. This is in line mth the fact that the success cf the financial intermediation cf barks lies in its ability to foster efficient capital allocation and financial deidopmert.
Open Access
Board Committees and Financial Performance of Listed Deposit Money Banks in Nigeria
(Department of Accounting, Nasarawa State University Keffi, 2020-09-09) Abu, S.O.; Abdulkarim, Shaibu Alhassan; Okpe, J.U.
The banking sector had been operating under several committees since time immemorial in order to improve financial performance. Yet, collapse of banks’ in Nigeria continues to be on the increase. The failure of the banks was attributed to many factors, such as poor performance, fraudulent and unethical behaviour of the management and board of directors. This study assesses board committees and financial performance of listed deposit money banks in Nigeria. 14 banks were selected out of 21 listed deposit money banks on the Nigerian Stock Exchange as at 31st December 2018 using secondary data through their published audited financial statements. Multiple regression analysis was utilized to analyze the data. The result reveals that only three variables (board credit committee, board meeting, and nomination and evaluation committee) have a significant association with financial performance. The study recommends that board committees such as credit committee should be increased to the minimum of 4 and maximum of 8 members, board meetings should be increased to the maximum of 6 meetings and nomination and evaluation committee should be reduced to the maximum of 4 members for all banks operating in Nigeria
Open Access
CHARACTERISTICS OF LISTED CONSUMER GOODS FIRMS IN NIGERIA AND CAPITAL STRUCTURE
(Department of Accounting, Nasarawa State University Keffi, 2018-12-05) Apochi, Jonathan Emie; Ibrahim, Hassan; Abdulkarim, Shaibu Alhassan
This study examines the influence of characteristics of listed consumer goods firms in Nigeria on their capital structure. The objectives are to investigate the influence of firm size, firm uniqueness, firm growth and firm profitability on the capital structure of listed consumer goods firms in Nigeria for the period of ten years from 2008 to 2017. The dependent variable for this study is capital structure while the independent variables are the firm size, firm uniqueness, firm growth and firm profitability. The study made use of descriptive statistic, correlation matrix and generalized method of moments (GMM) to analyse the panel data in order to determine the relationship between the variables. The results of the analyses showed that firm size, firm uniqueness and firm profitability significantly influence the capital structure of listed goods firms in Nigeria while firm growth does not significantly influence the capital structure of listed consumer goods firms Nigeria. The study recommends that listed consumer goods firms should promote growth and profitability by cutting down cost by using the best practice and as well encourage the use of internal sources to finance projects over external sources in order to put the firms in safety net in time of dwindling business income and to avoid bankruptcy.
Open Access
CREDIT RISK IN DEPOSIT MONEY BANKS AND MICROFINANCE BANKS IN NIGERIA: WHAT WE SHOULD KNOW
(Department of Accounting, Nasarawa State University Keffi, 2016-01-01) Abdulkarim, Shaibu Alhassan
The study assessed the credit risk in Deposit money banks and Microfinance banks in Nigeria. The aim of the study is to assess whether or not there is a significance different between credit risk measured by capital adequacy ratio, non-performing loans ratio and loan-deposit ratio of Deposit money banks and Microfinance Banks in Nigeria. The study used secondaty data obtained from NDIC annual accounts and Financial Stability Reports. The data were analysed using descriptive statistics and two paired sample t-test in order to compare the credit risk of Deposit money banks with Microfinance banks. The study finds that the credit risk of Microfinance banks is significantly higher than that of Deposit money banks suggesting that microfinance banks are more vulnerable to credit risk. The study therefore recommends the need for Microfinance banks to rethink their lending model and improve on their corporate governance practices.
Open Access
DETERMINANTS OF CAPITAL MANAGEMENT THROUGH LOAN LOSS PROVISIONS BY BANKS IN NIGERIA: AN EMPIRICAL ANALYSIS
(Department of Accounting, Nasarawa State University Keffi, 2014-04-06) Abdulkarim, Shaibu Alhassan
his study empirically analyses the determinants cfcapital management througfi loan less profusions in Nigeria. The objective cf the study is to imestigtte the association cf capital and earring with loan loss profusions and assess wJrether or not bank manages lendpmdently in Nigeria. We use banking and economic data for a panel cf eleien banks quoted on the Nigerian Stak Exchange oner the period 2002-2011. Using dynamic panel data econometric technique, we find evidence that indicate that loan loss prenisions have a pro-cydical effect, as tloey are negatively related to capital Howezer, this procydical behaviour cf loan loss prenisions is partially mitigated by income smoothing practice This study therefore supports the introduction cf dynamic loan loss prenisions model in Nigeria in which expected losses are covered by loan loss prenisions while unexpected losses are covered by capital
Open Access
DETERMINANTS OF CAPITAL THROUGH MANAGING LOAN LOSS PROVISIONING BY DEPOSIT MONEY BANKS IN NIGERIA: AN EMPIRICAL ANALYSIS
(Banking and Finance Department, Nasarawa State University, Keffi, 2015-10-01) Abdulkarim, Shaibu Alhassan
This study empirically analyses the determinants of capital through managing loan loss provisioning by Deposit Money Banks in Nigeria. The objective of the study is to investigate the association of capital and earnings with loan loss provisions and assess whether or not bank managers lend prudently in Nigeria. The study uses banking and economic data for a panel of eleven banks quoted on the Nigerian Stock Exchange over the period 2002-2011. Using dynamic panel data econometric technique, the study finds evidence that indicates that loan loss provisions have a pro-cyclical effect, as they are negatively related to capital. However, this pro- cyclical behaviour o f loan loss provisions is partially mitigated by income smoothing practice. This study therefore supports the implementation of dynamic loan loss provisions model in Nigeria in which the expected losses are covered by loan loss provisions while unexpected losses are covered by capital.
Open Access
Determinants of Financial Distress of Listed Consumers Goods Companies in Nigeria
(Department of Accounting, Nasarawa State University Keffi, 2020-09-09) Yusuf, Mohammed Aliyu; Abdulkarim, Shaibu Alhassan
The objective of this study was to examine the determinants of corporate financial distress of listed consumer goods companies in Nigeria. To achieve this, data was collected from financial statements for the period of2009-2018. Ex-post facto research design was adopted, and the target population of the study was 21 companies listed on the Nigerian Stock Exchange out of which 13 companies were sampled using purposive sampling technique. Data was analyzed using logistic regression. The result of the study revealed that leverage is a significant predictor which is negatively related to the probability of financial distress while profitability is a significant predictor which is positively related to the probability of financial distress, liquidity. The study recommended that company management should ensure that there is moderate debt and equity financing as well as tiy to maintain a high profitability.
Open Access
DETERMINANTS OF INCOME SMOOTHING BY MANAGING LOAN LOSS PROVISIONS BY BANKS IN NIGERIA: AN EMPIRICAL ANALYSIS
(Department of Accounting, Nasarawa State University Keffi, 2017-07-08) Abdulkarim, Shaibu Alhassan
This study empirically analyses the determinants of income smoothing by banks through managing loan loss provisions in Nigeria. The objective of the study is to investigate the association of earnings, GDP growth rate and loan growth with loan loss provisions and assess whether or not bank managers lend prudently in Nigeria. We use banking and economic data for a panel of eleven banks quoted on the Nigerian Stock Exchange over the period 2002-2011. Using dynamic panel data econometric technique, we find evidence that suggests income smoothing by banks through loan loss provisioning. We also find evidence of pro-cyclical behaviour of banks in loan loss provisioning; as loan growth is negatively associated with loan loss provisions. This study therefore, recommends the need for bank regulators to monitor rapid loan growth in Nigerian banks to ensure that they are growth-supportive and the credit quality arising from such credit growth does not distort profitability and solvency of banks.
Open Access
DETERMINANTS OF NON-PERFORMING LOANS IN QOUTED DEPOSIT MONEY BANKS IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2017-06-05) Abdulkarim, Shaibu Alhassan
Following the global financial crisis of2007- 2009, the regulatory authorities in Nigeria initiated banking reform that led to establishment of Asset Management Corporation in 2010 to purchase non-performing loans in the Deposit Money Banks. This study is an empirical assessment of the influence of the purchase of non-performing loans by Asset Management Corporation of Nigeria, bank-specific and macroeconomic factors on non-performing loans in quoted Deposit Money Banks in Nigeria. The objective of the study is to assess whether or not the purchase of the non performing loans by the Asset Management Corporation, bank-specific and macroeconomic factors have significant influence on the non-performing loans in quoted Deposit Money Banks. The study use banking and economic data for a panel of fourteen banks quoted on the Nigerian Stock Exchange over the period2010-2013. Using dynamic panel data econometric technique, the study finds no evidence that indicate that the purchase of non-performing loans by Asset Management Corporation, bank size and real gross domestic growth rate have significant influence on non- performing loans, as they are insignificantly related to non-performing loans. However, this study finds significant influence ofprofit after tax and capital of deposit money banks on non performing loans. This study therefore recommends strong corporate governance and adequate risk management practices through effective credit administration and supervision as well as an effective judicial system that protect creditors' right.
Open Access
Effect of Audit Committee Characteristics on Sustainability Reporting of Listed Manufacturing Firms in Nigeria
(Department of Accounting, Nasarawa State University Keffi, 2021-01-01) Aruwa, Suleiman A.S.; Abdulkarim, Shaibu Alhassan; Ojo, Lukman Olatunji
The main objective of this study is toexamine the effect of Audit committee characteristics on sustainability reporting disclosure of listed manufacturing firm in Nigeria. For the period of ten years from, 2010-2019, Ex-post facto research design was adopted for this study. The population is made of 43 listed manufacturing firm listed on the floor of the Nigeria stock (NSE) from year 2010 -2019. Since the population is not too large, this study utilizes census sampling technique to take all population for the purpose of this study. The data used for this study were secondary data derived from the annual reports of the manufacturing companies that are listed on the floor of the Nigeria stock exchange. The study used panel regression with respect to the use of Hausman specification test to determine the use of fixed or random effect model. The random effect regression result revealed thatAudit committee size, Audit committee financial expertise;and Audit committee meetings have Significant and positive effect Dn sustainability reporting disclosure. jlHowever, Audit committee inc ependence has insignificant effect on •the sustainability reporting disclosure. This study recommended that the Nigerian corporate business most especially manufacturing goods companies should consider increasing the proportion of financial expertise on the audit committee because this will improv corporate sustainability disclosure and also add credibility to the financial statement of the manufacturing companies and consequently reduce information asymmetry, which not only clarifies the conflicts of interests between shareholders and management butalsomakesmanagement more accountable.
Open Access
Effect of Board Capabilities on Environmental, Social and Governance Disclosure Practices of Listed Non-Financial Firms in Nigeria
(Department of Accounting, Nasarawa State University Keffi, 2021-03-07) Musa, Inuwa Fodio; Abdulkarim, Shaibu Alhassan; Mohammed, Bamanga Bello
This study investigated the effects of board capabilities (female director qualification, environmental expertise of directors, and board activity) on environmental, social and governance (ESG) practices of listed non-financial firms in Nigeria. The population for the study consists of 116 non-financial firms in Nigeria while the sample size of the population is forty-eight (48) firms. Ex-post facto research design was used. A generalized least square regression technique was employed to analysis the panel data. The results revealed that female director's qualifications have a positive insignificant effect on ESG practices. The study also revealed that the environmental expertise of directors has a positive significant effect on ESG practices. Boar activity revealed a negative significant effect on ESG practices of listed non financial firms in Nigeria. The study recommends that government collaboration with Security and Exchange Commission (SEC) should come up with a policy that will mandate public companies to provide a seat women with accounting and finance qualification in the board, give them responsibilities in the area of finance, and control related matter SEC should also consider directors with environmental knowledge when designing or amending the provision of the code. On the other hand, less attention should also be given to meeting attendance, as it reduces EGS practices of listed non- Financial firms in Nigeria.
Open Access
THE EFFECT OF CORPORATE TAXATION ON THE FINANCING DECISIONS LISTED COMPANIES IN THE NIGERIAN FOOD AND BEVERAGES INDUSTRY
(Department of Accounting, Nasarawa State University Keffi, 2011-07-07) Adebayo, Paul Adejola; Kabiru, Tukur Isa; Abdulkarim, Shaibu Alhassan
This paper examines the effect of corporate taxation on the financing decisions of listed companies in the Nigerian Food and Beverages industry. Data for the study was collected from documentary sources consisting of the annual reports and accounts of the sampled companies. Time series, cross-sectional and Panel data methodology was adopted for data analysis. The Ordinaiy least squares, fixed effects and Random effects were used to estimate the regression model. It is found that in spite of the tax benefits of debt, the companies were generally low-geared; however, corporate taxation influences their financing decisions. The findings of this study lend weight to both the pecking-order and trade-off models as fitting description of capital structure behavior of the companies. The study recommends that the companies should not over rely on their retained earnings as a source of finance, but to ' explore other external sources, particularly the use of debt in order to benefit from its tax advantage.
Open Access
EFFECT OF FINANCIAL INCLUSION ON ECONOMIC GROWTH IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2020-12-12) Abdulkarim, Shaibu Alhassan; Naburgi, Musa Mohammed; Mogbojuri, Andrew Ademola
This study examined the effect of financial inclusion in terms of the number of commercial bank branches in Nigeria, credit to private sector, demand deposit from rural areas, loans to rural areas and commercial bank liquidity ratio on economic growth provided by gross domestic product in Nigeria. Ex-post facto research design was used for the study. Regression analysis was used on time series data collected from Central Bank of Nigeria (CBN) Statistical Bulletin for the period spanning 1996 through 2017 and found out that, the number of commercial bank branches in Nigeria positively relates to economic growth of the countiy with statistical significance. It was also found that, credit to private sector in Nigeria has a significant positive effect on economic growth. However, an insignificant positive effect of demand deposits from rural areas on the economic growth was found. The study recommended among others that CBN should bring to the fore a policy that will encourage the opening of bank branches of Deposit money banks in the rural areas especially in all local governments, and in cities and towns of Nigeria as well as making the process of accessing loans by rural dwellers, the small, micro and medium enterprises less cumbersome and difficult
Open Access
EFFECT OF FINANCIAL RISK AND TECHNOLOGY ON FINANCIAL PERFORMANCE OF LISTED COMMERCIAL BANKS IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2021-07-06) Yusuf, Rekiya Opemi; Hassan, Ibrahim; Abdulkarim, Shaibu Alhassan
The study examines the effect of financial risk and technology> on financial performance of listed Commercial Banks in Nigeria. Financial risk is represented with credit risk, liquidity risk. operational risk, capital risk and market risk while quantum of investment in computer and software was proxy' for technology\ Financial performance was measured using net interest margin. Panel regression technique was used. The results revealed that, credit risk, operational risk and market risk have significant and negative effect on financial performance of banks be fore moderation, while liquidity risk and capital risk were found to have positive but insignificant effect on financial performance of banks before moderation. However, technology» used as moderator has significant but negative e ffect on financial performance of banks. The study> also found that technology' moderate the relationship between financial risk and financial performance of banks. It is therefore recommended that, to continue to improve on financial performance of commercial banks in Nigeria, management of financial risks and investment in technology? should be given adequate attention
Open Access
EFFECT OF SELECTED BOARD ATTRIBUTES ON TAX AGGRESSIVENESS OF QUOTED MANUFACTURING COMPANIES IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2022-08-06) Osuza, Alex Adi; Hassan, Ibrahim; Abdulkarim, Shaibu Alhassan
This study examines the effect of selected hoard attributes on tax aggressiveness of quoted manufacturing companies in Nigeria. The study examines the combined effect off emale directors and board financial expertise on tax aggressiveness of quoted manufacturing companies in Nigeria. Tax aggressiveness was measured using effective tax rate while female directors and financial expertise were measured using proportion of female directors on the board to the total number of board size and number of directors with financial expertise to the total number of board size on the board respectively. This study uses the longitudinal research design. The population of the study is the entire listed manufacturing companies in the Nigerian stock exchange. The sample size of twenty-two were selected. Data were sourced from the annual financial statements of the companies for the period (2011-2020). The data was analyzed using multiple regression analysis technique. The result oft he study shows that female directors have negative and insignificant effect on tax aggressiveness. However, the study finds statistical evidence which suggests that boards financial expertise has significant effect on tax aggressiveness in the manufacturing sector. From the findings, it was concluded that board attributes have strong explanatory power on tax aggressiveness. The study recommends that since management could aspire to avoid more taxes, because they estimate the tax benefits too high, more external board members with accounting and corporate reporting knowledge should be admitted on the boards to curtail managerial aggressive tax planning.
Open Access
Effects of Beard Gender Diversity on the Financial Performance of Quoted Deposit Money Banks in Nigeria
(Department of Accounting, Nasarawa State University Keffi, 2020-03-03) Bello, Mohammed Bamaga; Abdulkarim, Shaibu Alhassan
Gender diversity in the boardroom has become an increasingly relevant issue for stakeholders. It is previously considered a moral or social issue but is now a critical economic challenge. As stakeholders are considering a trend for more board gender diversity, the examination of the business case for board gender diversity in the context of an emerging economy like Nigeria, most especially the banking sector merits considerations. This study therefore, examines the effect of board gender diversity on the performance of quoted deposit money banks in Nigeria. All deposit money banks quoted on the Nigeria stock exchange are considered the population and sample for the study. Secondary data was utilized from the annual financial reports of the banks from the year 2008-2017. The study utilizes ex-post facto and causal research design to examine the relationship between the independent variables (the presence of female directors, proportion of female directors, Blau's Index of diversity, Shannox index of diversity) and the dependent variable (Tobin Q) while controlling for board size, bank size and leverage. Panel data analysis was carried out to test the hypotheses developed in the study. The study found that there is a positive significant relationship between gender diversity in the boardroom and firm performance. The study concludes that board gender diversity should not only be considered in terms of ethical considerations but also in terms of economic or business consideration since there is a positive significant relatl07^sh^p between gender diversity in the boardroom and firm performance. The study recommends that Deposit money banks in Nigeria should increase the ratio of women to men in their board of directors and should also adopt fully the regulatory directives of the Central bank of Nigeria of having at least 30% female representation in the boardroom
Open Access
EFFECTS OF BOARD CHARACTERISTICS ON FINANCIAL REPORTING QUALITY OF QUOTED INSURANCE COMPANIES IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2015-04-04) Ismaila, Olotu Abdullahi; Abdulkarim, Shaibu Alhassan; Musa, Hassan
Open Access
Fund Traits and Corporate Value of Pension Fund Administrators in Nigeria
(Department of Accounting, Nasarawa State University Keffi, 2019-01-01) Oba, Victor Chiedu; Musa, Inuwa Fodio; Abdulkarim, Shaibu Alhassan
This study empirically analyses the effect of fund traits on corporate value of pension fund administrators (PFAs) in Nigeria. The issue of the potential nexus between fund characteristics and performance/value which has received vast empirical examination in Western academe has not been adequately investigated in Nigeria. With the evolution of the pension industry and tremendous rise in pension funds, this study therefore sought to provide empirical evidence on the whether selected traits significantly impact on corporate value of PFAs in Nigeria. A sample of twenty out of the twenty one licensed PFAs as at December 2017 were examined. Data for the study were sourced solely from annual reports of the studied PFAs for the period 2008 to 2017. In order to address endogeneity concerns, this study used an Arellano-Bond estimation which demonstrates that fund size, and Age and Contribution density are significant factors in predicting corporate value of PFAs.
Open Access
IMPACT OF FINANCIAL INCLUSION ON FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2018-01-01) Ismaila, Olotu Abdullahi; Abubakar, Garba Razaq; Hassan, Ibrahim; Abdulkarim, Shaibu Alhassan
This study examines impact of financial inclusion on financial performance of Deposit Money Banks (DMBs) in Nigeria. The Study measures financial inclusion with Micro, Small and Medium Enterprises (MSMEs) Financial, Rural Financial, Number of branches of DMBs, Pricing and Usage of Banking services, while financial performance (FP) is measured with return on assets. The study utilizes expose facto research design and data were collected from secondary sources obtained from the Central Bank of Nigeria (CBN) Statistical Bulletins and Financial reports of the National Deposit Insurance Corporation (NDIC) for the period of 1982-2016. Ordinary least square regression model, with the aid of Autoregressive Distributed Lag Error Correction Method, was used to analyze the data. The stationarity property of the time series variables were found to be stationary at levels and first difference. The study finds that MSMEs financing has a significant positive impact on financial performance DMBs in Nigeria. while rural financing, Pricing of Banking services, number of bank branches and usage of banking services have no significant impact on the financial performance of DMBs in Nigeria. The study concludes that MSMEs financing as measures of financial inclusion improves financial performance of deposit money banks in Nigeria. The Study recommends that DMBs should increase the amount of loan and advances given to MSMEs as this will strengthen financial performance of DMBs in Nigeria. CBN and NDIC should also encourage DMBs through their regulatory and supervisory functions to give priority to SMEs financing in Nigeria.