NSUK Repository :: Browsing by Author "Ameh, Jacob Ojobo"

Browsing by Author "Ameh, Jacob Ojobo"

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Open Access
Accounting Conservatism and the Risk of Bankruptcy in the Nigerian Food and Beverage Firms
(Depatment of Accounting, Nasarawa State Univresity Keffi, 2019-12-12) Ameh, Jacob Ojobo; Salisu, Saad; Emmanuel, Oyedokun Godwin
This study examined the effect of accounting conservatism on the bankruptcy risk in the Nigerian foods and beverages sector, from 2008 - 2018. The study used the ex-post facto research design. It thus used the documentary data which were obtained from the annual reports and accounts of the eight sampled firms which were selected from the population of twelve firms that were operating in the sector as at 3151 December 2015. The data generated for the study were analysed using descriptive statistics, correlation and multivariate regression analysis among others. The results from the analysis were used to test the four hypotheses of the study. The findings of the study showed that Accounting Conservatism has a significant impact on Bankruptcy Risk in the Nigerian Foods and Beverages sector. The study concluded that the higher the provisions for depreciation, taxation, bad debt and gratuity made by a firm, the lower would be the risk of the bankruptcy. Similarly, provisions for depreciation and gratuity and that of taxation and bad debt shows an insignificant and significant relationship with the bankniptcy risk, respectively. The risk of bankruptcy of the sampled firms fell into a "grey area" with their total mean scores of 1.953591. For sustainable bankruptcy risk management, the study recommended that adequate provision for taxation and bad debt need to be encouraged and also arrangements for taxation and gratuity should be improved using appropriate Government policies. Finally, accounting standards-setting bodies should reconsider accounting conservatism as a reporting mechanism in response to the economic, legal, and political environment in which firms operate.
Open Access
APPLICABILITY OF ENVIRONMENTAL MANAGEMENT ACCOUNTING PRACTICES IN NIGERIAN UNIVERSITIES: LESSON FROM LITERATURE
(Department of Accounting, Nasarawa State University, Keffi., 2021-11-10) Ameh, Jacob Ojobo; Iyere, Samuel Iheonkhan; Onoja, Anthony Idoko
Stakeholders are paying increasing attention to how well organisations respond to environment-related issues and communicate with them While efforts are being made by companies in the industrial sector by adopting Environmental Management Accounting (EMA), little is known about how service organisations particularly universities in Nigeria embrace the adoption of EMA in their operations. This exploratory study reviews extant literature to make case for Nigerian universities to embrace EMA and report on environmental concerns arising from their activities. The main objective of the study, therefore, is to find out whether or not EMA can be adopted by Nigerian universities. If so, what barriers mitigate its adoption? Based on a literature review about universities in other climes that have embraced EMA and the experience of the lead author as an erstwhile Bursar of a Nigerian-university, it is concluded that Nigerian universities have the economic and human potential to adopt EMA. The barriers to its adoption are extrapolated to include lack of awareness of environmental costs, lack of top management support, absence of institutional pressure, environmental policy, and a robust accounting system. The study recommends awareness creation via seminars and workshops for top management staff and other staff of the universities, incorporating environmental accounting courses in the curriculum of universities by the National Universities Commission (NUC), as well as integrating them into current accounting systems of the universities, accounting package such as SAGE 50/100 that can identify and classify the environmental costs and attach them to responsibility centres.
Open Access
AUDIT COMMITTEE CHARACTERISTICS AND FINANCIAL REPORTING QUALITY OF CONSUMER GOODS FIRMS IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2019-01-06) Ada, Onu; Ameh, Jacob Ojobo; Lukman, Lawal O.
The study examines the effect of audit committee characteristics on financial reporting quality of listed food and beverage firms a sub- sector of consumer goods sector in Nigeria. The study adopts experimental research design using panel data of six years (2012 to 2017). Data were collected from the Nigerian Stock Exchange. The study has a population size of seventeen (17) listed food and beverage firms in Nigeria. Eight (8) firms were selected as sample size after a filtering process. The study used modified Kothari, Leone and Wasley (2005) model to measure level of earnings quality, a proxy for financial reporting quality. The data were analyzed using panel data regression with aid of computer software (STAT A). The study found that audit committee size, frequency of meeting, financial expertise and independence all have significant and positive relationship with earnings quality with the exception of audit committee multiple directorships that is significant but have negative relationship with earnings quality. The study concludes that audit committee size, frequency of meetings, financial expertise and independence improve financial reporting quality under the sampled firms. The study recommends that appointment of multiple directors should be reduced as these directors are not always available; corporate managers capitalize on their unavailability in meetings to make critical financial decision to manage earnings.
Open Access
Audit Firm Rotation: An Examination of Auditor’s Tenure in Nigeria Listed Banks
(Department of Accounting, Nasarawa State University Keffi, 2012-06-06) Ameh, Jacob Ojobo
The relationship between auditor tenure and audit quality has been a debatable issue with most studies providing evidence which suggest that longer auditor tenure improves audit quality. In spite of this, most regulatory authorities place cap on the length of auditor's tenure. Nigeria is yet to settle fully on any particular period but is considering five or ten years. The objective of this study is to determine how long an audit firm should remain with a particular client company in Nigeria. The sample consists of five banks that met the criteria set for inclusion in the sample from a population off ifteen banks listed on the Nigerian Stock Exchange. Audit quality is proxied by discretionary accruals and data collected were analyzed using paired sample t-test. Findings show that audit quality at the end of the tenth year period is three times higher than it was at the end of the fifth year. The study concludes that longer auditor tenure is beneficial in audit process since it is associated with higher audit quality. The study recommends that Financial Reporting Council of Nigeria should adopt ten year auditor tenure for all listed companies in Nigeria.
Open Access
AUDITING EDUCATION AND THE AUDIT EXPECTATION GAP PROBLEM IN NIGERIA.
(Department of Accounting, Nasarawa State University Keffi, 2019-06-06) Ameh, Jacob Ojobo; Iyere, Samuel Iheonkhan; Ugoh, Timothy Terver
Auditing as a corporate governance mechanism has been commissioned to resolve the problem of information asymmetry between corporate managers and shareholders by providing independent audit reports as to the truth and fairness or otherwise of the state of affairs of corporate concerns. Over the years however, the credibility of such reports has been called to question as a result of well publicized and spectacular corporate scandals and Auditors subsequent involvement in these scandals. This has exacerbated the Audit Expectation Gap Problem. Solving this problem require effective action to eliminate or at least reduce the gap. This study examined the relationship between auditing education and the audit expectation gap problem in Nigeria. A descriptive survey research design was adopted and a sample of 296 stakeholders consisting of investors, bankers, auditors and stock brokers within Abuja metropolis were considered for the purpose of data collection using a four point likert scale questionnaire. The study aligned with the role conflict theory. Result using pearson correlation coefficient indicated that auditing education has a significant relationship with the audit expectation gap in Nigeria. It was concluded that educating the public is a veritable way of narrowing the AEG in Nigeria. The study recommended that the audit profession should evolve a simplified and broad based strategy for educating users off inancial statements on the basic functions of external audit.
Open Access
Auditor Industry Specialization in Nigeria
(Department of Accounting, Nasarawa State University Keffi, 2014-01-06) Ameh, Jacob Ojobo
professional Accounting Bodies have of recent called on audit firms to specialize in industries where their clients operate. This paper examines __ industries of companies listed on the Nigerian Stock Exchange for the year 2009 to determine if there is evidence ofauditor industty specialization. The sample consists of 87 companies from five industries; Building Materials and Construction, Banking, Food and Beverages and Tobacco, Healthcare and Insurance. The data were analyzed using simple percentages and Industiy specialization is defined as audit firms that are market leaders with at least 30% of market share based on number of clients. The findings show that there is auditor industry specialization in Nigeria with PricewaterhouseCoopers (PWC) being a specialist in the banking industry while Akintola Williams Deliotte specializes in three industries; Building and Construction, Food and Beverages and Tobacco and also Healthcare. KPMG and Ernst Young do not specialize in any of the industries. Findings also indicate that the Insurance industry has no specialist. It is recommended that local audit firms should merge with the International audit firms so as to enhance their reputation and be able to cover other industries such as insurance sector in Nigeria.
Open Access
BOARD GENDER DIVERSITY AND AUDIT QUALITY OF NIGERIAN LISTED BANKS
(Department of Accounting, Nasarawa State University Keffi, 2015-06-06) Ameh, Jacob Ojobo
Debates have been ongoing in US since the establishment of the Sarbanes-Oxley Act, 2002 whether it is necessary for the audit committee to be fully independent as required by the Act. The objective of this exploratory study is to extend the debate to Nigeria by examining the legal provisions in respect of audit committee of listed companies to determine its level of independence and its adequacy or otherwise. The results indicate that audit committees of companies in Nigeria have no optimal level of independence as the non-executive directors constitute only 50% of the committee members. Furthermore, there is no provision in the Nigerian legislation for inclusion of independent non-executive directors on the audit committees. The paper recommends that the provisions in the company and Allied Matters Act 1990 (as amended) particularly section 359(4) be amended to ensure that only independent non-executive directors constitute the members of the audit committee. The Securities and Exchange Commission is also called upon to review its rules to insist that audit committees be composed entirely of independent non-executive directors.
Open Access
BOARD GENDER DIVERSITY AND AUDIT QUALITY OF NIGERIAN LISTED BANKS
(Department of Accounting, Nasarawa State University Keffi., 2013-11-24) Ameh, Jacob Ojobo
There have been calls for inclusion of women in the composition of board of directors to possibly improve corporate governance of companies. This paper examines if the inclusion of females on board affects audit quality of banks listed on the Nigerian Stock Exchange. The study covers a period 2007-2011 and the sample consists of fifteen (15) banks that existed throughout that period. Board gender is defined as the proportion of females on board and audit quality is proxied by audit fees. Using multiple regression model to analyses the data, the results show that there is no significant relationship between the proportion of females on board and audit quality of banks listed in Nigeria. The paper concludes that board gender promoted as improving corporate governance in non-financial firms is not applicable to financial firms like banks. The paper recommends that the Central Bank of Nigeria (CBN) should review its recent directives to all Nigerian banks to achieve allocation of 30% board seats to women by the year 2014 as evidence suggests that such move does not improve the financial reporting quality of the banks.
Open Access
DETERMINANTS OF COMMERCIAL BANKS FINANCING TO SMALL AND MEDIUM ENTERPRISES IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2019-06-06) Adebayo, Paul Adejola; Ameh, Jacob Ojobo; Ayuba, Baba Bogoro
This study examines the determinants of the commercial banks financing to small and medium enterprises in Nigeria. The study adopts ex-post facto design using secondary data collectedf rom annual reports and CBN Bulletin for the period of thirty (31) years spanning through 1988 to 2017. Ordinary Least Squares Method of Regression is used, and it isf ound that, lending rate has significant negative effect on loans to SMEs by DMBs. Similarly, a significant negative effect of nonperforming loans on loans to SMEs by DMBs in Nigeria is found. Conversely, an insignificant positive effect of capital adequacy ratio on loans to SMEs by DMBs in Nigeria is found. In the case of bank size in relation to its total assets, an insignificant positive effect on loans to SMEs by DMBs in Nigeria is also shown. Finally, an insignificant positive effect ofcustomers' deposits on loans to SMEs by DMBs in Nigeria is found, the study recommends among others that, DMBs should put in place stringent control measures that will reduce the rate and degree of nonperforming loans by SMEs. They should ensure that before any loan facility is granted to customer, such customer is thoroughly assessed to know his/her default probability.
Open Access
DOES AUDITOR INDUSTRY SPECIALIZATION AFFECT EARNINGS QUALITY PROPERTIES OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
(Department of Accounting Nasarawa State University, Keffi., 2022-11-21) Ameh, Jacob Ojobo; Mamman, Suleiman; Onu, Ada
This study examined the effect of auditor industry specialization on earnings quality properties of deposit money banks (DMBs) in Nigeria. The study used an ex-post facto research design. The source of data was secondary which was collectedfrom the published annual financial reports of the studied DMBs in Nigeria. The study covered all the 14 DMBs in Nigeria for a period of nine years, ranging from 2011 to 2019. The data collected were analyzed using panel multiple regression analysis, using STATA software. Findings from the analysis show that auditor industry specialization has a negative and significant effect on earnings smoothing and earning conservatism of DMBs in Nigeria while auditor industry specialization has a positive and significant effect on earnings informativeness of DMBs in Nigeria. Based on the above findings, the study suggests management of listed DMBs in Nigeria can improve the earnings informativeness of their banks by engaging the services of auditors with industry knowledge. This will help ensure that all accounting earnings are in order, and it will also give the users of the financial statements more trust and confidence in terms of the quality of the reported earnings.
Open Access
Effect of Corporate Governance Mechanisms on Financial Performance of Listed Insurance Companies in Nigeria
(Department of Accounting, Nasarawa State University, Keffi., 2019-12-31) Haruna, Afor Roselyn; Ameh, Jacob Ojobo; Oyedokun, Godwin Emmaneul; Jaji, Kehinde Abdulkareem
This study is to examines the effect of corporate governance mechanisms on financial performance of listed Insurance companies in Nigeria. The population of the study was 45 listed Insurance companies in Nigeria Stock Exchange (NSE) as at 31st December, 2018. The study adopted ex post facto research design with panel data using Stata as the software and multiple regressions as tools for the analysis. It was found that there is presence of board independence in the insurance companies in Nigeria but failure to maintain good corporate governance mechanism can be a threat and can lead to declining in board independence. On the other hand, board size is on the increase in Nigeria insurance companies and board with sizeable number of female members perform better than board with little or no female board members. Based on these findings it was concluded that there is significant effect between corporate governance and financial performance of listed insurance companies in Nigeria. It was recommended that board independence should continue to be maintained in all insurance companies in Nigeria. Effort should be made to ensure that corporate governance practices is of high standard and conform to the global best practice, adherence to the ethics and codes of corporate governance in building shareholders and other stakeholder‘s confidence so as to encourage positive investment flows into insurance market.
Open Access
Effect of Environmental Cost Disclosure on Financial Performance of Listed Industrial Goods Firms in Nigeria
(Department of Accounting, Nasarawa State University, Keffi., 2022-10-14) Daniel, Emmanuel Kayode; Ameh, Jacob Ojobo; Awe, Richard Akin
The problem of lack of adequate disclosures among pollution prone companies in Nigeria in their annual reports today is a thing of concerned to stakeholders. This study examines effect of environmental cost disclosure on financial performance of listed industrial goods firms in Nigeria. The expo-facto research design with specific focus on the longitudinal Panel was adopted with the use of secondary data from annual report of listed industrial firms. The convenient sampling technique was employed in selecting the 11 firms out of 13 industrial goods firms in Nigeria for 2012-2021 financial year. Panel regression analysis was used to analyse result with the aid of E-views 10. The finding revealed that waste management has negative significant effect on net profit margin while employee health and safety cost has positive significant effect on net profit margin. The study concludes that environmental cost disclosures have significant influence on firms ’ financial performance. The study recommend that industrials goods firm should continue to make adequate provisions for employee health and safety in order to motivate workers for sustainable optimal productivity that will lead to enhanced financial performance.
Open Access
Effect of Human Resources Accounting on Financial Performance of Listed Consumer Goods Firms in Nigeria
(Department of Accounting, Nasarawa State University Keffi., 2022-10-14) Lambe, Isaac; Ameh, Jacob Ojobo; Dinah, Samuel Dinatu
Poor human capital development in most firm has made many firms in Nigeria not to live up with their primary objectives of their existence. This study examines the effect of human resource accounting on financial performance of listed consumer goods firmsin Nigeria. The expo-facto research design was adopted with reliance on secondary data from annual report of listed firms. The purposive sampling technique was employed in selecting the 15 firms out of 20 consumer goods firms in Nigeria for 2012-2021 financial year. To achieve objective of the study, three method of panel regression estimation was used which is fixed effect by Hausman test which lvaj analyzed using E-views 10. The finding show that health and safety cost has positive significant effect on return of equity while pension contribution cost has negative significant effect on return on equity. The study concludes that health and safety cost and pension contribution cost has a significantly positive effect on financial performance and does substantially reduces the inefficiencies in productivity of listed consumer goods firms in Nigeria. The study recommends that consumer goods firms should increase health and safety cost and other benefits to increase performance in terms of efficiency of companies to pay employees
Open Access
EFFECT OF INTERNATIONAL FINANCIAL REPORTING STANDARDS DISCLOSURES ON FINANCIAL REPORTING QUALITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
(2021-06-01) Ameh, Jacob Ojobo; Agoh, Victor Egemba
This study examines the effect of international financial reporting standards disclosures on financial reporting quality of listed deposit money banks in Nigeria. The study utilizes ex-post facto research design as panel data for the period of eight (8) years spanning 2012 through 2019 were used. The population of the study is the quoted DMBs in Nigeria. Census sampling method was used to select the 15 quoted DMBs in Nigeria. Panel regression analysis was used and it was found that, financial position disclosure is significant and positively related to financial reporting quality of quoted DMBs in Nigeria. However, insignificant positive effect of comprehensive income disclosure on financial reporting quality was found. It is concluded that, financial reports quality is a function of strict adherence to the IFRS. It is therefore recommended among others that, quoted DMBs in Nigeria should ensure that all financial reports adhere to the international financial reporting standards.
Open Access
EFFECT OF MANDATORY IFRS ADOPTION ON VALUE RELEVANCE QUALITY OF FINANCIAL REPORTING OF DEPOSIT MONEY BANKS (DMBs) IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2017-06-06) Dang, Dagwom Yohanna; Zubairu, Abdullahi Danjuma; Ameh, Jacob Ojobo
Value rdeumoe cf financial reporting can be influenced by changp in financial reporting framework. This study exanines the effect cf mandatory IFRS adoption on value rdeumoe quality cffinancial reporting cf Depail Money Banks (DMBs) in Nigeria using difference in difference (Din-D) design Pand data regression analysis based on tlx D-inD modd is used in analysing the data collected Jrcmecondary sources. The finding cf this study are that based on the diffdenceindifferences approach there is significant effect cf mandatory IFRS adoption on value rdeumoe quality cffinancial reporting cf DMBs in Nigeria, and that there is also a significant difference in the value rdeumce quality cff inancial reporting cf mandatory adopting banks in the post-mandatory IFRS adoption period compared to pre-mandatory IFRS adoption period The study recommends that regulatory authorities, such as Central Bank cf Nigeria (CBN) and Financial Reporting Council cf Nigeria (FRC) should de emphasize the use cf historical cost accounting and emphasize on the application cf fair value accounting as required by IFRS 13.
Open Access
Effect of Ownership Structure on Environmental Disclosure of Listed Consumer Goods Companies in Nigeria
(Department of Accounting, Nasarawa State University Keffi., 2022-03-23) Abubakar, Garba Razaq; Ameh, Jacob Ojobo; Ismaila, Olotu Abdullahi; Abubakar, H.S.
The insufficiency of financial statements to meet both financial and non-ftnancial needs of various stakeholders has created the vacuum of information asymmetry, thereby raising agency costs of connected interest groups in firms. Ownership structure, to some extent, has narrowed the gap of information asymmetry, posing a new challenge (hat owners might comprise their environmental disclosure responsibility.This study examines effect of ownership structure on environmental disclosureof listed consumer goods companies in Nigeria. The study measures ownership structures with institutional, managerial, foreign and ownership concenlrationas independent variables, while environmental disclosure, as a dependent variable is measured with the extent of the environmental disclosures in annual reports and financial statements of listed consumer goods companies based on GRI environmental disclosure criteria. The study adopts ex post facto research design relying on secondary collected from the population, consumer goods companies listed on the Nigerian Stock Exchange for the period 2011-2020. The study used multiple regression analysis to lest the hypotheses with the aid of E-views 9. The results ofthe regression analysis show thatinstitutional investment has a positive and statistically significant effect on environmental disclosures. On the other hand, managerial ownership has a negative and statistically significant effect on environmental disclosures oflistedconsumer goods companies in Nigeria. However, other independent variables are found to be insignificant to the extent of environmental disclosure. The study concluded that the ownershipstructure is an important corporate attribute for predicting the level of environmental disclosures of firms. Hence, it is recommended that Government and relevant regulatory agencies should consider a review of ownership structureof listed firms in Nigerial to be robustly composed to cater for diverse interests of various stakeholder groups.
Open Access
EFFECTS OF BANK’S ELECTRONIC INNOVATIONS ON THE FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2019-06-08) Ameh, Jacob Ojobo; Thomas, Kwanju Bello; Doshiro, Musa Umar
The study became necessary as a result of increased penetration of banking innovation, which redefined the banking operations in Nigeria. This study investigated the effect of innovation on the performance ofdeposit money banks in Nigeria from 2008 to 2017. Three hypotheses were formulated to test the relationship between the independent variables and dependent variable.. The population of the study is all the Deposit Money Banks (DMBs) in Nigeria. Data were collected from secondary source through Central Bank of Nigeria Bulletin (CBN) and Nigeria Deposit Insurance Corporation (NDIC).The financial performance was measured in terms ofr eturn on equity (ROE). The data were analysed with Ordinary Least Square (OLS) method ofr egression. Thefindings revealed that the adoption of financial innovation (ATM and MB) has strongly and significantly impacted on the performance ofN igerian banks. The results also established that POS have negative effect on the financial performance of DMBs. It is therefore recommended among others that point of sales transactions should be discouraged since criminals are fond of using it to perpetrate their evil act.
Open Access
EFFECTS OF CASH FLOW AND CHANGE IN EQUITY DISCLOSURES ON FINANCIAL REPORTING QUALITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
(Department of Accounting, Nasarawa State University, Keffi, 2021-06-01) Ameh, Jacob Ojobo; Agoh, Victor Egemba
This study examines the effects of cash flow and change in equity disclosures on financial reporting quality of listed deposit money banks in Nigeria. The study utilizes ex-post facto research design as panel data for the period of eight (8) years spanning 2012 through 2019 were used. The population of the study is the quoted DMBs in Nigeria. Census sampling method was used to select the 15 quoted DMBs in Nigeria. Panel regression analysis was used and it was found that, cash flow disclosure is significant and positively related to financial reporting quality of quoted DMBs in Nigeria. However, insignificant positive effect of change in equity disclosure on financial reporting quality was found. It is concluded that, financial reports quality is a function of strict adherence to the IFRS. It is therefore recommended among others that, quoted DMBs in Nigeria should ensure that all financial reports adhere to the international financial reporting standards.
Open Access
EFFECTS OF MICRO FINANCING ON MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMES) IN NIGERIA: A CASE STUDY OF LOKOJA, KOGI STATE
(Department of Accounting, Nasarawa State University Keffi, 2019-01-20) Sani, Idris Ahmed; Lawal, Yusuf Dansuma; Ibrahim, Mohammed Awwal; Ameh, Jacob Ojobo
This study examined the effects of micro-financing on micro, small, and medium enterprises (MSMEs) in Nigeria with deep focus on Lokoja environ of Kogi State. The study investigate the contribution of Micro finance institutions (MFls) on the existence of MSMEs, influence of MFls on growth and development ofM SMEs, and the effect ofMFIs on performance of MSMEs in Lokoja in Kogi State Primary data was used with a sample size of 24 units. Mixed method of descriptive and regression techniques of analysis was used. The findings show that MFls significantly contribute to the existence of MSMEs in Lokoja environ, influenced the developmental capacity of MSMEs, also have significant effect on the productivity level of MSMEs. The study recommends that MFls should improve on their supply of micro-credit to MSMEs and encourage MSMEs to save from their proceeds, the nation’s monetary authority (CBN) must continue to appraise the credit delivery channels and formulate policies that would facilitate the delivery of the facilities to the MSMEs, and that the state assembly needs to put in place a parliamentary act to protect and encourage the existence of MSMEs in the studied locality. Finally, the study recommended that practical but not mere policy pronouncement in the field of power, roads network, and communication need to be observed to ameliorate the MSMEs production cost.
Open Access
ENVIRONMENTAL REPORTING AND FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA: THE MEDIATING PERSPECTIVE OF INVESTMENT
(Department of Accounting, Nasarawa State University, Keffi., 2021-11-11) Utile, Joseph Bem; Ameh, Jacob Ojobo; Mainoma, M.A.
This study examined the mediating effect of investment on the relationship between environmental reporting and the financial performance of Deposit Money Banks listed on the Nigeria Exchange Group. The exogenous variable was environmental reporting measured as total expenditure on water, materials, waste management, and emission control while the dependent variable was financial performance proxied by earnings per share. The mediating variable was investment measured as the number of shareholders in a year. Data were collected from annual reports of 14 Deposit Money Banks (DMB) listed on the Nigeria Exchange Group. The structural equation model was used as a major technique of data analysis. The structural relationships between the variables were estimated in conjunction with the direct, indirect, and total effects to ascertain the effect of investment as a mediator on the relationship between environmental reporting and firm financial performance. Findings revealed that investment had a significant mediating effect on the relationship between environmental reporting and the financial performance of Deposit Money Banks listed on the Nigeria Exchange Group. It was recommended that environmental reporting activity is an expenditure but since it has been mediated by investment to have a positive and significant effect on banks' financial performance, DMBs should continue with environmental reporting activities on water, materials, waste management and emission control as this may enhance performance through the attraction of more investors and also maintain a green work environment.