NSUK Repository :: Browsing by Author "Aza, Solomon Mangba"

Browsing by Author "Aza, Solomon Mangba"

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Open Access
THE APPLICATION OF PUBLIC PROCUREMENT PROCESS TO BUDGET IMPLEMENTATION IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi., 2010-01-06) Aza, Solomon Mangba
The process of acquisition of goods, services and works project in Nigeria have been criticized by the public in recent years, leading to introduction of due process in the year 200 and the public procurement act in 2007, all aimed at restoring public confidence as well bring out value for public funds being spent. The procurement process has to undergo the procurement cycles, adhere to the principle of competition and the transparency and have a full procurement administration. Budget implementation, in order to ensure that the procurement process is fully utilized should have provision for review, in-year revision, among others. These process is if adequately followed, will yield benefits that includes an established legal and instituted framework, standardization of procedures for procurement in public sectors, promotion of principle competition with a view to obtaining value for money by adopting international best practice in public procurement and award of contracts. If the code of conduct and offences for suppliers among others in the procurement act are properly followed for government procurement during budget implementation, then value for money will be obtained, hence achieve economy, efficiency and effectiveness in public funds management in Nigeria.
Open Access
BANKING SECTOR REFORMS AND FINANCIAL SAVINGS IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2013-01-01) Aza, Solomon Mangba
The paper assesses Banking Sector Reforms and Financial Saving in Nigeria. The study focus on the impact of the Financial Sector Reforms on Savings post consolidation. To carry out this study, data on savings for the period of 1998 to 2011 were obtained from Central Bank of Nigeria (CBN) statistical Bi dle ting from 2011. The data of the period 1998 to 2004 was pre-consolidation and 2005 to 2011 post-consolidation were subjected to T-lest for analysis. And line graph and percentage were used as descriptive tools. The result of the study shows that savings in Nigeria Bank rose astronomically after the consolidation. It was recommended that the consolidation should be sustained through efficiency to win depositors’ trust in the system by new and good approaches to banking operations, supervisions, strict adherence to the principle of cooperate governance, transparency and operational discipline, cutting cost, recover non-performing loans, involving Economic and Financial Crime Commission (EFCC) and independent Corrupt practice Commission (ICPC) in monitoring banking operation, giving good interest rate to attract more deposit
Open Access
BOARD CHARACTERISTICS AND FINANCIAL STATEMENT FRAUD IN LISTED DEPOSIT MONEY BANKS IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2021-06-06) Aza, Solomon Mangba; Naburgi, Musa Mohammed
The study examines the e ffect of board characteristics on financial statement fraud of listed deposit money banks in Nigeria. Ex-post facto research design was adopted using panel data of ten years (2010-2019) to explore the effect of independent variables (board size, board independence, and board gender diversity) on the dependent variable (financial statement fraud). The population of the study is the 14 listed deposit money banks in Nigeria quoted as at 2019. Purposive sampling method was used to select 13 banks. The study made use of secondary data from banks ’ annual reports and accounts of the listed deposit money banks in Nigeria, and the CBN Bulletin. Logistic regression was used and found out that board independence and board gender diversity are significant negatively related to financial statement fraud of quoted DMBs in Nigeria. Conversely, board size indicates insignificant positive relation to financial statement fraud. Thus the study concludes that, board characteristics are negatively related to financial statement fraud of quoted DMBs in Nigeria. It is recommended among others that, quoted DMBs in Nigeria should insist on increasing the number of non-executive directors in the board for more transparency and accountability. Since outside directors are more active and determined to ensuring that transparency and accountability is at work.
Open Access
Dividend Policy: Concepts and Theories
(Department of Accounting, Nasarawa State University Keffi, 2012-01-03) Aza, Solomon Mangba
Open Access
EFFECT OF ACCOUNTING-BASED EARNINGS QUALITY PROPERTIES ON MARKET PERFORMANCE OF QUOTED INDUSTRIAL GOODS COMPANIES IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2021-06-06) Ugoh, Timothy Terver; Mainoma, M.A.; Aza, Solomon Mangba
Earnings quality has emerged as an issue of interest to analyst, investors, managers and other market participants in view of the fact that it is one of the most striking and challenging issues in studies related to Accounting and finance. While managers are much concerned about meeting analyst forecast by maintaining sustainable growth of the companies as means to protect themselves, analysts are interested on how best to measure the quality of earnings. This is in order to maximize the portfolio of investors who now more than ever increasingly demand for information about quality of earnings and its association with returns. This study investigated the effect of accounting-based earnings quality properties on market performance of quoted industrial goods companies Nigeria. This study adopts a descriptive longitudinal research design using panel data of a multiple number offirms, over a period of time. The population of the study comprised all the 13 quoted industrial goods firms on the Nigeria Stock Exchange as at 31st December 2019 on which filters population of 11 firms. The study measured earnings quality with four separate earnings attributes: Accruals quality, earnings persistence, earnings predictability and income smoothing, while Market performance was measured using Tobins Q. The result of the pooled independent OLS revealed that of the four earnings quality properties used in the study, accruals quality, earnings persistence and income smoothing have significant positive relationship with market performance, while earnings predictability has insignificant inverse relationship with market performance of quoted industrial goods companies in Nigeria. Based on the result, the study recommended among others that the Security and Exchange Commission (SEC) should continually subject the earnings of industrial goods sector to quality tests to insulate the investing public from possible rip off.
Open Access
Effect of Audit Committee Financial Expertise and Gender Mix on Financial Reporting Quality of Quoted Health Care Companies in Nigeria.
(Department of Accounting, Nasarawa State University Keffi, 2018-09-09) Aza, Solomon Mangba; Akpegi, Patrick Omahi
This study ascertained the effect of audit committee financial expertise and audit committee gender mix on financial reporting quality of quoted companies in the healthcare sector. A correlational design was adopted where five out of the nine companies in the sector were selected using purposive sampling technique for the period of eight years (2010-2017). The result of the study using panel regression analysis indicated that financial expertise has an insignificant effect on financial reporting quality while gender mix had a significant effect on financial reporting quality of selected quoted companies in the healthcare sector. The study also controlled for leverage which indicated a significant effect at 90% confidence level. It was therefore recommended that quoted healthcare sector companies in Nigeria should comply with the corporate governance rules for having at least one financial expert on the audit committee team. Although, such compliance as indicated by the result improves reporting quality but is not significant, so companies can consider monitoring other audit committee attributes closely. It was also recommended that these companies should include female members on the committee as it indicates a significant impact on improving financial reporting quality.
Open Access
Effect of Board Attributes on Credit Risk of Listed Deposit Money Banks in Nigeria
(Department of Accounting, Nasarawa State University Keffi, 2021-12-12) Nwala, Maureen Nneka; Aza, Solomon Mangba; Abdullahi, Mohammed Itopa
Abstract This study examined the effect of board attributes on credit risk of listed deposit money banks in Nigeria from 2011-2020. Specifically, this study investigated the effect of board size, board diversity and frequency of meetings on credit risk. The study adopted Ex-post facto research design. Ex-post facto research design was used because the study relied on secondary data was extracted from listed deposit money banks in Nigerian. The population of this study are all the fourteen (14) deposit money banks listed on the floor of Nigerian Stock Exchange as at December, 2020. Panel regression analysis is used by the study as the technique of analysis. The study found that frequency of board meeting and board financial expertise has a positive and a significant effect on credit risk of listed deposit money banks in Nigeria however, board gender diversity has a positive and insignificant effect on credit risk of listed deposit money banks in Nigeria. Based on the results of findings the study recommends that; Banks in Nigeria should ensure number that the number of board members with financial expertise be more than members withoutf inancial expertise as the presence of more board members with financial expertise can improve the quality of decision-making on credit risk. Also, female representation in the board has proven to be ineffective, therefore much thought should not be given to the ratio of female to men on the board. Finally, it is suggested that regulatory bodies responsible for regulating banks should statutorily increase the frequency of board meetings this will help them to come up with more strategic ways of mitigating credit risk ofb anks
Open Access
EFFECT OF CONTRIBUTORY PENSION FUNDS ON CAPITAL MARKET PERFORMANCE IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2021-12-12) Hamzat, Mohammed K.; Barde, Barnabas E.; Aza, Solomon Mangba; Lasisi, Tirimisiyu K.
This study investigates the effect of contributory pension funds on capital market performance in Nigeria utilizing time series data extracted from pension commission and Nigerian Exchange Group covering 2005Q1 to 2019Q4. The specific objectives of the study were to examine the effect of pension funds investment in government securities, corporate securities and real estate property on capital market performance in Nigeria proxied with market capitalisation. The study employed ex post facto research design, stationarity test revealed on data were found to be stationary at first difference. Based on the stationarity result, the study conducts co-integration test using Johansen co-integration test. The cointegration test results showed that there is long run relationship among the variables. The results of the study revealed that pension funds investment in govenunent securities and corporate securities have significant positive effect on capital market performance in Nigeria both in the long and short run, while pension funds investment in real estate property has no significant effect on capital market performance in Nigeria in the long and short run. The study concludes that pension funds investments have positively affected stock market development in Nigeria. The study recommends that Pension funds administrators should allocate more assets and investment in Government securities. Also, pension funds administrators should invest more funds in relatively high corporate debt securities that offer high returns such as banks in order to deepen the capital market growth in Nigeria. Lastly, Pension Fund Administrators in Nigeria should gradually reduce exposure of their investment to real estate property as it has been revealed by this study that investment in real estate property has not improved the capital market performance in Nigeria.
Open Access
Effect of Controlling Shareholders on Financial Performance of Listed Consumer Goods Firms in Nigeria
(Department of Accounting, Nasarawa State University Keffi, 2018-07-06) Aza, Solomon Mangba
This study examined the effect of controlling shareholders on financial performance of listed consumer goods companies in Nigeria between the period of2008 to 2017. To achieve the objective of this study, fifteen (15) firms were selected as a sample to test the above relations. The data was obtained from annual report of the companies. Using Random Effect model as a method of estimation and after controlling for three firm-specific characteristics, our results showed a positive and insignificant impact between controlling shareholders andf irm financial performance. Therefore, the study recommends that controlling shareholders should be encouraged by the supervisory bodies because of the role that it plays in constraining managers to act in a manner that favors thefirm.
Open Access
EFFECT OF INWARD CAPITAL FLOWS ON FINANCIAL STABILITY IN NIGERIA
(Department of Banking and Finance, Nasarawa State University Keffi, 2021-09-09) Ebire, Kolawole; Nwala, Maureen Nneka; Aza, Solomon Mangba
Capital outflows, if not properly managed, could result in instability of the financial system. This study, therefore, examines the effect of outward capital flows on financial stability in Nigeria, spanning over 2003:Q1 to 2019:Q4. The hypotheses were analysed using Error Correction Mechanism (ECM). The speed of adjustment to its long-run equilibrium was estimated at 10.2%. The findings showed that outward FD1 and other capital flows significantly affect financial stability in Nigeria. However, these effects are negative. In contrast, outward portfolio investment has a significant effect on financial stability in Nigeria. The analysis also showed that controlling for macroeconomic factors such as GDP and inflation rate does not significantly affect Nigeria's financial stability. Based on the findings, the study recommended that monetary authorities should adopt strict capital control measures to curb capital outflows such as outward FDI and other capital flows, which could distort the financial system and lead to instability.
Open Access
EFFECT OF NON-EXECUTIVE DIRECTORS AND INDEPENDENT DIRECTORS ON AUDIT QUALITY OF LISTED OIL AND GAS COMPANIES IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2020-06-06) David, Christopher; Uche, Uwaleke Joseph; Aza, Solomon Mangba
This study examined the effect of non-executive directors and independent directors as importantf eatures of corporate governance on audit quality of oil and gas companies in Nigeria. The study adopted the ex-post facto research design. Secondary data were extracted from the annual reports of 10 oil and gas firms for the period 2009 to 2018. The logistic regression technique was used for data analyses and tests of hypotheses. The non executive director was measured by the proportion of non-executive directors to executive directors on the board while the independent director was measured using the proportion of independent directors to non- independent directors on the board and audit quality measured using Big4. From the analysis, it was found that non-executive directors have a negative but significant influence on audit quality while independent directors have a positive and significant effect on audit quality off inancial reports of quoted oil and gas companies in Nigeria. Independent director is a requirement for one of the board's most fundamental responsibilities that are, unbiased oversight of management. Based on this assertion and findings from this study, it is recommended that larger non-executive directors and independent directors should he on the boards of oil and gas companies in Nigeria as this will improve the audit quality of their financial reports.
Open Access
EFFECT OF OUTWARD CAPITAL FLOWS ON FINANCIAL STABILITY IN NIGERIA
(Department of Banking and Finance, Nasarawa State University Keffi, 2021-09-09) Ebire, Kolawole; Nwala, Maureen Nneka; Aza, Solomon Mangba
Capital outflows, if not properly managed, could result in instability of the financial system. This study, therefore, examines the effect of outward capital flows on financial stability in Nigeria, spanning over 2003:Q1 to 2019:Q4. The hypotheses were analysed using Error Correction Mechanism (ECM). The speed of adjustment to its long-run equilibrium was estimated at 10.2%. The findings showed that outward FD1 and other capital flows significantly affect financial stability in Nigeria. However, these effects are negative. In contrast, outward portfolio investment has a significant effect on financial stability in Nigeria. The analysis also showed that controlling for macroeconomic factors such as GDP and inflation rate does not significantly affect Nigeria's financial stability. Based on the findings, the study recommended that monetary authorities should adopt strict capital control measures to curb capital outflows such as outward FDI and other capital flows, which could distort the financial system and lead to instability.
Open Access
Efficiency in the Context of Capital Markets: Implications for Financial Management
(Department of Accounting, Nasarawa State University Keffi, 2012-03-03) Uche, Uwaleke; Aza, Solomon Mangba
Open Access
Empirical Examination of Stock Price Reaction to Annual Earnings Announcement: A Study of Nigeria Stock Exchange
(Department of Accounting, Nasarawa State University Keffi, 2015-01-06) Aza, Solomon Mangba
This paper examined stock price reaction to annual earnings announcements of firms listed on Nigeria Stock Exchange. The period of study is 1st January 2008, to 31 December, 2013. Using the event study methodology, the magnitude of market reaction to the earnings announcements for a sample of 106 listed firms on NSE is tested. Abnormal returns (ARs) were computed for each firm and tested for how earnings announcements impacted on a firms' share price. The results show negative and significant reaction of stock price on the second month after announcement. Firms listed on NSE observed mean CAR of -1.8606, suggesting that earnings contain important information about the market. We find that there are no post earnings announcement drift observed over the next six months after the announcement. The paper conclude that stock prices changes in the Securities Exchange market with respect to earnings announcements, are not random but follow a pattern which makes it possible for positive abnormal returns to be gained by trading only on the month of earnings announcement as observed by significant and negative abnormal returns only on the second month after announcement it was recommend that NSE should implement a system that will disseminate the annual earnings announcements on stock prices and events such as share splits, bonus issues, dividend announcements, etc.
Open Access
EUROPEAN UNION MACROECONOMIC WIDE STRESS TESTING AND HYPOTHETICAL SCERERIO VARIABLE TEST.
(Department of Accounting, Nasarawa State University Keffi, 2021-07-12) Irefin, David; Salihu, Sulayman Aruwa; Aza, Solomon Mangba
The paper examines the efficiency of stress on some of major macro-economic variables in Europe especially, unemployment, inflation, lack of gross-domestic product growth, mortgage collapse. Literature from developed countries of USA and European countries was reviewed, secondary data from these countries was reviewed and value at ratio model (VR) was developed to major stress in the scenario selected, and available result indicates that even developed economies are not insulated from the vagaries of market volatilities and instability and it is recommended that economies should integrate their financial systems together with other services and other economies.
Open Access
Evaluation of the Effect of Personal Income Tax (Amendment) Act, 2011 on Employees Pay-As-You-Earn (PAYE) in Plateau State
(Department of Accounting, Nasarawa State University Keffi, 2018-09-09) Aza, Solomon Mangba; Datong, Daniel Mathew
This study evaluates the effect of Personal Income Tax (Amendment) Act (PITA), 2011 on employees Pay-As-You-Eam (PAYE) with the view to ascertaining whether employees are favored or not and the extend at which the administration of PITA 2011 satisfies the purpose to which it was amended. Panel data for the period 2009 to 2014 of some selected PAYE paying organisations were used. The study analyses the panel data analysis using Panel Fully Modified Ordinary Least Square (FMOLS). The study finds that Personal Income Tax (Amendment) Act; 2011 have positive effect on employees' Pay-As-You-Eam (PAYE), in that they pay lesser tax/PAYE than before the Act. The implication of this is that PITA 2011 results in leaving more disposable income in the hands of employees, hence improving standard of living, savings and investment. Tlie study recommends that more incentives should be given to taxpayers that file tax returns voluntarily to encourage low and medium taxpayers to save and invest in order to generate more taxable income to boost government revenue.
Open Access
EXECUTIVE COMPENSATION AND CASH DIVIDEND PAYMENT OF LISTED OIL AND GAS COMPANIES IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2018-12-12) Aza, Solomon Mangba; Akpegi, Patrick Onahi
This study examined the relationship between executive compensation and cash dividend of listed oil and gas companies in Nigeria for the period from 2009 to 20 J 8. The study adopted an Ex-post facto research design. The population of the study was all the twelve (J2) oil and gas companies listed on the floor of the Nigerian Stock Exchange. The total numbers of firms were derived from the Nigerian Stock Exchange (NSE) fact book as at 20 J 8. The sample size of the study was eight (8) oil and gas companies listed on the Nigeria stock exchange. The study used panel regression technique of data analysis. The result of the analysis revealed that executive stock has a positive and significant association with cash dividend of listed oil and gas companies in Nigeria. Therefore, the study concluded that there is significant relationship between executive stock and cash dividend payout. From the result, the overall constant result revealed a significant effect; hence the study concludes that executive compensation has a significant relationship with dividend payment of listed oil and gas companies in Nigeria. The result shows that executive stock has a positive effect on dividend payment. That means increase in the ownership of stock by the executive will increase the level at which the management optimize the.payment of dividend, it is there recommended that more shares should be issued to the executive members in order for shareholders to be smiling home after their annual general meetings. The negative effect of firm age shown in the analysis could be because of the management policy on equipment. The more money that is meant for payment of dividend is retained for replacement of equipment or maintenance of the old ones, the fewer dividends will be paid to shareholder. It is therefore recommended that, management of oil and gas companies should adopt more appropriate method of depreciation for optimum benefit to both shareholders and the management.
Open Access
FIRM CHARACTERISTICS AND VOLUNTARY DISCLOSURE OF ACCOUNTING POLICIES OF QUOTED FIRMS IN NIGERIA
(Department of Accounting, Nasarawa State University Keffi, 2018-04-04) Aza, Solomon Mangba; Okechukwu, Okonkwo
Fewer studies have been earned out concerning the association between firm characteristics and accounting disclosure which produced mixed results. This study examines the relationship between firm characteristics (firm size, financial leverage, profitability and board size) and voluntary disclosure of accounting policies of quoted firms in Nigeria. A disclosure checklist consisting of 25 voluntary items was developed for 22 listed companies on Nigerian Stock Exchange (NSE) for the period of 2013 to 2016. The correlation results revealed that firm size, board size and profitability have insignificant negative relationship with the level of accounting disclosure. However, financial leverage has insignificant positive relationship with the level of accounting disclosure. Therefore, the research concludes that relationship exists between firm characteristics and voluntary disclosure of accounting policies of quoted firms in Nigeria. Firms with higher degree of financial leverage suffer serious agency problems and incur higher agency costs. The study recommends that companies should disclosure accounting information because it will assist investors in ascertaining the financial risk in a company. Also emphasis should be on board efficiency as against its size
Open Access
THE IMPACT OF EXTERNAL DEBT AND ITS SERVICING ON NIGERIA ECONOMIC GROWTH
(Department of Accounting, Nasarawa State University Keffi, 2011-01-06) Aza, Solomon Mangba
This paper reviewed the impact of external debt and its servicing on sustainable economic growth and development with particular emphasis on Nigeria. Information was generated extensively from secondary data. The data collected was analysed using ordinary least square regression. The results show that there is a weak positive relationship between external debt and economic growth in the case of Nigeria. Availability of access to external finance strongly influences the economic development process of any nation. Debt is an important resources needed to support sustainable economic growth. But a huge external debt without servicing as it is the case for Nigeria before year2000 constituted a major impediment to the revitalization of her shattered economy as well as the alleviation of debilitating poverty. Failure of any owing country to service her debt obligation results in repudiation risk preventing such to obtain new loans since little or no confidence will be placed on the ability to repay. It will also undermine the effort to obtain substantive debt relief over the medium term with a tremendous increase in interest, arrears and other penalties. Debt can only be productive if well managed so as to make the rate of return higher than the cost of debt servicing. The study therefore recommends the vigorous promotion of the nations export trade and drastic reduction in her merchandize imports
Open Access
Impact of External Debt Stock and Servicing onthe Growth of Nigeria’s Economy: 1986-2019.
(Department of Accounting, Nasarawa State University Keffi, 2021-03-03) Aza, Solomon Mangba; Bameyi, Ogboji Tony
The amount of capital available in most developing countries treasury is grossly inadequate to meet their economic growth needs mainly due to their low productivity, low savings and high consumption pattern. Most countries resort to borrowing to promote economic growth and development, by creating conducive environmentfor people to invest in various sectors of their economies. However, despite the huge amount of expenditures made in critical sectors of the economy, with the aim of achieving economic growth and development, high unemployment, poverty, and low standard of living is still prevalent in the country. This seminar thus examined the impact ofexternal debt stock and servicing on economic growth in Nigeria between 1986 and 2019. Pre-estimation test using Augmented Dickey- Fuller (ADF) unit root test was carried out in the course of the study to avoid spurious regression results. The result revealed that there exists mixed order of integration amongst the variables which informed the use of Bounds test approach to cointegration. The co-integration result showed that long- run equilibrium relationship exists between external debt stock, servicing and economic growth in Nigeria. The findings of the study have shown that Nigeria's external debt stock has a significant influence on economic growth. Furthermore, findings from the study showed that external debt servicing has a significant but negative impact on economic growth in Nigeria. The implication of this result is that the debt services crowd out public investment as it depletes government budget resources thus reducing fund availablefor productive investment. Based on thesefindings, the study recommends that Debt Management Office (DMO) should set mechanisms in motion to ensure that loans are utilized for the purpose for which they were acquired. The government should actively pursue the process of diversification of the economy in order to minimise the service of external debts accumulated by repeated borrowing; and finally, policy makers should be encouraged to aggressively pursue the process of diversification ofthe economy in order to reduce our debt interest burden..