Browsing by Author "Gimba, John Toro"

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    EEFECT OF EXCHANGE RATE FLUCTUATIONS ON THE NIGERIA STOCK MARKET
    (Department of Banking and Finance, Nasarawa State University Keffi, 2017-03-01) Gimba, John Toro; Mahmoud, A.; Vincent, Harrison S.
    Exchange rate fluctuation has implications for the financial system in the country especially the stock market. However available literature revealed contrasting views of researchers on the issue of exchange rate fluctuations impacting on stock market. Through the Regression model, this study assess the effect of exchange rate fluctuations on and Nigeria stock market. Secondary data relating to the study were obtained from Centra! Bank of Nigeria Statistical Bulletin and Nigeria Stock Exchange fact hook for the period 1986 to 2016 Market Capitalization and AH Share Index were used as the dependent proxies and naira against American dollar rate as the independent proxy. If was found that exchange rate has a significant relationship with Nigeria stock market. It was cone!tided based on the analysis that exchange rate has more significant relationship on All Share index. Based on the findings, it was recommended that a coordinated monetary and fiscal policies should be put in place to check mate the fluctuation of exchange rate in order to deepen the depth of the Stock Market.
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    EFFECT OF FOREIGN CAPITAL INFLOW ON THE GROWTH OF MANUFACTURING SECTOR IN NIGERIA
    (Department of Banking and Finance, Nasarawa State University Keffi, 2022-10-10) Udenwa, Theresa A.; Vincent, Harrison S.; Gimba, John Toro
    Nigeria as Africa’s most populous black nation remain underdeveloped, mainly due to shambolic manufacturing sector growth. Rising from problems of insecurity, corrupt practices, consumerism structure have made gains from capital inflows minimal. This anomaly has resulted in shortsighted policy formulation and attendant consequences. Given the prominence of this problem and the gap existing in literature this study examined the effect of foreign capital inflows on the growth of manufacturing sector in Nigeria. The paper adopts ex post facto research design. The study covered a period of thirty-five (35) years from 1986 to 2020. Data were collected from the world Bank and CBN statistical bulletin. The foreign capital inflow was represented by foreign direct investment, foreign portfolio, official development assistance and official remittances inflow while manufacturing sector growth was measured using log of manufacturing sector output growth. This study employed the two-step Engle and Granger estimation procedure and the Granger Causality to estimate parameters of the indices of manufacturing output growth and capital inflows to Nigeria. Findings revealed that foreign direct investment (FDI) and portfolio investment have a significant positive relationship with the manufacturing sector growth in Nigeria while official development assistance and official remittances inflow have insignificant effect on the growth of manufacturing sector. Findings also revealed unidirectional causality of foreign direct investment (FDI) and portfolio investment to the growth of manufacturing sector in Nigeria. Based on the findings, it was recommended that the Nigerian government should create an enabling environment to attract more capital inflow that could augment domestic resources with the sole aim of growing the manufacturing sector.
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    EFFECT OF MONETARY POLICY ON THE PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
    (Department of Banking and Finance, Nasarawa State University Keffi, 2020-01-01) Gimba, John Toro; Vincent, Harrison S.; Oyedokun, Godwin Emmaneul
    This study examines the effect of monetary policy on the performance of listed deposit money hanks in Nigeria from 2006-2018. The research design adopted for this study was ex post-facto research design. Panel time series data were extracted based on the variables used in the study. Net profit margin (NPM) as the dependent variable, while liquidity ratio (LQR), Interest Rate (INR), Loan to deposit ratio (LDR) and cash reserve ratio (CRR) as independent proxies to measure monetary policy. The findings show that monetary policy has significant effect on the performance of listed deposit money banks in Nigeria. Based on the result, it was concluded that liquidity ratio and loan to deposit are significant on net profit margin, likewise interest rate and cash reserve ratio were insignificant on net profit margin. Therefore, the effect of monetary policy on the Nigeria commercial banks as an engine for controlling inflation, unemployment etc is geared towards finding a positive and constructive role for the economy. Based on the findings, it was recommended that; the Central Bank of Nigeria should manage the monetary policy rate properly, with the recent increase of loan to deposit. Government should also employ other measures to control the loan to deposit and the monetary authorities should also minimize the 22.5 % Cash reserve ratio in order to influence the level of bank performance with capacity to raise a volume of funds and also reduce the liquidity ratio from 30% to 25% to prevent the banks from folding up.
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    EFFECT OF SELECTED MACROECONOMIC VARIABLES ON BANK LENDING IN NIGERIA.
    (Department of Accounting, Nasarawa State University Keffi, 2020-03-20) Vincent, Harrison S.; Gbadebo, Nathaniel; Gimba, John Toro
    Bank lending in Nigeria can never be overemphasis as banks play a very crucial role in the development of evety economy. This study examines the impact of selected macroeconomic variables on bank lending in Nigeria. Secondary data were collectedfrom Central Bank of Nigeria Statistical Bulletin for period spanning through 2000 to 2018. Employing the econometric methodology of the Johansen Cointegration and Vector Error Correction Model (VECM), the study established a long run relationship among the variables. The Ordinary Least Square (OLS) result shows that exchange rate has no significant effect on banks' lending in Nigeria, while gross domestic product has significant effect on bank lending in Nigeria. Based the findings ofthis study and the conclusion derived, the study recommended that macroeconomic policy makers should adopt policy measures geared toward controlling the rising trend of exchange rate in Nigeria. While effort should be made by the managers of the economy toward restoring the Nigerian economy to the path of sustainable and inclusive growth with the view of aborting the harmful effect of loan curtailment on investment and economic growth in the long-run.
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    EFFECT OF TAX REFORMS ON REVENUE GENERATION IN NIGERIA
    (Department of Banking and Finance, Nasarawa State University Keffi, 2019-01-01) Nwala, Maureen Nneka; Gimba, John Toro
    The Nigerian government became concerned with seeking alternative source of revenue generation to support her teeming population following the oil price shocks in 2014 which saw oil price crash. Government resorted to tax as part of its strategy to improve its ability to generate non-oil revenue hence the focus of this study is to examine the effect of tax reform on revenue generation in Nigeria. The study adopts the Ex-post facto method of research design with time series data covering a period of thirty-one (31) years from 1986 to 2017. Data were obtained from the CBN statistical bulletin and National Bureau of statistics annual reports for the purpose of analysis. The tax reforms was proxied by Companies’ Income Tax (CIT), value added tax (VAT) and Petroleum Profits Tax (PPT), while the revenue generation was proxied by total federally collected revenue. The study adopts descriptive statistics, Augmented Dickey fuller unit root test, ordinary least square (OLS) regressions, heteroskedasticity test and Variance Inflation Factor for the purpose of analysis. The study found that tax reforms has a positive but statistically significant effect on revenue generation in Nigeria. It is therefore concluded that the taxes have an inverse relationship with revenue generation in Nigeria. The study therefore recommends that companies’ income tax, value added tax and petroleum profits tax should be reviewed in such a way that it will tackle the hydra-headed monster of multiple taxation and promote accountability and transparency in government business so as to restore the confidence of the tax payer in the tax system.
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    IMPACT OF CORPORATE FINANCIAL POLICIES ON FIRM VALUE OF QUOTED INSURANCE FIRMS IN NIGERIA
    (Department of Banking and Finance, Nasarawa State University Keffi, 2020-01-03) Nwala, Maureen Nneka; Gimba, John Toro; Oyedokun, Godwin Emmanuel
    The market place is changing rapidly and corporate policies are evolving from what it used to be in the past decade. In the early 1960’s to late 1980’s investors coveted long term financial gains and capital appreciation and were uncomfortable when firms acquire debt to finance their business however the trend has changed over time with more and more investors expecting short term gains opposed to more traditional long-term financial strategies. Therefore this paper examined the impact of corporate financial policy on firm value of insurance firms in Nigeria for the period 2011 to 2017. In carrying out this study, expost-facto research design was employed and secondary data sourced from 25 insurance annual report and Nigeria Stock Exchange factbook for the period of 7 years. Pool time series data were extracted related to dividend payout, equity issuance, debt asset, equity asset, return on asset and Tobin Q was used as proxies for firm value in this study. The findings indicate that dividend payout and equity issuance have significantly impacted on firm performance (Tobin Q), the study also stated that ROA has no significant relationship with dividend payout, equity asset, debt assets and equity issuance during the period under study. It was recommended that insurance managers should devote adequate time in designing a dividend policy that will enhance firm’s performance (ROA) and shareholder value. Again, the company should review its dividend policy in order to reduce agency cost and maximize the value of the company.
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    IMPACT OF CORPORATE FINANCIAL POLICIES ON FIRM VALUE OF QUOTED INSURANCE FIRMS IN NIGERIA
    (Department of Banking and Finance, Nasarawa State University Keffi, 2020-01-01) Nwala, Maureen Nneka; Gimba, John Toro; Oyedokun, Godwin Emmanuel
    The market place is changing rapidly and corporate policies are evolving from what it used to be in the past decade. In the early 1960's to late 1980’s investors coveted long term financial gains and capital appreciation and were uncomfortable when firms acquire debt to finance their business however the trend has changed over time with more and more investors expecting short term gains opposed to more traditional long-term financial strategies. Therefore this paper examined the impact of corporate financial policy on firm value of insurance firms in Nigeria for the period 2011 to 2017. In carrying out this study, expost-facto research design was employed and secondary data sourced from 25 insurance annual report and Nigeria Stock Exchange faetbook for the period of 7 years. Pool time series data were extracted related to dividend payout, equity issuance, debt asset, equity asset, return on asset and Tobin O was used as proxies for firm value in this study. The findings indicate that dividend payout and equity issuance have significantly impacted on firm performance (Tobin O), the study also slated that ROA has no significant relationship with dividend payout, equity asset, debt assets and equity issuance during the period under study. It was recommended that insurance managers should devote adequate time in designing a dividend policy that will enhance firm's performance (ROA) and shareholder value. Again, the company should review its dividend policy in order to reduce agency cost and maximize the value of the company.
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    Impact of Leverage on the Financial Performance of fisted Manufacturing Firms in Nigeria
    (Department of Accounting, Nasarawa State University Keffi, 2018-12-12) Gimba, John Toro; Vincent, Harrison S.; Kwagga, John Favekwaggi
    In the capital build-up of an entity, it is usual for firms to select from different sources of finance with which investment can be financed. This research therefore seeks to establish whether or not leverage has an impact on the financial performance of listed manufacturing industries in Nigeria. Samples of four industries listed in the Nigerian Stock Exchange out of a population offifteen listed manufacturing industries were selected for the purpose of this research. Descriptive as well as regression analysis were used to analyze the data collected from the annual audited financial statement of these firms. The independent variables employed in the research were Debt and Equity while the dependent variables were Return on Asset, and Return on Equity. Ratios were computed accordingly and entered into E-views software for analysis. Finding revealed that debt had negative and significant impact on the financial performance of listed manufacturing firms in Nigeria. Recommendations were made that managers of manufacturing firms should prioritize their sources of financing and ensure that minimum debt or optimal debt financing is employed in the capital structure.
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    Impact of Non-Oil Exports on Nigeria’s Economic Growth
    (Department of Banking and Finance, Nasarawa State University Keffi, 2019-03-03) Ahmed, Mahmoud A.; Gimba, John Toro; Vincent, Harrison S.
    Nigeria's economy which was highly dependent on agriculture was transformed to one highly dependent on oil due to the oil boom of 1970s and turned Nigerian economy into a mono culture economy depending on oil revenue for her income. The oil prices fluctuate in the international market and any shock in oil prices will negatively affect her income and economic policies with the consequences of having negative impact on her economic growth. This paper addressed the problem by investigating the impact of non-oil export on Nigeria's economic growth, employing a secondary data from the publications of CBN annual reports of non-oil export and GDP from the period of the study 1988 to 2016, applying simple list square regression analysis on SPSS software, using analysis of variance (ANOVA) based on F distribution at a 5% level of significance. The results of this study indicate a positive impact of non-oil revenue on Nigeria’s economic growth.
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    NEXUS BETWEEN FINANCIAL SECTOR DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA
    (Department of Banking and Finance, Nasarawa State University Keffi, 2019-03-05) Vincent, Harrison S.; Aruwa, Suleiman A.S.; Gimba, John Toro
    This study evaluates the nexus between financial sector development and economic growth in Nigeria for the period 1986 to 2016. Secondary data were extracted from Central Bank of Nigeria statistical bulletin 2016. The dependent variable is Economic growth which was proxy by GDP and the independent variable is financial sector development which was proxy by credit to private sector and market capitalization while inflation rate as control variable. Expo-facto research design was thus used. The study applied multiple regression model ofanalysis using Eview statistical package version 8. It was found thatf inancial sector development has positive and significant relationship with economic growth in the period of study. The study recommends that Central Bank of Nigeria (CBN) ensure effective compliance with its credit control policy which direct credit to more productive private sector activities and the Securities and Exchange Commissionformulating strategies to deepen the Nigerian Stockmarket.