Browsing by Author "Oyedokun, Godwin Emmanuel"

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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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    ItemOpen Access
    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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    ItemOpen Access
    SPECIFIC DETERMINANTS OF CAPITAL ADEQUACY RATIO OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA
    (Department of Entrepreneurship Studies, Nasarawa State University, Keffi., 2021-01-28) Oyedokun, Godwin Emmanuel; Naburgi, Musa Mohammed; Paul, Vincent
    The study examines the effect of specific determinants of capital adequacy ratio of quoted 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 (credit risk, liquidity, leverage, profitability, bank size, and loan growth) on the dependent variable (capital adequacy ratio). The population of the study is the 14 banks quoted as at 2019. Purposive sampling method was used to select all banks provided they have consistent data set. Thus 13 quoted banks were used. 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. Panel regression was used and found out that, credit risk is significant positively related to Capital Adequacy Ratio of quoted DMBs in Nigeria. Liquidity is insignificant and positively related to Capital Adequacy Ratio of quoted DMBs in Nigeria. Financial leverage is insignificant and negatively related to Capital Adequacy Ratio of quoted DMBs in Nigeria. Profitability is significant and positively related to Capital Adequacy Ratio of quoted DMBs in Nigeria. Bank size is insignificant and positively related to Capital Adequacy Ratio of quoted DMBs in Nigeria. Loan growth is significant and positively related to Capital Adequacy Ratio of quoted DMBs in Nigeria. This implies that, CAR of quoted DMBs in Nigeria increases significantly as loan growth increases. Based on the findings of the study, it is concluded that, increase in default or nonperforming loans increases the degree and extent of capital adequacy ratio of quoted deposit money banks in Nigeria to serve as a buffer to any negative shock resulting from nonperforming loans and advances. The study recommends among others that, Quoted DMBs in Nigeria should try to put in place more stringent rules that will ensure all loans and advances to be given out to customers are adequately perused and assessed to avoid and reduce issue of nonperforming loans resulting from default. This will go a long way in reducing default risk such that money kept as CAR will be reduced in order to increase the liquidity of the banks for better profits