UMYU Journal of Accounting and Finance Research

Accounting Conservatism in Emerging Markets: Comparative Evidence from Nigeria and South Africa

Gina Oghogho Olufemi — Mon, 09 Jun 2025 00:00:00 +0000

This study examined the degree and variation of conditional accounting conservatism between Nigeria and South Africa using the Basu (1997) asymmetric timeliness model. It aimed to determine whether earnings reflected bad news more promptly than good news in the two leading Sub-Saharan African economies and whether such conservatism was systematically influenced by country-specific factors. Panel data from listed manufacturing firms covering the period 2012 to 2023 were employed, and fixed and random effects regressions were estimated using robust standard errors. Diagnostic tests such as the Ramsey RESET, Breusch-Pagan LM, and Portmanteau tests were conducted to ensure the validity of the models. The results revealed that Nigerian firms exhibited statistically significant conditional conservatism, whereas South African firms showed no such evidence. Furthermore, interaction terms in the extended model did not indicate statistically significant cross-country differences, although the direction of effects suggested stronger conservatism in Nigeria. These findings implied that institutional, regulatory, and governance frameworks likely influenced conservative financial reporting practices. The study recommended regional policy coordination to enhance the comparability and credibility of financial statements.

Risk-Taking Behaviour and Profit Efficiency among Nigerian Listed Deposit Money Banks

Jimoh Ibrahim, Adewumi Ramat Adedoyin, Bunmi Olawumi Agunbiade — Wed, 28 May 2025 00:00:00 +0000

The study explored the influence of risk-taking behavior on profit efficiency among Nigerian banks. It utilized a longitudinal research design and drew on secondary data from the audited annual accounts of selected banks. The population included 14 publicly quoted Deposit Money Banks (DMBs) in Nigeria, and a sample of 11 DMBs was chosen using a purposive sampling technique. Multiple regression analysis was applied to the data, showing that capital risk has a positive and significant influence on the profit efficiency of listed banks (t = 6.4913; p < 0.01). This indicates that well-capitalized banks tend to have higher profitability because they face fewer constraints when expanding their outputs. Additionally, the study found that insolvency risk negatively affects profit efficiency (t = -2.7399; p < 0.01) and that liquidity risk also has a significant negative effect (t = -2.3062; p < 0.05). This suggests that high liquidity risk can create challenges in managing cash flows. In conclusion, the study determined that risk-taking behavior significantly impacts the profit efficiency of Nigerian-listed deposit money banks. It recommended that Nigerian banks reassess their credit risk management strategies to improve profitability and create a more stable banking environment.

Factors that Determine Aggressive Tax Avoidance Among Listed Commercial Banks in Nigeria from 2014 To 2023: Evidence from Panel Regression Analysis

Ahmad Tijjani Usman — Wed, 25 Jun 2025 00:00:00 +0000

The objective of this study is to examine the factors that determine the aggressive tax avoidance among listed commercial banks in Nigeria. The selected factors include firm size, leverage, profitability and capital intensity, while tax avoidance was measured by Effective Tax Rate (ETR). The study used Political cost theory and Political power theory to underpin the established relationships in this study. Exploratory research design was adopted and secondary data was gathered from published annual reports of the selected banks for the period of 10 years (2014-2023). The population of the study are the 14 listed commercial banks as at 2025, while filtering approach was used to sample 13 banks that are listed throughout the period of the study. The collected data was analyzed using descriptive, correlation and panel regression analysis with the help of STATA 14.0. The study found that firm size has negative effect on aggressive tax avoidance by having positive impact on ETR; leverage and profitability have significant positive effect on tax avoidance by having negative effect on ETR, while capital intensity was insignificant. In view of these findings, the study concluded that tax avoidance behavior among Nigerian commercial banks is not universally derived by a particular inherent characteristic as every attribute has a way it affects the strategic behavior. It is therefore recommended that FIRS should leverage the accountability of larger banks by promoting compliance frameworks and transparent reporting requirement for such banks through mandatory disclosure rules of cross-border transactions and tax planning arrangements. There is also need for policymakers to strengthen thin capitalization rules so as to restrict the excessive interest deductions that leveraged firms are exploiting. Furthermore, tax authorities should tighten the scrutiny for the most profitable banks in the Nigerian financial industry for a potential aggressive tax planning scheme as they have incentive and resource to exploit the tax loopholes

Spiritual Capital and Financial Performance of Deposit Money Banks Listed on the Nigerian Exchange Group (NGX)

Emmanuel Okpe Onuh, Jide Ibikunle, Balogun Abdulrasheed — Wed, 28 May 2025 00:00:00 +0000

The study investigates the relationship between Spiritual Capital and financial performance in deposit money banks listed on the Nigerian Exchange Group (NGX). Specifically, it examines the impact of four dimensions of Spiritual Capital – Spiritual Motivation, Spiritual Culture, Spiritual Survival, and Spiritual Leadership – on financial performance, measured by Return on Assets (ROA). Using panel data from seven banks over five years (2018-2022) and the Random Effects model, the study finds a significant positive relationship between Spiritual Motivation and financial performance. This suggests that banks fostering spiritual values, mission statements, employee motivation, and social responsibility can enhance organizational culture and financial performance. However, no significant relationships were found between Spiritual Culture, Spiritual Survival, and Spiritual Leadership and financial performance. The positive association between Spiritual Motivation and financial performance is attributed to factors like increased employee commitment, productivity, customer service, and enhanced brand reputation. The study recommends that banks prioritize Spiritual Motivation by developing clear mission statements, implementing employee motivation programs, and promoting ethical behaviour and social responsibility initiatives.

Optimizing Scale Efficiency: Examining Audit Committee Size and Diligence in Nigerian Manufacturing Firms

Osarenren Aigienohuwa, Osasogie Irowa-Omoregie — Tue, 24 Jun 2025 00:00:00 +0000

This study investigates the relationship between audit committee size, audit committee diligence, and scale efficiency in Nigerian manufacturing firms. Audit committee size influences the breadth of expertise and oversight capacity, while diligence, measured by the frequency of meetings, reflects the committee’s commitment to effective monitoring and decision-making. Using a panel dataset, the study analyzed data from 50 listed Nigerian manufacturing firms between 2012 and 2022. Panel regression models were used to evaluate the impact of these audit committee attributes on scale efficiency, measured through scale efficiency based on turnover and scale efficiency based on assets. The findings reveal that audit committee diligence has a positive and statistically significant impact on scale efficiency based on assets, highlighting the importance of regular and structured meetings in enhancing operational efficiency. However, diligence showed an insignificant relationship with scale efficiency based on turnover, indicating that frequent meetings alone may not directly influence revenue-based efficiency. Audit committee size exhibited a negative and statistically significant relationship with scale efficiency based on assets, suggesting that excessively large committees may hinder operational performance. These results contribute to the existing literature on corporate governance by providing empirical evidence on the role of audit committee attributes in promoting scale efficiency in Nigerian manufacturing firms.

Impact of Nigerian Blockchain Policy on Digital Currency Market Performance

Suoye Igoni, Marshall Simon Ekpete — Mon, 09 Jun 2025 00:00:00 +0000

The recent blockchain policy pronouncement in Nigeria gave rise to examine the effect on digital currency market performance. Knowing that policy statements played a dynamic role on market performances, and for the fact that digital currency is link to market volatility, this work analyzed the impact of Nigerian blockchain policy on digital currency market performance during the short-term periods. Based on the exigencies, the research covered a period of 23 weeks using a-weekly data between May 3, 2023 and October 4, 2023. The study employed selected top-five digital currencies including Bitcoin, Ethereum, Tether, BNB, and XRP of their market performances extracted from crypto database. The generalized autoregressive conditional heteroskedasticity (GARCH) least squares analytical tool was applied to ascertain how Bitcoin, Ethereum, Tether, BNB, and XRP digital currencies market performance responded to Nigerian blockchain policy in the short-term. The findings showed that Nigerian blockchain policy impacted negatively on Bitcoin, XRP, and BNB market performance in the short-term. However, Nigerian blockchain policy impacted positively on Tether, and Ethereum market performance in the short-term. The research further revealed Ethereum, and BNB digital currencies constituted significant variables of study. Finally, Nigerian blockchain policymakers were recommended to revised and address the diverse impacts on digital currencies with tailored regulations to enhance investors protection, and support the positive trends for a balance-support of the digital currency market.

Effect of Board size and Institutional Ownership on Corporate Tax Avoidance of Listed Money Banks in Nigeria

Sun, 01 Jun 2025 00:00:00 +0000

This study examines the effect board size and institutional ownership, and corporate tax avoidance among deposit money banks in Nigeria. From 2015 to 2021, the research posits that effective tax rates (ETR) serve as a proxy for tax avoidance. The findings reveal that board size does not significantly influence tax avoidance, indicating that larger boards do not necessarily lead to increased tax avoidance efficiency. Institutional ownership presents a positive but statistically insignificant relationship with tax avoidance, suggesting that while institutional shareholders may influence tax avoidance, their impact remains weak. These results lead to the conclusion that corporate governance mechanisms among deposit money banks in Nigeria, as measured by board size and institutional ownership, do not substantively affect tax avoidance behaviors. Therefore, regulatory bodies should enhance corporate governance frameworks and monitor banking operations to mitigate tax avoidance, while exploring other governance attributes that may have a more pronounced effect on tax planning outcomes.

Sustainability Reporting and Firms’ Value in Nigeria: Moderating Role of Research and Development Expenditure: A Conceptual Review

Usman Yakubu, Bello Baba Usman, Ibrahim Aliyu Gololo — Wed, 28 May 2025 00:00:00 +0000

This study aims to review the moderating effect of research and development expenditures on the relationship between sustainability reporting and firm value of non-financial firms in Nigeria from 2017 to 2024. This study adopted literature survey research design as previous researches on the area were examined. The reviews shows that the influence of sustainability reporting on firms' value varies across the sectors, while companies like oil & gas and manufacturing firms benefit most from environmental reporting, other service-based industries like telecommunications gain more from the social disclosure. The review further reveals that while sustainability reporting positively influences firms’ value, R&D expenditures could align sustainability efforts and enhance communication to stockholders. The paper therefore recommends that government should make sustainability practices mandatory among the companies in Nigeria.

Evaluating the Impact of Risk on Financial Performance of Listed Insurance Firms in Nigeria

Hafsat Yauri Yahaya, Monday Duniya, Mohammed Abdulmalik — Tue, 24 Jun 2025 00:00:00 +0000

This study examined the risk and financial performance of listed insurance firms in Nigeria for the period of ten (10) years from 2015 to 2024. The population of the study consists of 16 insurance firms listed on the floor of the Nigerian Stock Exchange as at 31st December 2024. Secondary data was extracted from the audited financial reports of the sampled insurance firms. The data was analyzed using the regression model. The study findings revealed that solvency risk is positively and significantly influencing the financial performance of listed insurance firms in Nigeria. Conversely, reinsurance risk revealed a statistically insignificant negative impact on financial performance. The study concluded that solvency risk has a strong association with the financial performance of the firms for the period. The study recommends that Insurance firms should strive to maintain adequate net income which can cover thier total liabilities as they fall due. Furthermore, policymakers in government should formulate economic and financial policies with due cognizance of factors that can affect an insurance firm’s performance. This requires a holistic view to policy formulation to ensure that cost trade-offs are considerably minimized in all strata of the economy.

Budget Compliance and Public Sector Performance: A case Study of Kwara State

Aminat Arike Ariyo-Edu — Mon, 09 Jun 2025 00:00:00 +0000

This study investigates the impact of budget compliance on public sector performance in Nigeria, focusing on budget preparation, implementation, and compliance. The population comprises directors and heads of departments from five ministries in Ilorin, Kwara State. Data were sourced through structured questionnaires administered to 100 respondents selected via convenience sampling. The data were analyzed using descriptive and inferential statistics with SPSS version 23. The results reveal that budget planning and implementation significantly influence public sector performance, accounting for 66% and 68.1% of the variance, respectively. Budget compliance also enhances efficiency, effectiveness, and quality of service delivery. In conclusion, the study shows that strengthening budgetary processes, especially compliance, is vital for achieving effective service delivery and sustainable public sector performance. And recommends participatory budgeting, stronger monitoring mechanisms, and strict enforcement of compliance to improve transparency and accountability.

Influence of Board Members’ Nationality and Ethnicity on Sustainability Reporting of Listed Deposit Moneybanks in Nigeria

Saidu Musa, FCA, Saka Tunde Abdulsalam, PhD — Fri, 27 Jun 2025 00:00:00 +0000

This study examines the effect of board nationality and ethnicity on the sustainability reporting of listed deposit money banks in Nigeria between 2013 and 2020. Secondary data was collected from annual reports and accounts of listed deposit money banks through the Nigeria Exchange Group (NGX). The panel least squares regression analysis results showed that the ethnicity of board members has a detrimental impact on the sustainability reporting of listed deposit money banks in Nigeria. Also, the study revealed no proof of a connection between the nationality of board members and the sustainability reporting of listed deposit money banks in Nigeria. The study concluded that board members’ ethnicity will enhance the level of sustainability reporting of listed deposit money banks in Nigeria