Yazid Kabir Ibrahim, Ahmed Nma Mohammed, Samuel Eniola Agbi, Nasiru Abdussalam Kaoje, Umar Farouk Abdulkarim
Sustainability report is a report produced by firms which disclose their economic, environmental and social performance. These reports are normally geared toward the attainment of the United Nations sustainable development goals (SDGs). Even though compliance is voluntary in Nigeria, its effects on firm’s financial performance are enormous and as a result, it is essential for firm’s prosperity as well as better financial performance. This study examines the effect of sustainability reporting on financial performance of quoted Nigerian oil and gas firms. The population of the study comprises 12 listed oil and gas firms in Nigeria. Census sampling technique was adopted and filter was used. For firm to be selected it must be listed on or before 1st January 2009 and remain listed up to 31st December 2019. The firm must also publish their annual reports for the relevant period of the study. Based on these, five firms that failed to meet the set criteria were filtered out. This study makes use of Return on Asset to measure financial performance. Secondary source was used to collect the relevant data. Data in relation to sustainability reporting were extracted from the firm’s annual reports as well as standalone sustainability reports. However, data in relation financial performance were collected from the firm’s annual reports. Data for this study were analyse using STATA 13 statistical software. The regression result revealed that economic sustainability has a positive insignificant effect on ROA; environmental sustainability has a positive significant effect on ROA while social sustainability has a positive insignificant effect on ROA. Based on the findings, this study therefore, concludes that sustainability reporting has a significant effect on the financial performance of listed oil and gas firms in Nigeria. This study therefore, recommends among others that, listed Nigerian oil and gas firms should emphasize more on reporting their sustainability activities as it is capable of improving their financial performance. The policy makers and standard setting organisations should facilitate the issuance of a sector specific reporting guidelines to facilitate compliance.
{"title":"SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF LISTED OIL AND GAS FIRMS IN NIGERIA","authors":"Yazid Kabir Ibrahim, Ahmed Nma Mohammed, Samuel Eniola Agbi, Nasiru Abdussalam Kaoje, Umar Farouk Abdulkarim","doi":"10.57233/gujaf.v2i3.76","DOIUrl":"https://doi.org/10.57233/gujaf.v2i3.76","url":null,"abstract":"Sustainability report is a report produced by firms which disclose their economic, environmental and social performance. These reports are normally geared toward the attainment of the United Nations sustainable development goals (SDGs). Even though compliance is voluntary in Nigeria, its effects on firm’s financial performance are enormous and as a result, it is essential for firm’s prosperity as well as better financial performance. This study examines the effect of sustainability reporting on financial performance of quoted Nigerian oil and gas firms. The population of the study comprises 12 listed oil and gas firms in Nigeria. Census sampling technique was adopted and filter was used. For firm to be selected it must be listed on or before 1st January 2009 and remain listed up to 31st December 2019. The firm must also publish their annual reports for the relevant period of the study. Based on these, five firms that failed to meet the set criteria were filtered out. This study makes use of Return on Asset to measure financial performance. Secondary source was used to collect the relevant data. Data in relation to sustainability reporting were extracted from the firm’s annual reports as well as standalone sustainability reports. However, data in relation financial performance were collected from the firm’s annual reports. Data for this study were analyse using STATA 13 statistical software. The regression result revealed that economic sustainability has a positive insignificant effect on ROA; environmental sustainability has a positive significant effect on ROA while social sustainability has a positive insignificant effect on ROA. Based on the findings, this study therefore, concludes that sustainability reporting has a significant effect on the financial performance of listed oil and gas firms in Nigeria. This study therefore, recommends among others that, listed Nigerian oil and gas firms should emphasize more on reporting their sustainability activities as it is capable of improving their financial performance. The policy makers and standard setting organisations should facilitate the issuance of a sector specific reporting guidelines to facilitate compliance.","PeriodicalId":131022,"journal":{"name":"Gusau Journal of Accounting and Finance","volume":"63 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-04-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124884453","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The study investigates the moderating effect of leverage on the value relevance of accountinginformation in the Nigerian listed oil and gas firms. The study used correlational research designand the data was extracted from the published annual financial reports of the firms for theindependent variables and the moderator. On the other hand, the data for the dependent variable(share prices) was collected from Nigerian stock exchange website. A sample size of 6 firms wereused for a period of eight years (2011-2018). The data was analysed using multiple regressionanalysis. Findings from the analysis showed that earnings per share, and leverage to be valuerelevant. Additionally, book value per share moderated with leverage was value relevant in additionto earnings per share moderated with leverage as well. Based on the findings, the study recommendsthat listed oil and gas firms in Nigeria should strategize to improve their earnings, Moreover, theyshould also find way of managing their book value, as any unnecessary investment means negativeeffect on share price. Additionally, listed oil and gas firms should maintain an appropriate level ofleverage so that the cheap cost of leverage will reduce the weighted average cost of capital andsubsequently increase value to investors. Finally, the explanatory power of the moderated variablesare more than the ones not moderated.
{"title":"MODERATING EFFECT OF LEVERAGE ON THE VALUE RELEVANCE OF ACCOUNTING INFORMATION IN THE NIGERIAN LISTED OIL AND GAS FIRMS","authors":"A. Abubakar, Muhammad Yusuf Shuaibu, Adamu Magaji","doi":"10.57233/gujaf.v1i1.19","DOIUrl":"https://doi.org/10.57233/gujaf.v1i1.19","url":null,"abstract":"The study investigates the moderating effect of leverage on the value relevance of accountinginformation in the Nigerian listed oil and gas firms. The study used correlational research designand the data was extracted from the published annual financial reports of the firms for theindependent variables and the moderator. On the other hand, the data for the dependent variable(share prices) was collected from Nigerian stock exchange website. A sample size of 6 firms wereused for a period of eight years (2011-2018). The data was analysed using multiple regressionanalysis. Findings from the analysis showed that earnings per share, and leverage to be valuerelevant. Additionally, book value per share moderated with leverage was value relevant in additionto earnings per share moderated with leverage as well. Based on the findings, the study recommendsthat listed oil and gas firms in Nigeria should strategize to improve their earnings, Moreover, theyshould also find way of managing their book value, as any unnecessary investment means negativeeffect on share price. Additionally, listed oil and gas firms should maintain an appropriate level ofleverage so that the cheap cost of leverage will reduce the weighted average cost of capital andsubsequently increase value to investors. Finally, the explanatory power of the moderated variablesare more than the ones not moderated.","PeriodicalId":131022,"journal":{"name":"Gusau Journal of Accounting and Finance","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129660302","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Corporate failures across the globe have become an issue of concern for stakeholders andregulators. Financial reporting scandals that occurred in oceanic bank, intercontinental bank andthe recent bank crises of Skye Bank in 2016 really motivated the need for this study. The studyexamines audit quality, governance mechanism and earnings management of listed deposit moneybanks in Nigeria for the period of eleven years from 2009-2019. The population of the study consistsof all the 14 listed deposit money banks in Nigeria as at 31st December, 2019. The study adoptedexpo-factor and correlation research designs, and multiple regression was employed as techniqueof data analysis. The findings of the study revealed that audit independence, managerial ownershipand board independent have significant negative impact on earnings management of quotedNigerian banks while auditor size and audit tenure have insignificant influence on earningsmanagement of listed deposit money banks in Nigeria. In line with the findings, the study thereforeconcluded that audit independence, managerial ownership and board independence havesignificant negative impact on earnings management of banks in Nigeria while audit firm size andaudit tenure have no significant impact on earnings management of listed deposit money banks inNigeria. It is therefore recommended that Nigeria listed deposit money banks should maintain theaudit fees they are paying to the audit firm or increase it as any attempt to reduce the audit fees canincrease earnings management. However managerial shareholding should be increase as it willreduce earnings management and also board independent directors on the board should beincreased from minimum of two as it will reduce earnings management of listed deposit moneybanks in Nigeria on the other hand there is no significant impact between audit firm tenure andaudit firm size on earnings management of listed deposit money banks in Nigeria. For audit firmsize the study recommended that local audit firms should be used instead of the Big 4 as the size have no effect on earnings management. Also the study recommended that for audit tenure the bankshould maintain its audit tenure as it does not have any influence on earnings management.
{"title":"AUDIT QUALITY, GOVERNANCE MECHANISMS AND EARNINGS MANAGEMENT OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA","authors":"Adamu Magaji, Monday Samuel Okolo, L. Ibrahim","doi":"10.57233/gujaf.v1i1.14","DOIUrl":"https://doi.org/10.57233/gujaf.v1i1.14","url":null,"abstract":"Corporate failures across the globe have become an issue of concern for stakeholders andregulators. Financial reporting scandals that occurred in oceanic bank, intercontinental bank andthe recent bank crises of Skye Bank in 2016 really motivated the need for this study. The studyexamines audit quality, governance mechanism and earnings management of listed deposit moneybanks in Nigeria for the period of eleven years from 2009-2019. The population of the study consistsof all the 14 listed deposit money banks in Nigeria as at 31st December, 2019. The study adoptedexpo-factor and correlation research designs, and multiple regression was employed as techniqueof data analysis. The findings of the study revealed that audit independence, managerial ownershipand board independent have significant negative impact on earnings management of quotedNigerian banks while auditor size and audit tenure have insignificant influence on earningsmanagement of listed deposit money banks in Nigeria. In line with the findings, the study thereforeconcluded that audit independence, managerial ownership and board independence havesignificant negative impact on earnings management of banks in Nigeria while audit firm size andaudit tenure have no significant impact on earnings management of listed deposit money banks inNigeria. It is therefore recommended that Nigeria listed deposit money banks should maintain theaudit fees they are paying to the audit firm or increase it as any attempt to reduce the audit fees canincrease earnings management. However managerial shareholding should be increase as it willreduce earnings management and also board independent directors on the board should beincreased from minimum of two as it will reduce earnings management of listed deposit moneybanks in Nigeria on the other hand there is no significant impact between audit firm tenure andaudit firm size on earnings management of listed deposit money banks in Nigeria. For audit firmsize the study recommended that local audit firms should be used instead of the Big 4 as the size have no effect on earnings management. Also the study recommended that for audit tenure the bankshould maintain its audit tenure as it does not have any influence on earnings management. ","PeriodicalId":131022,"journal":{"name":"Gusau Journal of Accounting and Finance","volume":"162 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123132950","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}