Research Articles in Accounting and Finance

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Volatility Transfer from Developed Countries to Emerging Markets: Evidence from Nigeria
(European Journal of Business and Management, 2013) Oke, B. O; OBADEYI, J. A.; Unuafe, O. K.
In this paper, we examine the existence of volatility transfer from stock exchanges of 5 major developed economies of USA (NYSE), Canada (S&PTSX), France (CAC) Germany (DAX) and UK (FTSE) to the Nigerian Stock Exchange (NSE). To ascertain the relationship between these five bourses and the NSE, we employ the Ordinary Least Square Estimation (OLSE) technique. Moreover, we use the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model to determine the existence or otherwise of volatility transfer from these five advanced bourses to the NSE. The results of this study confirm the existence of volatility transfer from the NYSE, S&PTSX, CAC, DAX and FTSE to the NSE from January 1st January 2006 to 15th March 2010. Following from this, it behooves on policy makers in Nigeria to pay particular attention to events in these bourses and in these economies and proactively take prompt actions when necessary.
The Impact of Interest Rates on the Development of an Emerging Market: Empirical Evidence of Nigeria
(Journal of Economics and Sustainable Development, 2013) Obadeyi, J.A.
The study reveals that interest rate is always difficult to forecast. Interest rates will probably rise with the removal of public sector funds from the industry. The interest rate (MPR) is the rate at which banks borrow from Central Bank to cover their immediate cash shortfall. The higher the cost of such borrowing, the higher also will be the rate banks will advance credit to the real sector. However, in the long-term, with re-capitalization on banks, insurance companies’ e.g. could begin to exploit economies of scale to compete on pricing and improve their deposit mobilization capabilities, which could positively affect interest rates. The Central Bank of Nigeria (CBN) has not formulated a model that will reduce interest rate, inflation and stabilize the exchange rate. However, a time series analysis was adopted for 40 years (1970- 2010).The Error Correction Modelling (ECM) was adopted to reconcile fluctuations or changes both in the short and long run between the variables. The result shows that due to the ability to estimates the parameters of Error Correction Mechanism (ECM), which is generally consistent, sufficient, significant and negative. The non-zero coefficient of ΔINTt and INFt in both ways, if statistically significant, will indicate a short-run causality from ΔINTt to ΔGcft as well as ΔINFt to ΔGDPt. The paper recommends that pragmatic approach needs to be adopted to ensure that the lending rates are reduced to single digit in order to reduce production cost, high unemployment rate and encourage Foreign Direct Investment (FDI). The monetary policy rate (MPR) at 12% (CBN, 2013) is too high for a developing economy such as Nigeria because it will have a negative impact on the naira exchange rate. Monetary and fiscal policies remain necessary and sufficient conditions for attaining a realistic interest rate performance. Interest rate management in a depressionary economy needs regular fine-tuning of relevant instruments by the monetary authorities
Interest Rate Targeting: A Monetary Tool for Economic Growth in Nigeria? - Stakeholders’ Approach
(Advances in Economics and Business, 2013) Obadeyi, J.A.; Akingunola, Richard; Afolabi, Victor
The paper assessed interest rate impact on economic growth in Nigeria, considering the stakeholders’ approach. The continuous increase in interest rate always results to a slow economic growth. It is believed that interest rate may not eventually lead to lull economy especially in industrialized economies because these economies do not totally rely on assembling and consumption of goods and services, but majorly on production and distribution of goods and services[1]. The study adopts simple ordinary least square method to identify existing relationship between variables. The regression results were significant and Error Correction Mechanism helped to correct the dynamism that might exist. The time series analysis was adopted for 40 years (1970- 2010), which shows evidence and supports that larger proportion of borrowing by Nigerian government, which are majorly financed by the apex bank has led to uncontrollable excess liquidity and inability of locally manufacturing firms, and small enterprises to raise loanable funds from banks. The paper therefore concluded that it will be difficult to generalize interest rate as equal either in developed or developing economies as result of the significant and un-comparable difference in social –economic belief, approaches and existing structures. It suggests that interest rate should play an un-comparable role in enhancing economic growth and sustainable activities in Nigeria
The Effect of Financial Reforms on Banking Performance in an Emerging Market: Nigerian Experience
(Research Journal of Finance and Accounting, 2014) Obadeyi, J. A
The paper examines effect of financial reforms on banking performance in emerging market: Nigerian experience. The study covers between 1992 and 2011, because the last reform in banking sub-sector was in 2005 during Prof. Charles Soludo as CBN governor (Pre-Lamido era). Automated Statistical Package Technique (ASPT) was used to analyze the model and Ordinary Least Square method was adopted to analyze existing relationship of variables and their behaviors. The study reveals that the effect of financial reform on banking performance is mixed. It was discovered that financial reform is not a causal factor for effective banking performance and development; but there is need for strong capital account policy to regulate short- term capital flow and exchange rate volatility. In addition, the Central Bank of Nigeria (CBN) should ensure the stabilization of financial markets and banks in order to control and manage risk aversion among domestic and foreign investors in the economy. The paper further recommends non-stopping reforms in the financial sector so as to serve as check and balances, which would be used to manage and control economic distortion’s trend in the financial sector. Moreover, policymakers such as Monetary Policy Committee (MPC); regulatory government ministries, departments and agencies (MDAs) such as Ministry of Finance, CBN, Nigerian Deposit Insurance Corporation (NDIC), etc. should adopt economic policies that could strengthen and promote allocation of efficient resources to achieve efficient bank performance in Nigeria
Corporate Governance and Audit Quality of Quoted Companies: Evidence from Nigeria
(Journal of Finance and Accounting Research, 2014-09) Ofiafoh, Eiya; Ogbeide, Sunny O.
This study examined corporate governance and audit quality in Nigeria. Specifically it examined board diligence, managerial ownership and audit quality of Nigerian quoted companies. The ex-post facto research design was adopted in the methodology of the study. The population consists of all quoted companies in the Nigerian Stock Exchange; a sample of 25 companies was examined for the period 2007-2012 financial year using secondary data from annual reports of the sampled companies were used for the study. The data analysis technique used is Panel Estimated Generalized Least Squares (EGLS) regression with fixed effect. The study found that board diligence enhances audit quality and was statistically insignificant while managerial ownership determine audit quality and is significant. It is recommended that the 'corporate governance code of best practices of 2010 should be re-evaluated and frequency of board meeting increased statutorily so as to enhance top management monitoring process.
Prevalence and forms of violence against health care professionals in a South-Western city, Nigeria
(Sky Journal of Medicine and Medical Sciences, 2014-10) Abodunrin, O. L.; Adeoye, O. A.; Adeomi, A. A.; Akande, T. M.
Workplace violence affects every professional group including the health sector. All categories of healthcare workers are at risk of violence though at different degrees with the nurses having up to three times higher than others. Workplace violence can be physical, sexual or psychological in nature and can be actual or threatened. This study investigated the prevalence and forms of violence among health professionals in two hospitals in Southwestern Nigeria. A cross-sectional survey design was adopted to collect data among 242 health care professionals in Osogbo using a self-administered semi-structured questionnaire. Data were analysed with SPSS version 16 and level of significance was set at p < 0.05.The mean age of the respondents was 39.2 ± years. The results revealed that the highest prevalence was among the nurses (77, 53.5%) followed by the doctors/dentists (31, 21.5%). However 31 out of 54 doctors (57.4%); 77 out of 130 nurses (59.2%) and 36 out of 58 other professionals have experienced violence in the last one year. The perpetrators were usually the patient (74, 46.1%) or their relatives (79,49.5%). The commonest forms of assault were verbal (93, 64.6%) and physical abuse (51, 35.4%). The violent acts mostly occurred at the accidents and emergency (44, 30.6%) and the out-patient clinics (29, 20.1%). There is a need for strict policies in hospitals to protect the workers from violence.
ACCOUNTING REGULATORY FRAMEWORKS AND PUBLIC INSTITUTIONS’ COMPLIANCE IN NIGERIA
(International Journal of Economics, Commerce and Management, 2015) Akande, Adesola A.; Olowe, Sunday O.; Olowe, Folake T.
This paper is an attempt to investigate the rate of compliance of public institutions with the framework stipulations of accounting regulations in Nigeria. Series of accounting Regulatory Provisions guiding preparation and presentation of financial reports in public institutions were examined. Descriptive statistical methods - Simple Percentage Method (SPM) and Chi-square were used on 50 Respondents from Ministry of Finance and the Office of Accountant General of the State of Osun in Nigeria. The paper revealed that there is a positive relationship between regulatory framework and financial reports preparation and presentations in Osun State. The study recommends that Proper trainings on public sector accounting and establishments of performance evaluation of employees should be put in place in order to make public institutions account more effective in the State of Osun.
Foreign portfolio investment and Nigerian bond market development
(American Journal of Economics, 2015) Babatunde, Ololade M.; Moses, Ekperiware C.
The study examined the contribution of foreign portfolio investment (FPI) towards financing Nigeria infrastructural deficits and determined the factors that attract FPI into the Nigerian bond market. It also examined the relationship between FPI and bond yield in Nigeria. Primary data were obtained through administration of questionnaires to directors of finance, chief finance officers and investment officers of 128 firms out of 271 firms in financial and manufacturing sectors of the Nigerian economy. Stratified sampling technique was used to select 100 stock broking firms that were controlling 90% of the secondary bond market trading activities while purposive sampling technique was used to select the existing 18 primary dealers and market makers and 10 non-financial institutions that had raised fund in the domestic bond market within the study period. Secondary data on bond index, bond market capitalization, real interest rate, real exchange rate, inflation rate, gross domestic product, external debt and external reserve were obtained from publications of Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Debt Management Office (DMO), Nigeria Stock Exchange (NSE) and National Bureau of Statistics (NBS). Data collected were analyzed using both descriptive statistics such as line graphs, bar charts and simple percentages; and inferential statistics which was mainly multiple regression analysis. The results showed that there was no FPI in the bond market until 2003 when the federal government through the Debt Management Office issued the first FGN Bond series. In addition, between 2003 and 2011, the contribution of the FPI to long term funds in the bond market was 10% of the total bond market capitalization which was considered very low. Interest rate (85%), Gross domestic product (90%), bond market capitalization (91%), inflation rate (89%) and external reserve (95%) were found to be major factors that attracted FPI into the Nigerian bond market as stated by the respondents. Finally, the results showed that there was a significant relationship between FPI and bond yield (r = 0.44, p< 0.05). The study concluded that factors attracting foreign investors into the bond market in Nigeria are critical and if well managed by policy makers could enhance the attraction of FPI needed for financing infrastructural projects through the Nigerian bond market.
Corporate Governance and Movement of Stock Price in Nigerian Quoted Firms
(Management Sciences Review (MSR), 2015) Osamwonyi, I.O.; Ogbeide, Sunny O.
The broad objective of the study is to examine corporate governance and movement of stock price in Nigerian quoted firms. Specifically, the study examines the impact of Audit committee size, Ownership concentration, Board independence and Managerial ownership on share price movement. The cross-sectional research design is adopted in the methodology of the study. The population consists of all quoted companies in the Nigerian Stock market while a sample of twenty(20) companies was examined for 2008-2012 financial year. Secondary data from financial statement of the sampled companies was used for the study. The data analysis techniques used is regression analysis using the ordinary least squares techniques. Our study found that Audit committee size does not exert any significant impact on share price, Ownership concentration exerts a significant impact on shore price, the effect of Board independence on Share price is significant, Managerial ownership does not impact significantly on share price, changes in ownership concentration impacts significantly on share price and changes in managerial ownership exert a significant impact on share price. The study recommends that based on the empirical evidence provided there is the need for stock market players to incorporate corporate governance issues in their models for estimating the fair value of stock price return and evaluating the moderate/or long term performance of managed portfolio.
EFFECT OF STOCK MARKET REGULATIONS AND REFORMS ON INVESTORS’WEALTH IN NIGERIA
(International Journal of Economics, Commerce and Management, 2015-01) Akande, Adesola A.; Olowe, Sunday O.; Asabi, Oludele M.
This paper examines the impact of stock market regulations and reforms on frequent wealth–loss often experienced by investors in Nigeria Stock Exchange Markets right from March, 2008 in Nigeria. Secondary data on two selected banks-listed on the Nigeria Stock exchange market in Nigeria before April, 2003 using random selection method, viz: First Bank of Nigeria and Union Bank of Nigeria. The data collected were analyzed using descriptive statistical method of time series and Simple Percentage Method (SPM). The study revealed that share values are attractive and considerably stable in term of return to investment of shareholders during the preshare crisis period due to the effectiveness of the enabling stock market regulations than in the post share crisis period when value of shares went into spiralling declension. Stock market regulations and reforms is now under serious challenges as the percentage of indigenous investors has reduced drastically from 19% to less than 14% in the Nigeria Stock Exchange markets. Thus the study recommends more proactive regulations and reforms, potent enough to bring back confidence to investors in this post share crisis periods in Nigeria.
ACCOUNTING REGULATORY FRAMEWORK AND PUBLIC INSTITUTIONS' COMPLIANCE IN NIGERIA
(International Journar of Economics, Commerce and Management, United kingdom, 2015-01) Akande, Adesola A.; Olowe, Sunday O.; Olowe, Folake T.
This paper is an attempt to investigate the rate of compliance of public institutions with the framework stipulations of accounting regulations in Nigeria. Series of accounting Regulatory Provisions guiding preparation and presentation of financial reports in public institutions were examined. Descriptive statistical methods - Simple Percentage Method (SPM) and Chi-square were used on 50 Respondents from Ministry of Finance and the Office of Accountant General of the State of Osun in Nigeria. The paper revealed that there is a positive relationship between regulatory framework and financial reports preparation and presentations in Osun State. The study recommends that Proper trainings on public sector accounting and establishments of performance evaluation of employees should be put in place in order to make public institutions account more effective in the State of Osun.
Management Accountants’ Functions and Control System in Informal Sector’s Business Decisions in Nigeria
(International Journal of Scientific Research and Management, 2015-02) Akande, Adesola A.; Olowe, Sunday O.
This paper examined the effects of Ownership-Controls and Management Accountant(s) functions indecision making process of informal businesses (SMEs) in Osun State of Nigeria. Disparity cases that areoften experienced by Management Accountants on decisions and that of business Owners in informalbusiness sectors – One-man businesses, partnership businesses and other private companies necessitate thisstudy. Many Accountants in the informal business sectors are suffering from a lot of hardships through self - designed decisions usually imposed by business Owners at the expense of information generated throughcalculated parameters on business decisions. The study used both Simple Percentage Method andDescriptive Data Analysis Method (DDAM) to evaluate 10 informal businesses in Osogbo, the capital city ofOsun State of Nigeria. The study revealed that most informal Businesses failed due to the fact that Ownersare always ignoring the advice of Management Accountants in vital business decisions. The paperrecommends proper utilization of MCS principles in line with information supplied by ManagementAccountants in both formal and informal sectors of Nigeria economy so as to aid the function and servicedeliverance potentials and subsequent improvement in SMEs results in Nigeria
Microfinance Banking and Development of Small Business in Emerging Economy: Nigerian Approach
(IOSR Journal of Economics and Finance (IOSR-JEF), 2015-04) Obadeyi, J. A
The research study examines the Microfinance Banking and Development of Small Business in emerging economy: Nigerian Approach. The Microfinance Banks (MFBs) serve as an engine through which economic industrial development subsists in Nigeria. MFBs have been involved in the promotion, growth and development of the informal sector and remains heralded strategy for industrial development in emerging economies including Nigeria. The primary source of data was adopted via questionnaire and oral interview. A simple regression was used to address the responses of the respondents gathered though the questionnaire in order to derive logical conclusion for the study. It was however established that MFBs have the capacity to boost economic development in Nigeria through the support of government agency (CBN) to keep them tracked and to be focused on the objectives for which they were established. Also, the reviewing and refining of the National Microfinance development Strategy Policy for MFBs in Nigeria is remarkable and commendable. The paper further recommends that MFBs’ operations should be continuously be monitored by the regulatory agency (CBN) in order to adequately address the gap in terms of credit, savings and other financial services required by the micro entrepreneurs. The latent capacity of the poor for entrepreneurship would be significantly enhanced through the provision of microfinance services to enable them engage in economic activities and be more self-reliant, increase employment opportunities, enhanced household income,create wealth etc.
Capital Structure and Performance of Firms in the Nigerian Insurance Sector
(Journal of Banking, Finance and Development, Faculty of Management Sciences, Ebonyi State University, 2015-06) OGBEIDE, Sunday Oseiweh; Ayunku, Peter
Corporate Borrowing and Firms' Growth in Nigeria: Empirical Evidence
(Journal of Business and Value Creation: Department of Marketing, University of Port-Harcourt, 2015-06) OGBEIDE, SUNDAY OSEIWEH; OKPAMEN, PETER
Corporate Borrowing and Firms' Growth in Nigeria: Empirical Evidence
(Journal of Business and Value Creation, 2015-06) Ogbeide, Sunday O.; Okpamen, P.
This study examined corporate borrowing and organizational growth in Nigeria. The ex-post facto research design was adopted in the methodology. The population consists of all quoted companies in the Nigerian Stock Exchange A sample of 40 companies was examined for 2012.2013 financial year Panel Estimated Generalized Least Squares (EGLS) regression with cross-section random effect. !he study showed that long term borrowings enhanced hints' growth and it is statistically significant. Similarly firm age positively enhanced from growth though it is founds be statistically insignificantly. Also interest charges determined organizational growth but were not statistically significant Premised on this, brans are strongly advised to always compare the marginal benefits of using debt financing to the marginal costs of debt financing before concluding on using it in financing their operation.
Financial Variables and Stock Price of Quoted Firms in Nigeria
(JBVC, 2015-06) Ololade, Babatunde M.; Ogbeide, Sunny O.
The study examines corporate board diversity and market performance of Nigerian quoted firms. Specifically, it evaluates the influence of board gender, board nationality, board independence, board ethnicity and board size on the stock prices of quoted firms in Nigeria. The research design is both descriptive and ex- post facto. The population consists of all firms quoted on the floor of Nigerian Stock Exchange (NSE) while the analysis is based on a cross-section of twenty (20) randomly selected companies in a seven-year (2006-2012) study period. Secondary data sourced from financial statements of the sampled firms and the daily official price lists of the NSE are used for the study. The method of analysis is the panel least squares multivariate regression analysis based on the fixed effect estimation. The analysis reveals that while board nationality (BN) has a positive and statistically significant impact on share price (SPRICE), all other variables — board gender (BG), board independence (BIN), board ethnicity (BE) and board size (BS) are negatively related to share price (SPRICE); with only the relationships between the latter and board independence (BIN) on the one hand, and board ethnicity (BE) on the other, being statistically significant. The study recommends to managers' of the nation's corporate organizations and relevant regulatory agencies to ensure that the composition of corporate boards should reflect national and ethnic diversity to promote firm's performance. In particular, the corporate organization should strive to have a mixed board of local and foreign directors to enhance quality board decisions while Nigerian quoted firm should avoid undue board dominance by any ethnic group.
CASH FLOW AND FINANCIAL PERFORMANCE OF INSURANNCE COMPANIES: EMPRIRICAL EVIDENCE FROM NIGERIA
(STRATEGII MANAGERIALE, 2016) Ogbeide, Sunday O.; Eragbhe, E.; Ololade, Babatunde M.
The study examines the relationship between cash flow and financial performance of insurance companies in Nigeria using time series data for the period 2009-2014. Twenty seven (27) listed insurance firms were selected as sample size. The study uses both descriptive and inferential statistics to determine the relationship among the variables. It also employs the series of diagnostic tests to ensure stability of the time series used as well as to ensure the model meets the assumption of OLS. The findings reveal that Cash flow was observed to determine insurance firms’ financial performance and is statistically significant. Cash flow from operating activities was observed to significantly increase financial performance of the insurance companies in the period examined. Cash flow from financing activities was found to increase the financial performance of the sampled insurance firms, but was not statistically significant. The size of the insurance company did not increase the financial performance of the insurance firms and was also not statistically significant. The paper recommends that managers in insurance firm should regularly change the extent of the cash outflows under each activity to avoid negative cash flow position as well as financial crisis. Adequate investment appraisal is really a concern that insurance firms need to take into consideration when customers are taking up insurance coverage. The costs have to be weighed against the benefits accruable therefore.
BANKING SECTOR DEVELOPMENT AND PERFORMANCE OF THE NIGERIAN ECONOMY
(IJMSR, 2016) Igbinosa, S.O.; Ogbeide, Sunday Oseiweh
The study examines banking sector development and performance of the Nigerian economy using time series data for the period 1988 to 2013. The study uses unit root testto determine the stationary state of the variables. It also employs the Johansson co-integration and error correction model (ECM) statistical techniques to establish both short-run and long-run dynamic relationships between the endogenous and exogenous variables. The findings reveal that total number of banks (TNB), broad money supply (M GR) and interest rate had 2 negative effects on the performance of the Nigerian economy in the period observed and were statistically insignificant. However,bank credit and bank deposit have positive impact on economic growth and the relationships are statistically significant in the short- run. The paper concludes that certain banking sector variables positively promote economic growth in Nigeria.The paper recommends that monetary authority, the Central Bank of Nigeria should strengthen the banking sector by coming up with appropriate monetary and regulatory policies that promote the financial intermediation role of banks and ultimately banks' contribution to Nigerian economic growth.
Evaluating the Impact of Monetary Policy on the Growth of Emerging Economy: Nigerian Experience
(American Journal of Economics, 2016) Obadeyi, J. A.; Okhiria, Adebimpe O.; Afolabi, Victor K.
The study evaluated the impact of monetary policy on the growth of emerging economy: Nigerian experience. It was not a gain saying that monetary policy played significant roles in any country’s financial growth and development both in high and low income economies, but are constrained by fiscal dominance, high cost of funds, high inflation etc., but exchange rate, interest rate, money supply and foreign reserve are some of the significant monetary policy indicators that can ascertain national economic growth. The study covers between 1990 and 2012, the scope is considered because it fell within the era of market-based monetary period. Automated Statistical Package Technique (ASPT) was used to analyse the model. The Ordinary Least Square (OLS) technique was adopted in the study in order to assess the relationship among the economic variables. The paper concludes that the major problem of monetary policy was as a result of the CBN’s inability to control the money supply and bank credits, which were very essential for measuring and proffering solution to the substantial credit spreads between short-term central bank policy rates and the rates facing households and firms in the economy. The study recommended that the government should implement countercyclical policy that would lead to the desired expansion of output (and employment); though, it entailed an increase in the money supply, which would also result in an increase in prices, but policymakers should commit to holistic policies, rules and regulations that would remove full discretion in adjusting monetary policy.

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