Department of Accounting

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A Cointegration Analysis of the Impact of Selected Macroeconomic Fundamentals on Stock Market Performance in Nigeria
(Academy of Strategic Management Journal Vol: 20, 2021) Ehikioya, Benjamin Ighodalo; Omankhanlen, Alexander Ehimare; Omodero, Cordelia Onyinyechi; Isibor, Areghan Akhanolu; Akinjare, Victoria Abosede; Okoye, Lawrence Uchenna
The stock market and macroeconomic fundamental variables are important elements with a significant impact on economic growth and development. Thus, using the Johansen cointegration technique and the Vector Error Correction Model, this paper examines the connection between stock market performance and macroeconomic fundamentals in Nigeria. The study employs data from the Nigerian Stock Exchange and the Central Bank of Nigeria from 2010 to 2019. The findings from the empirical analysis reveal evidence that a long-run equilibrium connection exists between stock market prices and several macroeconomic factors in Nigeria. The result of the study indicates that the exchange rate and inflation exerts a negative influence on stock prices. A positive connection exists between money supply, crude oil prices, financial openness and stock prices in Nigeria. However, the result from the post-2016 economic recession reveals a negative and significant influence of crude oil prices on stock prices while all other variables maintain their direction of relationship with stock prices. This result implies that there is a need for the government to embark on aggressive economic diversification to other sectors of the economy. Also, the government must reduce the interest rate to encourage investment in the stock market, in addition to creating an enabling environment through policies and programs that would stimulate the economy and boost investors’ confidence.
Adoption of Artificial Intelligence for Fraud Detection in Deposit Money Banks in Nigeria
(2024 International Conference on Science, Engineering and Business for Driving Sustainable Development Goals, 2024) Ayeni, Timi Joshua; Durotoye, Elizabeth Oyewunmi; Eriabie, Sylvester
This paper investigates the integration of artificial intelligence (AI) for fraud detection in internationally authorised banks, focusing on Nigerian banking institutions. The research was conducted exclusively within the Information and Communication Technology (ICT) departments of eight international authorised banks in Nigeria. The study administered questionnaires to bank staff in order to gather in-depth insights using a descriptive survey research design and quantitative methods. The questionnaire format was chosen for its ability to elicit detailed information relevant to the research inquiry. Data analysis was performed using Statistical Package for the Social Sciences (SPSS) and Structural Equation Modelling—Partial Least Squares (SEM-PLS), revealing a significant positive correlation between AI utilisation and enhanced fraud awareness. The findings suggest that AI implementation can significantly enhance the quality and security of banking transactions. In conclusion, the study advocates for deposit money banks to embrace AI technologies in their operations and collaborate with reputable cybersecurity firms for ongoing updates and support
Agricultural financing to guarantee food safety in an emerging nation: a case study of Nigeria
(Vilnius Gediminas Technical University, 2022) Omodero, Cordelia Onyinyechi; Ehikioya, Benjamin Ighodalo
Summary/Abstract: Investment in agriculture is very crucial in the present situation of Nigeria. The effort to overcome food insecurity can only be efficacious if steps in the right direction will be taken. At this juncture in the Nigerian economic history, the right step to take is to adequately finance agriculture in order to ensure sufficient food production and safety that will save the future of the country. This study emphasizes on investment in agriculture to guarantee food security in Nigeria. Several other studies focus on the numerous challenges food production in Nigeria suffer, however, it is important to come to a conclusion that agriculture requires huge financial investment to thrive. This study examines the impact of agricultural financing and output on food production using data from 2007−2019. The regression result reveals that agricultural output is significant and positive in affecting food production and safety but agricultural financing is immaterial in guaranteeing sufficient food production in the country. This result gives evidence that investment in the agricultural sector will be the solution to food insecurity in Nigeria. The government is by this study encouraged to increase the budget on agriculture in order to boost food supply and safety in the country
Agricultural Revamping via Major Capital Outlay the Antidote to Food Insecurity Challenges in Nigeria
(Academy of Entrepreneurship Journal, 2020) Omodero, Cordelia Onyinyechi; Adetula, Dorcas; Iyoha, Francis Odianonsen
Food insecurity in Nigeria has necessitated this study which emphasizes agricultural revamping as the antidote to the prevailing circumstance of food crisis in the country. This study draws the attention of the present administration to the urgent need for significant capital investment in agriculture as a means to proffer a permanent solution to food insecurity in Nigeria. This study employs literature review approach and discovers that the factors impeding food safety in Nigeria include farmers' lack of access to the credit facility, insufficient farmlands, security threat on farmers and farmers’ lack of education. However, relevant econometric techniques and statistical tools are specifically applied to examine the impact of government expenditure and agricultural output on food safety using a secondary source of data spanning from 2008 -2019. From the findings of this study, agricultural output has a considerable influence on food safety, but government expenditure on agriculture is yet to gain momentum in affecting adequate food production in the country. Thus, this study concludes that there is an urgent need for the government to invest significantly in agriculture which serves as an antidote to food security challenges in Nigeria.
AMismatch between External Debt Finances and Consumption Cost in Nigeria
(Journal of Open Innovation: Technology, Market, and Complexity, 2020) Omodero, Cordelia Onyinyechi; Egbide, Ben-Caleb; Madugba, Joseph Ugochukwu; Ehikioya, Benjamin Ighodalo
This study scrutinizes the influence of external obligation on the cost of living in Nigeria. In recent times, Nigeria has been tagged as the headquarters of world poverty due to the unaffordable cost of living that has resulted in all manner of crimes prevailing in the country. However, the role of foreign loans being contracted by the government in reducing consumption cost has become a concern, hence this investigation. This study made use of a secondary form of statistical records covering the period 2000–2018. The result of the data analysis has shown that external debt does not improve consumption cost, but rather aids the rising cost of living in Nigeria. In a nutshell, the study suggests that the government should invest a large chunk of the borrowed funds into agriculture and local manufacturing for sufficient food supply and provision of goods and services at reasonable costs. This study recommends support for infant industries and entrepreneurship to reduce the consumption cost in the country. The study also encourages the government to seek debt rearrangement or outright revocation by the lending institutions and countries
An Empirical Investigation of the Impact of Ownership and Board Structure on Capital Structure of Listed Firms in Sub-Sahara African Countries
(Academy of Strategic Management Journal, 2021) Ehikioya, Benjamin Ighodalo; Omankhanlen, Alexander Ehimare; Inua, Ofe Iwiyisi; Okoye, Lawrence Uchenna; Okafor, T. C.
Balancing Innovation With Cybersecurity: Exploring the RoleofEmergingTechnologiesinDigitalTransformationfor Socioeconomic Development in Nigeria
(Human Behavior and Emerging Technologies, 2025) Osimen, Goddy Uwa; Wonosikou, MohadapwaHunnoungu; Fulani, OluwakemiM.; Adedeji, BethelOluwatosin; Alawode, Olufemi Peter
Rapid digital adoption in Nigeria has been accompanied by rising cybercrime; a 2021 Sophos survey found 71% of Nigerian organizations experienced cyberattacks, 44% of which paid ransoms averaging USD 3.43 million. The integration of emerging technologies (artifcial intelligence, blockchain, Internet of Things, and 5G) ofers transformative opportunities for the digital economy but introduces salient cybersecurity risks. Despite Nigeria’s growing adoption of digital tools, limited research sys tematically examines how emerging technologies can drive socioeconomic development while addressing cybersecurity risks. Framed by Technological Determinism, this study examines how Nigeria can harness these technologies for sustainable so cioeconomic development while mitigating cyber threats. Using an exploratory design, it conducts a systematic thematic review of secondary literature, policy documents, and technical reports; data were analyzed thematically. The fndings indicate that, when efectively deployed and governed, emerging technologies can enhance industrial efciency, expand fnancial inclusion, strengthen governance, and support innovation-led economic diversifcation. Realizing these benefts require coherent regulatory frameworks, integrated cybersecurity measures, and targeted capacity-building. The paper concludes with policy recommen dations emphasizing regulatory harmonization, public-private collaboration, and investment in cyber resilience to balance in novation and security during Nigeria’s digital transformation.
BANK DIVERSIFICATION STRATEGY: A POLICY MEASURE FOR A SUSTANABLE BANKING SYSTEM IN POST COVID-19 FINANCIAL CRISES
(1st INTERNATIONAL CONFERENCE ON INNOVATION AND SUSTAINABLE DEVELOPMENT, 2023) Olokoyo, Felicia O.; Ighosewe, Felix E.; Agbogun, Oghenekparobo E.; Adegboye, Folasade B.; Isibor, Areghan
The Nigerian banking industry acknowledges diversification as a strategy for ensuring financial sustainability. However, the major question is: if this assertion is true to life even with the advent of the COVID-19 pandemic? Hence, the present study aimed at eliciting information from the research respondents on their perception on the contributory role of product, service, marketing, and internal growth oriented diversification strategy in ensuring a financially sustainable banking system with a view to formulate strategic policy to address Post COVID-19 financial crises. Accordingly, we shared 600 questionnaires distributed across selected deposit money banks situated in three (3) metropolitan cities of Delta State; the study area. However, 485 questionnaires were retrieved. Data derived from the filed survey was analyzed using the Pearson’s product-moment correlation (PPMC) while the hypotheses were tested using the 95% Pearson Correlation critical value. The result reaffirmed that, the more banks diversify their products, services, marketing activities, and internal dynamics, the more financially sustainable they become. To this end, the study advocate that for Nigerian banks to be financially sustainable in the Post COVID-19 financial crises, they have to shield themselves with product, service, marketing and internal growth oriented strategies as enunciated in this study. Again, bank management should uphold good corporate governance principles as well as frown against all forms of corrupt tendencies, which can inhibit best banking practices in Nigeria.
Board Expertise and Sustainability Reporting in Listed Banks in Nigeria
(2019) Umukoro O. E.; Uwuigbe O. R.; Uwuigbe U.; Adegboye Alex; Ajetunmobi O.; Nwaze C.
Despite the growing evidence on the determinants of sustainability reporting, there exist limited and inconclusive studies on the impact of board expertise on sustainability reporting. This study investigates the influence of environmentally sensitive, certified or educated board members on the disclosure of sustainability report. Based on the static panel data regression estimators for 10 Nigerian Deposit Money Banks over the period of 2014- 2016, the study revealed that highly educated directors have an altogether constructive influence on the sustainability report disclosure while controlling for corporate administration and firm-level qualities. In addition, we find that the executive and non-executive directors have low experience in environmental issues resulting in an insignificant effect on the disclosure of sustainability reporting. This paper suggests that firms should allow more directors with environmental background, who have a lower motivation to boost transient returns since they are likely to influence environmental performance
Can adoption of digital technologies ease household burdens? New evidence from West Africa using a C-S ARDL approach
(Heritage and Sustainable Development, 2025) Marcus, Samuel Nnamdi; Osimen, Goddy Uwa; Emmanuel, Uche; Nwobodo, Helen
Technology adoption is essential for sustainable development, particularly in shaping a country’s growth. While many studies have explored technology use in sub-Saharan Africa, few have examined how it affects household burdens in West Africa. This study fills that gap by analyzing the impact of technology adoption on household burdens across 12 West African countries between 1996 and 2020. It focuses on four key technologies: mobile and cellular use, internet access, clean fuel and cooking technologies, and electricity access. Using a panel data analysis method (the pooled mean group estimator of the ARDL model), the study finds that, in the long run, increased internet use, clean fuels, and access to electricity significantly reduce household burdens. However, in the short term, the effects of clean fuels and electricity access are not statistically significant. Overall, the results show that technology adoption can reduce household burdens, but the extent of its impact varies by country, depending on how widely and effectively the technology is adopted. The study highlights the need for strong policies that promote infrastructure development, technology access, and user acceptance—especially for internet services, clean fuels, and modern cooking technologies—to improve household well-being in the region.
Chief financial officer roles and enterprise risk management: An empirical based study
(Heliyon, 2019) Ojeka Stephen A.; Adegboye Alex; Adegboye Kofo; Alabi Oluwaseyi; Afolabi Mosinmileoluwa; Iyoha Francis
This study investigates the influence of CFO roles on the implementation of ERM initiatives in a sample of Nigerian financial institutions (between 2013-2017). We develop three distinct factors representing the CFO roles namely CFO power, CFO experience and CFO knowledge using principal component factoring. Like prior work, we measure ERM components simultaneously to capture the extent of sophisticated ERM system. Our findings pose that the CFO involvement in ERM implementation remains minimal while the CRO is solely responsible for ERM implementation, which could undermine cost-benefit effectiveness. Our empirical evidence reports that the sophisticated ERM only promote the market evaluation while the accounting performance is undermined. The result then contravenes the expectation that effective ERM enhances accounting performance by mitigating risk exposure. While the sophisticated ERM is significantly positive with leverage, which reveals that ERM implementation does not necessarily reduce the firm risk. This indicates that the ERM implementation remains ineffective to mitigate risks, where the CFO involvement in the ERM initiative is limited. We then advocate that CFOs should be allowed to contribute strongly on some specific aspects of ERM initiatives namely identification and analysis of key risk indicators, the financial implication of risks and integration of ERM into traditional finance activities.
Chief financial officer roles and enterprise risk management: An empirical based study
(Heliyon, 2019) Ojeka Stephen A.; Adegboye Alex; Adegboye Kofo; Alabi Oluwaseyi; Afolabi Mosinmileoluwa; Iyoha Francis
This study investigates the influence of CFO roles on the implementation of ERM initiatives in a sample of Nigerian financial institutions (between 2013-2017). We develop three distinct factors representing the CFO roles namely CFO power, CFO experience and CFO knowledge using principal component factoring. Like prior work, we measure ERM components simultaneously to capture the extent of sophisticated ERM system. Our findings pose that the CFO involvement in ERM implementation remains minimal while the CRO is solely responsible for ERM implementation, which could undermine cost-benefit effectiveness. Our empirical evidence reports that the sophisticated ERM only promote the market evaluation while the accounting performance is undermined. The result then contravenes the expectation that effective ERM enhances accounting performance by mitigating risk exposure. While the sophisticated ERM is significantly positive with leverage, which reveals that ERM implementation does not necessarily reduce the firm risk. This indicates that the ERM implementation remains ineffective to mitigate risks, where the CFO involvement in the ERM initiative is limited. We then advocate that CFOs should be allowed to contribute strongly on some specific aspects of ERM initiatives namely identification and analysis of key risk indicators, the financial implication of risks and integration of ERM into traditional finance activities.
“Corporate dynamism and cash holding decision in listed manufacturing firms in Nigeria”
(Problems and Perspectives in Management, Volume 17, 2019) Ozord, Emmanuel; Adetula, Dorcas; Elueya, Damilola Felix; Eluyela, Damilola Felix; Aina, Adenike; Ogabi, Mautin Arinola
Cash holding decision is a very crucial decision that strongly affects the performance of an organization. Corporate dynamism as a corporate governance tool was explored in this study in order to establish its relationship with cash holding decision in listed manufacturing companies in Nigeria. Board skill, female leadership, foreign directors, board ownership and directors’ compensation were used as proxies for corporate dyna mism. A panel regression model was adopted in this study to examine the implication of corporate dynamism on cash holding decisions spanning six years from 2012 to 2017. Random sampling technique was employed in order to arrive at thirty firms out of thirty-seven listed manufacturing firms, which comprised industrial and consumer goods sector. Board ownership and the existence of foreign expatriates were found to have a significant effect on cash holding decisions. It is concluded that directors with significant holdings tend to be more aggressive towards activities that enhance the performance of a firm, one of which is ensuring that optimal level of cash is held at a particular point in time in order to guide against liquidity problems, which may be caused by overtrading or even keeping excess idle cash, which is supposed to be invested in profitable ventures. Also, the fact that the existence of foreign expatriates will affect cash holding decisions, which may be justified by the fact foreign expatriates are displaying expertise because of diverse experience that they have been able to gain from different parts of the world.
Corporate environmental reputation management and financial performance of environmentally sensitive companies in Nigeria
(Cogent Social Science, 2020) Oluseyi-Sowunmi, Sharon O.; Iyoha, Francis Odianonsen; Owolabi, Akintola A.
Business activities have direct and indirect effects on their immediate environment. The degree of impact a business venture would have on the envir onment depends on the nature of business. This work examines the impact of environmental reputation management on the financial performance of environ mentally sensitive companies in Nigeria. This work includes an extensive review of relevant literature, hinging this research on stakeholder theory. Data were gathered from corporate annual reports and sustainability reports sourced on-line. The ana lytical research design was utilised in undertaking the study. A sample of 46 companies was selected from public limited liability companies listed on the Nigerian stock exchange and operating in environmentally sensitive sectors. The corporate reports were analysed from 2008 to 2017 financial years. Linear Regression analysis was employed to test the hypothesis. Findings revealed a significant positive relationship between corporate environmental reporting quality and financial performance; reputation risk management and financial per formance of environmentally sensitive companies in Nigeria. The level of environ mental reporting quality by environmentally sensitive companies in Nigeria causes 13.1% change in the financial performance of the reporting company. Corporate reputation risk management of environmentally sensitive companies in Nigeria causes 11.4% change in the company’s financial performance. It is hereby, recom mended that environmentally sensitive companies should ensure high-quality environmental reputation management to achieve their profit maximisation aim. This high-level environmental management contributes to the achievement of the fifteenth sustainable development goal (life on land), set to attain sustainable management of forests, freshwater and ecosystem.
CORPORATE GOVERNANCE AND CREATIVE ACCOUNTING PRACTICES IN THE LISTED COMPANIES IN NIGERIA
(Academy of Accounting and Financial Studies Journal, 2020) Olojede, Paul; Iyoha, Francis Odianonsen; Ben-Caleb, Egbide
The idea that firms should be ‘governed’ as opposed to just being ‘managed’ is a recent phenomenon that has caught the attention of the stakeholders because of the global financial crisis of 2008. Despite the various governance reforms, the managers take undue advantage of imperfections in the market to manage earnings to the detriment of other stakeholders. This paper empirically studied the impact of corporate governance mechanisms on creative accounting practices in the listed companies in Nigeria. We used a longitudinal design for the study because repeated observation of the same variables are involved (corporate governance mechanisms and creative accounting practices) over a 13-year period (2005 -2017). The study population was 166 listed companies on the Nigerian Stock Exchange as at 31st December, 2017 and 70 companies were selected as a sample, using multi sampling technique. We collected data for the variables from the companies’ annual reports and accounts sourced from African Financials, Nigerian Stock Exchange and individual company websites. The study used descriptive statistics, correlation, OLS regression, panel fixed effects model (FEM) and panel random effects model (REM) for the analysis and hypothesis testing. The outcome of the study revealed that corporate governance mechanisms jointly have a great significant impact on creative accounting practices (CAP) in Nigeria, but the level of impact differs among individual corporate governance mechanisms. Audit committee and gender diversity have negative and significant relationship with creative accounting practices, showing that increase in either of them reduces unethical practices and manipulation of accounting numbers. The ownership concentration has a positive and significant impact on creative accounting practices. However, board size, board independence, managerial ownership and CEO duality are positive and do not have any significant impact on creative accounting practices. The study recommends for the use of both sanctions and moral suasion in compelling compliance with relevant laws, accounting standards and corporate governance codes. In addition, more women participation on the board and audit committee independence should be encouraged.
Corporate governance and sustainability reporting quality: evidence from Nigeria
(2021) Erin Olayinka; Adegboye Alex; Bamigboye Omololu Adex
Purpose This study aims to examine the association between corporate governance and sustainability reporting quality of listed firms in Nigeria. Design/methodology/approach The authors measure corporate governance using board governance variables (board size, board independence, board gender diversity and board expertise) and audit committee attributes (audit committee size, audit expertise and audit meeting). The authors measured sustainability reporting quality using a scoring system, which ranges between 0 and 4. The highest score is achieved when sustainability reporting is independently assured by an audit firm. The lowest score refers to the absence of sustainability reporting. The study emphasizes 120 listed firms on Nigeria Stock Exchange using the ordered logistic regression technique. Findings The results indicate that board governance variables (board size, board gender diversity and board expertise) and audit committee attributes (audit committee size, audit expertise and audit meeting) are significantly associated with sustainability reporting quality. Additional analysis reveals that external assurance contributes to the quality of sustainability reporting through corporate governance characteristics. Research limitations/implications This study is restricted to a single country. Future studies should consider a cross-country study, which may help to establish a comparative analysis. Likewise, the future study could consider other regression techniques using a continuous measurement of the global reporting initiative in measuring sustainability reporting quality. Practical implications This study’s findings have important implications for policymakers and practitioners, especially the corporate executives and top management. Companies are encouraged to restructure their board to enhance better monitoring and support towards better sustainability reporting. Social implications Disclosure on sustainability reporting helps corporate organizations advance the issues of sustainability both nationally and globally. Originality/value This current study adds to accounting literature by examining how corporate governance contributes to sustainability reporting practices within the Nigerian context. Drawing from the result, the study provides strong interconnectivity between the corporate board and audit committee in driving sustainability reporting quality within an organizational context.
Determinants of bank stability in an emerging market: A dynamic panel evidence from Nigeria
(Asian Economic and Financial Review, 2026) Adesina, Fasiu Idowu; Ehikioya, Benjamin Ighodalo; Ikpefan, Ochei Ailemen
Banks are a key driver of economic activities, especially in emerging markets, where capital markets are not well developed. Thus, this study examines the factors that determine the stability of banking in an emerging market. We have employed the fixedeffects and dynamic System-GMM techniques to analyze panel data collected from the annual reports of the banks, the bulletin of the Central Bank of Nigeria (CBN), and the World Bank database from 2014-2023. These estimators address heterogeneity, measurement error, endogeneity, and unobserved biases. The results indicate that capital adequacy ratios, liquidity ratios, efficiency, bank size, quality of governance, and profitability are important in enhancing bank stability in Nigeria. Although past stability has a positive influence on present stability, GDP growth has a positive but statistically insignificant effect on resilience. Bank stability is adversely impacted by non-performing loans, inflation, the quality of institutions, and interest rates. These findings suggest that banks should be regulated on bank-specific variables, including non-performing loans. The Central Bank should further strengthen its control over the Nigerian banking industry to foster resilience and sustainability. Policymakers should improve the level of governance and policies that promote stability.
Digital transformation and bank capital adequacy in Sub-Saharan Africa
(Asian Economic and Financial Review, 2026) Alawode, Olufemi Peter; Nwobodo, Helen; Nwobu, Obiamaka; Eriabie, Sylvester; Arogundade, Jamiu
This study examines the impact of digital transformation elements on the capital adequacy of deposit money banks in Sub-Saharan Africa, isolating the capital adequacy component of the CAMEL performance framework using six proxies of digitalization. An ex post facto study with panel data from listed banks in six countries (2013–2022) was analyzed with descriptive statistics, relevant diagnostic tests, and a random effects regression model, validated by the Hausman test. The findings indicate that financial inclusion, internet utilization, and bank size substantially enhance capital adequacy, whereas technology-related investments diminish it due to financial burdens and cyber risk vulnerabilities. Using ATMs and mobile banking was insignificant, reflecting their maturity as baseline utilities that are already considered basic infrastructure and thus not able to generate a significant impact. The model accounted for 57.6% of the variation in capital adequacy, highlighting the significant yet partial role of digitalization in solvency. Findings highlight that digitalization is not uniformly beneficial; regulators and compliance institutions should integrate digital risks into supervisory frameworks, and banks should prioritize initiatives that strengthen prudential outcomes. The study extends digital transformation literature by addressing capital adequacy, offering evidence-based insights for balancing innovation with systemic stability in Sub-Saharan Africa.
Do corporate attributes impact integrated reporting quality? An empirical evidence
(Journal of Financial Reporting and Accounting Vol. 20 No. 3/4, pp. 416-445(Emerald Publishing Limited), 2021-06-10) Erin Olayinka; Adegboye Alex
Purpose This study aims to examine the impact of corporate attributes on integrated reporting quality of top 100 listed firms in South Africa. Design/methodology/approach With a sample of the top 100 listed firms in South Africa, this paper drew insights from the legitimacy and stakeholder theory to examine the impact of corporate attributes on integrated reporting quality. This paper measured integrated reporting quality based on the International Integrated Reporting Council framework of 2013. Corporate attributes were determined taking into consideration three broad perspectives (board committee attributes, firm attributes and audit committee attributes). This paper analyzed the data using content analysis, ordered probit regression and logistic regression method. Findings Results indicate that board committee attributes, firm attributes and audit committee attributes have a positive and significant relationship with integrated reporting quality. Additional analysis reveals that external assurance contributes to the quality of integrated reporting. The findings empirically revealed that most South African firms have intensified efforts toward the quality and full disclosure of integrated reporting framework. Research limitations/implications The study was limited to a sample size of 100 firms, which is country-specific, however, it sets the tone for future empirical research on the subject matter. This study provides an avenue for future research in the area of corporate attributes and integrated reporting quality in other emerging countries, especially other African countries. Practical implications The result of this study provides practical implications in the areas of good corporate governance, corporate reporting and integrated reporting. The empirical approach used in this study emphasizes the need for corporate organizations to introduce integrated reporting practices into their reporting cycle. The finding implies that non-compliance with integrated reporting by corporate organizations may have an adverse effect on corporate growth, corporate sustainability and corporate reputation in the long run. Originality/value The work extends prior research on the subject of integrated reporting in South Africa. Also, this study broadens the application of legitimacy and stakeholder theory in influencing corporate organizations to disclose relevant information that could aids stakeholders’ interest.
DOES CEOs POWER MODERATE THE EFFECT OF AUDIT COMMITTEE OBJECTIVITY ON FINANCIAL REPORTING QUALITY IN THE NIGERIAN BANKING SECTOR?
(Academy of Strategic Management Journal, 2019) Ojeka Stephen A.; Fakile Fakile; Iyoha Francis O.; Adegboye Alex; Olokoyo Felicia
This study empirically examined the impact of audit committee objectivity (contingent on CEO Power) on the quality of financial reporting in the Nigerian Banking Sector. The study adopted a survey research approach and secondary data extracted from financial statement. The OLS and LSDV analysis were used to investigate the impact of Audit Committee objectivity on the quality of financial reporting with or without CEO power and influence. The findings showed, that, while audit committee independence impact positively on the relevance and reliability of financial report, the same cannot be said when there was CEO power. CEO power in the audit committee mitigated the benefits of independence and caused its overall effects on financial reporting quality of no significant in terms of relevance and reliability. The study therefore recommended that having a majority of independent directors would increase the quality of board oversight, lessen the possibility of damaging conflicts of interest and helps to repose inventors’ confidence especially foreign investors that would invariably draft in FDI. This will align boards’ decisions with the interests of shareholders they represent. This will reduce significantly the ability of the CEO overbearing influence on the committee activities in ensuring financial reporting quality.