Financial Statements’ Analysis and IFRS Adoption during the Transitioning Period: The Case of Nigerian Banks

This study examined the effect of adoption of IFRS on financial statement analysis in Nigerian banks during the transitioning period. The same-firm year research design was employed using data from the financial statements prepared under SAS and IFRS for year 2011 for selected Nigerian banks. These data included: Current Ratio (CR), Return on Capital Employed (ROCE), Earnings per Share (EPS), and Debt to Equity (DE). Analyses of the data using ANOVA tests, correlation and OLS regression techniques yielded mixed results. The ANOVA results indicated no significant statistical difference in means of financial ratios of SAS and IFRS financial statements while the results of the correlation and the regression analyses suggest strong positive relationships between each pair of ratios. SAS financial ratios also exerted significant positive effect on IFRS financial ratios for each pair with coefficients greater than 1. The study concluded that IFRS ratios provide larger positive variations when their equivalent SAS ratios are positive and vice versa. Also, financial statements prepared under IFRS seem to reflect better economic reality of the sampled banks’ business activities because of its measurement procedures and more extensive disclosure requirements. Thus, we recommended that for effective analysis of financial statements prepared under IFRS, there is need for the financial analysts to take into consideration the numerous narrative reports and disclosures provided since values presented in the statements of comprehensive income and financial position alone cannot provide the adequate information required to make informed economic decisions. Keywords: IFRS adoption, Current ratio, fair value, impairment adjustment, EPS

Value Relevance of Accounting Information and Firm Value: A Study of Consumer Goods Manufacturing Sector in Nigeria

Studies on the improvement of value relevance of accounting information between IFRS and other accounting standards’ regimes as well as on value change after the adoption of IFRS have yielded mixed results. This study investigates the value relevance of accounting information of companies listed on the Nigerian Stock Exchange (NSE) using modified Ohlson model. The population of the study consists of all the 28 listed firms under the consumer goods sector. Judgmental sampling technique was used to select ten of the firms. Secondary data obtained from the annual reports of sampled firms were used to investigate the value relevance of accounting numbers. Content analysis was used to measure the qualitative values of accounting information (relevance, faithful representation, understandability, comparability and timeliness). The outcome of Hausman’s test favoured the use of pooled OLS. ANOVA test was also conducted. The findings showed that there is no significant difference between the value relevance of accounting information prior and after the adoption of IFRS. The study therefore, could not support the idea that global adoption of uniform standards lead to improvements in reporting quality. It was concluded that transition in standards from SAS to IFRS has no significant influence on the accounting information as a predictor of firm’s value. Keywords: Value, Information, IFRS, Ohlson model, Accountants, Analys

Tax Planning and Firm Value: Empirical Evidence from Nigerian Consumer Goods Industrial Sector

Taxes on corporate profits are mandatory and usually constitute a large outflow for firms that, if not planned, lead to disproportionate and unwilling transfer of corporate resources to the government with its negative impact on the operating capacity and firm value. In the light of this, the study examined the effect of tax planning on firm value. Ex-post facto research design was adopted. The study covered 50 firm-year observations for the period, 2010-2014. Data were drawn from the published financial statements of the sampled companies and analyzed using descriptive and inferential statistics centred on specified panel regression model. The joint effect of the considered tax planning proxies on the firm value was significant (F-stat. =2.580; P-value = 0.032). While Effective tax rate (ETR), Dividend (DIV) and Firm age (FAG) are positively and significantly related to firm value, firm size, leverage and tangibility exert negative effect on firm value. The Adj. R2 value of 20.6% was not sufficiently strong in explaining the variation in firm value. The study concluded that wholistic approach to tax planning and optimal mix of tax planning strategies are important determinants of their effect on firm value. Keywords: Firm value, Tax planning, Political cost theory, Tangibility, leverage

Human resource accounting and organizational productivity of listed manufacturing firms in Nigeria

In many developing economies, studies have shown that meeting organizational productivity seems complex and characterized with several factors affecting the productive inputs, due to infrastructural deficits and extent of employees’ motivations capable of impeding productivity. Beyond these, adequate human resource accounting has been identified as a possible solution. However, the extent to which human resource accounting could impact on organizational productivity remains uncertain. Consequently, this study investigated the effect of human resource accounting on organizational productivity of listed manufacturing companies in Nigeria. An ex-post facto research design was employed, while from a population of 66, the study selected 20 manufacturing companies listed in Nigeria as of 31 December 2021, using purposive sampling technique. Data were extracted from the financial statements of the selected companies for a period of 15 years spanning from 2007 to 2021. Using panel data analysis, the study found that human resource accounting had a positive significant effect on organizational productivity of the listed manufacturing companies in Nigeria. Based on the results, the study recommended that managers should consider appropriate incentives capable of improving employees’ productivity and adopt adequate human resource accounting models to enhance organizational productivity

Socio-demographic correlates of treatment response among patients with schizophrenia in a tertiary hospital in South-East Nigeria.

Background: Many patients with schizophrenia respond poorly to antipsychotic medication. Few studies have systematically examined the relationship of social and demographic characteristics of these patients to treatment response in our environment. Objective: To identify the social and demographic variables associated with treatment response in patients with schizophrenia. Method: A total of 172 participants with a diagnosis of schizophrenia receiving antipsychotics took part in the study. Participants were consecutively recruited involving patients presenting for the first time, or relapsed patients who had stopped antipsychotics in the previous six months. Both in-patients and out-patients who met the inclusion criteria were studied. Socio-demographic interview schedule and the Positive and Negative Syndrome Scale (PANSS) were administered at the initial encounter and between 4 and 6 weeks, subsequently. Results: Defining good treatment response as 65 20% reduction in PANSS score, 68% had a good response while 32% had poor response. Good response to treatment was associated with late age of onset of illness, satisfactory family relationship, acquisition of skilled occupation and being married. However, there was no association between treatment response and gender. Conclusion: Knowledge about these variables in relation to treatment response would improve mental health services as regards articulation of prognosis and psycho education

Relationship between religiosity, religious coping and socio-demographic variables among out-patients with depression or diabetes mellitus in Enugu, Nigeria.

Background: Religion is a powerful coping strategy. Diabetes and depression are common conditions in our environment that induce psychological distress, thus requiring coping for better outcome. Studies indicate that increased religiosity is associated with better outcome in clinical and general populations. Therefore, studies of the distribution of religiosity and religious coping among these populations are essential to improve outcome. Objectives: To assess the association between religiosity, religious coping in depression and diabetes mellitus, and selected sociodemographic variables (age, gender and occupational status). Methods:Using simple random sampling we recruited 112 participants with diabetes and an equal number with depression consecutively, matching for gender. Religiosity was determined using religious orientation scale (revised), religious coping with brief religious coping scale and socio-demographic variables with a socio-demographic questionnaire. Results: Intrinsic religiosity was greater among older people with depression than among older people with diabetes(t=5.02,p<0.001); no significant difference among young people with depression and diabetes(t=1.47,p=0.15).Positive religious coping was greater among older people with depression than among older people with diabetes(t=2.31,p=0.02); no difference among young people with depression and diabetes(t=0.80,p=0.43). Females with depression had higher intrinsic religiosity scores than males with depression(t=3.85,p<0.001); no difference in intrinsic religiosity between females and males with diabetes(t=0.99,p=0.32).Positive religious coping was greater among participants with diabetes in the low occupational status(t=2.96,p<0.001) than those in the high occupational status. Conclusion: Religion is indeed a reliable coping method, most commonly used by the elderly and females with depression. Positive religious coping is more common among diabetic patients who are in the low occupational status

Integrated Reporting and Protection of Non-Financial Stakeholders in Nigerian Deposit Money Banks

Disclosure quality has been the motivation behind every corporate reporting evolution and recently integrated reporting (IR). However, the concern is its focus and coverage. Studies have shown that IR gives more protection to financial capital providers than to other stakeholders. Thus, this study examined the impact of IR on non-financial stakeholder (employee, customer, and society) protection in Nigeria with focus on Deposit Money Banks (DMBs). This study sampled and analyzed 13 DMBs listed on the Nigerian Exchange (NGX) as at 31 December 2020. The study found that IR had a significant difference in pre- and post-IR Framework eras and a significant effect on employee, customer, and society protection. The study concluded that IR affected protection of non-financial stakeholders in Nigerian DMBs. It was recommended that regulators, corporate leaders, and researchers should pay more attention to and treat the non-financial stakeholders as capitals, rather than a means to corporate performance

Integrated Reporting and Protection of Non-Financial Stakeholders in Nigerian Deposit Money Banks

Disclosure quality has been the motivation behind every corporate reporting evolution and recently integrated reporting (IR). However, the concern is its focus and coverage. Studies have shown that IR gives more protection to financial capital providers than to other stakeholders. Thus, this study examined the impact of IR on non-financial stakeholder (employee, customer, and society) protection in Nigeria with focus on Deposit Money Banks (DMBs). This study sampled and analyzed 13 DMBs listed on the Nigerian Exchange (NGX) as at 31 December 2020. The study found that IR had a significant difference in pre- and post-IR Framework eras and a significant effect on employee, customer, and society protection. The study concluded that IR affected protection of non-financial stakeholders in Nigerian DMBs. It was recommended that regulators, corporate leaders, and researchers should pay more attention to and treat the non-financial stakeholders as capitals, rather than a means to corporate performance.</jats:p