AFRICAN JOURNAL OF ACCOUNTING, FINANCE & MARKETING

The study investigated the effect of cost of capital (cost of debt and cost of equity) and profitability (return on capital employed) of listed commercial banks in Nigeria.  The study sampled seventeen (17) listed commercial banks on the floor of the Nigerian Exchange Group. Data of cost of capital measures (cost of debt and cost equity) and profitability (return on capital employed) were obtained from the annual reports and accounts of the listed commercial banks from 2017-2022. The study employed ex-post facto design. Data obtained were analyzed via descriptive statistics (mean, median, standard deviation, minimum, and maximum values, skewness, and kurtosis, Pearson correlation matrix); post-estimation statistics (variance inflation factor, heteroscedasticity, Ramsey RESET, Cameron and Trivedi’s decomposition of IM-test) and inferential statistics (random-effects LR panel data regression).  The random-effects LR panel data regression revealed that there is significant relationship between cost of debt and cost of equity and return on capital employed of the listed commercial banks firms in Nigeria. The study recommended that management of commercial banks need to ensure an adequate use or level of equity in financing their operations.  More so, there is the need for management of commercial banks to strengthen debt-mix in the formation of their capital structure.  The study contributes to knowledge by using Peckings Order theory in explaining the relationship between costs of capital and profitability of listed commercial banks in Nigeria and filled the gap in the accounting literature on how costs of capital influence the level of profitability of commercial banks in Nigeria.

This paper analyses how the Development Finance Institutions have been effective in crowding in foreign and domestic private investment in Nigeria between the year 2000-2023. The research used the Autoregressive Distributed Lag (ARDL) bounds testing methodology to assess the effect of DFI investment on the flow of the private capital using the Central Bank of Nigeria, World Bank and DFI annual reports and conditioned the effect on the macroeconomic situation and institutional quality. Findings indicate imbalanced effects of crowding in: DFI interventions largely crowd-in foreign but show statistically insignificant effects on domestic privates. The growth of GDP, institutional quality, and macroeconomic stability turn out to be important determinants to both types of investments, whereas oil prices and exchange rates have a disproportional influence on foreign investment. The results indicate that although DFIs are able to attract international investors with signaling and mitigating risk schemes, mobilizing domestic capital has to be supported by complementary policies such as financial sector deepening, risk-sharing specific instruments, and governance changes. The research provides empirical information on the effectiveness of DFI in the country-specific setting and should inform the development finance policy and operation strategies.

This Study investigate the association between firm capital structure and performance of some selected companies in Nigeria. Secondary data were carefully obtained from thirteen selected companies in consumer goods firms in industrial sector for a period of six financial year between 2017- 2022. The ordinary least square was used to regress the various capital structure components on firm financial performance. The findings from the study revealed that; equity capital has no significant effect on corporate financial performance. There exists a negative and statistically insignificant relationship between short-term debt and firm financial performance. Long-term debt has a positive relationship with firm performance but the relationship is not statistically significant at 5% level of significant. There exists a positive and statistically insignificant relationship between working capital and firm financial performance. The study recommends that the issuance of shares to the public should be controlled in order to minimize the amount of profit that will be distributed to shareholders as dividends. Long-term debt should be given more consideration as a source of finance because it has a positive influence on firm performance.

The broad objective of the study is to examine the relationship between mandatory audit rotation and audit quality of firms in Nigeria. The study made use of secondary data collected from randomly selected 50 companies out of the total 151 companies for a period of 5 years. The data collected were analysed using the Ordinary Least Square technique. The results from the regression revealed that audit fees had a positive and statistically significant relationship with audit quality in Nigeria. That means audit fees were found to be a strong factor that influences audit quality in Nigeria. It was also found that audit firm size had a positive but statistically insignificant relationship with audit quality and finally audit tenure had a negative and statistically insignificant relationship with audit quality. The findings showed that the number of years the auditor audits for a company has no influence on audit quality. The study  therefore recommends that policy makers should consider implementing flexible regulatory frameworks that allows a balance between mandatory audit rotation and the potential risks associated with abrupt changes in audit engagements.

Despite numerous reforms and steps taken by the Central Bank of Nigeria (CBN) to manage the financial sector, financial instability persists among the regulated deposit money banks, mainly due to capital inadequacy. This study examines how diversification affects the financial stability of 15 selected national and international deposit money banks in Nigeria from 2009 to 2024. Diversification was measured by income, asset, and fund diversification, while the capital adequacy ratio (CAR) represented financial stability. The study adopted an ex post facto research design alongside a fixed-effects panel regression analysis in STATA 16.0. The results reveal that both income and fund diversification have a positive and significant impact on CAR, whereas asset diversification exerts a positive but insignificant effect. Board size and Bank size, used as control variables, also have a significant positive influence on financial stability. The study concluded that effective diversification strategies can improve bank stability. It recommended that banks should focus on increasing income-generating activities, adopt innovative asset allocation strategies, and expand funding sources to strengthen capital adequacy and long-term resilience.

This study investigates the relationship between risk governance and firm value of listed deposit money banks in Nigeria with a focus on audit committee risk, technology risk, and board committee risk as key components of environmental reporting. The purpose of this research is to address the gap in literature concerning the relationship between risk governance practices and firm value within the Nigerian banking sector, where the majority of research on company value focus on international financial reporting standards (IFRS), corporate governance (CG), and the audit committee without giving enough thought to risk governance in Nigeria. This Study aims to assess the relationship between risk governance and firm value of listed deposit money banks in Nigeria. The study adopts an ex post facto research design, utilizing panel data from 22 manufacturing firms listed on the Nigerian Exchange Group over the period 2013–2022. Secondary data were obtained from the firms' annual reports and financial statement, The research focuses on three critical aspects of risk governance: audit committee risk, technology risk, and board committee risk, with firm value measured by Tobin's Q, Market capitalization is included as a control variable. The findings  indicate that technology risk has a significant positive impact on firm value suggesting that banks with better ICT governance experience higher market value. Conversely, board committee risk exhibits a significant negative effect on firm value,indicating that an increase in risk committee meetings could be perceived negatively by the marketAudit committee risk, however, did not show a statistically significant effect on firm value implying that variations in audit committee governance do not meaningfully influence the financial performance of Nigerian banks. The study contributes to the understanding of risk governance in emerging markets, specifically within Nigeria’s banking sector,

The study examined the use of management accounting techniques as a veritable tool for organisational decision making. The success of businesses hinges on the quality of decisions made. The accounting system stands out as a primary contributor to management accounting. Management accounting techniques play a crucial role in enhancing organizational decision-making by facilitating routine operational decisions, guiding strategic choices, and reporting operational outcomes to the management. Thriving in a globalized environment entails facing intense business competition. To endure and attain objectives, businesses must adeptly handle costs. Management accounting techniques play a vital role in facilitating informed decision-making by furnishing valuable information. The key lies in comprehending these techniques, embracing them, and deploying them judiciously at the opportune moment and in the appropriate context.

The broad objective of the study was to examine the effect of customer relationship marketing on marketing performance of new generation banks in Port-Harcourt, Rivers State Nigeria. The specific objectives are to: ascertain the effect of trust on customer retention in the selected banks; examine the effect of commitment on customer retention in the selected banks, and to determine the effect of regular communication on customer retention of the selected banks. The research design for this cross- sectional study was survey research design. The population of the study comprised both staff and customers of the selected banks in Port-Harcourt, Rivers State. The sample proportion method was used in determining the sample size of 323 for the study. Data gotten from the field were majorly presented in tables for quick and easy understanding. These data were further analyzed using simple regression model with the help of SPSS version 25.0. Findings revealed that trust exerts significant effect on customer retention of new generation banks in Port Harcourt, Rivers State. Commitment was found to exert significant effect on customer retention of new generation banks in Port Harcourt, Rivers State. Similarly, regular communication exerts significant and positive effect on customer retention of new generation banks in Port Harcourt, Rivers State. The study concluded that customer relationship marketing affects banks performance. Based on the findings of the study, we recommended that Banks in Rivers State need to greatly improve on their practice of Customer  Relationship Marketing in order to deliver customer satisfaction in all levels most especially in this era of high competition. The banks’ strategic policies and core values should be focused on the elements of Customer Relationship Marketing, rather than on the policy that would yield no result.

This study investigated the effects of firm profitability, revenue growth, and firm life cycle stages on earnings management among non-financial firms listed on the Nigerian Exchange Group (NGX). Drawing on a sample of forty-one manufacturing firms with data spanning 2013 to 2022, the research adopts an ex-post facto design, utilizing secondary data from published financial statements. Descriptive statistics, correlation analysis, and variance inflation factor (VIF) tests were conducted to examine data characteristics and multicollinearity among variables. Inferential analysis employed random effect regression models to test three hypotheses regarding the relationships between earnings management and the selected firm-specific factors. The results reveal that profitability, revenue growth, and firm life cycle stage each exhibit positive but statistically insignificant relationships with earnings management, indicating that these variables do not significantly drive managerial manipulation of financial statements in the Nigerian manufacturing sector. The study concludes that enhancing governance frameworks, strengthening internal audits, and fostering managerial accountability are critical to mitigating earnings management, irrespective of profitability, growth, or life cycle stage. Policymakers and regulators are encouraged to implement measures that monitor discretionary accruals and ensure transparency, providing a safeguard against manipulative financial reporting. The research contributes to the literature by empirically evaluating multiple firm-specific determinants of earnings management in the Nigerian context, offering practical implications for corporate governance and financial oversight.