Department of Finance

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Browsing Department of Finance by Author "Ayodele, Thomas"

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    An Empirical Analysis of Public Borrowing and Economic Growth in Nigeria
    (Academic Research Publishing Group, 2020) Ayodele, Thomas
    This study seeks to evaluate the impact of public borrowing on economic growth in Nigeria using time series data from 1980 to 2018. Specifically, the study seeks to analyze the effect of domestic debt (proxy by Federal Government Bonds FGB) and external debt (proxy by International Monetary Fund Loan-IMFL) on Nigerian’s Gross Domestic Product (GDP). To achieve this objective, secondary data was collected from the Central Bank of Nigeria Statistical bulleting and the Debt Management Office of Nigeria. A multiple regression model involving the dependent variable (GDP) and the independent variables (FGB and IMFL) was formulated and subjected to econometric analysis. These variables were adjusted with the Jarque-bera test of normality while the correlation result was used to check the possibility of multi collinearity among the variables. The t-test was used to answer the research questions and test the formulated hypotheses at the 5percent statistical level. Results from the analysis show that a positive relationship exists between IMF Loan and Nigeria’s gross domestic product, while a negative relationship exists between FG Bonds and Nigeria’s gross domestic product, which violates the Keynesian theory of public debt. The study concludes that both domestic and external debt significantly affect economic growth in Nigeria. Therefore, it was recommended that public borrowing should be efficiently used and contracted solely for economic reasons and not for social or political reasons as this will help to avoid accumulation of debt stock overtime.
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    An Assessment of Cashless Policy in Nigeria
    (International Journal of Physical and Social Sciences, 2015-09) Ayodele, Thomas
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    An Assessment of the Impact of Capital Structure on Corporate Performance of Nigerian Manufacturing Companies
    (SJBEM, 2018) Ayodele, Thomas
    The study investigates the impact of the use of various long term funds on the performance of Nigerian companies. Secondary data were collected from the case study, Unilever Nig. Plc which was picked through purposive sampling method. Analysis of data was done by using multiple regression of the ordinary least square (OLS) method on the data extracted from twelve years financial statements of the company to test for the relationship between its capital mix and its value, measured in terms earnings per share (EPS). The findings show that both long term debt and profit have positive correlation with EPS, while equity is negatively correlated with EPS. The overall result was statistically significant with F-ratio value of 690. Based on the results, the financial managers of corporations are advised to always embark on appropriate financial mix between equity and debt alongside retained earnings that will maximised the returns to shareholders and monitor other market variables that may serve as constraints in achieving the overall goals of their companies
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    Bad Debts and Investment Growth among Nigerian Banks: An Empirical Analysis
    (IJECM.co.uk, 2015-05) Ayodele, Thomas
    The principal task of bank management is to generate sufficient return on their shareholders investment. However, of recent, there have been criticisms and allegations of bad and doubtful debts reported by banks annually. This raise the question as to whether banks accomplish the task of maximizing shareholders’ returns on their investment and whether the banking system is still one of the most enviable and profitable investment options in Nigeria. In the study, an attempt was made to identify the causes of bad and doubtful debts, effects on banks’ profits and investment and how they can be ameliorated with the use of appropriate securities and management teams put in place. The study made use of secondary data collected from ten-year annual reports of First Bank Nig. PLC, a sample selected purposively from Nigerian commercial banks. Regression analysis was used to determine the effect of bad debts on the investment growth of the bank. And it was discovered that bad and doubtful debts has an inverse relationship with investment growth of the bank. And, loan losses and credit risk if not checked will lead to low investment growth rate thereby jeopardizing shareholders’ returns. It is therefore suggested that both commercial banks and monetary authorities should put necessary machinery in place to safeguard any impending loan losses in the banking sector in order to instill confidence among depositors and boost the Nigerian economy as a whole.
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    Capital Budgeting Decisions and the Multiple Rates of Return Controversy- A Review
    (Journal of Business and Organizational Development, 2012-09) Ayodele, Thomas
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    Capital Flight and the Nigerian Economy: An Empirical Reassessment
    (IISTE.Org, 2014) Ayodele, Thomas
    The study empirically reassessed the impact of capital flight on the economic growth of Nigeria. The capital escaping from an economy is termed capital flight. This happens when capital escapes into safety or secrecy thereby depriving the source economy from its use. Reasons for this are poor economic situation, political crises, corruption, etc. Secondary data were collated from the publications of the Central Bank of Nigeria, Bureau- De Change, and Global Finance Integrity to examine the relationship that exists between the Gross Domestic Product (GDP) of Nigeria and the Capital Flight from the country. The data covered a period of 20 years (i.e.1991-2010). The simple linear regression model was used to analyze the data. This was coupled with the F ratio used to test the formulated hypothesis. It was discovered from the analysis that there exists a very high positive correlation between GDP in Nigeria and capital flight from the country. It was also found out that capital flight has a significant impact on the GDP of Nigeria. It was therefore recommended among others that the Nigerian economic and political environment should be made investment friendly by securing lives and property of present investors and would be investors. Government should also curtail the wind of corruption blowing across all the levels of government which has been aiding illegal transfer of capital from the economy. The economy would surely conquer the war against capital flight if the suggestions are implemented.
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    Corporate Financial Disclosure in Nigerian Deposit Money Banks
    (Society for science and education, 2018-02-25) Ayodele, Thomas
    The study examined the impact of corporate financial disclosure on the performance of Nigerian Deposit Money banks. It evaluated the extent to which Nigerian Deposit Money banks complied with the financial disclosure requirements as given by the monetary authorities. Primary data collected through questionnaire were used for the study. Out of 120 copies of questionnaire served on respondents, 100 copies were recovered and used for the analysis of the study. The analytical tools used for the study are the t-test and the Analysis of variance (ANOVA). From the hypotheses tested, the results show that corporate financial disclosure has a significant influence on the banks’ stability and performance in the Nigerian financial sector. Therefore, the study concludes that the corporate disclosure of financial reporting practices by banks in general will enable them to work towards improving and managing their non-performing loans effectively and efficiently for stability and hence better performance. It was therefore recommended among others that efforts should be geared towards improved corporate financial disclosure among money Deposit Money banks in Nigeria and mandatory compliance with the code of corporate governance and effective legal framework which specifies the rights and obligations of banks, it’s directors and shareholders.
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    Corporate Governance and Capital Market Operations: Evidence from Nigeria
    (Imo State University, Owerri, 2018-06) Ayodele, Thomas
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    Corporate Social Responsibility and Financial Performance in Nigerian Quoted Oil and Gas Industries
    (Imo State University, Owerri, 2020-09) Ayodele, Thomas
    The paper investigated the direction of causality between CSR and financial performance of the quoted oil and gas industry. The data set contains ten years from 2014 to 2018 of firm specification variables. Data were gathered from audited financial reports of 8 purposively selected firms from quoted companies in the Oil and Gas industry, Nigeria Stock Exchange (NSE) Factbook and statistical Bulletin of the Central Bank of Nigeria. Granger causality test model was employed to investigate the direction of causality between Corporate Social Responsibility and Financial Performance. The result indicated that there was no causal relationship between corporate social responsibility and Return on Assets (χ2 =3.479, p>0.05). Return on Asset does not Granger cause corporate social responsibility (χ2 =2.279, p>0.05). Also, corporate social responsibility does not granger cause Return on Asset. The study concluded that significant feedback did not exist in any direction of causality between corporate social responsibility and profitability, but there is a positive relationship between them.
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    Covid-19 Pandemic and the Nigerian Financial Market
    (Journal of Management Information and Decision Sciences, 2021) Ayodele, Thomas
    The study empirically investigated the effect of the Coronavirus (COVID-19) outbreak on the performance and effectiveness of the Nigerian money market, capital market, and foreign exchange market. The study used time-series data for 120 working days after the first COVID-19 confirmed case in Nigeria and used both exploratory and multiple regression analysis to evaluate the effect of COVID-19 outbreak on the Nigerian financial market. Open buy back rate (OBRR), All Share Index Volume (ASIV) and Parallel Foreign Exchange Rate (PFXR) were used as variables for money market, capital market and foreign exchange market, respectively. The data representing these variables were subjected to econometric analysis, including the ADF-Fisher unit root test, Johansen co-integration test and Ordinary Least squares (OLS) regression technique. Results from the analysis show that the number of COVID-19 cases is inversely related to the interbank money market rate and the All Share Index Volume of the capital market but directly related to the foreign exchange rate. The study concludes that COVID-19 pandemic significantly affects the Nigerian financial market. Therefore, it was recommended that the government should take preventive steps against financial challenges resulting from health risk in order to ensure stability in the financial market. In addition, business owners should provide motivations that will allow their staff to work remotely, wherever they are. Furthermore, the government should, by way of policies, encourage domestic production of goods and services
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    The Determinants of the Corporate Social Responsibility of the Quoted Nigerian Downstream Oil and Gas Industry
    (Fuoye Journal of Accounting and Management;, 2021) Ayodele, Thomas
    The study examined the determinants of Corporate Social Responsible (CSR) of the quoted Nigerian downstream Oil and Gas industry. The study used secondary data, sourced from audited financial reports of selected quoted companies in the Oil and Gas industry, Nigeria Stock Exchange Fact book and Statistical Bulletin of the Central Bank of Nigeria on such variables like corporate social responsibility (donation), age of firms, profit after tax, and total assets. The regression model was used to achieve the objective. The result revealed that Age of Firm (t=5.103, p<0.05) and Firm Growth (t=3.289, p<0.05) were statistically significant as determinants of corporate social responsibility activities in the sector.
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    “Do illiteracy and unemployment affect financial inclusion in the rural areas of developing countries?
    (Investment Management and Financial Innovations, 2023-04-15) Ayodele, Thomas
    The aim of this study is to examine the effects of illiteracy and unemployment on financial inclusion in rural areas of Nigeria between 2017 and 2022. Most rural areas in developing countries have high illiteracy and unemployment rates, creating challenges for research ers to measure the inclusiveness of financial services and products. This study examined the effect of illiteracy and unemployment on the inclusiveness of financial services and products in rural areas of Nigeria. The ex-post facto research design, systematic sampling, dummy for latent variables (erratic power supply and insecurity in rural areas), and autoregressive distributed lag (ARDL) techniques were employed. The result showed that the coefficient estimate for the illiteracy rate is negative (-0.5318), indicating that higher illiteracy is associated with lower financial inclusiveness, and the coefficient estimate for unemployment rate is also negative (-2.1977) and statistically significant, suggesting that the higher unemployment rate is associated with financial inclusiveness. These findings indicate that a decline in the delivery of financial services in developing nations attest to illiteracy and unemployment. This study concluded that there is a need to improve edu cation and employment rates in rural areas of developing countries to achieve optimal inclusiveness of financial services and products.
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    Economic Crisis and Personal Financing in Nigeria
    (Archives of Business Research, 2022-11) Ayodele, Thomas
    An economic crisis is when a country's economy experiences a sudden downturn in its aggregate output of real gross domestic product (GDP). Though Nigeria has not experienced a decrease in its gross domestic product, all indicators of economic crises (high cost of living,
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    Effect of Bank Verification Number (BVN) on Deterring Corrupt Practices in the Public Sector of Nigeria
    (fuoye.edu.ng, 2021) Ayodele, Thomas
    Nigeria has introduced the Bank Verification Number its public service financial management. The study examined the effect of accounting and financial systems aspects of the reform on deterring corrupt practices in the Public Sector of Nigeria. The study employed survey research design with a population of 600 from the Federal University of Agriculture Abeokuta, Ogun-Osun River Basin Authority, Abeokuta, Federal College of Education, Abeokuta and Federal Medical Centre, Abeokuta which consist of Accountants, Auditors and Accounting Lecturers who are staff of these organizations. Primary data was extracted through the questionnaire using 5 point Likert Scale. The study employed ordinary least square and regression statistics to analyze the data through the SPSS. Findings of this study indicate that Bank Verification Number (BVN) has a major positive impact on deterring corrupt practices in the Public Sector in Nigeria with the coefficient of correlation, R of .973 and coefficient of determination R2 of 0.947. The overall significance of the model Prob< .000 was statistically significant at 5% level. The study concluded that the Government of Nigeria should implement BVN to its fullest in order to derive maximum potential benefit of deterring corruption in the country’s public sector. It recommended that legal backing should be instituted on all the reform policies.
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    Effectiveness of Economic Policies in Combating Inflation in Nigeria
    (Society for science and education, 2021-12-25) Ayodele, Thomas
    This study assessed the effectiveness of economic policies (monetary and fiscal policies) in fighting Nigeria's Inflation. Secondary data obtained over thirty-eight years (1981-2018) from the Central Bank of Nigeria (CBN)'s statistical bulletins were used. The econometric test was carried out on the data, which included the ADF-Fisher unit root test and the Johansen co-integration test. A Vector Autoregressive model was used to specify the relationship between the independent variables (Interest rate, Money supply and Liquidity ratio) and the dependent variable (Inflation rate), through the least squares technique. The result revealed that money supply and lending rate have direct and significant influence on inflation (p-values<0.05). However, external debt and government expenditure do not significantly influence inflation. The study concluded that monetary policy is more effective than fiscal policy in combating inflation. Therefore, it was recommended that financial institutions in Nigeria should comply with specified prudential guidelines on monetary policy implementations. Furthermore, the Central Bank of Nigeria should be allowed to carry out her functions without pressure or hinderance from any arm of government.
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    The Effects of Bad and Doubtful Debts on Banks Profitability and Investment Growth
    (University of Maiduguri., 2010-12) Ayodele, Thomas
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    Effects of Cooperative Societies on Rural Development: A Case Study of Ondo State
    (University of Maiduguri., 2008-06) Ayodele, Thomas