Department of Accounting

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A Check on Possible Bankruptcy of Companies Quoted on the Nigerian Stock Exchange
(ECONOMIC INDICATORS. The Nigerian Economic Summit Group, 2008) Sanni, Micheal Rotimi
A Publication of the Institute of Chartered Accountants of Nigeria: External Auditors' Liability in the 2009 Bank Crisis in Nigeria
(Nigeria Research Journal of Accountancy (NRJA), 2010) Sanni, Micheal Rotimi
This paper discusses the duties of an external auditor, the modus operandi of his work, the auditing requirements of companies and the role of management boards. Citing mainly foreign decided cases on auditors' ability to buttress its points, the paper concludes that though there has not been any external auditor that has been dragged to Nigerian court for negligence; it may be difficult to find the auditors liable under the present circumstances. This is because auditors' liability to third parties has been narrowed down with the Caparo case. This notwithstanding, the paper recommends that more reasonable skill and care should be exercised by auditors in order not to further drag their profession into the mud
A Review of the Challenges that Affect the Quality of Research in Accounting in Nigeria and the Way Out
(CPGS(College of Postgraduate Studies) RUN, 2022) Sanni, Micheal Rotimi
Many people believe that management research has little impact on management practice. It is documented that management academic research findings (accounting inclusive) that are published in scholarly management publications have little to no application in real-world settings and that managers who use the results of such research rarely achieve their goals. Despite having a large number of research institutes, universities, polytechnics, and monotechnics funded by the federal, state, and private sectors, Nigeria faces a number of challenges and brain drain. The inability of African research outputs to regularly compete favorably with international researches is of great concern. Recent university rankings typically show that, with the exception of a few South African universities, the majority of African universities perform poorly. For instance, the African Economic Research Consortium (AERC), universities, and other African and international stakeholders all agreed that the best way to address the quality of research outputs in the continent would be through a collaborative PhD degree programme. Findings from exploratory research method used for this study revealed that the quality of researches in accounting is affected by the challenges faced by doctoral accounting students, challenges faced by academia and research institutes and that practitioners hardly use outputs of such researches. Findings further showed that the outputs of research findings in accounting are not visible, unlike those in the medical, pure and applied sciences. The outputs, when applied, take longer time to manifest, leading to the wrong notion that they are not applicable. The study recommended ways to mitigate the challenges It also recommended collaboration between researchers in accounting and practitioners in order to bridge the existing gap between them.
Adoption of International Financial Reporting Standards and Financial Performance of Quoted Firms in the Brewery Industry in Nigeria
(Ibadan Planning Journal, A Publication of Department of Urban and Regional Planning, Faculty of the Social Sciences, 2017) Sanni, Micheal Rotimi
International Financial Accounting Standards (IFRS) become mandatory in Nigeria in 2012. This paper evaluated the adoption of IFRS on the financial performance of Nigerian quoted brewery firms. Data were sourced from published financial statements of two leading firms that control 92% of brewery market on profitability ratios proxy with Return on Assets (ROA) and Return on Equity (ROE) for eight year period (2008-2015). Paired sample t-test statistics was used to analyse the fours year pre- -IFRS adoption period (2008-2011) and four years post-IFRS adoption period (2012-2014). The results of the analysis showed that ROA reduced significantly by 0.18$75 after the adoption of IFRS (p= -0.0000), ROE also reduced significantly by 0.2300 (p = 6010). While the findings contradict some existing works, they confirm others. The reduced profitability cannot solely be attributed to adoption of FRS as profitability gradually reduced during the pre-IFRS adoption period. The harsh economic challenges faced by the country in the last few years can as well be responsible.
Board gender diversity and corporate social responsbility
(2023-10-20) Sanni, Micheal Rotimi
While board gender diversity (BGD) and corporate social responsibility (CSR) have become topics of global interest among practitioners, regulators, and academicians, most existing studies, particularly on Nigerian banks, have majorly concentrated on the effect of BGD on financial performance. It has also been observed that the few studies on banks have mostly viewed the nexus from a static perspective. To the best of our knowledge, there is no study that has used dynamic data analysis approach involving generalized method of moment (GMM) on BGD and CSR nexus of Nigerian banks. To this extent, this study aims to examine the effect of BGD on CSR of 12 listed deposit money banks in Nigeria from 2012 to 2021 using dynamic analysis involving GMM. The study is anchored on three theories, which are stakeholders’ theory, legitimacy theory and gender socialization theory. Findings show that BGD has no significant positive effect on CSR, implying that BGD does not affect firm commitment to CSR endeavors. The study recommends that more women should be appointed to the boardroom and given equal opportunities as their male counterparts in corporate and strategic decision-making so as to foster good relationship with stakeholders. The outcome of our study is of significant relevance to bank stakeholders such as managers, regulators, policymakers and academician on the need for more women's representation and participation in corporate and strategic decision-making.
Board Size and Tax Compliance among Listed Industrial Goods Firms in Nigeria
(Journal of Global Accounting, Nnamdi Azikwe University Awka, 2022) Sanni, Micheal Rotimi
The purpose of this study is to examine the relationship between board size and tax compliance in listed industrial good firms in Nigeria. The focus was on the industry due to its importance to the Nigerian economy. The study adopts ex post facto research design. Data sourced from published 2016 – 2020 financial statements of 13 purposely selected firms from the industry were analysed with Random Effect Model, confirmed by Hausman test. Board size was proxy with number of board members while tax compliance was proxy with effective tax rate. Findings from the results of analysis revealed that board size has a significant positive relationship with tax compliance. Since board size has a positive and significant relationship with tax compliance, the study recommends to corporate organisations that the size of board of directors should be properly constituted. It also recommends that government and relevant tax authorities should put in place policies that will encourage tax compliance.
Breakdown of National Corporate Governance and the Dynamics of Corruption in a Nation: The Precipice Situation of Nigeria
(Science Arena Publications Specialty Journal of Accounting and Economics, 2016) Sanni, Micheal Rotimi
Corruption and its impact on the polity, social environment and business entities is the focus of this paper. Qualitative research approach and retrospective literature analysis were used for the study. Contemporary issues that were germane to the study of corruption and its effects on the nation and business world were thoroughly analysed. It was found out that corruption festered in the country due to poor political structures; lack of openness and transparency in public service; insincerity on the part of government in the prosecution of war against corruption; constitutional loopholes like plea bargain and inordinate ambition of the political class who turned politics to profession. The business world also had its fair share of corruption due to weak internal control; collusion and negligence of the oversight functionaries in not fulfilling the tenets of good corporate governance. It is recommended that the constitutional loopholes of plea bargain should be repealed; the nation to revert to parliamentary system of government in order to reduce cost and to make membership of the legislature to be part time; make regulatory organs for business operation to be functional and easily accessible and financial institutions to mandatorily give information to Federal and State Boards of Inland Revenue Authorities as to transfers and withdrawals of funds in excess of specified amount. Corporate entities should also be corporate governance compliant.
Capital Structure and Firm Size of Selected Listed Firms in the Oil and Gas Industry in Nigeria
(2022) Sanni, Micheal Rotimi
This study examined the effect of capital structure on the firm size of selected listed Oil and Gas Industry in Nigeria. It also looked at whether firm size is influenced by Equity Finance, Noncurrent Liability Finance, Total Liability Finance and Leverage. The corporate annual reports and websites for the periods 2011-2020 were utilised as the main sources of secondary data. The study adopted the use of panel estimation technique to analyse the data collected from annual reports and corporate websites of the Listed Oil and Gas Industry in Nigeria. Hausman test confirmed fixed effect model as appropriate for this study. The overall finding showed that capital structure has a significant effect on firm size. In addition, Equity Finance and Leverage have a negative and significant effect on firm size. Total Liability Finance has a positive and significant effect, while Noncurrent Liability Finance has no significant effect. The study recommended that all the identified macro and micro economic factors that affect capital structure and firm size should be considered when formulating an appropriate capital structure decision for the overall benefits of shareholders.
Cooperative Societies Investments & Retiring Members: A Fair Returns Assessment
(European Journal of Globalization and Development Research, 2012) Sanni, Micheal Rotimi
Cooperative thrift and credit societies in paid employment organizations admit only members of staff of such organizations. Memberships of such societies elapsed when members retire or leave the organization. Withdrawing members are paid only the balances in their savings and shares. Investments held by the societies are not taken into consideration when these members are paid off. Values of shares in limited liability companies are not based on nominal values of shares held at the time of disposal. Market value is a key factor. This paper assessed the fairness or otherwise of such practices in departmental cooperative societies, in The Polytechnic, Ibadan Oyo State, Nigeria as a case study. An empirical investigation was undertaken, using the chi square analysis and it was found that departmental cooperative society members are not satisfied with the present system relating to withdrawal or disengagement from the societies. Following our findings, we recommend that investments of cooperative societies (or current market values of the shares) should be taken into consideration when members are to be paid their entitlements when withdrawing from these societies
DETERMINANTS OF PROVISION OF NON-AUDIT SERVICE IN SELECTED LISTED INSURANCE FIRMS IN NIGERIA
(Seybold Publications, 2024-01-18) Sanni, Micheal Rotimi
Various factors influence accounting companies' supply of Non-Audit Services (NAS) beyond routine audits. Internal controls, risk assessment, and customized guidance for risks unique to the insurance business are all covered by NAS to improve risk management in insurance organizations. This study used financial data to assess NAS variables in ten listed insurance businesses in Nigeria. Significant NAS factors, such as audit fee, auditor firm size, cash flow, and auditor tenure, were found by regression analysis. The study stresses the need of preserving auditor independence and integrity and recommends that giving priority to these factors is essential.
Dividend Policy and Financial Performance (Return on Assets) of Listed Manufacturing Firms in Food and Beverage Industry in Nigeria
(International Journal For Research In Business, Management And Accounting, 2022) Sanni, Micheal Rotimi
Dividend policy is a pointer to the future performance of a company. It is against this background that this study investigated the effect of dividend policy on the financial performance (Return on Assets) of firms listed in food and beverage industry in Nigeria over a period of ten years, from 2010 to 2019. Panel data from audited financial statements from 14 purposely selected firms in the industry were extracted on Return on Assets (ROA) used to proxy financial performance. Data were also extracted on Dividend Payout Ratio (DPR); Dividend Yield (DY); Retention Ratio (RR) and Dividend Coverage Ratio (DCR) used to proxy dividend policy. An analysis of the data showed that they are stationary at level and that co-integration exists among them. Hausman test confirmed that fixed effect model was most appropriate. All the four variables used to proxy dividend policy jointly significantly affect performance though their individual results are mixed. DPR exerts a positive (coefficient = 1.886) and significant (p = 0.008) influence on performance. DY exerts a negative (coefficient = -0.002) and insignificant (p = 0.311) influence while RR exerts a negative (coefficient = -2.002) and significant influence (p = 0.004). DCR exerts an insignificant (p = 4.31) positive influence (coefficient = 0.17).The findings confirmed some existing works while they negate others. The study recommends that all the identified micro and macro-economic factors that affect dividend policy should be taken into consideration by management since the overall aim is to maximise shareholders’ wealth.
Effect of Bank Verification Number (BVN) on Deterring Corrupt Practices in the Public Sector of Nigeria
(Fuoye Journal of Accounting and Management, 2021) Sanni, Micheal Rotimi
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.
External Engagement and Environmental Reporting Quality: Evidence from the Emerging Market
(International Journal of Innovative Science and Research Technology, 2023) Sanni, Micheal Rotimi
The importance of external engagement and the growing public concern over environmental reporting have prompted businesses all over the world to look for measures to lessen their negative environmental effects. This is accomplished by providing stakeholders with high-quality environmental information. In developed economies, the role of the Global Reporting Initiative in establishing environmental reporting performance indicators have received a great deal of attention. However, developing economies have less research on the subject. The purpose of this study, therefore, was to determine how media exposure, environmental assurance statements, and stakeholder power related to firm external engagement attributes affected the quality of environmental reporting in Nigeria. From the secondary data, the annual reports and websites of listed companies for the years 2017 through 2021 were used. The study adopted the panel least squares method to analyse the data gathered from the annual reports and corporate websites of the listed companies in Nigeria. According to study results, there is a strong positive relationship between media exposure, stakeholder power, and quality of environmental reporting. In addition, anegligiblepositive link between environmental assurance statementsand the quality of environmental reporting exists. The study concludes that by following international best practices for environmental reporting and providing stakeholders with adequate information, businesses can increase external participation and close the reporting gap.
Firm Size and Capital Structure of Selected Listed Firms in the Oil and Gas Industry in Nigeria
(International Journal of Innovative Research in Accounting and Sustainability, 2022) Sanni, Micheal Rotimi
The ability of a business to get loans and use internal resources to purchase assets that would increase its size is a key factor on how strong the relationship between firm size and capital structure holds true. In light of this, this study examined the effect of capital structure on firm size of a few listed oil and gas businesses in Nigeria, ten-year (2011 to 2020) being the research period. Data were obtained from audited financial statements of seven firms from the industry. The data were on total assets, leverage, non-current liability finance, and total liability finance. Hausman test confirmed the suitability of fixed effect model. The results showed that equity financing significantly increases firm size. A significant positive effect was also found for Total Liability Finance Contrarily, Non-Current Liability Finance and Leverage both exhibited positive but not statistically significant effects on company size. These results supported certain previous studies while refuting others. The conclusion is that capital structure has a positive and significant effect on firm size and that other factors significantly affect firm size. In order to maximize firm size for the overall benefit of shareholders, this study advised that capital structure and the other factors that have been identified as having effect on firm size should be properly taken into account
Forecasts in Prospectuses and Actual Performances of Some Selected Nigerian Companies
(International Journal of Accounting, 2005) Sanni, Micheal Rotimi
To what extent can one rely on forecasts in prospectuses issued by Nigerian companies? What legal remedies are available to investors/shareholders when directors fail to achieve ich forecasts? In answering these and other similar questions, the paper compared forecasts in the prospectuses of selected Nigerian companies with actual results. The selected companies cover almost all spheres of the Nigerian economy bunking manufacturing, the conglomerates and oil and gas sectors-for different periods. Using paired sample t-tests on key variables like turnover, earning per share and dividend per hart, it was discovered that a greater percentage of the sampled companies failed to meet their forecasts. Since not all long-term strategies are profitable in the short-run potential estors and existing shareholders should not base their investment decisions on profit forecasts alone but should consider other socio-economic and political factors
Groping In the Dark (Poverty): The Nigerian Experience
(European Journal of Humanities and Social Sciences, 2012) Sanni, Micheal Rotimi
In 1985, poverty incidence in Nigeria had risen to 46.3% from 27.2% in 1980. This later rose to almost 70% in 2010. The problems of poverty were found mainly from misuse of resources the country is endowed with. The rising poverty trend is also traceable to people orientation about governance. More than four billion barrels of crude oil were sold between 2004 and 2010 and at an exchange rate of N120/$ and $70 dollars per barrel, the total proceeds would have been at least N32 trillion. For a transformation agenda to work in all its ramifications, 2% of the population should not be cornering 80% of the nations’ resources as it is presently in operation by the top echelon public servants. Poverty alleviation programmes to the present time were reviewed and shortcomings were highlighted. It was found out that governments at all levels are not doing enough to combat poverty as it is being done in developing countries. The paper then recommends that infrastructural facilities like power, good roads, health care and effective educational systems should be provided adequately and improved.
Inflationary Pressure in Nigeria: The Structuralists’ Approach
(An International Multi-Disciplinary Journal, Ethiopia, 2010) Sanni, Micheal Rotimi
Opinions differ on the right solutions to inflation in Nigeria. This is due mainly to the fact that while a school of thought sees inflation as a fundamental monetary phenomenon, another school sees it as structural. This paper examined the structural aspect. Structural factors in Nigeria as principal causes of inflation were identified. These structural factors were grouped together under budget deficits, external reserves, and the level of the Nigerian economy (represented by the GDP). Using data on these variables for 32 years (1977 - 2008), and analyzing them with Co- integration and Error Correction Model (ECM), it was found that inflation is 77% affected by structural variables and that the Nigerian economy, as expected, is negatively correlated to inflation while budget deficits and external reserves are positively correlated. All the variables are significant at 5% significant level. The policy implication of the finding is that the supply management of curbing inflation cannot be ignored in tackling inflation in Nigeria
Influence of Economic Factors on Fluctuations of Share Prices in Nigeria (2000 – 2020): VECM Approach
(IOSR Journal of Economics and Finance (IOSR-JEF), 2022) Sanni, Micheal Rotimi
Share prices fluctuate due to many micro and macroeconomic factors. This study investigated the extent to which economic factors influence the fluctuations of share prices in Nigeria from 2000 – 2020, using the VECM approach. Share price was proxy with All Share Index while the identified economic factors are GDP, Price of Crude Oil, Inflation rate and Interest rate. The data used were sourced from the Statistical Bulletins of Central Bank of Nigeria. Percentage increase in the variables over the research period was used and regressed with E-views. Findings, which confirmed some existing works and negated others showed that all the variables were stationary at first difference and that a long run relationship existed between them. All the economic factors influenced share prices though not significantly. Findings further revealed that the speed of adjustment of fluctuations of share prices from short-run to long run in Nigeria is 102%. Since the adjusted R-squared is 35%, the study concluded that other factors not considered in this study influenced the fluctuations more and therefore recommended a total overhaul of all micro and macro- economic factors for stable share prices and its attendant benefits
Influence of International Financial Reporting Standards on Share Prices of Nigerian Quoted Oil and Gas Firms
(UNIOSUN International Journal of Accounting and Finance, 2019) Sanni, Micheal Rotimi
This paper examined the influence of IFRS on share prices of Nigerian quoted Oil and Gas firms after the adoption of the standards in 2012. Paired sample t-test statistics was used to analyse the share prices of eight out of the twelve quoted Nigerian Oil and Gas firms for three years (2009-2011) pre-IFRS adoption period and three years (2012-2014) post IFRS adoption period. Findings showed that the share prices declined marginally by 1.78% during the six-year period and that the decline is not statistically significant (p=0.924) at 0.5 significant level. There is a positive (0.638) and significant (p=0.001) correlation between share prices in the two periods. These findings are consistent with existing studies which posit that the mere adoption of IFRS does not necessarily translate into improvement in the quality of financial reports and share price increase in the short run as other factors outside the adoption of the standards equally affect share prices. The study therefore recommends the use of appropriate discretions by management and provision of enabling environment by government for the full benefits of the adoption of the standards to be reaped.
Information and Communication Technology Products: Their Gains and Pains on Nigerian Banking System
(An International Multi-Disciplinary Journal, Ethiopia, 2009) Sanni, Micheal Rotimi
Year 2006 witnessed a banking revolution in Nigeria as the minimum paid up share capital of Nigerian banks was increased from N2 billion to N25 billion. With it came consolidation and stiff competition among the emerging “mega” banks resulting into investments in ICT. This paper considers the positive as well as the negative sides of some ICT products like ATM, e - banking, e-payment and e-commerce among others. It compares the investment by banks in ICT in the last three-years with the volume and value of banking transactions occasioned by such investment. It also considers savings from forgeries and frauds and concludes that the gains from ICT banking products far outweigh their shortcomings.

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