Department of Finance

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https://repository.run.edu.ng/handle/123456789/62

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Now showing 1 - 20 of 135
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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 Exploratory Investigation of Foreign Portfolio Investment in Money Market Instruments and the Nigerian Stock Market Performance
    (The Internatinal Journal of Business & Management, 2019) Iriobe, Grace
    This paper investigated whether foreign portfolio investment in money market instruments have an influence on the performance of the Nigerian stock market. The study employed ex-postfacto research method using monthly time series data for 11 years between 2007 and 2017. The Autoregressive Distributed Lag (ARDL) model was used to specify the influence of foreign portfolio investment in money market instruments on stock market performance. The results of the analysis revealed a significant and positive relationship between foreign portfolio investment in money market instruments and the performance of the Nigerian stock market (t-stat= 2.6110; P= 0.0258<0.05; R2 = 0.77). The study concluded that foreign portfolio investment in money market instruments had significantly predicted stock market performance in Nigeria. Hence, the study recommended that policies formulated towards a more developed stock market should consider importance the influence of foreign portfolio investments in the market
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    Anticipated Impact of Monetary Union on Bilateral Trade among ECOWAS Members
    (Journal of Global Economics, Management and Business Research, 2017-03-07) Iriobe, Grace
    The pattern of growth of International Trade and Bilateral Trade among West African Countires has again brought to light the need for a common currency aimed at financial integration of the ECOWAS community. In this light, this study adopts the explanatory survey design and uses the questionnaire as a primary research instrument to solicit responses from experts in monetary policy, foreign exchange and international business with a view to examine and analyze the potential impact of the proposed ECO currency on Bilateral trade among the ECOWAS members. Data was analysed using the simple linear regression to determine the relationship between the dependent (bilateral trade) and the independent variable (monetary union). Findings from the study indicate there is a positive linear relationship between bilateral trade and monetary union; consistent with Akinyede (2014). The relationship is moderate and significant at 5% level of significance (pvalue=. 001< alpha value=. 05). Therefore, we conclude that the development of monetary union has significant impact on bilateral trade in ECOWAS.
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    Anticipated Impact of Monetary Union on Bilateral Trade among Ecowas Members
    (International Knowledge Press, 2017-03) Akinyede, Oyinlola
    The pattern of growth of International Trade and Bilateral Trade among West African Countires has again brought to light the need for a common currency aimed at financial integration of the ECOWAS community. In this light, this study adopts the explanatory survey design and uses the questionnaire as a primary research instrument to solicit responses from experts in monetary policy, foreign exchange and international business with a view to examine and analyze the potential impact of the proposed ECO currency on Bilateral trade among the ECOWAS members. Data was analysed using the simple linear regression to determine the relationship between the dependent (bilateral trade) and the independent variable (monetary union). Findings from the study indicate there is a positive linear relationship between bilateral trade and monetary union; consistent with Akinyede (2014). The relationship is moderate and significant at 5% level of significance (pvalue =.001 < alpha value =.05). Therefore, we conclude that the development of monetary union has significant impact on bilateral trade in ECOWAS.
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    Assessing the Influence of Environmental Factors on Entrepreneurship Development in Nigeria
    (International Knowledge Press, 2017-03-07) Akinyede, Oyinlola
    The influence of environmental factors on entrepreneurship has been recognized as important in the entrepreneurship literature. This study aimed at identifying the environmental factors that affects entrepreneurship development as well as the overall effect of environmental factors on entrepreneurship development. Primary data was adopted to generate data from 87 managers and owners of business enterprise in Ago Iwoye. The data generated were analyzed using correlation and regression analysis. Findings revealed that environmental factors have an overall significant effect on entrepreneurship development in Nigeria. It was also discovered by the findings that all he environmental factors dimensions have a significant relationship with entrepreneurship development in Ago-Iwoye, Nigeria. Thus it is recommended that communities should identify aspect of their culture which hinder entrepreneurship development and make necessary adjustment. Finally, the issue of infrastructural facilities should not be seen as the sole responsibility of the government.
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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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    Banking Resilience and Government Response during the COVID-19 Pandemic: Evidence from Nigeria
    (Banks and Bank Systems, 2023) Akinyede, Oyinlola
    In a global pandemic, there is a need for banks to improve service delivery through financial technologies. Since the fight against COVID-19 is the community responsibility, the role of banks in channeling cash to all stakeholders is essential for the con temporary human race. This study investigated the impact of the government response to COVID-19 on the resilience of banks. A multivariate Structural Equation Model (SEM) was used to specify the links between the exogenous factors (government’s social and financial responses) and the endogenous variables (resilience of bank customers, employees and investors). A research survey approach was used where 543 respondents were sampled. A self-constructed online questionnaire was used to harvest responses from customers, employees and investors of the selected banks. The result of the analysis showed a significant relationship between government’s social response and the resilience of bank customers. However, such a relationship does not hold between government’s social responses and other resilience indicators (employees and investors). Furthermore, the result revealed that government’s financial responses do not affect the resilience of banks. The study concluded that the government’s social response during the COVID-19 pandemic influenced bank customers’ resilience in Nigeria. It was recommended that banks, as part of the policy, develop tools to complement government actions during the pandemic, thereby ameliorating its impact on their customers.
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    Budgetary Control: A Tool for Cost Control in Manufacturing Companies in Nigeria
    (2014-07) Afolabi, Taofeek Sola
    This study deals with budgetary control as an effective tool for cost control in manufacturing Companies in Nigeria. The study examined the impact of budgetary control on cost control, profitability of manufacturing companies, the reasons for deviations and how these variances are reported as a means of control in budgeting and also examined whether the manufacturing companies can reduce cost as well as maintain the quality of their products and services. The survey method was used and the companies encompass staff members of Cadbury Nigeria PLC, Friesland Foods Wamco Nigeria PLC and Nestle Nigeria PLC. The study employs the use of questionnaire instrument for the purpose of data collection and the data collected were tested with chi-square statistics through a Statistical Package for Social Sciences. It was discovered that budgetary control contributes to the profitability of manufacturing companies and it was also discovered that there are deviations from planned budget. It was also discovered that manufacturing companies can reduce cost and maintain high quality products. The study recommended that realistic forecasts should be made and that there should be sound planning with effective and efficient formulation of policies and strategies.
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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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    Citizen Welfare: the Effect of revenue on the Nigeria Economy
    (Innovations, 2022) Akinyede, Oyinlola
    Citizen welfare synonymous with state welfare provides stability and comfort in a country's social-economic index. This study used Nigerian citizens' economic and social factors as its foundation to analyse the impact of tax income on Nigerians. Secondary Data was sourced from relevant sources. Total tax revenue TAX is the independent variable. At the same time, citizen welfare is proxied by consumer prices (CON) and Unemployment (EMP) for economic welfare and health (HEA) and Education (EDU) for social welfare. In addition, there is a substantial correlation between tax income.The result demonstrates a significant correlation between tax revenue and the unemployment rate (0.000) and between tax revenue and government spending on education (0.00). In addition, there is a substantial correlation between tax and government spending on health (GSH) in Nigeria, with a significant rate of 0.012 and a significant association between tax and inflation (CPI).The study suggests the Nigerian government invest more in the economic and social wellbeing of its residents because improved citizen welfare directly affects taxes, which has a direct impact on the development
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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 Financial Disclosure In Nigerian Deposit Money Banks
    (Society for Science and Education, 2018-02-25) Afolabi, Taofeek Sola
    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.