Institutional Investors Ownership and Financial Performance: Examining the Nexus in Nigerian Deposit Money Banks

Eluyela, Damilola Felix; Okere, Wisdom; Otekunrin, Adegbola Olubukola; Okoye, John Nonso; Asamu, Festus; Ajetunmobi, Opeyemi

doi:10.5430/rwe.v11n6p177

Cited by 3 publications

(1 citation statement)

References 35 publications

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“…Investments return forms of dividends and capital appreciation or depreciation, and in the evaluation of investment opportunities investors examine the quality and authenticity of a business' future performance and hence their approximations of expected yields in dividends and assets increase. Financial reports are also used in a broader sense to determine management's ability to harness the resources committed to them in running the enterprise (Eluyela et al, 2020b). This is because management is not only responsible to owners of a business for guardianship and safety of enterprise resources but much more for their competent and gainful use and for shielding them from adverse economic conditions.…”

Section: Financial Reporting Qualitymentioning

confidence: 99%

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2021

Asian Economic and Financial Review

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The credibility of financial reporting is crucial as it assures the user of its authenticity. In this study, we examined the effect of audit committee quality on the quality of financial reporting of deposit money banks in Nigeria. A descriptive research design was adopted and secondary data sourced from annual accounts of seven deposit money banks for seven years were used to test our hypotheses. The dependent variable in this study is financial reporting quality measured with accrual model. In contrast, the independent variables are the number of members on the audit committee with accounting and finance knowledge, the size of the audit committee, the number of audit committee meetings held in a year and audit committee independence. Descriptive statistics, normality test, a multicollinearity test and regression analysis were used to examine the data. A notable outcome revealed that except for several audit committee meetings held in a given year the other independent variables were found to be insignificant and are not, therefore, determinant of financial reporting quality in deposit money banks in Nigeria. The study concluded that audit committee quality is not a determinant of financial reporting quality in deposit money banks in Nigeria and the study recommends that ability should be paramount for the appointment of members to the audit committee and advises that the audit committee should always be given adequate consideration by management in decision making. Contribution/Originality:This study is one of very few that has investigated the effect of audit committee quality on the quality of financial reporting of deposit money banks in Nigeria using an accrual model.

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Section: Financial Reporting Qualitymentioning

confidence: 99%

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2021

Asian Economic and Financial Review

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Do microfinance banks’ activities affect Nigeria’s economic development?

Otekunrin

Kenechukwu

Eluyela

et al. 2022

Banks and Bank Systems

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Microfinance banks were set up to provide financial services to poor people to reduce the rate of poverty and improve the quality of living in the country. As such, this study ascertained the effect of microfinance banks on the economic development of Nigeria. Secondary data were obtained from the CBN Bulletin and records of the National Population Commission from 1996 to 2019. The study used Vector Autoregressive (VAR) estimates to test the effect of the independent variables (microfinance banks’ total loans and advances, total investments, and total deposits) on the dependent variable (per capita income). Johansen Co-integration results showed a relationship between microfinance banks and Nigeria’s economic development in the long run. The VAR results show that the activities of microfinance banks have a positive but insignificant effect on Nigeria’s economic development in the short term. Microfinance banks have not done well in their intermediation function to positively and significantly affect economic development, especially reducing the poverty rate, unemployment rate, and improving living standards, among other macroeconomic development indices in the short run. The study recommends that microfinance banks will help to improve the standard of living in the country by granting more credits to rural dwellers through the creation of corporative societies, age grades, and unions that are predominant in rural areas. AcknowledgmentWe are grateful to all researchers who contributed to this paper.

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Nexus between investor returns of Nigerian deposit money banks and integrated reporting with the moderating role of profit after tax

Olubukola Otekunrin,

Ayodeji Owolabi,

Janet Owolabi

et al. 2024

Banks and Bank Systems

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Integrating reporting strives to address issues with corporate reporting procedures and hold businesses responsible for their local surroundings, as well as additional stakeholders impacted by their operations in producing returns for investors. This study employed Nigerian deposit money banks to examine whether investor returns with profit after tax and integrated reporting are statistically and significantly related. Ex post facto research methodology was applied. Purposive sampling was used to sample ten Nigerian deposit money banks. Data were taken from the annual reports of the chosen banks. The international integrated reporting framework of 2021 checklist was utilized to extract integrated reporting data using the unweighted content analysis method. The integrated reporting disclosure index was used as a proxy for integrated reporting. Market price per share, dividend per share, and price-earnings ratio were used as proxies for investor returns. Profit after tax was used as a moderating variable. The results indicate that with the moderating variable, which is Profit after tax, integrated reporting and price-earnings ratio are related to coefficients of 9.9585. Integrated reporting and dividend per share are related to coefficients of 3.151612. Integrated reporting and market price per share are related to coefficients of 36.7535. Dividend per share and integrated reporting disclosure are significantly related to p-values of 0.001. Market price per share and integrated reporting disclosure are significantly related to p-values of 0.002. This study concluded that integrated reporting and investor returns are statistically and significantly related to the moderating role of Profit after tax of Nigerian deposit money banks. AcknowledgmentThe involvement of those who helped make this study successful is acknowledged below. We appreciate your involvement.

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Institutional Investors Ownership and Financial Performance: Examining the Nexus in Nigerian Deposit Money Banks

Cited by 3 publications

References 35 publications

Untitled

Untitled

Do microfinance banks’ activities affect Nigeria’s economic development?

Nexus between investor returns of Nigerian deposit money banks and integrated reporting with the moderating role of profit after tax

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