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- ItemMEDIATING EFFECT OF FINANCIAL LEVERAGE ON THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE MECHANISMS AND LEASING IN LISTED NON-FINANCIAL FIRMS IN NIGERIA(2024-11)While acknowledging the agency problems associated with capital structure of corporate firms and the search for optimal alternative finance sources, this thesis examines the finance choice of leasing in listed non-financial firms in Nigeria. It investigates the effect that corporate governance mechanisms have on its utilisation with emphasis on the mediating role that financial leverage (other debt components in firms’ capital structure) plays in the relationship. For a sample of 53 listed non-financial firms, data were obtained for leasing, financial leverage, Board structure, share ownership and firm-level variables (profitability, firm size and growth) covering the period, 2012-2021. Based on a correlation research design, regression was first run to ascertain the effects of Board size, Board independence, Board gender diversity, Specialised Board committee, managerial ownership, foreign ownership, institutional ownership and ownership concentration on leasing in these firms. For the mediation analysis, regression was run within the framework of structural equation modelling (SEM) with the Monte-Carlo approach to test for mediation applied in order to conclusively determine the presence of any indirect effects. Findings reveal that Board size, Board independence, Board gender diversity, presence of a specialized Board committee and managerial ownership, significantly affect leasing in listed non-financial firms in Nigeria. Financial leverage was also found to mediate the relationship between Board gender diversity (partial mediation), foreign ownership (partial mediation), institutional ownership (full mediation) and leasing. The study therefore, concludes that corporate governance mechanisms affect leasing in listed nonfinancial firms in Nigeria and that financial leverage plays a mediating role in the ascertained relationship. Recommendations are made for policies by regulatory bodies which advocate for substantial number of Board members, independent, non-executive Board Directors and females on the Board as this would positively affect the choice to finance by leasing. Given respective idiosyncrasies, firms can determine the optimal levels in relation to size and gender. However, independent, non-executive directors should comprise the majority of Board directors. Listed non-financial firms in Nigeria are also advised to devise or strengthen strategies that would enhance efficiencies of specialised Board committees such as providing clear mandates, training, and conduct of performance reviews to ensure effectiveness. Levels of managerial shareholding should be limited in order to avoid adverse effects on employment of leases. In addition, incentives (bonuses, allowances, insurance schemes and other perks) can be provided to managers to employ debt financing where appropriate especially as it relates to leases
- ItemMODERATING ROLE OF LOAN LOSS PROVISION ON THE RELATIONSHIP BETWEEN RISK FACTORS AND THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA(2021-11)Risks irrespective of its kind pose a serious threat to the banking business. The problem is more pronounced among commercial banks because it encompasses deposits and asset linked products as well as other financial services offered to numerous personal banking customers and small business men. Inconsistent findings of risk factors linking financial performance of commercial banks prompted the introduction of loan loss provision as a moderator variable. The basic objective of this study is to examine the moderating role of loan loss provision on the relationship between risk factors and financial performance of commercial banks (CBs) in Nigeria for a period ranging from 2007 - 2018. The population of the study is fifteen (15) listed commercial banks in the Nigeria Stock Exchange as at 31sl December 2018. The study used a sample of twelve (12) listed commercial banks in the Nigerian Stock Exchange. The independent variables are risk factors such as Capital Adequacy Risk, Liquidity Risk, Solvency Risk, Market Risk, and Operational Risk which is moderated by Loan Loss Provision (LLP). The dependent variable is financial performance as a measure of profitability using accounting ratio of ROE. In achieving this objective, the study used Panel Corrected Standard Errors (PCSE) model, this is used due to the presence of heteroscedasticity in the model where fixed effect is chosen using Hausman test based on the multiple regression technique where test of hypothesis is conducted and the study draw conclusions based on the findings of the study. The results of regression output shows that capital adequacy risk, solvency risk and operational risk have significant effect on ROE. While liquidity risk and market risk have insignificant effect on ROE. From the result loan loss provision has moderating role on the relationship between capital adequacy risk, solvency risk, operational risk and ROE. The study concludes that loan loss provision has no moderating role on the relationship between liquidity risk and market risk and financial performance of commercial banks in Nigeria. The study recommends that CBs should evolve policy measures aimed at optimizing their funding requirements under various financial stress conditions. These policy measures can be employed as road map for banks to meet their funding requirement in long term and short term.
- ItemEFFECT OF PENSION FUNDS INVESTMENTS AND CHANGES IN CRUDE OIL PRICE ON ECONOMIC GROWTH IN NIGERIA(2021)Economic growth represents the expansion of a country‟s potential gross domestic product (GDP) or output. For instance, if the social rate of return on investment exceeds the private return, then tax policies that encourage the excess can raise the growth rate and levels of utility. Growth models that incorporate public services, the optimal tax policy lingers on the characteristic of services. The broad objective of this study is to examine the effects of contributory pension funds investments and changes in crude oil price on economic growth of Nigeria for the period 2010 to 2018. In achieving this objective, the study employed Ex-post facto research designs and also study utilized data from secondary sources. The study used time series econometric techniques with quarterly data spanning from q1-2010 to q4-2018 to explore the effects of contributory pension funds investments and changes in crude oil prices on economic growth in Nigeria which were subjected to statistical analysis using Equilibrium Correction Model (ECM) and Autoregressive Distributive Lag (ARDL) bound test approach to co-integration to determine the short-run and long-run dynamic relationship between the variables. To check the time series property of the variables, stationarity properties of the data and the order of integration are tested using the Augmented Dickey-Fuller (ADF) unit root test, Phillip-Perron (PP) test and Kwiatkwoski-Phillips-Schmidt-Shin (KPSS) test. All the variables are found to be cointegrated indicating the existence of long run relationship among the variables. The findings of the study clearly showed that the coefficient of total assets of pension funds was found to be positive and statistically significant on economic growth. Similarly, the coefficient of total pension funds contribution was found to be positive and statistically significant on economic growth and the coefficient of crude oil price was negative but statistically significant on economic growth. Base on the findings, the study recommended that Pension fund assets should be invested productively in diversified investment portfolios so as to generate increased returns and at same time minimize risks to both pension funds administrators and the contributors to the funds in Nigeria. Also, Nigerian government should ensure diversification of its export revenue base as a means of minimizing reliance on crude oil and petroleum products. This will further shield the economy from the impact of oil price shocks on the economy, and thus prevent the negative effects of the shocks from attaining a statistical significance level.