THE USE MANAGEMENT AUDIT AS A TOOL FOR ACHIEVING ORGANIZATIONAL OBJECTIVE (A STUDY OF EBONYI STATE TRANSPORT CORPORATION (EBOTRANS), ABAKALIKI)

CHAPTER ONE

INTRODUCTION

1.1     Background of Study

Management audit aids the management of an Organization by providing it with information and analysis, useful for the process of control. According to Eze, (2001) Management audit is an audit that evaluates the efficiency of management at all levels throughout an organization with a view to recommend improvement in areas where effectiveness is not assured. Management audit can also be significant in financial accounting area. For many years now, stockholders, financial analysts, potential investors and other interested parties have been concerned with the annual reports of major co-operations and the attached letter from the president of the corporation. The concern has been that though a financial audit of records of the company has been performed and opinion had been rendered. There is no additional method which the outsider could use to evaluate the performance of management in addition to evaluating the performance of the company. The theory of management audit parallels that of financial audit. 

The purpose of the audit is being the attestation of Management’s representations by an independent examiner.By attestation, it refers to the reliability of management statement regarding its own decisions as proven by an independent third party. The auditor’s financial statement examines the performance of the company accountable to the stockholders of its decisions. On the basis of the financial statement, the shareholders or potential investors, evaluate the performance of the company in financial terms, net profit, earning per share etc. Likewise, the management audit is a way of evaluating the performance of management in regard to the decisions made, the efficiency of its operating and the attainment of corporate goals.
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THE USE MANAGEMENT AUDIT AS A TOOL FOR ACHIEVING ORGANIZATIONAL OBJECTIVE (A STUDY OF EBONYI STATE TRANSPORT CORPORATION (EBOTRANS), ABAKALIKI)

ROLE OF COMMERCIAL BANKS IN FINANCING SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA (A STUDY OF UNION BANK OF NIGERIA PLC, ABAKALIKI)

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

For both developing and developed countries, small and medium scale firms play important roles in the process of industrialization and economic growth. Apart from increasing per capital income and output , SMEs create employment opportunities, enhance regional economic balance through industrial dispersal and generally promote effective resources utilization considered critical to engineering economic and growth.

        However, the seminal role played by SMEs not withstanding it development is every where constrained by inadequate funding and poor management. The unfavourable macro economic environment has also been identified as one of the major constraints which most times encourage financial institutions to be risk-averse in funding small and medium scale businesses. The manufacturing sector(including micro, small and medium enterprises) is acknowledged to have huge potential for employment generation and wealth creation in any economy, yet in Nigeria, the sector has stagnated and remains relatively small in terms of its contribution to GDP or the gainful employment.

        Activity mix in the sector is also quite limited dominated by import dependent processes and factors. Although there is no reliable data, imprecise indicators show that capacity utilization in the sector has improved perceptibly in the period since 1999, but the sector is still faced with a number of constraint with lack of credit availability as the principal constraint. Credit is the largest element of risk in the books of most banks and failures in the management of credit risk, by weakening individual banks and in some cases, the banking system as a whole, have contributed to many episodes of financial instability. A greater understanding of the nature of credit risk, leading to improved measurement and international financial system vis-à-vis the small and medium enterprises in the long run.         Generally, the stage of development and, thus the efficiency of the system varies among countries and change overtime in the same country. The more developed and sophisticated financial systems tend to be associated with the nature economics. While underdeveloped financial systems feature in developing economics. As a process, the financial system adjusts to changes in the real economy just as the economy responds to developments in the financial sector.
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ROLE OF COMMERCIAL BANKS IN FINANCING SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA (A STUDY OF UNION BANK OF NIGERIA PLC, ABAKALIKI)

ROLE OF COMMERCIAL BANKS IN FINANCING SMALL AND MEDIUM SCALE ENTERPRISES IN NIGE.doc

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

For both developing and developed countries, small and medium scale firms play important roles in the process of industrialization and economic growth. Apart from increasing per capital income and output , SMEs create employment opportunities, enhance regional economic balance through industrial dispersal and generally promote effective resources utilization considered critical to engineering economic and growth.

        However, the seminal role played by SMEs not withstanding it development is every where constrained by inadequate funding and poor management. The unfavourable macro economic environment has also been identified as one of the major constraints which most times encourage financial institutions to be risk-averse in funding small and medium scale businesses. The manufacturing sector(including micro, small and medium enterprises) is acknowledged to have huge potential for employment generation and wealth creation in any economy, yet in Nigeria, the sector has stagnated and remains relatively small in terms of its contribution to GDP or the gainful employment.

        Activity mix in the sector is also quite limited dominated by import dependent processes and factors. Although there is no reliable data, imprecise indicators show that capacity utilization in the sector has improved perceptibly in the period since 1999, but the sector is still faced with a number of constraint with lack of credit availability as the principal constraint. Credit is the largest element of risk in the books of most banks and failures in the management of credit risk, by weakening individual banks and in some cases, the banking system as a whole, have contributed to many episodes of financial instability. A greater understanding of the nature of credit risk, leading to improved measurement and international financial system vis-à-vis the small and medium enterprises in the long run.
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ROLE OF COMMERCIAL BANKS IN FINANCING SMALL AND MEDIUM SCALE ENTERPRISES IN NIGE.doc

IMPROVING THE EFFECTIVENESS OF ACCOUNTING SYSTEMS IN PRODUCTION INDUSTRIES IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

          History has it that the concept of accountability of public funds dates backs to the history of ancient Greece.  As old as theory is, it would not be erroneous to say that the idea has been equally lost to antiquity although not much is known about it, this makes the subject, government accounting to remain a myth.

          Accounting in the production industry has received such a wide attention from scholars that the field of production industry accounting scans to be neglected.

          However, there is general awareness all over the world of the need to pay greater attention to the development of government accounting and financial control.  The reason is obvious, government, in most, if not all nations constitute the largest single business entity in many places, the core of the economy.  Government in any society is basically for maintaining law and order.  With changes and the complete nature of the society, government responsibility has automatically changed from the role of maintaining law and order to business like nature in the modern era.  The enormous activities of government, equally call for enlarged government accounting in order to accommodate the immense task.  As a result of this development, the traditional cash procedures of accounting can hardly meet the demands of reasonable accounting for modern government in providing necessary services or information. Therefore, there is need for government accounting to be dynamic in order to accommodate both the fundamental roles and the developments.

          Government accounting is the process of recording, analyzing, classifying, summarizing, communicating and interpreting financial information about government in aggregate and in detail, reflecting all transactions involving the receipts, transfer and disposition of government funds and property.  The purpose are to demonstrate the propriety of transactions and their conformity with established rules to give evidence of accountability for the stewardship of government resources and to provide useful information for the good control and efficient management of government operation.
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IMPROVING THE EFFECTIVENESS OF ACCOUNTING SYSTEMS IN PRODUCTION INDUSTRIES IN NIGERIA

FUND MANAGEMENT AND CONTROL IN LOCAL GOVERNMENT AREAS OF EBONYI STATE: A STUDY OF IZZI LOCAL GOVERNMENT AREA OF EBONYI STATE

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Local government is a government at the grassroots level. According to Ojofeitimi (2008), the word “local” connotes that councils are meant for small communities and the word “government” means that they have certain attributes of government. Thus, local government can therefore be defined as “… a political sub-division of a nation (or in a federal system, a state) which is constituted by law and has substantial control of local affairs including the power to impose taxes or to demand labour for prescribed purposes. The main responsibilities of local governments in Nigeria as noted by Obinna (2012) include mobilization of local resources, promotion of social and economic improvement and development as well as national unity. They are also expected to carry out regional policies with respect to agriculture and selected industries, thereby helping to ameliorate unemployment. Part of the responsibilities of local governments includes revenue generation, budgeting, development planning, provision of services and community mobilization. Given these multifarious responsibilities, local governments were equally bestowed with many sources of revenues to cope with these demands. Unfortunately, many local governments in Nigerian have taken this to be a filial responsibility as many local governments lack basic social amenities like pipe borne water, good road, recreational facilities etc. 

An incisive look into local government administration in Ebonyi state is nonetheless different, as development in the rural and urban areas continue to remain a major challenge to the government of the state. Located in the south east region, Ebonyi state boast of 13 local governments evenly spread to accelerate socio-economic development within its local jurisdictions. Despite this measure, most of the local government areas are far from the dream land. Faced with many challenges, the major challenge of local government administration in Ebonyi state and Nigeria at large is finance.  Finance as noted by Amujuri (2014: ) is the brain as well as the central nervous system of any organization. It is the lubricant that makes administrative machinery especially of formal organizations work. Although, local governments require finance to perform their statutory duties, the need for efficient management of available funds cannot be overemphasized. Financial management has to do with the efficient use of funds. It is a method of showing and ascertaining the financial position of government or business from time to time. Buoyed by the need to enthrone development within the local government areas in Nigeria, various financial regulations have been put in place to enhance good governance, accountability and transparency. But sadly enough, these regulations are rarely adhered to, as funds mend for development initiatives, most times end up in private accounts or pockets of principal officers of the local governments through various forms of corruption.
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FUND MANAGEMENT AND CONTROL IN LOCAL GOVERNMENT AREAS OF EBONYI STATE: A STUDY OF IZZI LOCAL GOVERNMENT AREA OF EBONYI STATE

EVALUATION OF THE ACCOUNTING PROBLEMS OF MICROFINANCE BANKS IN NIGERIA .doc

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

       Banking has hitherto been very essential to human invention and economically aid to the society as far as business transactions are concerned. Thus, bank can be seen as a service-oriented to individual and the society at large. That is the reason Peterson (2007) viewed banks as the agencies or institution which are service-oriented to individual, companies and various organizations etc. Bank is giving at various financial services such as deposit collection, credit delivery and dealing with negotiable instruments and securities in issue of service charges, interests etc. Similarly, a bank is also seen as an institution or a person licensed as such whose major business is to accept deposits that are repayable on demand or at short notices and as well lending it out with a view to make profit in return.

       Based on these analyses, Anyanwaokoro, (2001)  emphasized that the main aim and objective of banks is that of deposit collection and credit delivery while all other services that banks render are complementary to these two sides of financial intermediation-deposit collection and credit extension.

       Bank services can be traced back to the operation of the early London goldsmith who accepted gold deposit from the London merchant and keep them for safe custody and upon and agreed charge on demand. That is to say that the charge is payable whenever they draw their money or gold. However, the development of Nigeria banking services has its origin from the colonial days. The activities of the colonial merchants in the former West African colonies and the establishment of settled territorial government created the need for local based financial institutions.

       The establishment and activities of the colonial banks and even those of the non-indigenous banks have been urban oriented-the phenomenon over the years made the banking services sound strange to those who dwelled in the rural areas. This there were no banking operations from the grass root of the economy. Although people’s bank was set up in 1989 to meet the credit need of the rural and urban poor farmers, artisan, carpenters etc, hence its supply led and heavily depended on subvention from the federal government for its operation, the economy of loan has not been very efficient and it is facing problem of undercapitalization as the result of heavy overheads that outstrip earning which led many people to high level of poverty. To address this issue the need for the establishment of various microfinance banks were conceived to solve some of the observed weaknesses in credit delivery to the grass root levels.
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EVALUATION OF THE ACCOUNTING PROBLEMS OF MICROFINANCE BANKS IN NIGERIA .doc

EVALUATION OF THE ACCOUNTING PROBLEMS OF MICROFINANCE BANKS IN NIGERIA (A STUDY OF MICROFINANCE BANKS IN ABAKALIKI METROPOLIS, EBONYI STATE)

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

       Banking has hitherto been very essential to human invention and economically aid to the society as far as business transactions are concerned. Thus, bank can be seen as a service-oriented to individual and the society at large. That is the reason Peterson (2007) viewed banks as the agencies or institution which are service-oriented to individual, companies and various organizations etc. Bank is giving at various financial services such as deposit collection, credit delivery and dealing with negotiable instruments and securities in issue of service charges, interests etc. Similarly, a bank is also seen as an institution or a person licensed as such whose major business is to accept deposits that are repayable on demand or at short notices and as well lending it out with a view to make profit in return.

       Based on these analyses, Anyanwaokoro, (2001)  emphasized that the main aim and objective of banks is that of deposit collection and credit delivery while all other services that banks render are complementary to these two sides of financial intermediation-deposit collection and credit extension.

       Bank services can be traced back to the operation of the early London goldsmith who accepted gold deposit from the London merchant and keep them for safe custody and upon and agreed charge on demand. That is to say that the charge is payable whenever they draw their money or gold. However, the development of Nigeria banking services has its origin from the colonial days. The activities of the colonial merchants in the former West African colonies and the establishment of settled territorial government created the need for local based financial institutions.
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EVALUATION OF THE ACCOUNTING PROBLEMS OF MICROFINANCE BANKS IN NIGERIA (A STUDY OF MICROFINANCE BANKS IN ABAKALIKI METROPOLIS, EBONYI STATE)

EFFECTS AND ADMINISTRATION OF VALUE ADDED TAX IN THE NIGERIA ECONOMY. (A STUDY OF FEDERAL BOARD OF INLAND REVENUE)

CHAPTER ONE

INTRODUCTION

According to Journal of Economic and International Finance vol. 3(8), 492-503, August 2011, Nigeria is a developing country and emerging economy whose exports are mainly crude oil. Her other natural resources asserted by Economic watch (2011) include: Natural gas, tin, iron ore, coal, limestone, lead, zinc and arable land. Her land mass covers about 923,768sqkm and she has a population of about 149,229,090.

According to Tran (2008), emerging economies are nations that have large territories and populations, and they are undertaking extraordinary development projects that call for new infrastructures, such as power — generation plants and telecommunication systems. These countries have pursued economic policies leading to faster growth and expanding trade and investments with the rest of the world.

These infrastructural developments demand a lot of resources and funding. By assertion of Access Bank (2011), Value-Added-Tax (VAT) is one of the ways of funding infrastructural developments. And to proceed further in this work are unfolding of detailed information on VAT.

1.1    BACKGROUND OF THE STUDY

Governments the world over have devised various means of obtaining and paying for the resources needed to meet their ever increasing responsibilities. In civilized societies, requisition of financial resources by funds raised from several sources such as borrowing, sale of goods and services et cetera and taxation is the oldest and the most significant source of fund to the Government. Taxation is considered significant to Government because it is one of the most useful tools for achieving the objectives of economic stabilization.
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EFFECTS AND ADMINISTRATION OF VALUE ADDED TAX IN THE NIGERIA ECONOMY. (A STUDY OF FEDERAL BOARD OF INLAND REVENUE)

EFFECT OF LIQUIDITY ON BANK’S PERFORMANCE. A CASE STUDY OF UBA PLC 2010 – 2017

CHAPTER ONE

INTRODUCTION

  1. Background of the study

Liquidity management in banks has posed several challenges during the distress era of 1980s and 1990s and persisted to the re-capitalization phase in 2005 when banks were mandated to have an increased capital base from N2 billion to an astronomical N25 billion (Agbada&Osuji, 2013). The apex bank’s mandate for recapitalisation was considered to be the salvation for the banking and indeed financial system in Nigeria, however, just five years later, precisely 2009, the Central Bank’s intervention was sought to stabilize and redeem five banks that were deeply enmeshed in illiquidity. Consequently, N620billion was injected into the five affected banks to stimulate stability, and confidence and subsequently heralded the establishment of Asset Management Corporation of Nigeria (AMCON) for the acquisition of affected banks.

Alshatti (2015), brought to light the fact that Banks are largely exposed to various types of risks attributable to liquidity management, which affect the performance and activity of these banks. Admonishing that since the primary goal of the banking management is to maximize the shareholders’ wealth, banks should assess the cash flows and the assumed risks in order to direct its financial resources in different areas of utilization. Ibe (2013) emphasizes that Liquidity plays a vital role in the successful functioning of a business firm; a firm should ensure that it does not suffer from lack-of or excess liquidity to meet its short-term compulsions.
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EFFECT OF LIQUIDITY ON BANK’S PERFORMANCE. A CASE STUDY OF UBA PLC 2010 – 2017

AUDITING AS AN AID TO ACCOUNTABILITY A CASE STUDY OF ENUGU STATE POST PRIMARY SCHOOL MANAGEMENT BOARD (PPMB) 

CHAPTER ONE

INTRODUCTION

Introduction

The question of how to increase efficiency and positive result in audit work in the public sector is a perennial problem in Nigeria, and one that is increasingly warring the generality of the people of this country.

The response has been to upgrade the quality of audit staff and widening of the powers conferred on audit institutions in the public sector. The need for the training of audit staff in modern techniques of auditing which is more effective and result oriented rather than restricting them to the traditional methods of tick and turner which is inadequate and outdated.

Public sector auditing is centered towards ensuring the proper and efficient use of public funds, development of sound financial management, the orderly executive administrative activities and the communication of information to the public through the publication of objectives reports since there are necessary for the stability and development of the nation, there is the need to map out the machineries and methods of carrying out a research these functions effectively as to achieve a desired result.

In the past, the emphasis of an audit was on the traditional methods of auditing which has been mainly the compliance audit, seeing that all books and records comply with the laid down procedures and regulation. But now, there is the need for a shift of emphasis to modern concept of effectiveness and efficiency.

Based on these individual views of auditing and its functions, the researcher took a keen inherent to rest empirically auditing an aid to accountability with the Enugu State Post Primary School Management Board (PPSMB).

The increasing incidence of fraud and misappropriation of public fund and property by the accounting officers and chief executive in the Enugu State Post Primary School Management Board Posses a question as to whether auditing plays any role towards ensuring proper accountability in the state public service.

Auditing is meant to control, deter and find out any fraud or misappropriation of public fund or property by officers entrusted with such duties. It is because of this onerous task that the Enugu State audit department was established to appraise the work of those entrusted with the responsibility of accountability.
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AUDITING AS AN AID TO ACCOUNTABILITY A CASE STUDY OF ENUGU STATE POST PRIMARY SCHOOL MANAGEMENT BOARD (PPMB) 

ASSESSING THE RELEVANCE OF ACCOUNTING ETHICS AS A COURSE IN BUSINESS RELATED PROGRAMME IN TERTIARY EDUCATION

ABSTRACT

Education in Ghana has undergone numerous changes and has adopted different forms. This has affected so many professions accounting profession inclusive. In line with that, this work tried to assess the relevance of accounting ethics as a course in business related programme in tertiary education, Ghana using the University of Cape Coast. The work analytically and hypothetically tried to ascertain the relationship between accounting ethics and students performance in accounting education. The work also tried to evaluate the perception of both the higher institution lecturers and the professional bodies’ lecturers regarding the relevance of teaching accounting ethics on the level of performance of accounting students. With a descriptive case study survey methodology, the data was collected using questionnaire instrument and analyzed in tables and frequencies. The data was collected from a sample of 47 drawn from lecturers in higher institution and professional bodies. A further analysis was done employing the regression tool and the student’s t test statistical techniques. The work discovered that accounting ethics affects the performance of accounting students. The lecturers’ perception on the relevance of teaching accounting ethics on the level of performance of accounting students was same with the professional bodies lecturers. The null hypothesis was rejected in the first hypotheses, since accounting education impacts on the academic performance of students. However, in the second hypothesis the alternate was rejected while the null was accepted indicating that there is no difference in the perception of the two categories of respondent on the performance level of students. This work summarily concluded that teaching accounting ethics is relevant and affects on the performance of students and recommended that government should invest in accounting ethics and education, support contentious training for accounting lecturers and review the accounting education curriculum in-line with global demand to facilitate efficient and laudable performance on the international market. 


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ASSESSING THE RELEVANCE OF ACCOUNTING ETHICS AS A COURSE IN BUSINESS RELATED PROGRAMME IN TERTIARY EDUCATION

EFFECT OF CREDIT RISK MANAGEMENT ON MARKET PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1 Background to the study

Banks and banking activities have evolved significantly through time and with the introduction of money. Financial services like deposit taking, lending money, currency exchange and money transfers became important due to the role being played by money, as no good financial system can do without well-structured and efficient financial institutions, specifically the banking industry. Banks had and still have an important role in the economy, by mediating between supply and demand of securities, and transforming short-term deposits into medium-term and long-term credits through credit creation. Through credit creation, deposit money banks are able to create new money through deposit multiplier effect and formed part of the main income generating activity of banks, though exposing them to credit risk (Kargi, 2011).

The Basel Committee on Banking Supervision (2001) defined credit risk as the possibility of losing the outstanding loan partially or totally, due to credit events (default risk) or the likelihood of losses when a borrower fails to repay a debt of any kind. Credit risk is an internal determinant of bank performance and the efficiency of the bank‟s performance is a function of how they are able to satisfy their customers at a minimum risk level and maximum profitability level. The higher the exposure of a bank to credit risk, the higher the tendency of the bank to experience financial crisis and vice-versa, thus necessitate its management.

According to Statement of Accounting Standards, credit risk management is the process of managing capital assets of banks and loss of loan reserves. These necessitate the appropriate management of the risks and serves as a key issue in reducing the earnings risk of banks and improving its value in the capital market. Nigeria deposit money banks has experienced high non-performing loans, low reserve for loan loss provisions, inadequate secured loans, loans and advances and low capital adequacy.

Credit risk is a serious threat to the performance of banks, as some of the reviewed studies showing a negative effect; therefore necessitate its management. Credit risk management provides a leading indicator of the quality of banks credit portfolio which is because it greatly influences or prevents the failure of a bank, as the failure of a bank is influenced to a large extent by the quality of credit decisions and thus the quality of the risk assets, which can be deterred as a result of poor corporate governance such as CEO duality etc.The importance of strong credit risk management for building quality loan portfolio is of paramount important to firm performance of deposit money banks as well as overall economy (Charles & Kenneth, 2013).

The growing stock of studies in accounting, finance and economics, underscores the failure in credit risk management as one of the main source of banking sector crises which possibly led to economic failure experienced in the past, including 2001 global financial crises (Fofack, 2005). Due to increasing spate of non-performing loans and its attendant consequences, the Central Bank authorities through its accords (Basel I and II) emphasized on the importance of capital adequacy for mitigating credit risk. Capital adequacy in banking business provides protection against sudden financial losses and serves as a distress prevention strategy (Greuning, 2003). The level of capital, a cushion to absorb credit and other losses, is matched to the portfolio risk depending on the risk characteristics of individual transactions, their concentration and correlation. All organizations, including banks, need to optimally allocate capital in relation tothe selective investments made. Hence, efficient tools and techniques for risk measurement are a key cornerstone of a good credit risk management

Other measures put in place in managing the risk associated with lending include making provisions to loans in case of loss or default in repayment, which could turn out to improve the firm performance of deposit money banks, most especially when specific assets are set aside for claims in terms of secured loans. In addition, when banks have adequate capital, it not only solves insolvency but also avoid the failure of the financial system.

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EFFECT OF CREDIT RISK MANAGEMENT ON MARKET PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

VALUE RELEVANCE OF INTERNATIONAL FINANCIAL REPORTING STANDARD ADOPTION IN NIGERIA FINANCIAL SERVICE FIRMS

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Accounting standards have changed greatly over the past decades with regard to the consistently increasing emphasis placed on measurement of assets base on fair valuation and pressing need for harmonization. However, in order to address the need of various users of financial information, locally formulated standards limit the ability to undertake cross boarder comparison. Therefore, the need for harmonizing of global financial accounting increased. The journey for the international harmonization toward a unique and global set of accounting standards started in 1973 when 16 professional accounting bodies agree to form the International Accounting Standard Committee (IASC).

The rationale behind the formation of the Committee was to produce and issue the International Accounting Standards (IAS) which came out of necessity to encourage growth in trade and investment between countries around the globe. The Committee was reorganized in 2001 to become International accounting Standard Board (IASB) which develops and issues International Financial Reporting Standards (IFRSs). Consensus has been reached that quality of accounting reporting is paramount to the information users for various decisions making purposes. IFRSs are increasingly becoming more acceptable set of regulations followed by many countries. In an effort to increase comparability, European Union mandated the adoption of IFRS to all its public entities in 2005. It is reported that more than 130 countries conformed to IFRSs as domestic reporting standards with 90 countries fully adopted (PWC, 2016).

Prior to international financial reporting standards, different countries develop their own standards locally and also to a certain extent adopt or adapt that of the other countries. In Nigeria, National Accounting Standard Board (NASB) develop and issue Statements of Accounting Standards (SAS) which are popularly known as Generally Accepted Accounting Principles (GAAP). These standards cut across various aspect of accounting activities such as recognition, measurements, and reporting of accounting transactions of various form of business activities. Therefore, SAS play a vital role in regulating the activities of accounting locallydue to the fact that financial reporting practicebefore IFRS depend on legal, economic, cultural and historical background of any country.

However, the major concern about the GAAP in several countries is that they are designed to reflect specific countries accounting needs, taken in to consideration different countries‟ regulatory and legal framework. Therefore, the need for globalization and growth of businesses brought difficulties in comparability and understandability of the local standards internationally. Also, the need to attract funds from the investors, creditors and financial institutions externally ignite the idea of accepting a common language for financial reporting in Nigeria so as to encourage international comparability. These and other issues pave the way toward harmonization of accounting standards and necessitate the need for a single set of high quality internationally generally accepted accounting standards (Ocansey, and Enahoro, 2014).

It is expected that adoption of IFRS would result in high quality reporting practice in Nigeria (Abiodun, 2012). The adoption of IFRS in Nigeria will lower the cost of capital and improve market liquidity (Leuz&Verrecchiia, 2010). Furthermore, IFRS adoption may encourage comparability and lower the cost of producing multiple financial reports to cater the need of cross-border investors in Nigeria (Okere, 2009). Similarly, the demands for functional financial institutions that would facilitate the development of stock market also encourage harmonization of financial reporting system. Financial sector is a driving sector of the economy; it contributes tremendously to the overall growth and development of stock markets (Mohammed & Lode, 2015).

Report on the Observance of Standard Codes (ROSC) in 2011 states that financial institutions in Nigeria do not provide full disclosure of accounting information as stipulated by the standards in their financial reports which was attributed to downturn in the Nigeria stock market and serve as a remote cause of the crises in the sector. As a result of this report and other reasons mentioned earlier, Nigerian government started IFRS adoption process by signing in to law, Financial Reporting Council (FRC) Act 2011 to replace the NASB Act 2004.

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VALUE RELEVANCE OF INTERNATIONAL FINANCIAL REPORTING STANDARD ADOPTION IN NIGERIA FINANCIAL SERVICE FIRMS

THE EFFECT OF FIRMS CHARACTERISTICS ON REAL EARNINGS MANAGEMENT IN THE LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1     Background to the study

Accounting information has been the major input in capital allocation decisions of investors and lenders in the capital markets. Specifically, accounting earnings remain the strategic financial statement variable for assessing firm‟s viability and future prospects. For accounting earnings to be useful and relevance to investors and lenders it has to be of higher quality, that is, free from errors and material misstatements. Accounting information particularly the “earnings” indicate firm‟s direction, reduces information asymmetry and ensures efficient capital allocation. This is achievable only if the managers did not interfere with the financial reporting process. The incidences of corporate failures that are related to creative accounting practices has raised concerns and remain a topical to researchers, regulators, standard setters, and investors in the 21st century and during the last two decades in particular. This rising concern among the stakeholders is not unrelated to some accounting practices that threaten the quality of corporate financial reporting and erode public confidence in the accounting profession. It also raised concerns about the reliability and credibility of financial reporting globally (Ge & Kim, 2013).

Corporate financial reporting is the management‟s responsibility, through which the managers communicate their stewardship performance to the owners and other stakeholders. Several researches on Capital Market are of the view that stock market responds favorably to earnings news when reported earnings meet or beat earnings expectations, while it reacts unfavorably when reported earnings fall short of earnings benchmarks. To avoid unfavorable reactions, managers have a tendency to avoid the release of bad earnings news at times of earnings announcements (Ge & Kim, 2013). As such managers can manipulate earnings through discretionary accounting choices (accrual-based earnings management) or by structuring real transactions and/or changing their timing (real earnings management). Earnings management is known in increasing information asymmetry between managers and outsiders and hide firm‟s unmanaged economic performance, thereby eroding financial reporting reliability and credibility. Bello (2011) argues that earnings management in whatever form is misrepresentation of true fact and figures of accounts which lead to a number of recent corporate collapses that erode shareholders confidence on the reported companies‟ financials. Moreover, Yero (2012) posits that, management report managed earnings to manipulate information asymmetry and misguide ill-equipped users.

There are many advantages attached for managing accounting earnings by corporate managers; for instance, managers might concentrate their efforts in tax planning to manage earnings and attempt to minimize the tax effects over time. Essentially, the conflict of interest between shareholders‟ and managers could encourage managers to use a certain degree of flexibility provided by accounting standards to manage earnings, and create distortions in the earning figures reported in the financial statements. This is in the corporate managers‟ efforts to influence short-term share price performance; or minimize earnings fluctuations in order to show better or more stable financial results.

The prevalence of corporate accounting scandals has changed the public perception of earnings management, as well as, the objective of corporate governance, which stop corporate managers from engaging in improper accounting activities for their own benefits. Financial reporting quality literature have documented a variety of accounting activities that manager‟s use whenever they engage in activities to manipulate earnings.

According to Gunny (2010) these activities include actions that managers may undertake to change the timing or structuring of an operation, investment and financial transactions. Specifically, Roychowdhury (2006) with regards real earnings management enumerated the management of sales, reduction of discretionary expenses, overproduction and reduction of R&D expenses. Though researchers especially in Nigeria ignored real earnings management, Kim and Sohn (2012) reveals that real-based earnings management has more damage than accrual-based earnings management, furthermore, it has both direct and indirect consequences on current and future cash flows of the business. They added that real earnings management activities are more difficult to be detected than accruals-based earnings management and are normally less subject to external monitoring and scrutiny. They also argue that real earnings management are more difficult for average investors to understand that make them into believing that business has achieved the targeted normal business goals.

Majority of the earnings management literature investigated how management used discretionary accruals to achieved desire earnings in a desired period. Therefore, the present study is motivated by the present research trend which less attention is giving toward investigating real earnings management. And also recent stakeholders concern about earnings management which is accepted by standard setters, practitioners and regulators, that earnings management can be detriment to corporate entities. As such, regulators and standard setters around the world have considered the extensiveness of earnings management to be a major concern for the reliability of published financial statements (Jiraporn, Young & Mathur 2008).

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THE EFFECT OF FIRMS CHARACTERISTICS ON REAL EARNINGS MANAGEMENT IN THE LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

NEW PRODUCT DEVELOPMENT AS A STRATEGY FOR SALES GROWTH, PROFITABILITY AND COMPETITIVENESS IN UBA (NIGERIA) PLC

CHAPTER ONE:

INTRODUCTION

1.9        Background to the Study

In Nigeria, the banking industry has been experiencing cyclical movements in its development patterns right from independence in 1960 to date. As a result of the importance of the banking industry in the economic development of the country, successive governments in the nation came up with different policies, programmes, regulations and strategies in the form of financial guidelines with the aim of improving the performance of the industry. These guidelines include: regulation, deregulation, liberalization, globalization, paging of interest rate, consolidation and the like.

In essence, the relevance of any business organization lies in its ability to develop new product in line with the needs, wants, interests and or aspirations of the society or community within which it operates. However, changes in the consumer taste, preferences and aspiration, as well as technological innovations, open market economy, challenges of globalization coupled with the new banking consolidation policy aimed at sanitizing the fragmented and crowed banking industry in the country, have brought in discipline and orderliness in the sector. However, there is no guarantee that a successful product today will remain relevant or success in the near future.

However, with deregulation and liberalization policies, the central bank of Nigeria was able to reduce the number of small indigenous banks from 89 to about 25 mega-sized banks, solely to provide a wide range of new product lines, including retail and whole sale banking as well as project financing and other investment services. With stiff competition in the industry, banks must do their best to meet the challenges; hence they must come up with projects or programme that includes: researching new products and or services in order to prosper because it is risky for banks to rely only on their existing products in the face of ever changing technological innovations.

Despite all the financial regulations and policies in the industry, its performance or contributions to the economy and customer satisfaction is still quite discouraging and for banks to grow, they must, from time to time, produce new products that lead to customer satisfaction vis-à-vis huge profit attainment within the industry. Sanusi, (2010) gave five measures of enhancing quality of banking in Nigeria. These measures are industry remedial programmes to fix the key causes of the crises; implementation of risk based supervision; reforms to regulation and regulatory frame work; enhancing provision for consumer protection; and internal transformation of Central Bank of Nigeria (CBN).

The survival and growth of commercial banks in Nigeria depend solely on their ability to develop new product and or service in order to cope with the global market challenges, but in the process, care must be taken in order to avoid producing “dogs” which are neither profitable nor satisfying customer needs.

1.10     Statement of the Problem

The introduction of Structural Adjustment Programme (SAP) in 1986 led to the proliferation many of commercial banks in Nigeria. As pointed by Nigerian Deposit Insurance Corporation (2009) that by then there were 89 active banks. The presence of these banks led to intense competition among different banks within the industry (both old and new generation ones). Also with the coming of the new generation banks into the scene, their new and sophisticated products posed a challenge for the old generation banks to adopt to new banking method in order to survive and grow in the new competitive environment.

Competition in the industry makes the old system of “Arm-Chair” banking impossible where bankers normally sit waiting for customers to come. For banks to survive now, they must embrace the “principles of marketing” if at all they want to survive and remain relevant in industry. They must encourage, persuade, motivate, attract and influence both existing and potential customers. They must engage into different promotional efforts such as personal selling, advertising, sales promotion, publicity, mass selling, public relation, branding, packaging and offer variety of products in order to capture large share of the market.

As a result of severe competition, marketing is currently occupying a prominent position in the Nigerian commercial banks where every banker is a “marketer”. This is the reason that led this study of the Assessment of New product development as a strategy for sales growth in UBA Plc, with the aim of finding out how new product development may lead to sales growth in the banking industry of Nigeria by taking UBA (Nigeria) Plc as a case.

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NEW PRODUCT DEVELOPMENT AS A STRATEGY FOR SALES GROWTH, PROFITABILITY AND COMPETITIVENESS IN UBA (NIGERIA) PLC

IMPACT OF FINANCIAL LEVERAGE AND DIVIDEND POLICY ON SHARE VALUE OF QUOTED OIL AND GAS COMPANIES IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The primary objective of every rational investor be it an institutional investor or individual investor,is to maximize expected returns on their investments within an acceptable level of risk. Thus, they prefer to invest their funds in shares of companies with increasing prices that will eventually boost their wealth in the stock market. Generally, most investors prefer persistent increase in the value of their shares in the stock market in order to earn more return on their investments and maximize their wealth.

However, in practice, the prices of stocks do not increase at all times in the stock market. They could fluctuate and perhaps result in losses that could be detrimental to the shareholders’ wealth. Therefore, the players in the financial market usually find it difficult to obtain reliable information on market values of shares as these values fluctuate quite frequently (Pandey, 2003). This fluctuation in the share values of companies at the stock market has been a matter of great concern to investors, fund managers and investment analysts globally and has attracted debates from financial economists, corporate finance experts and scholars over the years (Almumani, 2014).

Limento and Djuaeriah (2013), Gharaibeh (2015) and Aliyu (2015) contend that macroeconomic factors such as interest rate, gross domestic product, inflation rate, money supply, and risk free rate also cause movement in the share prices of companies in the stock market. On the other hand, it has also been argued that share value could be influenced by microeconomic variables like dividend per share, dividend payout, return on equity, earnings per share, book value per share, price earnings ratio, profitability, firm size, and leverage (Stephen &Okoro, 2014, Taimur, Harsh, &Rekta, 2015, Zeeshan, Ali, Sohail&Sulaiman, 2015 and Adenugba, Ige&Kesinro, 2016).

It has been seen in many studies that the share price of a company is influenced by financial leverage. For example, Buigut, Soi, Koskei and Kibet (2013) contend that the ratio of total debt to total capital is one of the major factors causing movement in the share value of a company. In the same vein, it has been argued by Hussain and Gul (2011) that the company’s share price is affected by its interest coverage ratio as investors perceive the company’s ability to cover its interest charges from profit as an indication that the company is profitable.

Similarly, scholars like AlTroudi and Milhen (2013) and Stephen and Okoro (2014) are of the view that the firm’s share price is strongly influenced by the retained earnings ratio. They further posit that investors prefer companies that retain their earnings for business growth rather than paying dividends. Conversely, Majanga (2015) asserts that dividend coverage ratio is one of the factors that cause fluctuation in the share value of a company. He added that investors prefer to invest their funds in shares of companies that pay dividends.

Therefore, a critical analysis of these factors gives the investors insight knowledge on whether the share price of a company is undervalued or overvalued in stock market at a particular point in time. An understanding of the impact of various fundamental variables on share price by investors helps them in making informed investment decisions(Srinivasan, 2013). However, the dynamic nature of the stock market and conflicting views held by scholars in the literature as regard the factors influencing Share price and persistent fluctuation in the prices of shares is still a crucial issue facing investors, fund managers and investment analysts in the financial market (Malhorta and Tandon, 2013) and (Almumani, 2014). These also pose a challenge making the task of identifying those fundamental factors that could cause changes in the share value and predicting future prices of shares complex.

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IMPACT OF FINANCIAL LEVERAGE AND DIVIDEND POLICY ON SHARE VALUE OF QUOTED OIL AND GAS COMPANIES IN NIGERIA

FINANCIAL PERFORMANCE AND FIRM CHARACTERISTICS OFNON-FINANCIAL QUOTED COMPANIES IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1         Background to the Study

In corporate finance, the issue of funding has been given much prominence in the activities of the firm. Corporate financing is a global issue because without proper financing, organisations, globally, will find difficulty in conducting their businesses. Almeida and Campello (2010) stated that corporate managers in Europe and the United States have always claimed that maintaining „financial flexibility‟ is the primary objective of their firm‟s policies. Financial flexibility ensures the continued running of operations of an organisation; it brings sustainability, and continued growth for the firm, which is expected to create wealth and add value to shareholders and stakeholders of the organisation. Thus, funding is therefore very essential for the survival of a firm.

It is part of a mandatory role for companies in Nigeria to finance their businesses so that they may be able to add value, remain in business and grow over time. Once businesses are in operation, the general expectations are that profits will be generated which in turn would lead to the creation of wealth to both the shareholders and the organisation. The returns made are expected to be paid to the shareholders in the form of dividends. The continued existence of the business allows employment to be created and employees to be paid salaries thereby improving the standard of living of people. In addition, revenues to be generated for the government through taxes and levies, which if fully utilised effectively the stakeholders to also benefit both socially and economically. All these are expected to reduce the level of poverty in the country, create wealth for the economy, and increase economic growth and development for the country.

Corporate financing decisions can be a complex process and existing theories can at best explain only certain features of how diverse and complex financing choices can be. The complexity of the financing decisions resulted to the choices of determining which financing structure to adopt for the organisation and financing structure decisions informed the issue of firm characteristics. Characteristics of the firm consists of the combinations of debt, equity, fixed assets,total assets and turnover, which are used in financing decisions to bring about an optimum performance and firm value.

The relationship between financial performance of the firm and firm characteristics is a subject of considerable debate both theoretically and in empirical literature. An optimal characteristic is expected to achieve maximum firm value or market value, increase in profitability, decrease in risk, and lower the weighted average cost of capital. It therefore becomes a concern if organisations are unable to achieve maximum financial performance through optimum firm characteristics.

Arguments have been made on characteristics and how the financial performances of firms are affected. Area of conflict lies on which financing policy to adopt. Where the firm is heavily financed by debt, interest will be paid by the organisation which reduces the profit of the firm, dividends and also retained earnings. With fewer retained earnings, the firm will have fewer funds for investment and may decide to restructure and use more of internal financing. This is informed by the pecking order theory of capital structure as pioneered by (Myers, 1984). Another argument informed by Miller and Modigliani, (1958) is that capital structure has no relevance in determining the financial performance of the company, that performance is determined by factors none other than debt or equity.

The corporate sector in Nigeria is made up of firms operating in a competitive environment and this free market coupled with the widening and deepening of the financial markets created a basis for companies to optimally determine their characteristics. Salawu and Agboola, (2008) explained that financial freedom of Nigerian companies can be traced to as far back as 1987 when financial liberalisation gave more flexibility to the Nigerian financial managers in choosing the firm‟s characteristics. Despite this flexibility, finance is still a major constraint to businesses in Nigeria and with the lack of sufficient funds for operations, coupled with low levels of investment capital recorded in recent years have result in low capacity utilization of industries, thus affecting corporate performance.

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FINANCIAL PERFORMANCE AND FIRM CHARACTERISTICS OFNON-FINANCIAL QUOTED COMPANIES IN NIGERIA

EVALUATION OF THE IMPACT OF ECONOMIC EMPOWERMENT AND DEVELOPMENT STRATEGY ON POVERTY ALLEVIATION IN TARABA STATE

CHAPTER ONE

INTRODUCTION

1.1.1     Background to the Study

Poverty is a global problem found in different parts of the world albeit with different causes and at various levels; which gives rise to various approaches to poverty alleviation strategies that depend on each country‟s antecedents. Whereas poverty in the United States is seen as a result of failings at the structural, social and economic level (Rank, 2003), it is seen in most African nations as caused by low level of production and production capacity, most especially in the agricultural sector which accounts for most of the employment and a large share of the GDP (Ibrahim, Mahmood and Umar, 2011).

Nigeria is the most populous African country; it has a high poverty rate of 69% in 2013 and rising unemployment rate of 19.7 in 2009, 21.5 in 2010, 23.9% in 2011 and 24.3 in 2014(NBS, 2014). The North East geo-political zone to which Taraba state belongs, has 69% poverty rate as at 2010 (see appendix 4) which makes the zone second only to the north central zone that has 70% rate (Aiyedogbon and Owhofasa, 2012). Nigeria is the 152nd country on the Human Development Index in 2014 and the 22nd in Africa, far below Ghana, Sao Tome and Equatorial Guinea, who are ranked 13th 16th and 17th respectively (HDI, 2014).

In order to alleviate poverty, Nigeria embarked on economic empowerment programs from the 1970‟s. These include the Green Revolution, Operation Feed the Nation (OFN), Nigerian Agricultural, Cooperatives and Rural Development Bank, (NACRDB) (now Bank of Agriculture, BOA), National Directorate for Employment (NDE), Poverty Alleviation Program (PAP), National Poverty Eradication Program (NAPEP), the Directorate of Food, Roads and Rural Infrastructure (DFRRI), and National Economic Empowerment and Development Strategy (NEEDS), all in an effort to alleviate poverty and its attendant consequences.

Economic empowerment and development program was born out of the dire need to stop the ravages of poverty and enhance the welfare of the people by the government. The global summits of world leaders that have a direct bearing on poverty alleviation was the millennium summit of 2000, it brought together 189 Heads of States who undertook to execute the time bound Millennium Development Goals (MDGs). These nations committed themselves to, among other targets, cut by half the number of people living in hunger and poverty by the year 2015.

Nigeria was among the 189 signatories at the convention; and in order to meet the target; it came up with a milestone in the form of National Economic Empowerment and Development Strategy (NEEDS) which gave rise to the state Economic Empowerment and Development Strategy (SEEDS) at the state level, as well as the Local Economic Empowerment and Development Strategy at the Local Government level. The Local Economic Empowerment and Development Strategy (LEEDS) operate within the framework of NEEDS and SEEDS in all the LGAs in Nigeria. Its aim was to promote poverty alleviation and general development at the grassroots level, involving key stakeholders such as local government officials, civil society groups, private sector participants, community leaders, traditional rulers, women and youths, in the process of development at the local government level (TSEEDS, 2004).

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EVALUATION OF THE IMPACT OF ECONOMIC EMPOWERMENT AND DEVELOPMENT STRATEGY ON POVERTY ALLEVIATION IN TARABA STATE

EFFECT OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ON TAX ADMINISTRATION IN FEDERAL INLAND REVENUE SERVICE

CHAPTER ONE

INTRODUCTION

1.1         Background to the Study

In recent times, the incessant militancy in the Niger Delta and falling global price of crude oil and oil revenue shifted the attention of the government and major stakeholders in Nigeria to other sources of revenue generation. One of the ways the government generates revenue is through taxation. Taxation is a system used to raise money for the purpose of government by means of contributions by individual persons or corporate bodies. Tax administration therefore involves all the principles and strategies adopted by any government in order to plan, impose, collect, account, control and coordinate the process of taxation (Ogbonna 2010).

Again, Governments and organizations worldwide are increasingly recognizing the need to facilitate access to public services through information exchange using Information and Communications Technology (ICT).The role of information and communication Technology (ICT) has been growing in the economic and social life in the 21st century. It is now a fact as evidenced by developments from many countries that ICT as a sector can contribute greatly to the national GDP of a nation and that ICT, acting as an enabler, can result in improved market competitiveness of a nation‟s products and services (Uvaneswaran & Mellese,2016). ICT can impact positively on governance and other sectors of the economy.

It can effectively assist international economic integration, improve living standards, narrow the digital divide and improve biodiversity utilization and management. According to Adamu (2001), Information and communication technology (ICT) has become very important to national growth and development. The adoption of ICT requires a business environment encouraging open competition, trust and security, interoperability and standardization and financial resources (Uvaneswaran &Mellese,2016). This requires the implementation of sustainable measures to improve access to the Internet and telecommunications infrastructure and increase ICT literacy, as well as development of local Internet-based content. Thus, ICT has been employed in many sectors of the Nigerian economy such as pensions, land registry, security administration, public financial management and tax administration.

Information and communication technology involves sending and receiving messages through electronic devices such as web portals, internet, inters witch, telnet and telecommunication. The recent globalization of information and communication technology has made business organizations, companies, individuals and government parastatals change from the manual way of communication to electronic means. With the advent of information and communication technology, it became imperative for tax administrators to take advantage of the emerging capabilities created by Information and Communication Technology to enhance tax administration. With the expansion in scope of operations and growth of businesses in the Nigerian economy, the Nigerian tax system embarked on several reforms geared towards enhancing tax administration.

Some of the reforms include organizational restructuring of the Federal and State authorities, the enactment of a National Tax policy, reforms in funding, legislation, tax payer education, human capacity building and automation of Tax administration. In its bid to simplify and ease tax payment process and increase revenue generation, the Federal Inland Revenue Service (FIRS) launched the electronic filing (e-filing) platform. Prior to automation of tax administration, there used to be a time when payment of tax was diverted or converted at the collecting banks, reconciliation of accounts took an inordinate amount of time due to manual processes and a time when taxpayers had to carry enormous amounts of cash in order to fulfil their tax obligations (Usman 2013).

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EFFECT OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ON TAX ADMINISTRATION IN FEDERAL INLAND REVENUE SERVICE

EFFECT OF FIRM CHARACTERISTICS ON THE FINANCIAL PERFORMANCE OF PENSION FUNDS ADMINISTRATORS IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

Many countries around the globe including Nigeria have experienced rapid establishment and growth of pension funds. The growth of these institutions is one development that countries have given considerable attention because of the sensitivity of the transactions involved in pension funds. Pension funds act as an important stimulus to capital markets in most countries where they exist through financial intermediation. They tend to complement, and hence stimulate development of capital markets, while acting as substitutes for banks. Their growth is also the consequence of a number of non-financial and demand-side features (Davis, 2000).

The need for better managed pension funds in many countries was necessitated by the growing population which in many cases translated to high rate of employment around the world. Also, most countries are experiencing increasing longevity in life expectancy and reduced fertility rates that seem to threaten the sustainability of the traditional pay-as-you-go pension systems. The pension contributions from the working population will not be sufficient to support the elderly. In response, countries are increasingly shifting their pension systems toward partial or full funding. In addition to the main purpose of coping with demographic pressures and unsustainable fiscal positions, other motivations for countries to reform their pension systems often include the hope that funded pensions will contribute to economic development by promoting national savings and capital market development (Meng & Pfau, 2010).

It is only natural for the state to make provision for the welfare of the aged especially as they engage most of their active, useful and youthful stage in life to the service of the nation state. The need to cater for the well-being of retirees after disengagement from their occupations

informed the basis of a gradual contribution that are accumulated and provided in lump-sum to the retired so as to sustain life to the end. In this regards, government has imposed pension laws to assist employees and the economy at large. The dual contributions of the concerned parties which are made on monthly basis accumulates to a huge sum of money that can be invested for future use, fruitful yields and also the growth of the economy. Thus specialized professionals are engaged to manage these funds through specialized institutions that are basically concerned with retirement related savings.

Pension funds perform diverse activities that are beneficial to both individuals and the economy at large. For instance, the funds induce capital and financial market development through their substituting and complementary roles with other financial institutions, specifically commercial and investment banks. As competing intermediaries for household savings and corporate financing (Impavido, Musalem, & Tressel, 2002), pension funds foster competition and may improve the efficiency of the loan and primary securities markets. This results in a lower spread between lending rates and deposit rates, and lower costs to access capital markets. On the other hand, Davis (2005) argues that pension funds may complement banks by purchasing long-term debt securities or investing in long-term bank deposits. Other potential impacts from the growth of pension funds include an inducement toward financial innovation, improvement in financial regulations and corporate governance, modernization in the infrastructure of securities markets, and an overall improvement in financial market efficiency and transparency (Davis, 2005). Such impacts should ultimately spur higher long-term economic growth.

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EFFECT OF FIRM CHARACTERISTICS ON THE FINANCIAL PERFORMANCE OF PENSION FUNDS ADMINISTRATORS IN NIGERIA