Category Archives: International Journal of Management Studies, Business and Entrepreneurship Research 2017

CONTENTS

Financial Sector Reforms and Savings Mobilization in Nigeria (1980 – 2013)

A.V. Ahmed¹; Dr. Awonusi Frank²; Adebanjo Joseph Falaye²& Ewunuga, Yemisi Adebimpe³

¹Department of Economics, Landmark University, Omu-Aran, Kwara State

²Department of Accounting and Finance, Landmark University, Omu-Aran

Email: awonusi.frank@lmu.edu.ng,victorayodele911@gmail.com,yeameasea17@yahoo.com, falaye.adebanjo@lmu.edu.ng

Corresponding Author:  Dr. Awonusi Frank

ABSTRACT

This study examined the impact of financial sector reforms on savings mobilization in Nigeria between the period of 1980 and 2013. It specifically examined the effects of financial sector reforms variables namely ratio of domestic credit given to the private sector to Gross Domestic Product, prime lending rate, ratio of broad money supply to Gross Domestic Product. Others include percentage contribution of financial sector to Gross Domestic Product, Inflation and Dummy variable (a measure of pre-reform and post reform periods) on savings mobilization (measured by domestic savings ratio) in Nigeria. Using the ordinary least square (OLS) estimation technique, the time series data used in the study were sourced mainly from CBN statistical bulletin and Annual Report and Statement of Account. The result obtained from the regression analysis confirmed that financial sector reforms variables used in the study have been effective in enhancing savings mobilization in Nigeria. Hence the need for policy makers and regulators to initiate policies that will ensure stability of the financial sector, reduce lending rates and increase credit to the private sector.

Keywords: Financial Sector; Reforms; Savings Mobilization

Strategic Tax Policy Enforcement as a Tool for Revenue Generation in Nigeria

Oseji, Akpors Sunday & Olusola, Olubokunla O.

Department of Business Education

College of Vocational and Technical Education

Tai Solarin University of Education, Ijagun, Ogun State

E-mail: akporsej@yahoo.com, olusolaolubunkolat2012@gmail.com

Corresponding Author: Oseji, Akpors Sunday

ABSTRACT

This paper attempts to analyse the strategic tax policy and its ability to reduce tax evasion and generate revenue for development desire of the populace.  The study made use of 1000 survey questionnaires containing 25 relevant questions. Descriptive statistics were used to analyse 967 usable responses. The study found among other things that increasing tax revenue is a function of effective enforcement strategy which is the pure responsibility of tax administration.  Nigeria  lack  enforcement  machineries  which  include  among  other  things, adequate  manpower, effective policy, political will,  computers  and  effective  postal  and  communication  system.  The study has clear practical implications for tax practitioners and governments policy makers in developing countries in particular.

Keywords: Strategy, Tax policy, Government revenue, Tax evasion, Tax assessment.

Does Interest Rate Spread Volatility Precipitate Investment in Nigeria?

Andohol, Jerome Terhemba

Department of Economics

Benue State University, Makurdi

Email: torsaa2002@yahoo.com

ABSTRACT

The work sought to investigate the impact of interest rate spread volatility on investment from 1986 to 2014. The investigation was anchored on a theoretical linkage of the Mckinnon -Shaw financial repression theory and the Ho and Saunders dealership theory. The Auto Regressive Conditional Heteroscedasticity Methodology   was adopted for this study. The findings suggest that there is high volatility clustering with its persistence attributed to unconditional variance. The study also found out that interest rate spread volatility, does significantly impact on investment in Nigeria. This means  activities surrounding the mobilization of savings from depositors  and onward lending  to investors,  should be given due diligence  in an effort to minimize interest rate spread which causes uncertainty that  impacts negatively on investment and economic growth.   

Keywords: Interest rate Spread Volatility, Interest rate Spread, Investment, Economic Growth, Auto Regressive Conditional Heteroscedasticity   

External Auditor Unethical Financial Reporting on Corporate Business Failure in Nigeria

Ehichioya, O. Glory

Department of Accounting and Finance

College of Management and Social Sciences

Samuel Adegboyega University, Ogwa

E-mail:ehichioyaglory@yahoo.com

INTRODUCTION

Financial reports serve as avenue for managers to give accounts of their stewardship to shareholders and other stakeholder, which are expected to present fair and truth reflection of the financial position of an organization as at the time of preparation and presentation. The reports are expected to influence the decision making process of a diversity of interest groups including, shareholders, employees, suppliers, creditors, financial analysts, stockbrokers, management, and government agencies – with timely and reliable information useful for making prudent, effective and efficient decisions. In order to overcome the problem of credibility, integrity and transparency of financial statements, an auditor who is an independent of the management is appointed to investigate the information in the financial statements and report his findings to the shareholders (Millichamp, 2010). In performing this role, the auditor fosters the trust of the public and encourages them to believe that the financial statements are true and fair (Sikka, 2009). However, following numerous cases of corporate crisis, scandal and failures, some of which were linked to the negligence or unethical financial reports  of the auditors, the public confidence in the financial statements has long been eroded and this have led to the auditing profession once again in the lime light as a result of several business failures. These failures have brought up a lot of public discourse which results to increased demands for ethical values within the auditing profession.

Econometrics test of Arbitrage Pricing and its Volatility in the Nigerian Equities Market

David Umoru & Samuel Iweriebor

Department of Economics, Faculty of Arts, Mgt. & Social Sciences, Edo University, Iyamho

Department of Economics, College of Education, Agbor Delta State

E-mail: david.umoru@yahoo.com

Corresponding Author: David Umoru 

ABSTRACT

The study is an empirical test of validity of arbitrage pricing theory (APT) in Nigerian Stock Exchange Market (NSEM) and its volatility for the sample period of 2010 to 2014 using quarterly data on forty-two stocks listed in NSE. Using the EGARCH model, GLS and the fixed effect panel data estimator with cross section specific coefficients, the study validates the APT for NSEM. The policy implication is such that the study upholds the APT theory for NSEM. Results show money supply had significant positive outcome on stock return; Treasury bill with inflation rates had significant negative outcome on return of NSEM. Above all, a significant EGARCH effect was found with indication of harmful market volatility on stock return. This indeed validates that Nigerian stock exchange is vulnerable to instability in the market. The study so recommends the need for stock investors to be cognizant of trend of both domestic macroeconomic fundamentals.

Keywords: APT, Volatility, Nigerian Stock Exchange Market (NSEM)JEL Classification: A38, D26, F45

Effect of Fraud Control Mechanism on Inventory, Fund and other Related Assets of Corporate Organizations in Nigeria

Nwadighoha, Chinedum Ephraim

Department of Accounting

Michael Okpara University of Agriculture

Umudike Abia State, Nigeria

Email:chinedumnwadighoha@yahoo.com

ABSTRACT

This study is aimed at the effect of fraud control mechanisms on the inventory, fund and other related assets of the company. Fraud is said to be rare in Botswana, widespread in Ghana and systemic in Nigeria. Hope and Chikuloas cite in (Osisioma, 2012). To achieve the purpose of this study, hypotheses were formulated and research question were raised and tested. A dummy of proxies were provided for the testing of hypotheses with multiple regression analysis with the aid e-view Watson Durbin F. Statistic which is a computer based model. Our findings revealed that, there is a direct and strong relationship between fraud control mechanisms on inventory, fund and other related assets of the companies under study. The following recommendations were made, there should be a strong and workable internal control measures to prevent any kind of fraud, more attention should be given to the areas where fraud indices are prevalent and preventive and proactive measures should be adopted, since prevention is better than cure.

Keywords: Fraud, Control Mechanisms, Assets, Prevention, Detection and investigation.

Extent of use of ICT Facilities in selected Banks, located in Federal University of Technology, Akure, Ondo State, Nigeria

Okhankhuele, Omonigho Tonia

Department of Business Administration

Federal University of Technology, Akure, Ondo State, Nigeria

E-mail: omotonia2013@gmail.com

ABSTRACT

This paper recognized ICT as a tool for surviving competition in contemporary banking industry, using First bank of Nigeria PLC, Guarantee Trust Bank and United Bank for Africa, Federal University of Technology, Akure, Ondo State, as case study. The paper identified the ICT facilities that are utilized in these banks and examined the extent to which these facilities are utilized. The paper searched for answers to research questions by employing survey design, random sampling to select the banks, and the respondents were selected randomly. Data were gathered from 294 respondents with the aid of a 13-item questionnaire. The respondents comprised the selected banks’ customers. Data were analyzed using descriptive statistic – Relative Importance Index, and Chi Square was used to test hypotheses at 5% significant level. The research instrument was validated through Pilot test and reliability was tested using Cronbach Alpha. The study disclosed that, there was a high extent of use of ICT facilities in the banking industry. The paper recommended more investment and use of ICT modern technologies, in order to withstand the intense competition in the banking industry.

Keywords: ICT, Facilities, ICT Facilities, Extent of Use

Benefits of Entrepreneurship Education as a Component of Technical and Vocational Education and Training (TVET) in Nigerian Educational Curriculum

Daniel Momngu Tiough & Vershima Mark Nande

Department of Vocational and Technical Education, Faculty of Education

Benue State University, Makurdi

Email: dantiough@yahoo.com, nandemarkver@gmail.com

Corresponding Author: Dr. Daniel Momngu Tiough

ABSTRACT

This paper is about the relevance of entrepreneurship education in the Technical and Vocational Education and Training (TVET) Curriculum. The paper looks at the concept of TVET, entrepreneurship, entrepreneur and the qualities of entrepreneur. The paper further looks at the benefits of entrepreneurship education in the TVET curriculum, the paper concludes that TVET gives technical skills to students or trainees but the students need entrepreneurship education to be self-reliant in the society and to be employers of labour as envisioned in the National Policy on Education. The paper therefore concludes that entrepreneurship is important, beneficial and very relevant in the TVET curriculum. The paper therefore recommends that; (i) Entrepreneurship education should be incorporated in the TVET curriculum, (ii) Government should provide adequate funds for TVET students using entrepreneurship to visit job centers and enterprises to broaden their knowledge while in schools, and (iii) Government should lessen tax policies to encourage individuals to own businesses.

Keywords: Entrepreneurship, Technical and Vocation Education and Training,                       Entrepreneur

Evaluation of Consumer behaviour on Retail Prices of Rice in Imo State

Eze, E. U¹., Effiong, J. A. L¹, Osuji E.E² and Maduike I. A³

¹Departmentof Agricultural Technology, Federal Polytechnic Nekede, P.M.B 1036,Owerri,Imo State

²Department of Agricultural Economics, Micheal Okpara University of Agriculture, Umudike ³Department of Agricultural Economics, Federal University of technology, owerri

E–mail: emey4jesus@yahoo.com

Corresponding Author: Eze, E. U.

ABSTRACT

The study evaluates consumers’ behaviour on retail price of rice in Imo State of Nigeria. Data were drawn from the three agricultural zones in Imo State, namely Owerri, Orlu and Okigwe. A functional market in each zone was randomly selected. A multi stage sampling technique was used for the study. Primary data were obtained by means of interview schedule (questionnaire) administered to consumers of rice at retail shops. Data were analyzed using descriptive techniques and ordinary least square (OLS) method of multiple regression analysis. Empirical result reveals that the mean weekly budget share for rice was N1345.20 but the actual weekly expenditure was N1638.89. The differential of 21.8% increases in expenditure from the budget share of rice could be attributed to variability in prices of rice in the market. About 63.3% of rice consumers have a weak bargaining index of 0.67 indicating that consumers’ influence on the food product is weak. It could be deduced from the result that quantity demanded of rice (Qty) has negative relationship with its own price but consumers’ bargaining power has a positive effect on price. There is need for consumers to be encouraged to form co – operative societies through which they can buy food products in bulk to reduce retail price thereby reducing the price margin between their budget share and actual expenditure in view of the fact that their bargaining power is weak. This will also reposition them to play a key role in price formation and sharing market information in order to increase their bargaining power as majority of retailers are only interested in profit maximization to the detriment of consumers. Consumers of rice should be ready to make adjustment on their weekly budgets of rice because of price variability.

Keywords: Consumer behaviour, retail prices, budget share, price flexibility