Search results

The purpose of this paper is to investigate client influence on mortgage valuation in Nigeria to establish and rank the means of influence clients employ, and the impact of firm characteristics on client influence.

A combination of cross-sectional survey and focus groups research designs was adopted. Questionnaire structured on five-point Likert format was used to collect data from a sample of valuation firms in five Nigerian cities. Descriptive statistics, χ2, and moderated hierarchical linear model were used for data analysis.

Clients’ means of influence on valuation are more of subtle approach than threat or coercion. The most prevalent means are respectively, plea for assistance, promise of continued retainership on banks’ valuer panels, and disclosing the loan amount. Client influence differs across cities; firm characteristics have no influence on client pressure.

The research provides basis for valuation bodies to review practice rules and standards and seek for legislation for valuer independence. It can serve as material for teaching and training in professional ethics.

Biased valuations jeopardises credit risk mitigation process with potential for destabilising banks, finance sector, and consequences for the economy.

The study provides empirical evidence of the nature of client influence across several major Nigerian cities. In contrast to existing Nigerian studies that focus on single cities, the study covers several cities. It therefore provides a broad basis for problem-solving and decision-making.

The clarity of requisite roles of public sector organizations (PSOs) for successful procurement of public-private partnership (PPP) infrastructure in Nigeria is not well-established as the country is portrayed with the rising statistics on the haphazard pattern of operation of PPP model for infrastructure procurement. This has greatly beset the expected performance of a number of PPP projects which were intended to bridge the infrastructural deficit in the country. This study therefore examined roles the performed by PSOs in PPP infrastructure procurement with a view to delineate PSOs obligations and consequently improve project success.

The study was based on structured questionnaire survey of professionals in PSOs who have been involved in PPP infrastructure procurement in Southwestern Nigeria. The sampled professionals were drawn from a build-up of network through a referral chain by the adoption of respondent-driven sampling (RDS) method. The data collected were subjected to mean score analysis and Kruskal–Wallis test.

The study found that roles pertaining to management of variation, apportionment of penalties and abatements, select preferred bidders, establish management approaches for PPP risks are infrequently performed by PSOs in Nigeria. Whereas these roles are critical to successful procurement of PPP infrastructure as they are prerequisites for PPP infrastructural project success.

The study provides information that would be useful for developing countries with evolving PPP markets for enhanced project delivery.

The purpose of this study is to determine the strategy adopted by small- and medium-scale enterprise (SME) owners in setting up internal control systems, examine the relationship between the numbers of employees’ fraud and strategy adopted in setting up internal control and evaluate the difference between proactive and reactive strategies in employee’s fraud prevention among SMEs.

A survey research approach was adopted to determine whether proactive or reactive strategies were adopted by the SME owners. Specifically, a survey questionnaire was used to gather primary data from selected respondents in Lagos and Oyo States. Descriptive statistics, Spearman correlation and the Mann–Whitney test were used to analyse the primary data.

The study found that most of the SME owners used reactive internal control strategies in setting up their internal control systems after they suffered financial losses occasioned by employees’ fraud. Also, the study found a positive relationship between the number of employees’ fraud and reactive strategy. Finally, the study found a significant difference in the number of employees’ fraud occurrences between proactive and reactive internal control strategies in SMEs.

The study provides further confirmation that where internal control is properly set up and strengthened, a lower number of employee frauds will occur. Thus, giving credence to the fraud theory. The study was, however, conducted in six selected local government areas in two states.

The study provides recommendations on the adoption of a proactive strategy for curbing employees’ fraud at the onset of business operations and not until devastating events of employees’ fraud become a reality.

The study is original, as it focuses on the strategy adopted by SME owners in setting up internal control systems, which is rare in fraud empirical studies, particularly for studies conducted in emerging markets like Nigeria. It provides the need for the sustainability of SMEs as engine of growth and employment through the adoption of appropriate strategies in setting up internal control systems.

A major challenge for foreign lenders in financing public private partnerships (PPP) infrastructure projects in an emerging market (EM) is the bankability of country-related risks. Despite existing studies on country risks in international project financing, perspectives of foreign lenders on bankability of country-specific risks in an EM is yet to be explored. Hence, using a mixed methodology approach, three private finance initiatives/PPP projects in Sub Saharan Africa (Nigeria) were used to investigate political risk, sponsor, concession and legal risks in PPP loan applications. The paper aims to discuss these issues.

The study adopted mixed methodological approach comprising focus group discussions and analysis of loan documents obtained from foreign project lenders, in addition to the questionnaire survey distributed to local and international project financiers with experiences in PPPs within Nigeria.

Results identified seven topmost bankability criteria for evaluating country-related risks (political risk, sponsor, concession and legal risks) in EM PPPs. In addition, a “Risk and Bankability Framework Model” was developed from the study presenting critical parameters for gaining foreign funding approval for EM’s PPP loan applications.

Since the study only explored bankability of PPPs in Sub Saharan Africa with the exclusion of other geographical regions, the proposed framework model should be taken in context of EMs as a mind-map for foreign lenders and local private investors seeking to finance PPPs in an EM.

Results from the study represent critical parameters for winning foreign loan approval for PPP infrastructure projects within an EM context.

Study proposed “Risk and Bankability Framework Model” relevant for evaluating PPP loan applications at the pre-approval stage for EM PPPs.

Public–private partnership (PPP), a project financing arrangement between private investors and the public sector, has revolutionized the approach to the funding and development of public infrastructure worldwide. However, the increasing cases of financial risks and poor financial risk management related to the model threaten the sustainability and financial success of PPP projects leading to huge financial investment losses. This study aims to review existing literature to establish the key measures to control the financial risks of sustainable PPP projects.

A PRISMA-compliant systematic literature review method was used in this study. Data were sourced from academic databases consisting of 56 impactful peer-reviewed journal articles.

The review outcomes demonstrate 41 critical factors (measures) in mitigating the financial risks of sustainable PPP projects. They include minimum revenue guarantee, strategic alliance with private investors, financial transparency and accountability and sound macroeconomic policies. The principal results of the study were categorized and conceptualized into a financial risk management maturity model for sustainable PPP projects. Lastly, the study reveals that further studies and project policies must focus more on addressing financial challenges relating to climate risks, and health and safety concerns such as COVID-19 outbreak that have negative impacts on PPP projects.

The results provide essential research gaps and directions for future studies on measures to mitigate the financial risks of sustainable PPP projects. However, this study used small but significant existing publications.

A checklist and a conceptual maturity model are provided in this study to help practitioners to learn and improve upon their practices to mitigate the financial risks of sustainable PPP projects.

This study contributes to managerial measures to reduce huge losses in financial investments of PPP projects and the attainment of sustainability in public infrastructure projects with a financial risk maturity model.

Combating and detecting fraud is a daunting task, especially in the Nigerian banking sector, because it necessitates a thorough understanding of the nature of fraud, as well as how it can be performed and concealed by fraudsters. Therefore, the purpose of this study is to empirically examine the relationship and the predictive ability between amoral behavior, control climate and perceived job insecurity on fraudulent intentions among bank employees in Lagos Metropolis.

Descriptive and cross-sectional designs were used to select employees from 12 banks using predetermined scales. In total, 1,080 questionnaires were distributed, but 950 were retrieved and analyzed. The study used multistage sampling by applying cluster, purposive and simple random sampling techniques. Correlation and hierarchical regression analyses were used to analyze the data.

A significant positive relationship and predictive abilities were established between employee’s amoral behavior and fraudulent intentions on the one hand, and employee’s job insecurity and fraudulent intention on the other, going by the additional variance identified when each variable was added in each step, implying that employees who exhibit amoral behavior are likely to engage in fraudulent intentions. In the same manner, employees who feel insecure are likely to engage in fraudulent acts because they would want to secure their future. However, there was a significant negative relationship and predictive ability between control climate and fraudulent intention; implying that inculcating a strict control climate minimizes or totally eradicates employees’ intentions to commit fraud.

This paper is limited to amoral behavior, control climate, perceived job insecurity and fraudulent intentions; it is limited to employees in the banking sector, with a special focus on emerging economies, Nigeria, West Africa. The implication of this is that the result may not be generalized to other sectors and other countries.

The practical implication of the study is that managers should be aware that employees who are in danger of losing their jobs are more likely to engage in the fraudulent act, and this should be looked into. Training and retraining, workshops, conferences and seminars on employee morale behaviors as well as strict adherence to ethical codes of conduct are vital to enlighten the employees on the dangers of perpetrating fraud and the impact on themselves and the economy at large. Control climate is a very vital tool in curtailing the incidences of fraud in the organization.

This paper contributes to the knowledge by filling the gaps left by a lack of empirical examination into the combined influence of amoral behavior, control climate and perceived job insecurity on fraudulent intentions, especially among bankers in Lagos Metropolis. It provides management with guides on how to drastically reduce the menace of fraudulent intentions in the banking sector and by extension in other non-banking organizations.