Olayinka O. Adegbite, Charles L. Machethe and C. Leigh Anderson
This study aims to develop and apply a multidimensional measure of financial inclusion (FI) to address measurement issues and determine the level of FI of rural smallholder…
Abstract
Purpose
This study aims to develop and apply a multidimensional measure of financial inclusion (FI) to address measurement issues and determine the level of FI of rural smallholder farmers and the contribution of domain indicators to the level of FI in Nigeria.
Design/methodology/approach
The paper adapts the Alkire–Foster method to develop a multidimensional FI index (MFII). A stratified two-stage sampling procedure is used to select 2,300 rural respondents from the 2016 Consultative Group to Assist the Poor (CGAP) Smallholder Household Survey.
Findings
Results indicate that 78% of rural smallholder farmers in Nigeria are financially excluded. In addition, owning a formal account is significantly different (p < 0.00) from being financially adequate. The financial capability domain contributes the least (29.66%) to the multidimensional FI (MFI) of rural smallholder farmers relative to financial participation and financial well-being. Financial literacy, consumer protection, overcoming barriers such as high transaction costs and financial planning indicators contribute the least to FI relative to formal access.
Practical implications
Results of the study lead to policy recommendations for increasing the FI of rural smallholder farmers in Nigeria, which may be applicable to other countries.
Social implications
Achieving sustainable FI requires that interventions increase the FI of rural smallholder farmers by strengthening financial capability, participation and well-being and not only focus on formal account owners.
Originality/value
The study provides a new methodological and empirical contribution to the FI literature on rural smallholder farmers.
Details
Keywords
This paper aim to fill the gaps by looking for the determinants and barriers related to financial inclusion. This study assesses the effect of socio-demographic variables on the…
Abstract
Purpose
This paper aim to fill the gaps by looking for the determinants and barriers related to financial inclusion. This study assesses the effect of socio-demographic variables on the use of formal financial inclusion services.
Design/methodology/approach
This article examines the barriers to formal financial inclusion, focusing on saving and credit strands. The authors propose the probit model, allowing distinguishing the outcome variable into three categories: Formal inclusion, informal inclusion and financial exclusion. The authors apply this model to the Findex 2017 survey data.
Findings
Estimation results propose that the trust to financial institutions, the distance to banks, the lack of documentation and the service costs are the main barriers, but these barriers affect the probability of using formal financial services differently according to the types of financial services (saving or credit).
Research limitations/implications
To advance the formal financial inclusion in Tunisia, the authors call for continuing promoting financial literacy among adults and the young population, which helps them understand the benefits of using formal financial services. Financial literacy throws in constructing the individual trust toward the financial sector in a country that experienced several decades of political and economic instability.
Originality/value
Financial inclusion promotes growth through a broadening of the system and technology that can be a major catalyst for greater financial inclusion. It helps in the overall economic development of the underprivileged population and contributes to poverty reduction. It can also enhance the security of payments, and thus lower the incidence of associated crime.
Details
Keywords
Adesola Olalekan, Victor Igweike, Oloruntoba Ekun, Abosede Adegbite and Olayinka Ogunleye
Pre-eclampsia and eclampsia (PE/E) are rising in Sub-Saharan Africa, including Nigeria. This study aims to evaluate the availability and logistics management of sixteen items from…
Abstract
Purpose
Pre-eclampsia and eclampsia (PE/E) are rising in Sub-Saharan Africa, including Nigeria. This study aims to evaluate the availability and logistics management of sixteen items from the Nigerian essential medicine list required for managing these conditions.
Design/Methodology/approach
A cross-sectional study in 50 health-care facilities in Lagos State, Nigeria, at the beginning of the COVID-19 pandemic by interviewing the facility’s main person in charge of health commodities. Data were recorded during the visit and in the previous six months using the adapted Logistics Indicators Assessment Tool (LIAT). In addition, descriptive analysis was conducted based on the World Health Organization availability index.
Findings
The availability of 13 (81%) of the commodities were high, and 3 (19%) were relatively high in the facilities, stock out rate during the visitation and previous six months varied with the commodities: urinalysis strip (22%) and (40%), hydralazine (20%) and (20%), labetalol injection (8%) and (20%), labetalol tablet (24%) and (24%) and sphygmomanometer (8%) and (8%). No stock out was recorded for 11 (69%) commodities. All the facilities observed 9 (75%) out of the 12 storage guidelines, and 36 (72%) had a perfect storage condition score.
Limitations/Implications
Current state of PE/E health commodities in the selected facilities is highlighted, and the strengths and weaknesses of the supply chain in these health facilities were identified and discussed.
Originality/value
These commodities’ availability ranged from reasonably high to very high. Regular supportive supervision is germane to strengthening the logistics management system for these commodities to prevent the negative impact on the health and well-being of the people during the COVID-19 pandemic and post-pandemic.
Details
Keywords
Olayinka Moses, Emmanuel Edache Michael and Joy Nankyer Dabel-Moses
This study explores the extent of environmental management and reporting regulations in Nigeria, highlighting areas of inadequacies in regulatory enforcement and companies’…
Abstract
Purpose
This study explores the extent of environmental management and reporting regulations in Nigeria, highlighting areas of inadequacies in regulatory enforcement and companies’ compliance. We approach the review within the context of the UN 2030 Sustainable Development Agenda (SDA).
Methodology
This chapter is based on a systematic review of extant environmental regulations and academic literature.
Findings
The results show several inadequacies with respect to Nigeria’s environmental management and reporting regulations. We specifically note the changing environmental management and reporting landscape in Nigeria birthing several emerging mandatory reporting codes. We find that fragmented reporting regulations and inappropriate sanctions are responsible for the unsatisfactory compliance and disclosure level noted among firms in the country. Additionally, weak enforcement, funding limitations, unrealistic financial penalties, and general implementation deficits remain factors impeding effective environmental management practice in Nigeria.
Originality
This research provides insight into environmental management and reporting inadequacies in Nigeria, and the actions regulators and firm managers need to take on board to help the country actualize the UN 2030 SDA.
Details
Keywords
Babajide Oyewo, Vincent Tawiah and Abdulrasheed Zakari
This chapter investigates the relevance of sustainability accounting practice (SAP) in the actualisation of the United Nations (UN) sustainable development goals (SDGs) 2030…
Abstract
This chapter investigates the relevance of sustainability accounting practice (SAP) in the actualisation of the United Nations (UN) sustainable development goals (SDGs) 2030. Whilst the SDGs appear general, broad and far-reaching, the sustainable development agenda (SDA) impliedly places responsibilities on member nations to evolve strategies that will ensure the achievement of the SDGs in their respective countries in accordance with national circumstances and peculiar challenges. This brings to bear the need to consider measures to translate the SDGs to realities, especially in developing countries. We use a structured questionnaire to collect data on the application of SAP from publicly listed manufacturing companies in Nigeria. Secondary data on economic performance were obtained from the annual reports of companies for 5 years (2014–2018). Structural Equation Modelling and Mann-Whitney test were applied to analyse data. Result suggests that whilst the implementation level of SAP by companies is generally moderate, internalities/‘pull factors’ such as market orientation and deliberate strategy formulation significantly determine the sophistication level of SAP. The insignificant effect of the externalities/‘push factors’ (i.e. environmental uncertainty, structure of ownership and control, and intensity of competition) on SAP suggests that external pressure on companies to implement sustainability initiatives is weak. We also find that extensive usage of SAP can sustain economic performance in the long run. The chapter provides empirical evidence that manufacturing companies extensively implementing SATs can sustain economic performance and would likely have enough economic resources to implement some initiatives that are fundamental to the actualisation of the SDGs 2030. The chapter contributes to the sparse literature on sustainability practice in developing countries, and incrementally adds to knowledge on the factors driving SAP in a jurisdiction characterised by lax regulatory framework and weak institutional apparatus on sustainability. As evident in our findings, SAP engenders sustainable economic performance.
Details
Keywords
Olayinka Erin, Alex Adegboye and Omololu Adex Bamigboye
This study aims to examine the association between corporate governance and sustainability reporting quality of listed firms in Nigeria.
Abstract
Purpose
This study aims to examine the association between corporate governance and sustainability reporting quality of listed firms in Nigeria.
Design/methodology/approach
The authors measure corporate governance using board governance variables (board size, board independence, board gender diversity and board expertise) and audit committee attributes (audit committee size, audit expertise and audit meeting). The authors measured sustainability reporting quality using a scoring system, which ranges between 0 and 4. The highest score is achieved when sustainability reporting is independently assured by an audit firm. The lowest score refers to the absence of sustainability reporting. The study emphasizes 120 listed firms on Nigeria Stock Exchange using the ordered logistic regression technique.
Findings
The results indicate that board governance variables (board size, board gender diversity and board expertise) and audit committee attributes (audit committee size, audit expertise and audit meeting) are significantly associated with sustainability reporting quality. Additional analysis reveals that external assurance contributes to the quality of sustainability reporting through corporate governance characteristics.
Research limitations/implications
This study is restricted to a single country. Future studies should consider a cross-country study, which may help to establish a comparative analysis. Likewise, the future study could consider other regression techniques using a continuous measurement of the global reporting initiative in measuring sustainability reporting quality.
Practical implications
This study’s findings have important implications for policymakers and practitioners, especially the corporate executives and top management. Companies are encouraged to restructure their board to enhance better monitoring and support towards better sustainability reporting.
Social implications
Disclosure on sustainability reporting helps corporate organizations advance the issues of sustainability both nationally and globally.
Originality/value
This current study adds to accounting literature by examining how corporate governance contributes to sustainability reporting practices within the Nigerian context. Drawing from the result, the study provides strong interconnectivity between the corporate board and audit committee in driving sustainability reporting quality within an organizational context.
Details
Keywords
Sara Al-Asmakh, Ahmed A. Elamer and Olayinka Uadiale
This study examines the impact of audit partner tenure on Key Audit Matters (KAM) disclosures within Gulf Cooperation Council (GCC) countries. It explores how Hofstede’s cultural…
Abstract
Purpose
This study examines the impact of audit partner tenure on Key Audit Matters (KAM) disclosures within Gulf Cooperation Council (GCC) countries. It explores how Hofstede’s cultural dimensions influence this relationship, elucidating the effect of cultural context on auditing practices.
Design/methodology/approach
Utilizing a sample of 456 non-financial firms in the GCC from 2016 to 2021, the study employs regression analyses to explore audit partner tenure's influence on KAM disclosures and the moderating effects of Hofstede's dimensions of power distance, individualism, masculinity and uncertainty avoidance. This affords a detailed examination of individual and cultural impacts on audit quality.
Findings
Results reveal a positive relationship between audit partner tenure and KAM disclosures, suggesting that firm-specific knowledge and industry expertise acquired over a long tenure may enhance auditors' ability to identify and report significant matters. Power distance and uncertainty avoidance amplify this effect, whereas individualism diminishes it. Masculinity does not yield significant results.
Research limitations/implications
This study underscores the need for auditing standards to reflect the complex interplay of auditor tenure and cultural dynamics in the profession's global landscape.
Originality/value
This research contributes to the literature on audit quality by highlighting the formative role of individual auditors and cultural characteristics in KAM disclosure practices. It is among the first to quantitatively analyse the intersection of audit partner tenure and culture in the GCC. It provides valuable insights for regulators, practitioners and policymakers seeking to enhance audit practices across diverse cultural environments.
Details
Keywords
Ogbonnaya Ukeh Oteh, Ambrose Ogbonna Oloveze, Obianuju Linda Emeruem and Emmanuel Onyedikachi Ahaiwe
Patronage of local footwear have not been encouraging in Nigeria despite recent investments. The purpose of the study is to evaluate celebrity endorsement and customer patronage…
Abstract
Purpose
Patronage of local footwear have not been encouraging in Nigeria despite recent investments. The purpose of the study is to evaluate celebrity endorsement and customer patronage of small and medium-scale enterprises (SMEs) products in African context, with focus on trustworthiness, expertise, attractiveness, respect and similarity (TEARS) model.
Design/methodology/approach
The research was designed as a descriptive survey. An online structured questionnaire was applied for data collection. Cronbach Alpha and content validity were used for reliability and validity, respectively. TEARS model was used to ascertain key dimensions, and Pearson correlation coefficient and logistic regression were applied into the analysis.
Findings
The findings reveal that celebrity endorsement is not associated with patronage of local footwears, though TEARS model analysis indicates the direction of consumers rating on celebrity endorsement. Factors such as recommendation and quality impact the consumer willingness to buy local footwear.
Research limitations/implications
The small sample size calls for caution in generalization.
Practical implications
The study suggests that although the TEARs model is viable, all the dimensions are mutually exclusive. However, this depends on the characteristics of the brand. In driving patronage, managers must pay attention to personal and non-personal cues such as price, quality and source of information about their brand.
Originality/value
The originality is buttressed from the value it provides for local product production and patronage. The significant factors are indicated as key to addressing low patronage.
Details
Keywords
Some researchers regard discretionary accrual (DA) as one of the factors that drive corporate managers to conduct tax planning (Scott, 2009; Basri and Buchari, 2017). Based on…
Abstract
Purpose
Some researchers regard discretionary accrual (DA) as one of the factors that drive corporate managers to conduct tax planning (Scott, 2009; Basri and Buchari, 2017). Based on agency theory and positive accounting theory, corporate managers can transform accounting information and manipulate firm earnings to reduce tax liability. There is a lot of research concerning earnings management and tax planning in the developed economy. These studies include Wang and Chen (2012) and Pettersson and Wu (2015). In the emerging economies, it includes Jamei and Khedri (2016), Kurniasih and Sulardi Suranta (2017), Prastiwi (2017), Almashaqbeh et al. (2018), Bayunanda et al. (2018), Rani et al. (2018) and Kałdoński and Jewartowski (2019). It is important to note that none of the research mentioned above has evaluated the impact of real earnings management (REM) on tax planning in Nigeria. While in the developed economy only Kałdoński and Jewartowski (2019) used REM as an explanatory variable, while the majority of studies used DA. Consequently, no study has used REM to moderate the relationship between financial attributes and tax planning. Despite the widespread notion, as well as positive accounting theory, tax planning theory that financial attributes (profitability, leverage, liquidity and firm growth), REM and DA motivate tax planning, previous investigations have produced mixed results (Dwenger and Steiner, 2009; Wang and Chen, 2012; Chen and Zolotoy, 2014; Aghouei and Moradi, 2015; Pettersson and Wu, 2015; Ribeiro, 2015; Chen et al., 2016; Jamei and Khedri, 2016; Ogbeide, 2017; Yuniawati et al., 2017; Chen and Lin, 2017; Firmansyah and Febriyanto, 2018; Prastiwi, 2018; Rani et al., 2018; Kibiya and Aminu, 2019; Kałdoński and Jewartowski, 2019 and Siyanbonla, 2021). This study aims to use REM as a moderator to examine the relationship between financial attributes and tax planning whether it will strengthen or weaken the relationship.
Design/methodology/approach
The study examines the impact of financial attributes on the corporate tax planning of listed manufacturing firms in Nigeria. It also tests for the moderating effect of REM on the relationship between financial attributes and tax planning. Data for the study was sourced from the annual reports of sampled manufacturing firms. The study used the panel data methodology for analysis. The study used fixed effect estimation to interpret the parsimonious model and random effect was used to interpret the moderated model. The study documented that financial leverage has a positive significant influence on the tax planning of the sampled manufacturing firms. While firm growth has a negative significant impact on the tax planning of listed manufacturing firms in Nigeria. REM has a positive significant impact on tax planning. Also, REM moderate significantly the relationship between financial attributes on one hand and tax planning on the other. The study recommends that firms should go for more debt to take advantage of the tax shield of interest on the debt. Also, firm management should use non-current debt to finance non-current assets and use current debt to finance current assets to avoid the risk of taking over or liquidation. The study also recommends that firm management should engage in intercompany and intracompany transactions by selling their goods to affiliates in countries with low prices and low tax rates. A firm should also overproduce goods to have high production costs and high closing inventory since real earning management significantly reduces tax liabilities by deferring income into a later year.
Findings
The study documented that financial leverage has a positive and significant influence on the tax planning of the sampled manufacturing firms. While firm growth has a negative but significant impact on the tax planning of listed manufacturing firms in Nigeria. REM has a positive and significant impact on tax planning. Also, REM moderate significantly the relationship between financial attributes on one hand and tax planning on the other.
Originality/value
There is a lot of research concerning earnings management and tax planning in the developed economy. These studies include Wang and Chen (2012) and Pettersson and Wu (2015). In the emerging economies, it includes Jamei and Khedri (2016), Kurniasih and Sulardi Suranta (2017), Prastiwi (2017), Almashaqbeh et al. (2018), Bayunanda et al. (2018), Rani et al. (2018) and Kałdoński and Jewartowski (2019). It is important to note that none of the research mentioned above has evaluated the impact of REM on tax planning in Nigeria. While in the developed economy only Kałdoński and Jewartowski (2019) used REM as an explanatory variable, while the majority of studies used DA. Consequently, no study has used REM to moderate the relationship between financial attributes and tax planning.
Details
Keywords
Ayodeji Bolaji Ilori, Akinloye Lawal and Olayemi Oladehinde Simeon-Oke
This study aims to examine the innovations available in the small-scale palm kernel processing firms in southwestern Nigeria. The sample population of 265 respondents was obtained…
Abstract
Purpose
This study aims to examine the innovations available in the small-scale palm kernel processing firms in southwestern Nigeria. The sample population of 265 respondents was obtained through respondent-driven sampling tools. The research tools used were questionnaire, personal observations, interviews and secondary data collection approach. The questionnaire was administered to palm kernel processors and elicited information on innovations available in the firms. Both descriptive and inferential statistical techniques were used for data analysis.
Design/methodology/approach
The study area consisted of Oyo, Ogun, Osun and Ondo states in the southwestern Nigeria, because of the abundant supply of palm kernel as well as the presence of small and medium palm kernel oil (PKO) processing firms. The study population consists of all small palm kernel processing enterprises in these states. A total of 265 firms were purposively selected for the study. The sampling procedure involved the initial purposive selection of a palm kernel processing firm in a location, from where other firms within the locality were then identified. The primary data were collected through the use of questionnaire, interview and personal observation.
Findings
The results of the study showed that only process, organisational and market innovations were recorded by the palm kernel processing firms. Apart from the sieving operation where majority of the firms (91.30 per cent) used manual method, other unit operations were done mechanically. There was evidence of one or two innovation(s) available in the unit operations of these firms. Also, improvements were carried out occasionally in the process and marketing operations; the major sources of ideas for innovation were from related firms and customers. The organisations where majority of these firms had linkage with were Nigeria Palm Kernel Processing Association, government agencies and customer/suppliers.
Research limitations/implications
The findings are limited to the south-western part of Nigeria, there is need to extend the study to other states in the southern part where palm produce is the major cash crop. This will assist in making better generalisation on the innovation and innovation capability of the processors in Nigeria.
Practical implications
The study showed that the palm kernel processing firms experienced low innovation capability which could be due to their weak interactions with the knowledge institutions. Hence, there is need for these palm kernel processing firms to establish strong linkage with the knowledge institutions where their innovation capability can be enhanced.
Social implications
The findings in this paper can serve as an input to the design of policies that can enhance the innovation capability of the various actors in the value chain. This will assist in preventing wastages, increasing the quantity and quality of products and creating job opportunities. This is because the quality of PKO depends on the processing method; hence, better process innovation will improve the characteristics of the oil and widen its application.
Originality/value
Much has been written about palm kernel processing in medium and large enterprises, but information is still scanty on the small-scale processing enterprises. This paper contributed to knowledge by examining the innovations existing in the palm kernel processing enterprises in the south-western part of Nigeria and the innovation capability possessed by these enterprises.