Showing posts with label return on assets. Show all posts
Showing posts with label return on assets. Show all posts

Wednesday, 12 March 2025

Corporate Social Responsibility and Value of Manufacturing Firms in Nigeria's Industrial Sector | Chapter 8 | New Advances in Business, Management and Economics Vol. 4

Background: Corporate performance is an indicator of the extent to which directors or managers of companies are carrying out their fiduciary duties of maximizing shareholders’ wealth while also engaging in other social activities. The global focus has now shifted to corporate social responsibility (CSR) practices, as the economic activities of corporate institutions significantly impact society and the environment.

Purpose: The aim of this study is to determine how corporate social responsibility (CSR) practices can influence the corporate performances of listed firms in the industrial goods producing sector of Nigeria and other developing countries.

Theoretical Framework: The enhancement of corporate value by CSR practices has become an interesting area of study for corporate managers and policymakers globally. The Stakeholder and Business Ethics theories were used for this study. However, it was primarily grounded in the Stakeholder Theory, proposed by Edward Freeman in 1984, to evaluate the influence of CSR on corporate value.

Methodology: The study uses the causal comparative research design and we purposively select a sample of four industrial goods firms from Nigeria’s listed manufacturing enterprises as of 31st December 2021 based on their social responsibility relationships with society, employees and creditors. Nineteen years of secondary data were collected from the website of the Nigerian Exchange Group and the yearly financial reports of industrial goods-producing enterprises. These data have been analysed using the ordinary least squares panel data regression, fixed and random effects models, stationarity test, cross-section dependence test the Hausman test.

Findings: The results show that corporate giving, employee welfare packages and creditor days have significant positive effects on return on assets (a proxy of corporate performance) suggesting that the threat to profit-maximization is not caused by CSR but by illegitimate use of CSR by rent-seeking corporate managers.

Implications of this Research: The study helps in filling the gap in the literature and serves as a basis for the economic and social development of Nigeria, developed and other developing countries through a more legitimate CSR investment in corporate giving, employee welfare package and creditor settlement days. Moreover, this research established factors that may influence the corporate performances of Nigeria’s industrial goods-producing firms. The researchers used the outcomes of this research to conclude that CSR investments in corporate giving, employees’ welfare and settlement of creditors have significantly improved the corporate performances of listed industrial goods-producing firms in Nigeria.

Value: The value of the study is that evidence of CSR success in the industrial goods manufacturing sector has for the first time been established using a time scope of 19 years and a firm-year-observations of 228. This study supports the claim that CSR is not a threat to profit maximization since it has a strong relationship with corporate value.

 

Author (s) Details

 

William Smart Inyang
epartment of Accounting, University of Calabar, Cross River State, Nigeria.

 

Efiong Eme Joel
Department of Accounting, University of Calabar, Cross River State, Nigeria.

 

Ije Ubana Ubi
Department of Business Management, University of Calabar, Cross River State, Nigeria.

 

Eyo Itam Eyo
Department of Banking and Finance, University of Calabar, Cross River State, Nigeria.

 

Oboh John Ogenyi
Department of Accounting, University of Calabar, Cross River State, Nigeria.

 

Inyang Ochi Inyang
Department of Accounting, University of Calabar, Cross River State, Nigeria.

 

Please see the book here:- https://doi.org/10.9734/bpi/nabme/v4/3987

Wednesday, 15 September 2021

Investigating the Determinants of Bank Performance in South Africa: A Panel Data Analysis | Chapter 2 | Modern Perspectives in Economics, Business and Management Vol. 8

According to the World Bank's 2017 first quarter report, South Africa has the largest economy in Africa and ranks 32nd in the world in terms of Gross Domestic Product (GDP). Previous economic disasters, such as the global financial crisis of 2008, the insolvency of all Cyprus banks in 2013, and Standard & Poor's (S&P) downgrading of South African banks to junk status in 2017, have driven the need for banks to be more strictly regulated. Using a panel of selected banks representing roughly 80% of total bank assets in South Africa, the major purpose of this research was to investigate the determinants of bank performance in the context of bank-specific variables, industry-related factors, and macroeconomic effects. According to the conclusions of the study, which used random effects panel data analysis, non-performing loans, capital adequacy, and GDP market price are the key drivers of bank performance in South Africa. The advancement of South Africa's financial system necessitates proper control of these elements. The findings suggest that the strength of the economy influences bank profitability in South Africa, and that bank ROA influences economic growth as measured by the country's GDP.

Author (S) Details

Emmanuel Lawa
Department of Applied Management, Durban University of Technology, Pietermaritzburg, South Africa.

Luther-King Junior Zogli
Department of Applied Management, Durban University of Technology, Pietermaritzburg, South Africa.

Bongani Innocent Dlamini
Department of Applied Management, Durban University of Technology, Pietermaritzburg, South Africa.

View Book :- https://stm.bookpi.org/MPEBM-V8/article/view/3646

Monday, 15 February 2021

Emphasizing the Working Capital Management and Firms’ Profitability: Evidence from Quoted Firms on the Nigerian Stock Exchange | Chapter 14 | New Ideas Concerning Science and Technology Vol. 4

 Over the years, it seemed that businesses were not subject to careful management of short-term assets, resulting in either excessive or insufficient working capital, which in turn affected their profitability. Working capital and the series that it shapes are handled by management of working capital. This paper analyzed working capital management and the profitability of companies in Nigeria quoted companies on the Nigerian Stock Exchange to empirically satisfy this (NSE). In order to examine this relationship based on a balanced panel of 10 listed firms during the period 2008-2017, a panel data approach was used with various regression estimators. It was found that the cash collection duration and the cash delivery period had a negative effect on the return on assets, but the impact was only significant for the −0.064 cash payment period (p = 0.000 < 0.05) on the field, as opposed to the −0.032 cash collection period estimate (p = 0.077 > 0.05). It was also found that both the current ratio and the inventory duration had a positive effect on the return on assets, but the impact was only significant for the current ratio of 8.172 (p = 0.000 < 0.05) on the land, as opposed to the estimate of 0.045 (p = 0.438 > 0.05) for the inventory period. The study concluded that the management of working capital influenced the profitability of companies in Nigeria. It was also advised that although the shorter collection was retained, payment to creditors should not be extended in order to enjoy cash discounts (if any) and that businesses should be cautious in the management of raw materials in order to prevent idle capital that could have a detrimental effect on their financial performance. Finally, the researcher suggests conducting additional studies and analysis on the management of working capital and the profitability of companies in the banking sector.


Author (s) Details

Olaoye Festus Oladipupo
Department of Accounting, Ekiti State University, Ekiti State, Nigeria.

Falana Olatunbosun
Department of Accounting, Ekiti State University, Ekiti State, Nigeria.

View Book :- https://stm.bookpi.org/NICST-V4/issue/view/13