Browsing by Author "Alabi Fatai Zakariyau"

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    ACCOUNTING SYSTEM AND FINANCIAL REPORTING QUALITY OF MICROFINANCE BANKS IN KWARA STATE, NIGERIA
    (Nigerian Journal of Accounting and Finance, 2021-06-14) Alabi Fatai Zakariyau; Abdulrasaq Mustapha
    The continuous reported cases of closure of microfinance banks in various States of Nigeria by the regulatory authority has raised serious concerns on the quality of information in the financial reports of microfinance institutions. This may not be unconnected to the nature of accounting system put in place to track the economic reality that constitutes the content of financial reports. Expectedly, optimal accounting system is to guarantee the quality of financial reports but going by the rate of scandal among microfinance banks which should have been revealed in their financial reports, the level at which optimal accounting system is been deployed among microfinance banks need to be empirically investigated. Therefore, this study examined the effect of accounting system on the quality of financial reports of microfinance banks in Kwara State, Nigeria. The study employed a cross-sectional survey research design. The primary data collected through the questionnaire administered to four hundred and seven (407) respondents from all micro-finance banks in Kwara State were analysed using ordinary least square (OLS) regression. The study found that accounting staff competence, Information Technology and internal control system have positive and significant effect on the quality of financial reports of microfinance banks in Kwara state. These findings imply that the extent to which management of microfinance banks deploy competent accounting staff, maintain effective internal control and information technology utilization explain variations in their financial reports. In view of these findings, this study recommends that management of microfinance banks should pay attention to the level of investment deployed to various components of accounting system in order to be consistently producing reliable and relevant financial reports.
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    Impact of Regulatory and Supervisory Framework on Financial Reporting Quality of Microfinance Banks in Kwara State, Nigeria
    (Lafia Journal of Economics and Management Sciences, 2021-06-24) Alabi Fatai Zakariyau; Abdulrasaq Mustapha
    The alarming rate of reported cases of winding-up of firms especially among microfinance banks raise serious questions on the information provided through annual reports of these banks. Expectedly, financial reports supposed to give relevant and reliable information about the economic realities of these business but this seems not be so. The level at which microfinance banks complied with regulatory and supervisory framework need to be empirically investigated. Therefore, this study examined the impact of regulatory and supervisory framework on the quality of financial reports of microfinance banks in Kwara State, Nigeria. The study employed a cross-sectional survey research design. The primary data collected through the questionnaire administered to three hundred and one (301) respondents from all microfinance banks in Kwara State were analysed using ordinary least square (OLS) regression analysis. The study found that prudential requirements, reporting requirements and corporate governance requirements have positive and significant effect on the quality of financial reports of microfinance banks in Kwara state, Nigeria as shown by t-values 6.82, 4.582 and 4.141 with p-values of 0.009,0.037and 0.0102 respectively. This result implies that the extent to which management of microfinance banks comply with prudential requirements, reporting requirements and corporate governance requirements explain variations in their financial reports. In view of these findings, this study recommends that regulatory bodies such as CBN and NDIC should ensure that the laid down rules and regulations guiding the conduct and preparation of the financial reports of the microfinance banks in Nigeria are strictly adhere to.