Browsing by Author "Hafsat Olatanwa Afolabi"

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    SOURCES OF INVOLUNTARY FINANCIAL EXCLUSION AMONG SMES PERCEPTUAL EVIDENCE FROM KWARA STATE, NIGERIA
    (Lapai Journal of Management Sciences, 2014) Lukman Adebayo Oke; Oladipupo Muhrtala Tijani; Ahmad Bukola Uthmana; Hafsat Olatanwa Afolabi
    The contribution of Small and Medium-sized Enterprises (SMEs) to economic growth and development, job creation and income generation has made it a cynosure worldwide. However most SMEs are financially excluded thereby undermining their potentials in most developing economies of the world. This study investigated the sources of involuntary financial exclusion among MEs in Awara State, Nigeria. Data were drawn from primary sources using questionnaire to elicit responses from sampled SME owners and managers. The study used both descriptive and one sample t-test statistical techniques to analyze the data gathered through the questionnaire. The results revealed that SMES encountered various sources of involuntary financial exclusion which include lack of capital market access, prohibitive loan cost, non-availability of collateral, lack of business financial records, lenders' risk averse behaviour information asymmetry and high interest charged. The study, therefore, recommended that fund providers including financial institutions on their part, should de-emphasize enterprise profile and develop a personalized banking relationship with SMEs and open more micro credit windows, relaxing some of their seemingly stringent formalities specifically for SMEs and making documentation less rigorous. In addition, efforts should be made to integrate the SME subsector into the Nigerian capital market for improved financial inclusion.
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    STOCK SPLITS AND DIVIDENDS: IMPLICATIONS FOR BID ASK SPREAD COMPONENTS
    (Ilorin Journal of Management Sciences, 2014) Lukman Adebayo Oke; Oladipupo Muhrtala Tijani; Abdurasaq Mustapha; Hafsat Olatanwa Afolabi
    Recent theoretical researches in equity market consider enhanced liquidity as the principal motivator for stock splits and stock dividends. However, empirical findings suggest mixed evidence and even a further decline in liquidity after the announcements or the effective dates (ex-dates) of these events. The purpose of this paper is to examine the effect of stock splits and stock dividends on liquidity using bid ask spread measures. The sample is composed of all the stock splits and stock dividends announcements on the Nigerian Stock Exchange (NSE), between 1990 and 2010. Using multiple regression analysis, we test the change of the various indicators of liquidity prior to the announcement period, between announcement and the ex-date, and post ex-date. The results show an increase in the absolute and relative spread after the ex-date of stock splits. This increase in the spread indicates an increase in investor transaction cost, a degradation of short-term liquidity and the fall of the market quality. This increase is further explained by order processing costs and inventory holding costs. The study recommends that companies should engage in strategies relating to the use of retained earnings in financing alternative investments rather than outstanding shares expansion through splits and scripts.