Browsing by Author "Lukman Adebayo Oke"

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    An Empirical Analsis of Corporate Capital Structure and Financial Perforance of Listed Congloerates in Nigeria
    (Copernican Journal of Finance & Accounting, 2019) Lukman Adebayo Oke; Daud Omotosho Saheed; Yusuf Olamilekan Quadri
    The relationship between capital structure and firms’ financial performance has attracted the attention of many researchers both locally and globally. The paucity of empirical evidence from Nigeria in this regard, especially on Nigerian conglomerate firms, portends the need for further research. Against this backdrop, the study investigated the impact of capital structure on the financial performance of listed conglomerates in Nigerian using descriptive statistics, pairwise correlation and panel data regression technique to analyze the secondary data extracted from the annual reports and accounts of the six (6) selected conglomerates for the period 2008 to 2017. The study found that financial leverage proxy by total debt ratio, long-term debt ratio and short-term debt ratio have significant impact on the selected firms’ financial performance proxy by return on assets, except debt to equity ratio that reveals an insignificant impact on return assets (ROA). Firm size and growth also reported a significant effect on the financial performance of the selected firms. The findings is in tandem with the proposition of the agency cost theory in the Nigeria settings but with caution considering the facts that firms in Nigeria were largely finance through short term debt obligation as against long term debt funding that was presumed in the agency cost theoretical proposition. It is therefore recommended that managers of companies should be guided when seeking credit advances from the financial market as it is important when considering the appropriate capital mix that optimize firm value
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    AUDIT PARTNER REFERENCES AND RISK ASSESSMENT: IMPLICATIONS FOR AUDITOR PROGRAM PLANS
    (Ilorin Journal of Management Sciences, 2014) Oladipupo Muhrtala Tijani; Lukman Adebayo Oke; Dauda Abiola Badmus; Folorunsho Quadri Dauda
    The purpose of this study is to explore the effects of risk assessments and partner preferences for either effectiveness or efficiency on auditors’ program plans for budgeted hours and planned tests. Importantly, the partner can set the tone on the engagement by communicating to staff the priorities in addressing competitive pressures. To examine these issues, 39 auditors completed a case based on an actual audit client in which they were asked to perform program planning for the revenue cycle. Partner preferences for either efficiency or effectiveness were manipulated in a between-subjects design. Results indicate that auditors budgeted more (fewer) hours in response to a partner preference for effectiveness (efficiency), consistent with expectations. In addition, there was a significant interaction between auditors’ risk assessments and partner preferences, suggesting that the positive relationship between auditors’ risk assessments and budgeted hours and planned tests held when there was a partner preference for efficiency. These results extend prior research on accountability and partner preferences by suggesting that the preferences of the engagement partner can influence the audit planning of the audit senior by affecting the relationship between the senior’s assessed risk and the nature and extent of the audit work planned.
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    Audit pricing, start-up cost and opinion shopping
    (Journal of Accounting and Management Information Systems, 2014) Oladipupo Muhrtala Tijania; Ahmad Bukola Uthman; Zayyad Abdul-Baki; Lukman Adebayo Oke
    The purpose of this paper is to predict the association between the effect of start-up cost and audit opinion shopping on the pricing strategies of medium-sized audit firms. Using a sample of 753 local –office-year observations between 2006 and 2011, we find evidence of a positive association between higher audit pricing of new private client and audit opinion shopping. We also find that start-up cost is a good predictor of higher initial fees charged by auditors for private clients. While earnings risk management (ERM) and financial performance risk (FPR) are significant factors in audit pricing, litigation risk (LR) however failed to evolve as a direct significant predictor. Although this study focused on the effects of start-up costs and opinion reporting, it fails to differentiate between firm cost allocation and apportionment. The model can be used to assist audit firms not only to develop pricing strategies that fully reflect the effective cost allocation, but also to be receptive to the implications of opinion reporting on service pricing.
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    BANK CREDIT ACCESSIBILITY AND PERFORMANCE OF SMES IN KWARA STATE, NIGERIA: A PLS-SEM ANALYSIS
    (Copernican Journal of Finance & Accounting, 2020) Mubaraq Sanni; Lukman Adebayo Oke; Idayat Titilayo Alayande
    This study examines the effect deposit money banks credit accessibility on SMEs performance in Kwara State, Nigeria. The population of the study consists of three hundred and eighty-two (382) respondents and one hundred and ninety-eight (198) were randomly selected as the sample size of the study. Data were drawn from the primary source to elicit responses from SME owners/managers. Descriptive statis tics and Partial least square - Structural Equation Model (PLS-SEM) estimation tech niques were employed to analyse the data collected. The study revealed that deposit money banks credit accessibility has a positive significant effect on SME performance (T=10.795, β=0.043) at 5% significance level and credit related charges (interest) also has a positive significant effect on SME performance (T=10.690, β =0.458). This im plies that provision of finance by deposit money banks at relatively low cost play an im portant role in boosting the performance of SMEs. The study therefore concluded that SMEs in Kwara State are faced with the problem of access to finance as they are not ful ly benefiting from the credit facilities of the deposit money banks. The study therefore recommended that deposit money banks should put in place a more SME friendly credit administration system for SMEs to enable them access fund easily and affordably.
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    BASE III ACCORD AND REGULATORY CAPITAL MANAGEMENT REPORTING IN NIGERIA: THE ROLE OF “SEARCH”, “EXPERIENCE” AND “CREDENCE” INFORMATION
    (Lapai International Journal of Management and Social Sciences, 2015) Oladipupo Muhrtala Tijani; Lukman Adebayo Oke; Saka Tunde Abdulsalam
    Nigerian banks and capital management reporting quality has been frequently criticized as being unbalanced, presenting an overly positive view or failing to address material issues. The purpose of this paper is to provide a fresh explanation of poor quality capital management reporting and to propose how quality may be addressed. The theoretical framework combines the accountability and institutional isomorphism perspectives using Akerlof’s (1970) Market for Lemons theory. Akerlof’s approach is extended by differentiating between three types of information in bank capital management reporting using measures adapted from Comyns et al. (2013) namely search, experience and credence. The study concludes that the type of information must be considered when determining measures to improve report quality.
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    Credit Risk, Market Risk and Financial Performance of Selected Deposit Money Banks in Nigeria
    (Amity Journal of Management Research, 2022) Lukman Adebayo Oke; Surajudeen Tiamiyu
    Effective mitigation of credit risk and market risk is vital for the well-being of banks as it has the propensity of either making or marring the sustainable performance of the banks. Against this backdrop, the study examined the effect of credit and market risk on the financial performance of twelve (12) deposit money banks that are listed on the floor of the Nigerian stock exchange. The study covered the period of 2008-2017 being the time of stock market crisis, corporate governance and recession problem. The data used was obtained from the financial reports of the twelve selected banks and Nigerian stock exchange publications. The collected data was analyzed employing random effect model. The study used return on equity (ROE) to proxy banks financial performance; non-performing loans ratio and loan loss provisions ratio as proxies for credit risk; and net interest income ratio and foreign currency ratio as proxies for market risk. The findings revealed that Non-performing loan ratio (credit risk) has negative statistically significant effect on return on equity (β=--0.165, p<0.01). Loan loss provision ratio (credit risk) also has negative statistically significant effect on return on equity (β=-0.738, p<0.01). Foreign currency ratio (market risk) has statistically significant effect on return on equity (β=-0.233, p<0.05). Meanwhile, Net interest income ratio (market risk) has positive statistically significant influence on return on equity (β=0.050, p<0.10). Total assets have positive statistically significant influence on return on equity (β=0.050, p<0.10). The study concluded that credit and market risks exert significant influence on Nigerian deposit money banks’ financial performance. Accordingly, it is recommended that the Nigerian banks should be more proactive in the assessment and management of credit risk together with market risk with a view to mitigating their exposure to these risks as well as enhancing their financial performance.
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    CSR AND FIRMS' PERFORMANCE NEXUS: A THOUGHT OF CARROLL PYRAMID IN THE CONTEXT OF NIGERIAN DEPOSIT MONEY BANKS
    (AL‐HIKMAH MANAGEMENT REVIEW, 2017) Lukman Adebayo Oke; Nurudeen Adeshola HALIRU; Mubaraq SANNI; Zayyad ABDULBAKI
    Abstract Although, Corporate Social Responsibility (CSR) may have no strong proclamation of the law, it has nonetheless been espoused by banks to give an impression that they show their concerns for the development of their immediate environments and the nation at large. Often, CSR is embarked upon to gain customers' patronage and enhance their performance among their peers. This study examined the impact of CSR (in terms of four CSR dimensions identified by Carroll, 1991) on Banks' performance. The study employed secondary data that is, audited financial statements of ten Nigerian Deposit Money Banks representing the sample size. Using inferential statistics (regression analysis), the study found no significant relationship between CSR and Banks' performance. Government legislation on mandatory CSR for banks is therefore recommended so that banks will not see their obligations ending with profit making and shareholders' wealth maximisation.
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    Curbing financial crimes with anti-graft bureaus in Nigeria: The accountants’ perception
    (Journal of Accounting and Management Information Systems, 2015) Ahmad Bukola Uthmana; Lukman Adebayo Oke; Mohammed Kayode Ajapec; Zayyad Abdul-Bakid; Murhtala Oladipupo Tijani
    Corruption, be it financial or non-financial is a global cankerworm that has eaten deep into the fabrics of many nations and war against it has been a recurring decimal in every economy. In Nigeria, recent attempts at nipping corruption in the bud gave rise to some anti-graft agencies such as the Economic and Financial Crimes Commission (EFCC). Against this background, opinion of 140 accountants in various capacities was sought on the efficacy of the anti-graft agencies in curbing financial crimes through a survey questionnaire. The study found that respondents group perceived the anti-graft agencies as highly effective but could not establish that accountants in various walks of life differ significantly in their perception of the efficacy of the Nigerian Anti-graft bureaus (Overall Mean= 2.98, F= 2.263 and P>0.05) using ANOVA as statistical analysis tool. It was recommended that Nigerian government should strengthen the Anti-financial crimes agencies given that the influence of highly placed offenders, the dignity, societal bondage and shame inherent in financial crimes may affect the potency of anti-financial crimes measures put in place.
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    DIVIDEND POLICY AND SHARE PRICE VOLATILITY OF LISTED CONGLOMERATES IN NIGERIA
    (Journal of Accounting and Management, 2019-12-28) Lukman Adebayo Oke; Daud Saheed Omotosho; Yusuf Olamilekan Quadri
    In spite of long periods of empirical research, the connection between corporate dividend policy and share price volatility remains disputable among scholars and researchers. Circumstantial to this, the study investigates the relationship between corporate dividend policy and share price volatility of listed conglomerates in Nigeria. The study adopted descriptive statistics, pairwise correlation and panel data regression technique to analyze the data collected from the audited financial reports of listed conglomerates for a period of 10 years (2009 — 2018). The study revealed that dividend yield has a negative influence on share price volatility. Consequently. the study concluded that corporate dividend policy plays a significant role in the Nigerian listed conglomerates share price volatility. The investigation recommends that listed conglomerates firms should devise a dividend policy that takes cognizance of the existing and prospective investors
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    Dividend Policy and Share Price Volatiliy
    (Journal of Accounting and Management, 2019) Lukman Adebayo Oke; Daud Omotosho Saheed; Yusuf Olamilekan Quadri
    In spite of long periods of empirical research, the connection between corporate dividend policy and share price volatility remains disputable among scholars and researchers. Circumstantial to this, the study investigates the relationship between corporate dividend policy and share price volatility of listed conglomerates in Nigeria. The study adopted descriptive statistics, pairwise correlation and panel data regression technique to analyze the data collected from audited financial reports of listed conglomerates for a period of 10 years (2009 – 2018). The study revealed that dividend yield has a negative impact on share price volatility and dividend payout ratio has a negative influence on share price volatility. Consequently, the study concluded that corporate dividend policy plays a significant role in the Nigerian listed conglomerates’ share price volatility. The investigation recommends that listed conglomerates firms should devise a dividend policy that takes cognizance of the existing and prospecting investors.
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    Effect of Forensic Accounting Services on Fraudulent Practices in Nigerian Deposit Money Banks
    (EKSU Journal of the Management Scientists, 2019) Abdul-Hakeem Shuaib; M ubaraq Sanni; Salaudeen Ibrahim; Lukman Adebayo Oke
    The magnitude of fraudulent practices has been on the increased over the years to become global epidemic affecting all sectors of the economy from the developed nations to the developing nations which requires expertise to tackle. This paper examines the effect of forensic accounting services on fraudulent practices in Nigerian Deposit Money Banks (NDMBs). The population of the study was the entire twenty-one (21) Quoted deposit money banks listed on the Nigerian Stock Exchange (NSE) as at December, 2018. 10 questionnaires were administered on the staff of each bank to have a total of two hundred and ten (210). The sample size of 136 was derived from the simplified sample size decision table of Krejcie and Morgan (1970). The study used purposive sampling technique to administer the questionnaire while the data was analysed using paired sample T-Test. The results revealed that forensic accounting has significant effect on fraudulent practices in Nigerian (DMBs). The study concluded that forensic accounting can be used to reduce fraudulent practices in Nigerian (DMBs) and recommended that Government should make forensic accounting/audit a statutory requirement for publicly quoted companies in the same manner as statutory audit entrenched in Company and Allied Matters Act (CAMA), 2004 (as amended). This will also bridge the ‘Expectation Gap’.
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    Firm characteristics and access to bank financing: Evidence from SMEs in North Central Nigeria
    (Amity Journal of Finance, 2019) Lukman Adebayo Oke; Mubaraq Sanni; Muftau Adeniyi Ijaiya
    The paucity of finance to SMEs, widely reported in the literature has continued to undermine the potential of the sector as a driver of economic growth. This scourge has partly been blamed on the SMEs’ observable characteristics. However, the dearth of comprehensive research in this area portends the need for further studies especially in the North Central Nigeria where the problem is reportedly endemic. Against this backdrop, the study examines, from both SMEs and banks’ viewpoints, the impact of firm characteristics on access to bank financing in the North Central Nigeria. The study drew data from the primary source through the adaption of World Bank and OECD Financial literacy questionnaires. A sample of 280 SMEs and 207 loan officers were drawn from the population of 1030 SMEs and 448 banks respectively. Descriptive statistics, binary logit regression model with Marginal effect and Kruskal Wallis H were employed in analyzing the data. From SMEs’ perspective, the results revealed that firm age, incorporation status and industry which are significant at 0.05, 0.01 and 0.1 respectively, are the firm specific characteristics impacting access to bank finance among SMEs whereas firm size is insignificant. From banks’ perspective, all the selected firm characteristics, which are all significant at 0.01, are the factors influencing banks’ credit approval for SMEs in the North Central Nigeria. The study concluded that SMEs in the North Central Nigeria encounter serious paucity of finance as they are virtually oblivious of, or not fully exploring all firm related factors influencing their access to facilities especially from banking institutions. The study, therefore, recommended that SMEs should fully explore all firm factors, at individual level, for improved access to financial market. Also, they should synergise by forming strong alliance and solicit credits as a consortium rather than as individual units to facilitate better access and at relatively cheaper costs.
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    Government Accountability and Tax Compliance: The Nigeria Experience
    (Department of Accounting and Finance, Kwara State University, Malete, 2019) Lukman Adebayo Oke; Yusuf Olamilekan Quadri
    Governments across the world are expected to bring real growth, development and good governance to their citizenry using different robust economic policies. One among the measures used is by ensuring that capital expenditure outweigh the recurrent expenditure. Financing government expenditure is typically tasking and a prominent opportunity available to the government in generating revenue is through taxes. Taxation is a major source of government revenue, however, not every national government are ready to effectively exploit this great opportunity of revenue generation. This may be attributed to variety of reasons among which are the system of taxation; tax legislation; tax administration and policy issues; over reliance on other sources of revenue (such as aid and grants); corrupt practices within the system – especially because it relates to the system of collection and behavior of citizens towards tax payment; and ease of tax payment. The willingness to pay tax, which can depend upon the aforementioned issues in tax-revenue generation, remains a key taxation-challenge everywhere in the world. Accountability represents the very fact of being answerable and responsible; government accountability is one among the foundations of excellent governance and economic growth because it takes the shape of social welfare services provision. Government accountability is additionally seen as the anticipations of citizens that the revenue generated from taxes will be used for the advancement of the overall public. Tax revenue has been having hiccups and all boiled down to its level of compliance. Adeniji and Jegede (2019) opined that voluntary tax compliance is a mirage in Nigeria; yet a feat that the government has been seeking to achieve for many years. Most taxpayers believe that the taxes collected are largely misappropriated because the government is perceived, in most quarters to be unscrupulous and insensitive to the requirements of the people. As a result, taxpayers engage in tax minimization schemes (tax avoidance) and/or outright evasion or are reluctant to perform their civic duty of voluntarily paying their taxes as they hold the view that such monies will either be spent recklessly or find yourself in individual pockets. In spite of this, the government expects that its citizens are going to be fully compliance with the prevailing tax laws, to enable it earn a part of the required revenue to supply and maintain the essential social services for its citizenry but people deliberately do not intend to pay tax for a myriad of reasons, the central of which is that the incontrovertible fact that they have lost trust in the government. Accountability and Transparency of the government by the masses are a serious source of concern hence the masses see non-compliance option as a bail out. The peoples’ willingness is greatly influenced by their perception of the government’s delivery (Akintoye & Tashie, 2013). Consequently, due to non-compliance of the potential tax payers, the role of taxes in enhancing the revenue base of nations of the world will be undermined. This may result in a negative effect on the GDP and hence retardation to economic growth and development. This study therefore seeks to work out the extent of relationship between government accountability, tax compliance and economic growth from Nigerian perspective.
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    GOVERNMENT ACCOUNTABILITY AND TAX COMPLIANCE: THE NIGERIA EXPERIENCE
    (Malete Journal of Accounting and Finance, 2019-12-28) Lukman Adebayo Oke; Yusuf Olamilekan Quadri
    The usage of tax revenue which is a major source of government revenue has been questioned over time as a result of ineffective accountability of its usage. This has been ascribed to the level of corruption which hampered the level of tax compliance. This is evidenced with the Nigeria’s corruption index ranking on Transparency International. This study hence recommends that to ensure transparency and accountability, government needs to make comprehensive communication on the usage of tax revenue generated periodically.
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    Impact of Access to Finance on Growth of SMEs: Evidence from Ilorin Metropolis, Nigeria
    (Ilorin Journal of Accounting, 2014) Abubakar Sadiq Kasum; Lukman Adebayo Oke
    Small and Medium Scale Enterprises (SMEs) occupy a place of pride in any economy, given their contributory role to economic growth and development. However, lack access to needed financial resources has been a major hindrance to growth of this s sector. This study investigates the impact of access to finance on the growth of Small Medium Scale Enterprises (SMEs). Data were drawn from primary sources using questionnaire to elicit responses from sampled SME owners and managers. The Study used both descriptive and inferential statistics to analyse the data gathered through the questionnaire. The results revealed a significant positive relationship between access finance and growth of SMEs. Therefore, the study recommends that the government at levels, should improve on the funding of SMEs as well as encourage financial institution to provide credits to or partner with SMEs so as to enable them have sufficient access to finance in order to enhance their growth and contribution to economy.
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    IMPACT OF FIRM AND OWNER CHARACTERISTICS ON ACCESS TO FORMAL EXTERNAL FINANCING AMONG SMEs IN NORTH CENTRAL NIGERIA
    (ProQuest, 2019) Lukman Adebayo Oke
    The paucity of finance to SMEs, widely reported in the literature has continued to undermine the contribution of the sector to economic growth. This scourge has partly been blamed on the SMEs’ observable characteristics which include firm factors and owner’s profile. However, the dearth of comprehensive research in this area portends the need for further studies especially in the North Central Nigeria where the problem is reportedly endemic. Against this backdrop, the study examined, from both SMEs and banks’ perspectives, the impact of firm and owner characteristics on access to formal external financing in the North Central Nigeria. The specific objectives of the study were to: (i) examine the nature of access to finance among SMEs in the North Central Nigeria; (ii) evaluate impact of firm specific characteristics on access to bank finance among SMEs in the North Central Nigeria; (iii) investigate if owner characteristics influence access to bank finance among SMEs in the North Central Nigeria; (iv) examine the firm specific factors influencing credit status of SMEs in the North Central Nigeria; (v) assess the owner factors determining credit status of SMEs in the North Central Nigeria; and (vi) determine the firm and owner characteristics influencing banks’ credit approval for SMEs in the North central Nigeria. Data were drawn from the primary source through the adaption of World Bank and OECD Financial literacy questionnaires to elicit responses from the sampled SMEs owners/ managers and bank loan officers in study area. A sample of 280 SMEs and 207 loan officers were drawn from the population of 1030 SMEs and 448 banks respectively. Descriptive statistics, binary logit regression model with Marginal effect, ordered logit with average partial effect and Kruskal Wallis H were employed in analyzing the data. The findings of the study were: (i) (ii) (iii) (iv) (v) (vi) external credits are relatively less utilized for startup, working capital and acquisition of non-current asset due to the risk averse behaviour of banks in North central Nigeria; firm size, firm age, incorporation status, industry, financial information, firm location and firm collateral which are significant at 0.1,0.1,0.05,0.05, 0.01, 0.1 and 0.1 respectively, are the firm specific characteristics impacting on access to bank finance among SMEs. Whereas financial stability is insignificant at 0.01; owner’s gender, owner’s networking and relationship with bank are the owner characteristics influencing access to bank finance among SMEs, significant at 0.05, 0.1 and 0.1 respectively, and that owner’s age, education, experience, financial literacy and personal wealth do not have significant influence on access to bank finance among SMEs in the region; firm size, industry, financial information, firm collateral and financial stability which are significant at 0.01,0.01,0.01,0.0, 0.01and 0.1 respectively, are the firm specific characteristics influencing the probability of not being credit constrained among SMEs in the region. Whereas firm age, incorporation status and firm location are insignificant; owner’s gender, owner’s age, education, financial literacy, owner’s networking and relationship with bank are the owner characteristics influencing the probability of not being credit constrained among SMEs in the region, significant at 0.01, 0.01, 0.01, 0.01, 0.01 and 0.05 respectively, and that owner’s experience and personal wealth do not have significant influence on probability of not being credit constrained among SMEs in the region; and all the study’s firm and owner’s characteristics, which are all significant at 0.01, are the factors influencing banks’ credit approval for SMEs in the North Central Nigeria The study concluded that SMEs in the North Central Nigeria encounter serious paucity of finance as they are virtually oblivious of, or not fully exploring all firm and owner related factors influencing their access to formal external finance from financial institutions. The study recommended that SMEs should fully explore all firm and owner factors, at individual level, for improved access to financial market. Also, they should synergise by forming strong alliance and solicit credits as a consortium rather than as individual units to facilitate better access and at relatively cheaper costs.
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    IMPACT OF FUND ADEQUACY ON BUDGET PERFORMANCE: A CASE STUDY OF KWARA STATE GOVERNMENT OF NIGERIA
    (Osogbo Journal of Management, 2017) Muftau Adeniyi Ijaiya; Mubaraq SANNI; Lukman Adebayo Oke; Yemisi Esther OLANREWAJU
    Governments across the globe are expected to bring effective development to their citizenry through provision of goods and services. However, it is observed that poor budgetary process coupled with poor fund management have hindered the provision of these good and services. This study examines the impact of fund adequacy on budget performance of Kwara State Government. Data from Kwara State Government annual statement from years 1999-2012 were used. The data were analysed using both descriptive and inferential statistic. The result shows that both grants and value added tax have positive relationship with government capital expenditure while statutory allocation despite constituting the largest chunk of government revenue is negatively related to capital expenditure. Overall, the study recommends among others that to ensure proper budget effectiveness, regular monitoring and evaluation of programmes and projects I critical. Consequently, the study recommends the need to develop an appropriate mechanism to monitor the budget in order to enhance effectiveness in the level of budget achievement.
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    Impact of Monetary Policy on Bank Credit in Nigeria
    (Journal of Accounting Research, Organization and Economics, 2020) Alade Ayodeji Ademokoya; Mubaraq Sanni; Lukman Adebayo Oke; Segun Abogun
    Objective – The aim of this study is to examine the impact of monetary policy on credit creation ability of banks in Nigeria. Specifically, it investigates the impact of monetary policy rate, money supply, liquidity ratio, and change in maximum lending rate on bank credit in Nigeria. Design/methodology – A monthly time series data from 2007-2019 were sourced from the Central Bank’s of Nigeria statistical bulletin. The sourced data was subjected to multiple regression analysis using the fully modified ordinary least square regression to estimate the parameters of the model. Results – Findings reveal that money supply significantly and positively influence bank credit in Nigeria; while liquidity ratio significantly but negatively influence bank credit in Nigeria. On the contrary, monetary policy rate and maximum lending rate were found not to significantly affect bank credit in the case of Nigeria. Policy Recommendation - Study therefore, recommend that monetary authorities especially, the Central Bank of Nigeria should pay more attention to lowering the liquidity ratio while increasing money supply in order to engender banks credit creation ability and further stimulate the Nigerian economy for growth.
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    INFLUENCE OF FIRM CHARACTERISTICS ON LOAN APPROVAL FOR SMEs IN NORTH CENTRAL NIGERIA: BANKERS’ PERCEPTION
    (MALETE JOURNAL OF ACCOUNTING AND FINANCE, 2020-06-27) Lukman Adebayo Oke; Yusuf Olamilekan Quadri; Daud Omotosho Saheed
    The scourge of paucity of finance to SMEs which has been undermining their potential as drivers of economic growth has been blamed partly on firm related characteristics. However, the fact that little has been done in this regard from the supply side (banks) spurs this research. This study investigates the influence of firm specific characteristics on loan approval for SMEs in North Central Nigeria. Data was drawn from the primary source through the use of questionnaires to elicit responses from the sampled bank loan officers in the study area. A sample of 207 was drawn from the volunteer loan officers in 448 branches using multistage sampling technique. Descriptive statistics and Kruskal Wallis H were employed in analyzing the data. The study found that all the identified firm characteristics (size, age, incorporation, industry, financial information, location and collateral), which are all significant at 0.01 but with varying degrees, are the factors influencing banks’ credit approval for SMEs in the North Central Nigeria. The study concluded that while banks attach greater importance to firm size, firm age and location in their loan decision for SMEs, they also give consideration though lesser, to other factors. The study thus recommended among others, the need for SMEs to synergize and borrow as consortium rather than as individual units. This will facilitate improved financial access and economies of scale in terms of relatively reduced loan costs. Similarly, SMEs should also consider setting up urban offices to achieve close proximity to their banks for better financial access.
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    INFLUENCE OF FIRM CHARACTERISTICS ON LOAN APPROVAL FOR SMEs IN NORTH CENTRAL NIGERIA: BANKERS’ PERCEPTION
    (MALETE JOURNAL OF ACCOUNTING AND FINANCE, 2020) Lukman Adebayo Oke; Yusuf Olamilekan Quadri; Daud Omotosho Saheed
    The scourge of paucity of finance to SMEs which has been undermining their potential as drivers of economic growth has been blamed partly on firm related characteristics. However, the fact that little has been done in this regard from the supply side (banks) spurs this research. This study investigates the influence of firm specific characteristics on loan approval for SMEs in North Central Nigeria. Data was drawn from the primary source through the use of questionnaires to elicit responses from the sampled bank loan officers in the study area. A sample of 207 was drawn from the volunteer loan officers in 448 branches using multistage sampling technique. Descriptive statistics and Kruskal Wallis H were employed in analyzing the data. The study found that all the identified firm characteristics (size, age, incorporation, industry, financial information, location and collateral), which are all significant at 0.01 but with varying degrees, are the factors influencing banks’ credit approval for SMEs in the North Central Nigeria. The study concluded that while banks attach greater importance to firm size, firm age and location in their loan decision for SMEs, they also give consideration though lesser, to other factors. The study thus recommended among others, the need for SMEs to synergize and borrow as consortium rather than as individual units. This will facilitate improved financial access and economies of scale in terms of relatively reduced loan costs. Similarly, SMEs should also consider setting up urban offices to achieve close proximity to their banks for better financial access.