Thesis and Dissertation for the Department of Accounting

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    DECISION-USEFULNESS OF FINANCIAL STATEMENTS AND NON-FINANCIAL INFORMATION OF QUOTED FIRMS IN NIGERIA
    (UNIVERSITY OF ILORIN, 2018-06) ABOGUN, SEGUN
    Investors need information that enables them evaluate share prices and make decision on whether to buy, hold, or sell investments. However, lack of relevant and reliable information is one of the many problems facing investors in making investment decisions in developing economies. Therefore, this study examined the usefulness of financial statements and non-financial information of quoted firms in Nigeria from 1996 to 2015 for decision. The objectives were to: (i) examine the decision-usefulness of statement of comprehensive income; (ii) determine the decision-usefulness of statement of financial position; (iii) evaluate the decision-usefulness of statement of cash flows; (iv) investigate the decision-usefulness of non-financial information; (v) assess the impact of cap imposition on the decision-usefulness of financial statements; and (vi) evaluate the impact of accounting conservatism on the decision-usefulness of financial statements. The study employed quantitative research design. The population of the study consists of eighty six (86) firms which shares were quoted from 1996 to 2015. A cross sectional sample of forty six (46) firms were selected using Yamane formulae over twenty (20) years. Panel data were collected from secondary sources. The data were sourced from financial statements of selected quoted firms and the Nigerian Stock Exchange Factbooks. Based on Hausman test, panel regressions were estimated using the fixed effect technique. The findings of the study were that: (i) statement of comprehensive income (earnings per share β1 = 0.5929, p<0.01; accrual earnings β2 = 0.0007, p<0.05; dividend per share β3 = 7.7516, p<0.01; research & development β4 = 0.0245, p<0.05; human capital β5 = 0.0009, p<0.05; earnings growth β6 = 0.3865, p<0.1; lagged earnings β7 = 2.8471, p<0.10) was decision useful; (ii) statement of financial position (total assets β8 = -0.00002, p < 0.05; total liabilities β9 = 3.2000, p < 0.10; book value β10 = 0.9197, p < 0.01; lagged book value β11 = -0.1799, p < 0.01) was decision useful; (iii) statement of cash flows (cash flows from operations β12 = 0.00075, p < 0.10; lagged cash flow operation β13 = 0.00085, p < 0.05) was decision useful; (iv) non-financial information(β14 = 0.6248, p >0.05) was not decision useful; (v) cap imposition (β15= -37.210,p <0.05) had inverse relationship with the usefulness of financial statements for decision; and (vi) accounting conservatism (β16 = -7.643,p < 0.01) had negative effect on the usefulness of financial statements for decision. The study concluded that investment decision should be based on the strength of financial information. The study recommended that investors should fully use the information from financial statements for their investment decisions but exercise caution over the use of non-financial information.
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    DETERMINANTS OF INCOME TAX COMPLIANCE IN A SELF-ASSESSMENT SYSTEM IN KWARA STATE, NIGERIA
    (UNIVERSITY OF ILORIN, 2018-05) SALAM, MUDATHIR OLANREWAJU
    Tax collection constitutes a major revenue source for any government to discharge its obligation to its citizens. However, loss of revenue resulting from noncompliance especially in a self-assessment system has been a major problem in Kwara State, Nigeria. This study was designed to examine the determinants of income tax compliance in a self-assessment tax system in Kwara State. The objectives were to: (i) determine the relationship between taxpayers’ knowledge and tax compliance; (ii) examine the effect of tax system structure on tax compliance; (iii) assess the effect of public governance quality on tax compliance; (iv) determine the relationship between public disclosure of taxpayers’ information and tax compliance; and (v) examine the effect of taxpayers’ financial constraint on tax compliance. Survey research design was adopted. The population consisted of 68,338 members of the Kwara State Artisans Congress. The respondents were stratified into 54 groups from which a sample size of 558 respondents was randomly selected. The study used primary data collected through a structured questionnaire administered to the respondents. Partial Least Square Structural Equation Modeling (PLS-SEM) technique was employed for model estimation and test of hypotheses. The findings of the study were that: i. tax knowledge has a significant positive relationship with tax compliance (β = 0.107, p<0.01); ii. there exists a significant negative effect of tax system structure on tax compliance (β = -0.152, p<0.05); iii. public governance quality has a significant positive effect on tax compliance (β = 0.169, p<0.05); iv. there exists a significant positive relationship between public disclosure of taxpayers’ information and tax compliance (β = 0.196, p<0.01); and v. taxpayers’ financial constraint has a significant negative effect on tax compliance (β = -0.296, p<0.01). The study concluded that tax knowledge, tax system structure, public governance quality, public disclosure of taxpayers’ information and taxpayers’ financial constraint determine tax compliance in a self-assessment system in Kwara State. The study therefore, recommended that Kwara State Government through the Kwara State Internal Revenue Service (KWIRS) should organise tax seminars to enhance taxpayers’ knowledge on tax matters. There is also the need to review the existing tax system structure by increasing the amount of fines and penalties to deter non-compliance; and improve on public governance quality by providing basic amenities and infrastructure. Kwara State Government through the KWIRS should also publicise the detailed information of tax defaulters to serve as deterrence. Finally, the Kwara State government should formulate economic policies that would improve economic activities which consequently would increase the income of taxpayers in the State.
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    STRATEGIC COST MANAGEMENT AND PERFORMANCE OF SELECTED MANUFACTURING FIRMS IN LAGOS AND OGUN STATES, NIGERIA
    (UNIVERSITY OF ILORIN, 2018-05) ADIGBOLE, Ezekiel Aiyenijo
    Rising cost of production has threatened the survival of manufacturing firms in Nigeria. These firms rely on the use of traditional approaches to managing costs most times. However, these approaches often failed to yield the desired results, especially in this contemporary time of intense competition and change in firms’ cost structure. This therefore makes it imperative for firms to implement costing strategies in order to remain competitive and profitable. Hence, this study examined the effect of strategic cost management on performance of selected manufacturing firms in Lagos and Ogun States. The objectives of this study were to: (i) examine the implementation of strategic cost management techniques by manufacturing firms; (ii) examine the influence of strategic cost management practices on accurate cost information; (iii) assess the impact of Activity–Based Costing (ABC), Activity– Based Management (ABM), Target Costing (TC) and Life Cycle Costing (LCC) practices on performance; (iv) examine the effect of customer value enhancement on performance; and (v) evaluate the impact of accountants’ competency on strategic cost management practices. Survey research design was employed. The population of the study consisted of three hundred and eighty five respondents (385), comprising accountants and internal auditors in seventy seven (77) listed manufacturing firms having head offices or factories in Lagos and Ogun States. The sample of the study consisted of three hundred and twenty five (325) respondents in sixty five (65) manufacturing firms selected randomly from the population. Primary data were collected through questionnaire administration. Data analysis was done using both descriptive statistics and structural equation modeling (partial least squares version). The findings of the study were that: (i) strategic cost management techniques are being implemented moderately in the sampled manufacturing firms (at a minimum average of 4.3 in 7 point scale); (ii) strategic cost management practices (activity–based costing, activity–based management and target costing) have positive effects on accurate cost information (β = 0.454, p < 0.01; β = 0.196, p < 0.05; β = 0.170, p < 0.10, respectively); (iii) ABC and ABM have positive effects on performance (β = 0.173; p < 0.10; β = 0.230, p < 0.05, respectively); while TC and LCC have insignificant effects on performance (β = 0.035; p > 0.10; β = 0.069, p > 0.10); (iv) customer value enhancement has positive effect on performance (β = 0.310, p < 0.01); and (v) accountants’ competency has positive impact on ABC, ABM and TC practices (β = 0.399, p < 0.01; β = 0.372, p < 0.01; β = 0.248, p < 0.05, respectively). The study concluded that strategic cost management practices are relevant for performance improvement; accessing accurate cost information and enhancing customer value. The study recommended that manufacturing firms should implement strategic cost management practices to improve their performance, secure accurate cost information and enhance customer value. Manufacturing firms should also invest in the training of their accountants with a view to improving their competency which eventually will enhance ABC, ABM and TC implementation.