Within the sphere of financial management for Nigerian Deposit Money Banks (DMBs), the dividend payout ratio stands as a crucial indicator, influenced by a myriad of factors.This study scrutinized the impact of banks' specific factors, macroeconomic influences, and mergers and acquisitions on the dividend payout ratio of five selected DMBs.Secondary data collected from annual report of the selected banks over the 1987-2022 period were utilized.Correlation analysis, panel least square regression, and diagnostic tests like Hausman test were employed for data analysis.Results showed that profitability, liquidity, and bank size were positively associated with dividend payout ratio except leverage, which negatively affected dividend payout ratio.Moreover, gross domestic product and exchange rate had favorable and substantial effect on dividend payout ratio.Contrastingly, inflation and interest rates had significant but adverse effect on dividend payout ratio.Furthermore, findings on post-mergers and acquisition showed that banks capitalization, current ratio, and market shares demonstrated positive and significant effect on dividend payout ratio; whereas, debt ratio exhibited negative effect.In conclusion, the study advocated for strategic measures among Nigerian banks, emphasizing the enhancement of profitability, maintenance of liquidity, and effective management of leverage to bolster their dividend payout policies.
The purpose of this study was to investigate the impact of domestic and external debt on macroeconomic variables in Nigeria from 1981 to 2020.Annual secondary data on domestic and external debt, inflation, output, investment and consumption sourced from World Development Indicators (WDI, 2021), and CBN Statistical Bulletin (2020) were used.The study employed two-stage least squares method to evaluate the differential effects of foreign and domestic debt on key macroeconomic variables.The findings showed a positive relationship between domestic debt and private consumption in Nigeria, while a negative relationship exists between external debt and private consumption.Also, an increase in external debt led to increased private investment.The study emphasized the importance of prudent debt management in mitigating inflationary pressures.This implied that domestic debt had a more significant negative impact on output and economic growth, while external debt had less immediate adverse effects.Policymakers should balance debt composition and use borrowed funds for purposes for sustainable economic growth.
The goal of this study was to investigate the effect of external environment on the relationship between innovation and firm performance in the Kenyan context.Treating product, process, market, and technological innovation as dimensions of operational innovation, the study empirically tested the effect on firm performance while examining the moderating effect of external environment (customer and supplier, rules and regulation, economic conditions, and trade unions).One hundred and eighty-two (182) firms were actively used in this survey research.The recommended model was tested using hierarchical regression using PROCESS macro in SPSS.Findings suggested that trade unions play moderating role in the association between operational innovation and firm performance while customer suppliers, rules and regulations and economic conditions have no link to the association.Importantly, the outcome of this work positively contributed to the existing literature by examining mechanism between external environment and the firms' performance in Kenya with the implementation of various operational innovations.
This inquiry was inspired by the quest to examine the interaction effects of economic globalization and governance on the performance of the Nigerian economy from 1996 to 2021.The study employed the modern Autoregressive Distributed Lag Model (ARDL) approach to analyze the annual time-series data obtained from the World Bank Development indicators (WDI) and the KOF institute.Based on the estimated results, the empirical findings indicate that changes in economic globalization and governance exerted a positive and statistically significant long-run impact on Nigeria's economic performance.Consequently, the interaction between economic globalization and governance had a positive and significant long-run effect on the nation's economic performance.The foregoing suggests that governance is a significant moderating factor between economic globalization and economic performance.From the purview of policy formulation, the findings call on the government to continue to strengthen institutional quality in order to fully harvest the benefits of economic globalization in its quest to attain sustainable economic development.
The puzzle of identifying the determinant of sustainable development in Nigeria has become a question for research, hence, there is a need to determine these unclear a priori expectations and their impacts on the sustainable development process in Nigeria.This study used a comprehensive set of data spanning from the 1996 to 2022 extracted the World Bank database to investigate the sustainable development puzzles in Nigeria with a particular focus on establishing an empirical credence through the governance-environmental degradation hypothesis which will inform an insight into the doubtful relations of the subject matter.The ARDL cointegration estimation technique was adopted to analyze the data.The study found that sustainable development was impeded by poor governance and environmental degradation in Nigeria.Furthermore, findings also show that environmental degradation has a crowd-out relationship from the one-period lag to the fourth-period lag values, while one-period lag to three-period lag values of governance have a negative and significant impact on sustainable development at a 5 percent level of significance, respectively.That is, development in Nigeria essentially depends on the impacts of the previous environment and the quality of governance influences.Hence, short-term policy objectives should be fostered in maintaining the conditions for sustainable development through good governance and a more sustained environment.
The purpose of this study was to examine the impact of foreign finance inflows and economic performance on environmental degradation in Africa.The study was motivated by the quest to reexamine the validity of the environmental Kuznets curve (EKC) theory in 15 selected African economies by practically decomposing the total environmental effects of foreign finance into three strands, namely scale, technique, and composition effects.The panel dataset contained the 15 largest economies selected from the five regions of the African continent from 1990 to 2020 and ensured the used of 31 observations for each country.To simultaneously guarantee heterogeneity among the long-run and short-run coefficients, the study employed pooled mean group (PMG) estimator of the dynamic heterogeneous panel auto-regressive distributed lag (panel ARDL) model as its analytical technique.The study revealed that economic performance was negatively and positively related to environmental degradation in the short-run and long-run, respectively.This confirms the existence of an inverted U-shaped relationship between economic performance and environmental degradation and also validates the existence of the environmental Kuznets curve (EKC) hypothesis.Moreover, foreign finance was inversely related to environmental degradation, which implies that poor environmental quality cannot be directly linked to foreign capital inflows among the investigated countries.
The purpose of this paper was to investigate the determinants of risk-taking in the context of Islamic and conventional microfinance institutions (MFIs) while considering the capital structure's role in moderating the risk-taking decisions' effect on financial performance.Fixed and Random effects GLS with a first-order autoregressive disturbance was used to empirically analyze the impact of risk-taking on performance as well as the role of capital structure in moderating the effects on the relationship between non-performing loans and performance.The dataset covers 179 Conventional MFIs and 57 Islamic MFIs in four different regions over the 2005-2015 period.Risk-taking determinants exposed by high loan growth, low-interest margin, and low loan loss provisions were revealed to have negative consequences on risk exposures for both MFIs on average.These indicators are significantly and positively related to a lower loan portfolio quality.Therefore, this risk-taking behavior harms these MFIs' performance.The moderating effect of capital structure within leverage funding on the relationship between nonperforming loan indicators and financial performance was confirmed in Conventional microfinance institutions.This paper can be considered a pioneer attempt to evaluate the determinants of risktaking decisions and their implications on the financial performance and sustainability of microfinance institutions.
Prior studies have paid relatively little attention to the mechanisms that underpin how the organizational good intentions perceived by customers (including customer perceived justice and support) may result in customers engaging in voluntary behaviors (i.e., customer citizenship behaviors [CCBs]).Thus, drawing upon the theories of social exchange, organizational support, and social identity as well as the stimulus-organism-response framework, this study aimed to examine the mediating roles of two vital relational elements (customer-based brand reputation [CBR] and customer affective commitment [CAC]) in the relationships between customer perceived justice (CPJ), customer perceived support (CPS) and target-based CCBs (helping, advocacy, tolerance, and feedback) in the smartphone after-sales service field.The data were gathered from 284 Egyptian customers using a survey questionnaire, and the proposed model was analyzed via SEM using AMOS software.The findings suggest that CBR plays a mediating role in the relationship between CPJ and two dimensions (i.e., advocacy and tolerance) of target-based CCBs.Moreover, CAC plays a mediating role in the relationship between CPS and three dimensions (i.e., helping, advocacy, and feedback) of targetbased CCBs.This study's results enrich the literature on aftersales services and target-based CCBs by identifying how CPJ and CPS motivate CCBs through CBR and CAC.
Capital market remains an effective channel of financial intermediation.However, it has been underperforming in developing economies and thus resulting in the attendant illiquidity and other inefficiencies.This study examined the response of All-Share Index (ASI) to external financial flows shock since accessing capital from the capital market to augment the savinginvestment gap has necessitated the high demand for external financial flows in Nigeria.The study employed data from 1981 to 2021 and the framework of impulse-response function and short-run pairwise Granger-causality approach were used.The finding showed that the impulse-responses of ASI for one-unit shocks to remittance from personal transfers, remittance from compensation of employees (RECE), trade openness and official development assistance (ODA) had noticeable positive impacts on ASI from the short to long-run.While shocks to FDI and FPI had negative impacts on ASI in the long-run.Also, the causal relationships were mixedrevealing across the time periods.The implication is that policymakers must develop policy directions to suit the time horizon of capital flows because the policy measures aimed at directing long-run capital inflows should not be the same as those aimed at changing the short-run patterns of flow in enhancing capital market performance.
With the advent of global market interdependence and interaction, coupled with the consistent spread of the internet facilities across geographical boundaries, businesses engage in e-commerce practices either to augment existing on-ground businesses or as independent outfits. This study focused on the law on e-commerce practice and business sustainability in Nigeria. The study applied a conceptual review focusing on the trends of development of e-commerce practice and the supportive effects of the legal system in facilitating business sustainability in Nigeria. The study relied on extant literature sourced from various outlets, relevant to the topic of this study. The key findings highlighted and discussed factors for improved e-commerce practices in Nigeria. These included access to legal services, effective government policy and institutional support, time and fair interpretation of the law governing e-commerce, continuous evaluation of the e-commerce processes in Nigeria, increased awareness and familiarity with e-commerce facilities, and the adoption of suitable technology. The study provides valuable insight into the support of the Nigerian commercial sector on e-commerce practices. The adoption of systems theory enhances the promotion of fairness across the entire ambience of e-commerce practice and the support of the law. This implied focusing on the continuous evaluation of legal support and a flexible process of developing the needed approaches to address emerging changes in e-commerce that can enhance business sustainability in Nigeria.
This study investigated the effect of monetary policy on the manufacturing sector value added in 24 sub-Saharan African (SSA) countries. The study is motivated by the persistent state of underdevelopment of the manufacturing sector in the region and the palpable dearth of empirical evidence on the sector’s response to monetary policy actions as suggested by theory. The study employed panel data from 1995 to 2020 and the framework of the panel ARDL model which is estimated using three dynamic panel estimators - Mean Group (MG), Pooled Mean Group (PMG), and Dynamic Fixed Effect (DFE). Findings from the study showed that the monetary variables are time sensitive and heterogeneous in their effects depending on the long or short-run. We document that while interest rate and the exchange rate had statistically significant negative impacts on manufacturing value added in the long-run only credit to the private sector had no real impact on manufacturing value added in the short and long-run. The implication is that policymakers have to conduct monetary policy in such a manner that mitigates the persistent rise in interest and the depreciation of the domestic currency exchange rates to boost manufacturing value added in the region.
