Tag Archives: Earnings per share

Capital Structure and Earnings per Shares in Listed Conglomerates in Nigeria (Published)

This research work studied the effect of capital structure on earnings per shares of listed conglomerate firms in Nigeria. The objective of the study was to examine the effect of between Capital Structure and Earnings per Share of Conglomerate Firms in Nigeria. The secondary data are obtained from annual reports of companies, relevant literatures and Nigerian Stock Exchange Fact Books. The multiple regression analysis i.e Ordinary least square (OLS) was used to test the relationship between Capital Structure Indicators; Ratio of Total Debt to Equity (TDE), Ratio of Short Term Debt to Total Assets (STDTA) and Ratio of Long term Debt to Total Assets (LTDTA) and Firms’ financial performance indicator; Earnings per Shares (EPS). The result shows that all Capital Structure indicators have significant impact on the performance of firms. The study concluded that a well configured capital structure management function plays a vital role on the level of profitability of the conglomerate firms. The study then recommends that Nigerian firms should try to match their high market performance with real activities that can help make the market performance reflect on their internal growth and accounting performance.

Keywords: Capital Structure, Earnings per share, Total Assets, conglomerates, total debt.

Accounting Manipulations and Firms Financial Performance: Evidence from Nigeria (Published)

The study examined accounting manipulations using timing of assets (independent variable) and firm’s financial performance (dependent variable) using Return on assets, Return on Equity and Earnings per share based on Secondary data obtained from Nigeria stock exchange and tries to ascertain whether firms use TAT to manipulate financial results .TATs were subjected to Hausmann test and also regressed against performance variable.. Findings indicate that TAT have significant relationships with ROA, ROE and EPS implying it could be used for accounting manipulations. The Study confirmed a positive relationship of TAT with ROA and EPS and we conclude that an increase in TAT increases ROA and EPS. Conversely, TAT also has a negative relationship with ROE confirming that a decrease in TAT increases ROE and vice versa.  Managers can deploy TAT for economic or accounting manipulation incentives. Study confirm Managers can use TAT to smooth earnings, for bonus compensation, for debt covenants and for political costs reasons in line with the various hypothesis stated in the theoretical framework. However, this finding draws out the inherent disadvantage of the historical cost convention and supports market value as a basis for valuation of assets. We recommend regulators overhaul of corporate governance mechanisms, amendment of CAMA 2004 Act, internal audit empowerment and audit committees extensive attention to Timing of assets sales to prevent usage for manipulative activities

Keywords: Earnings per share, Returns On Asset, Returns on Equity, Timing of Asset Sales

Working Capital Management and Financial Performance: Evidence from Manufacturing Companies in Nigeria (Published)

The study examines the impact of working capital management on financial performance of manufacturing companies in Nigeria. The study employed multiple regressions in analyzing the data sourced from the published financial statement of the firms under the study. A significant outcome of the study is that Average Payment Period and Average Collection Period impacts on both Earnings per share and Return on capital employed. The implication is that efficient management of working capital will improve the financial performance of the manufacturing firms, hence the study recommends that professionals should be hired by these firm to ensure proper management of stock to avoid stock out. Conclusively, the study has shown that good management of working capital will keep manufacturing firms a float.

Keywords: Average Collection Period, Average Payment Period, Earnings per share, Return on Capital Employed