Effects of Audit Committee Expertise and Meeting on Audit Quality of Listed Consumer-Goods Companies in Nigeria (Published)
The study examines the effects of audit committee expertise and meeting on audit quality of listed consumer-goods companies in Nigeria covering a period of eleven (11) years (2006 – 2016). Longitudinal panel research design was adopted for the study. The population of the study consists of the twenty-three (23) listed consumer-goods companies on the floor of Nigerian Stock Exchange as at 31st December, 2016. The census sample size consists of fifteen (15) companies. Eight (8) companies were filtered out of which five (5) companies were listed outside the period of study and three (3) companies were without complete data. Secondary data from published annual financial statements of the sampled companies in Nigeria were used. Descriptive statistics (mean, standard deviation, minimum and maximum) and inferential statistics (correlation and multiple regression) were used for the study. The results show that audit committee expertise and meeting have positive and non significant effects on audit quality of listed consumer goods companies in Nigeria. The study concludes that audit committee expertise and meeting have no significant effect on audit quality of listed consumer-goods companies in Nigeria.
The Application of the Capital Asset Pricing Model (CAPM) In the Nigerian Chemicals and Paints Industrial Sector (Published)
This paper calculated the (historical) betas of listed stocks in the chemicals and paints sector of the Nigerian Stock Exchange over a 13-year period (2000-2012). The beta estimation of listed stocks showed that the beta content of the entire sector ranges between 1.04% and -0.13 or between 6.78 and -2.31% providing an average beta content of 0.37 or 1.50% of the total risk for the sector. The results indicate that the unsystematic risk content in chemicals/paints sector stocks constitutes the bulk of the sector’s risk profile and that most of the stocks’ betas had defensive attributes over the study period. The investment implication is that including an appropriate mix of chemical and paints stocks in the investors’ portfolios would, ceteris paribus, help investors to achieve a combination of investments that are not highly correlated with larger economic cycle as well as higher-risk equity securities that can potentially yield higher returns than the market.
The Role of Stock Exchange in Economic Development and Capital Formation In Nigeria (Review Completed - Accepted)
This paper examines the functions and the expected role of the Nigerian Stock Exchange in economic development and capital formation in Nigeria. It adopted a survey method of analysis to show the relationship between the operations of the stock exchange and the level of capital formation in economic development in Nigeria. The objective of the study is to find out if the stock Exchange plays a significant role in capital formation and overall economic development of the various sectors of the economy. It is deserved that while the stock exchange in developed economies are vibrant agents of development, the contributions of stock exchange in developing countries are described as being a little above border line. Conclusions were reached among other things that though the stock exchange plays a very important role in the economic development of a nation, the extent to which an exchange will be able to play this role depends on the state of the economy. The paper thus recommends an expansion in the stock exchange role in the capital formation process.
A Test for Random Fluctuations in Series of Price of Stock Traded on Nigeria Stock Exchange 2000-2007 (Published)
This paper has investigated the weak form efficiency of the Nigerian Stock Exchange (NSE) through a test for random fluctuations in series of stock prices on the Nigerian Stock Exchange between the 2000 and 2007. The decision to focus on this period was informed by the fact that the NSE enjoyed a market boom during this period prior to the recent global economic crunch. The study is an ex-post facto study that employed the runs test in analyzing the monthly stock index from January 2000 to December 2007. The result from this study points to the non-existence of random fluctuations in series of price of stocks traded on the NSE, thus this work concludes that the series of price of stocks traded on the NSE between 2000 and 2007 did not follow random fluctuations. This implies that the market was not efficient in the weak form during the period covered by this study.