Sumerianz Journal of Economics and Finance
Online ISSN: 2617-6947
Print ISSN: 2617-7641
Quarterly Published (4 Issues Per Year)
Journal Website: https://www.sumerianz.com/?ic=journal-home&journal=26Archive
Volume 2 Issue 12 (2019)
The Impact of Power Outages on the Performance of the Manufacturing Sector in Nigeria. (1980-2018)
Authors : Ogbe Emmanuel Ekene ; Enobong Udemeabasi Mbobo
Abstract:This paper examined the impact of power outages on the performance of the manufacturing sector in Nigeria from 1980 to 2018. The data used was secondary data sourced from the Nigerian Electricity Regulation Commission (NERC) monthly bulletin and the central Bank of Nigeria statistical bulletin of various issues. The paper emphasized the need for the correct specification of the model on the basis of which estimation would be valid. The study carried out stationarity and cointegration tests. The result showed that exchange rate (EXR), electricity distribution loss (EDL), capacity utilization (CPU) and Government capital expenditure (GCE) are the significant variables that influence performance of the manufacturing sector in Nigeria. One strong outcome of the study is that despite the poor state of electricity supply, it still influences economic development in Nigeria. It is recommended that efforts be geared towards stabilizing the exchange rate in order to avoid fluctuations that affect prices of energy generating agencies by ensuring periodic replacement of worn out equipment and necessary tools in order to drastically reduce power losses.
Pages: 169-177
Electricity Generation and National Development in Nigeria: The Perspective of Auto-Regression Distribution Lag (ARDL) Bond Test Analysis
Authors : Akindele Olawale Olamide
Abstract:Electricity generation is an enormous challenge facing African largest and most populous economy as it affects national and socioeconomic development of the Nigerian state. Electricity is regarded as a propelling force behind economic activities, rural /community development and viewed as an economic tool for maintaining and expanding capital stock, poverty alleviation and production capacity of an economy. Most existing studies on electricity and national development relationships on Nigerian economy mainly concentrated on electricity consumption and not electricity generation. Besides, their findings were inconclusive. Therefore, this study examined the relationship between electricity generation and national development Nigeria from the period of 1981 – 2016. The study employed Auto regression distributed lag (ARDL) bound test which was found to be the most appropriate to establish the short-run and long-run relationship since there was fractionally integrated variables. That is, variables at different level of integration (but not at I (2) level). The study revealed that electricity generation negatively affected national development both in the long and short run periods. The consequence of electricity generation effects on national development was negative; thus, it served as a disincentive to productivity, economic activity and national development, also, lack of adequate generation capacity have significantly impacted on the cost of living, production, doing business in Nigeria and even the cost of governance. The study concluded that electricity generation has significantly impacted negatively on productivity and national development of the Nigerian economy over the years. The policy implication of these findings is that electricity generation sufficiency drive of the Nigerian government has to be geared up, continued to be investment friendly and electricity generation mix should be adopted by way of having more varieties of electricity energy generation sources that can actuate industrialization, enhance the desired national development for the Nigerian economy in the nearest future.
Pages: 156-168
The Effect of Financial Reporting Quality on Corporate Performancein Nigeria
Authors : Ahmed Adeshina Babatunde ; Ayo Adeniyi
Abstract:The purpose of this paper is to investigate the effect of financial reporting quality on corporate performance in Nigeria. This research has been performed using a sample of 30 companies quoted on the Nigeria Stock Exchange (NSE). Three proxies were employed for measuring financial reporting quality, namely, earnings quality, accounting conservatism and accruals quality. Panel data were used for the purpose of the study. The relationship between the explained variables and an explanatory variable was observed. The results of the empirical tests were statistically significant at 0.01 and 0.05 levels. The research evidence revealed a significant negative relationship between corruption and financial reporting quality in Nigeria, which implies that the higher the level of corruption, the lower the financial reporting quality in Nigeria. Moreso, a significant positive relationship was found between IFRS and financial reporting quality. This shows that the adoption of IFRS by all quoted companies in Nigeria improves their financial reporting quality. The evidence of the study also found a significant positive relationship between accounting system and financial reporting quality. This revealed that more conservative companies with sound accounting systems enjoy higher financial reporting quality in Nigeria. The findings of the study revealed that financial reporting quality improves corporate performance in Nigeria.
Pages: 147-155
Total Factor Productivity through the Ghosh Model: The Paradox of Developing Countries?
Authors : Nguyen Quang Thái ; Bùi Trinh ; Tran Anh Duong ; Nguyen Viet Phong
Abstract:This study is an attempt to give an overview of the total factor productivity (TFP) through the Leontief - Ghosh system. In principle, the change in the technical factor of input matrix coefficient is due to a change in technology, but in some developing countries the total of intermediate input increase is not due to the influence of technological process changes but due to other non-economic factors. The efficiency seen from the Leontief - Ghosh relationship is that the ratio of intermediate costs will be small and the rate of value added progressively to 1. In these cases the less efficient the economy lead to the aggregate factor productivity greater. Is that a paradox of developing countries? Do mathematical - economic models seem to make no sense in these cases?
Pages: 144-146
The Impact of Intellectual Capital on Competitive Advantage at Jordanian Commercial Banks
Authors : Abdul-Kareem Ahmad Arabiyat ; Dr. Abdelbaset Ibrahim Hasoneh
Abstract:The study aimed to investigating the impact of Intellectual Capital on competitive Advantage at Jordanian Commercial Banks. This study used descriptive as well as cause/effect. Data collected from Jordanian Commercial Banks (13 banks) by means of questionnaire during March 2018. The questionnaire was distributed to 300 out of 366 managers and supervisors, only 290 questionnaires were obtained, and just 281 were suitable for further analysis. After confirming normality, validity, and reliability of the tool, correlation between variables was conducted, and then hypothesis was tested by using multiple regressions. The results show that both companies are highly implementing IC and competitive advantages variables, and there are strong relationships between IC and competitive advantages variables. The results of multiple regressions show that there is a significant impact of IC on competitive advantage at Jordanian Commercial Banks. The results also show that human capital, relational capital and structural capital have positive significant impact on competitive advantage at Jordanian Commercial Banks. Finally, the study recommends further testing of hypothesis on same industry in other countries, especially Arab countries and other industries to test the validity of results.
Pages: 134-143