International Research and Academic scholar society

IRASS Journal of Economics and Business Management

Issue-7(July), Volume-2 2025

1. LOAN-LOSS PROVISION AND LOAN-TO-DEPOSIT RATIOS AS DETERMINANTS OF THE...
21

IGEMOHIA, Mohammed*
Department of Business Administration, Faculty of Management, Sciences, Delta State University, Abraka
1-6
https://doi.org/10.5281/zenodo.17140089

This study investigated whether loan-loss provision and loan-to-deposit ratios serve as major determinants of the performance of deposit money banks in Nigeria via ex-post facto research design. Panel data were obtained from the annual reports and accounts of 14 listed deposit money banks from 2012-2023. Data obtained were analyzed via descriptive, diagnostic and inferential statistics. The fixed and random effects panel regression results revealed among others that while loan-to-deposit ratio(t-value = -2.22; p-value = 0.028 < 0.05%) significantly influence financial performance of deposit money banks, loan-loss provisions ratio (t-value = .55; p-value = 0.580 > 0.05%) was found to insignificantly affects financial performance of deposit money banks. Based on the findings, the study recommends adequate capital requirement that covers all anticipated inherent risks (loans) should be set as minimum before DMBs are given operating licenses. In addition, management of deposit money banks should be more equipped with the right skills, experience and knowledge in ensuring safe and smooth use of provisions of loans losses in their day-to-day operations. The study contributes to knowledge by establishing that while, loan-to-deposit ratio has significant effect on the performance of deposit money banks, loan-loss provisions ratio has insignificant effect on the performance of deposit money banks in Nigeria.

2. TAX AGGRESSIVENESS NEXUS ON INTERNAL EFFICIENCY AND CUSTOMER LOYALTY:...
1

Edidiong Kingsley Archibong*,...
Department of Accounting, University of Port Harcourt, Rivers State
7-16
https://doi.org/10.5281/zenodo.15784857

The goal of the study was to examine effect of Tax aggressive strategy on internal efficiency and customer loyalty of listed manufacturing firms in Nigeria for the period 2004 t0 2023 using secondary data obtained from firm’s financial statements. Tax aggressiveness was measured using allowable expenses for tax purposes, debt and non-debt tax shield and internal efficiency and customer loyalty as dependent variables. Hausman test for selection of model, multiple regression and panel corrected standard error for determination of relationship. Various classic assumption tests were conducted on data set to ascertain reliability and ensure appropriateness of result. Result of the study confirmed all tax shield variables exert significant impacts on internal efficiency of manufacturing companies in Nigeria. It was however found that while allowable expenses tax shield and debt tax shield had significant negative effect, the effect of non-debt tax shield is positive. This also demonstrates a mutually exclusive relationship in this regard. Further Corporate tax shield variables all have significant effects on customer loyalty of manufacturing companies in Nigeria, although the effects are mutually exclusive. While that of allowable expenses tax shield is negative, debt and non-debt tax shields exert positive effects on customer loyalty. Based on outcome, it is recommended that corporate tax strategies should be considered as a strategic adaptation rather than a deliberate manipulation strategy of management in order to drive long term performance, especially in relation to the market performance of firms. There is the need for manufacturing firms to improve non-debt tax shield in order to improve their positions before customers. Results reveal that customer loyalty favors firms with non-debt tax shield tax aggressiveness.

3. Accounting Derivative Instruments and the Market Value of Nigerian Dep...
11

OKOKA Kingsley*, OKOLIE August...
PhD Student, Department of Accounting, Faculty of Management Sciences, Delta State University, Abraka
17-27

This study examined the effect of accounting derivative instruments, specifically currency forwards, credit default swaps, and fair value accounting, on Nigerian listed deposit money banks' market value between 2015 and 2024. Using an ex-post facto research design, secondary data were gathered from the 13 Nigerian DMBs' annual accounting reports, while of Panel Estimated Generalized Least Squares was employed to evaluate the influence of the instruments on the banks' market capitalization. The findings showed that currency forwards had a strong and positive effect on market value, reflecting their efficiency as hedging mechanisms against foreign exchange risk as well as confidence-enhancing investor instruments. The credit default swaps, however, exerted a negative but significantly tiny effect, suggesting the market perceived them as potential proxies for the exposure to credit risk. Fair value accounting, though having a positive relationship with market value, had no statistically significant effect, which is indicative of limited investor responsiveness to fair value disclosures within the Nigerian banking industry. Bank size, used as a control variable, was seen to have a significant positive relationship with market value. The study established that while there existed derivative instruments that enhanced value in the market, their impact was subject to situational factors such as disclosure quality, regulatory framework, and investor sentiment. The study made recommendations to support derivative disclosure requirements, foster useful hedging approaches, and improve investor awareness of Nigerian financial derivatives.

4. A comparative study between military and social spending and its impac...
3

Sundus Jasim Shaaibith*
University of Al-Qadisiyah, College of Administration and Economics, Iraq
28-36
https://doi.org/10.5281/zenodo.15833070

The research aims to demonstrate the comparison between military and social tunnels and the impact on sustainable development in Iraq – a case study for the period (2004- 2022) by building a standard model that shows the impact of military spending, as well as social tunnels and selected economic variables. In this research, the researcher relied on the extrapolation process mainly, which is based on monitoring the comparison between military and social tunnels and its impact on sustainable development in Iraq during the period (2004-2033), and then there may be another scientific approach that we will resort to in the course of our treatment of the issue, which is the analytical method with following some standard procedures to understand the nature of the data and variables that affect the crisis. One of the most prominent results of the research is that there is definitely a cut in the data of the military agreement for Iraq, as the researcher could not insist on the data of the Pre-year military agreement (2003), this sector is both in the material and financial aspect, and there is a general trend of increasing military agreement in Iraq starting from the year (2003), until Statistics showed that Iraq occupies the fourth place at the level of Arab countries in the agreement on the military, as it became clear through the standard model used in the research, that there is no common integration -- The military agreement does not affect sustainable development in Iraq, and that increasing sustainable development leads to military spending, as shown by the results of the cranger causality test, and the result was that spending on social protection witnessed a remarkable development during the study period (2004- 2022), which was represented by an increase in the number of families covered by the network and an increase in the amount of funds allocated by the state to the network, and this was reflected positively on the covered groups of society, so the development rate for the total period was positive by (31.97%), but that percentage was low measured by gross domestic product and therefore did not contribute to reducing poverty rates and improving the standard of living of individuals, the results also showed that there is a causal relationship to the development of education as inputs and outputs by increasing the volume of spending on the educational sector, health and in the direction of On the other hand, increasing social spending will lead to raising the efficiency and skills of community members and then lead to contributing to raising the rates of sustainable development in Iraq. The study recommended: There should be more attention in the military sector at the level of studies, research, statistics and data to avoid the problems of represents an obstacle to the spread of corruption in this sector, as well as work to increase the volume of allocations and spending on the education sector because of its positive importance in improving the skills of individuals and raising productivity and reflecting this on achieving sustainable development, through supporting and developing the health sector, as increasing spending on health will lead to increased production and then the transition of channels of influence to sustainable development, that is, the impact is positive between them, as well as conducting a package of economic policies aimed at raising the welfare of The positive impact will then be transferred to the sustainable development of the state, especially in the field of job creation, reducing income inequality between individuals, providing care and a dignified free life.

5. Examining the innovation activity of Hungarian small and medium-sized...
10

Gabriel Gencsi*
PhD. Student, J. Selye University, Faculty of Economics and Informatics, Department of Economics, Bratislavská cesta 3322, SK-94501, Komárno, Slovakia
37-43
https://doi.org/10.5281/zenodo.15862664

The innovation behavior of small and medium-sized enterprises (SMEs) is raising more and more questions, not only regarding their performance and competitive position but also affecting their economic perception. It is well known that SMEs are key players in the economy, which also holds true for the Hungarian economy. This research focused on examining the factors influencing the innovation activities of SMEs operating in the Hungarian construction industry. The empirical research was conducted using a questionnaire survey. A total of N=169 construction companies were surveyed. The validity of the hypothesis formulated in the research was tested using parametric ANOVA analysis. The main finding of the study is that significant differences can be identified in innovation activity based on company size among SMEs operating in the construction industry. The most intense innovation gap exists between medium-sized enterprises and micro and small enterprises, influenced by the innovation behavior of competitors, the demand for new management innovations from industry associations, the lack of technological preparedness within the company, and the innovation willingness of the management. For SMEs in the construction industry, staying up to date and allocating more resources to developing their innovation behavior is crucial for their operation and market presence. Within the industry, the key to success lies not only in surpassing competitors and convincing management but also in prioritizing technological innovations.

6. LOCAL GOVERNMENT FINANCE AND THE ROLE OF STATE HOUSE OF ASSEMBLY IN NI...
7

Tyodzer Patrick PILLAH*, Nwabu...
Department of Public Administration Faculty of Management Science Veritas University, Abuja Nigeria
44-62
https://doi.org/10.5281/zenodo.16408400

This study attempts to present a periscopic view of the management of local government finance in Nigeria. This is with a view to investigating the challenges of efficient and effective management of local government finance. Local Government, as it is presently known, was originally known as Indirect Rule System of Local Administration. It was first tried in the Northern Emirates, and upon the amalgamation of the Southern and Northern Provinces by Lord Lugard in 1914, the system came down to the Southern Provinces. It was assimilated in the Western Provinces but was not so easily in the Eastern Provinces. The Local Government Ordinance, patterned after the English system of Local Government, came into effect in 1950. The first Local Government Law was passed by Western Nigeria in 1952; followed by Lagos Local Council Law of 1953; Northern - 1954; and Eastern Nigeria - 1955. These Laws replaced the Local Government Ordinance in 1950. The 1979 Constitution of the Federal Republic of Nigeria, which has the same Provisions and Schedules as the 1999 Constitution, raised the status of Local Government Councils to the third tier of the government of the Federation, section 7subsection 1. Section 7subsection 6(a) and (b) provide for the sources of revenue to the Councils. As Nigeria marks its tenth National Assembly, it becomes apposite that finances and functions of local governance become paramount in national discourse in order for it to take its pride of place. This is in response to the seemingly neglect that local governance has faced over the years, with the new canon of never again shall its finances be subjected to the whims and caprices of the state governments. The specific objective of this research is to provide crippling constraints on the freedom of the Councils to have direct access, without recourse to the State Governments, the funds allocated to them from the Federation Account. Since the meagre internally generated revenue of the Councils cannot sustain ten per cent of the development needs of the Councils, their inability to have direct access to their major source of revenue accounts for their ineffectiveness in most respects. The methodology adopted to achieve the objective of this paper was a combination of documentary, historical, and descriptive approaches Both primary and secondary data were collected, In the lucid preparation, resort was held to textbooks, journals, articles, and newspaper publications, opinions of essayists, case laws, and the constitution of the Federal Republic of Nigeria. The position of the article emphasized the fact that the importance of proper import of finance makes it sustainable, as it is not surprising that the finance and functions of local governments are next to each other in the Constitution, for both have a symbiotic relationship. Without the finance, the functions cannot be executed, and without function, finance would come to naught. Taken together, both are the main basis of the local government system; the raison d'être of the councils, which ab initio were established to give practical expression to local initiatives. The sources of finance for local government are three: Direct allocation from the Federal and State Governments; internally generated revenue; and loans, grants, donations, interests, etc. This study discovers whether indeed there are, first, enough sources of revenue for local government, second, whether the local governments themselves tap, or adequately tap these sources, and third, whether the accruable revenue is adequate for the execution of their functions. This paper recommends the removal of section 6, subsections 3, 5, and 6from the Constitution. For the Councils to be responsive to the needs of their localities.





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