Yisau Abiodun Babalola - Academia.edu (original) (raw)

Papers by Yisau Abiodun Babalola

Managing capital structure is one of the most important and difficult problems to be solved in th... more Managing capital structure is one of the most important and difficult problems to be solved in the process of funding, sourcing and providing finance for an enterprise. Instant response to changing external and internal environment requires significant update of many management functions in order to increase the primary role of accounting analysis. The analysis is aimed at evaluating, formulating and forecasting the situation of financial activity; it involves the stages of collection, separation and processing of aggregate management information that may be expected to clarify the diagnosis and prognosis of financial activities. The economic significance of theoretical study and practical provisions expressed in improving quality of process analytic support of an optimal capital structure to ensure effectiveness of business enterprises to reduce their financial risk. The results of the research have many intrinsic values which enabled us draw some conclusions and proffer policy sug...

This study employed the empirical survey to investigate the educational system at the higher inst... more This study employed the empirical survey to investigate the educational system at the higher institutions and professional levels in Nigeria. The role of Nigerian higher institutions has significantly provoked development of accounting profession. The educational system has evolved, but the relationship between the profession and the universities continues to be problematic for the accounting profession to achieve its goals in Nigerian economic development. There is a weak nexus between instruction, practice and research, lack of balance of theory and practice in curriculum, University rules and regulations are rigid and no dedicated effort for doctoral research. Accounting professional bodies are at rivalry and have little linkage with existing research findings and innovations in accounting. What is required is a dynamic development of curriculum, a good synergy of research and practice in Accounting.

Developing Country Studies, 2013

Every country has its own business environment, just as every organization has its own set cultur... more Every country has its own business environment, just as every organization has its own set culture and business surroundings. While undertaking a business locally or abroad, the managers or CEOs of the organizations have to account for and consider all the external and internal as well as macro and microeconomic factors, which are likely to contribute to the success or failure of the business. This paper examine the factors that responsible for improving or hampering the competitiveness of business operations with the use of SWOT analysis to judge their vulnerability of success or failure against those factors.

Research Journal of Finance and Accounting, 2013

This study examines the impact of corporate social responsibility on the profitability of firms i... more This study examines the impact of corporate social responsibility on the profitability of firms in Nigeria. The main objective of this study is to examine the relationship between corporate social responsibility and firms' profitability in Nigeria. The study makes use of secondary data, sourced from ten (10) randomly selected firms' annual report and financial summary between "1999-2008". The study makes use of ordinary least square for the analysis of collected data. Findings from the analysis show that the sample firms invested less than ten percent of their annual profit to social responsibility. The coefficient of determination of the result obtained gives 0.622016 (62%), this depicts that the explanatory variable account for about 62% changes or variations in selected firms performance (PAT) are caused by changes in corporate social responsibility (CSR) in Nigeria. The study concludes and recommends that laws and regulations to obligate firms to recognize and to comply with social responsibility should be enacted. Also, adequate attention should be given to social accounting in terms of social costs.

Journal of Emerging Trends in Economics and Management Sciences, Apr 1, 2012

This paper examines an optimal capital structure to maximize the performance of the selected firm... more This paper examines an optimal capital structure to maximize the performance of the selected firms under the same systematic risk. We investigate the relation between return on equity (ROE) and the capital structure for a sample of 10 firms from 2000 to 2009. We explore the empirical implications that there exists an optimal capital structure under trade-off theory and the optimal capital structure of manufacturing firms. At the same time, find the optimal capital structure and their concerning maximum value of ROE. The target ratio may change over time as the firm's performance and environments change. When firms adjust their capital structure, they tend to move toward an optimal debt ratio consistent with the historical financial behaviors of firms. We also find the firm's performance is a quadratic function of debt ratio. In this paper, there is further evidence on the relation between the distribution of debt ratio and corporate performance. This text summarized the main conclusion that the manufacturing industry's capital structure in Nigeria is consistent with trade-off theory, and the results are consistent with the hypothesis that the corporate performance is a nonlinear function of the capital structure.

Journal of Economics and Sustainable Development, 2013

Firms in a market economy vary widely in size, profitability, and survival. What are the factors ... more Firms in a market economy vary widely in size, profitability, and survival. What are the factors determining these observed variables and how they operate has been active topic of research in industrial organization and more generally in developing country where Nigeria is one of them. Firm size has been considered as an important determinant of firm profitability. In this study, the effect of firm size on the profitability of manufacturing companies listed in the Nigerian Stock Exchange was analyzed by using a panel data set over the period 2000-2009. Profitability was measured by using Return on Assets, while both total assets and total sales were used as the proxies of firm size. According to the results of the study, firm size, both in terms of total assets and in terms of total sales, has a positive impact on the profitability of manufacturing companies in Nigeria.

European Journal of Business and Management, 2013

This study investigates the impact of internal control system of firms in Nigeria on the effectiv... more This study investigates the impact of internal control system of firms in Nigeria on the effectiveness of audit committees with ten (10) firms collected across the manufacturing sector of the Nigerian economy and employing the cross-sectional time-series technique of panel model dichotomized into its short-run analyses and long-run situation fashion and covering the periods 2000-2009. Our findings suggest that, given the short-run condition, none of the features of internal control system of corporate firms really affect the effectiveness of corporate firms in Nigeria while estimates obtained from the long-run situation indicate that board size and management ownership significantly affect the effectiveness of audit committee in Nigeria with board composition, leverage position of firms, profitability and shareholding positively but insignificantly impact (positive influence) on audit committees' effectiveness. Thereby, the effect of internal control system of firms and audit committees' effectiveness can be seen as a long-run phenomenon in Nigeria. Stemming from these outcomes, this study proffers sound corporate governance, good governance, stable macroeconomic policies and appropriate audit committee's composition as necessary policy suggestions.

This study examines the relationship between corporate social responsibility and firms' profitabi... more This study examines the relationship between corporate social responsibility and firms' profitability in Nigeria with the use of secondary data, sourced from ten (10) randomly selected firms' annual report and financial summary between "1999-2008". The study makes use of ordinary least square for the analysis of collected data. Findings from the analysis show that the sample firms invested less than ten percent of their annual profit to social responsibility. The co-efficient of determination of the result obtained shows the depicts that the explanatory variable account for changes or variations in selected firms performance (PAT) are caused by changes in corporate social responsibility (CSR) in Nigeria while recommends that laws and regulations to obligate firms to be recognized, adequate attention should be given to social accounting in terms of social costs and to comply with social responsibility should be enacted.

This paper investigates the determinants of banks' profitability in Nigeria. In the process of ou... more This paper investigates the determinants of banks' profitability in Nigeria. In the process of our investigation, some factors which are macroeconomic, financial and bankspecific in nature were employed and their significant impacts on return on assets (as our index of performance in the Nigerian banking industry) were considered. Basically, four models were employed; an aggregate model coupled with three other decomposed models. These are to investigate the interdependent as well as holistic determinants of profitability in the banking industry and independent association subsisting between the individual indicators of banking performance in Nigeria. Our findings summarily show that, in the short run analysis, capital adequacy ratio is actually the determining factor for banks' profitability in Nigeria while in the long-run relationships; the size as well as the tangibility of the banks actually play out as the determining factor of performance. 7 have noticed that the capital ratio, loan-loss provisions and expense control are important factors in achieving high profitability.

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This paper examines the impact of firms' financial structure [Capital Structure] on firms' profit... more This paper examines the impact of firms' financial structure [Capital Structure] on firms' profitability using sample of ten manufacturing companies in the food and beverages sector during the ten years period 2000 -2009. Panel data for the selected manufacturing firms are generated and analyzed using co integration framework of regression model. The variables used are firm size (measure as the natural logarithm of total assets) debt financing, equity financing, debit-equity ratio as well as profitability index which measure firms' performance. A negative relationship exists between firms' performance and debit financing. This is due to high cost of borrowing in the country. The study by these finding suggest the importance of efficient management in the use of borrowed funds.

This study primary investigates the value relevance of accounting information in corporate Nigeri... more This study primary investigates the value relevance of accounting information in corporate Nigeria and employs simple descriptive statistics coupled with the logarithmic regression models to examine this interaction between the period 1999 and 2009, and taking 40 companies from various sectors of the Nigerian economy as samples, the logarithmic regression models is more appropriate in investigating this relationship than any other model because it has some unique statistical properties over and above other models and tends to provides better results for analyses and evaluation. Our findings shows that earnings is more value relevant than book values by extension that, the information contained in the income statements, as ably proxied by the earnings, dictates more the corporate values of firms in Nigeria than the information contained in the balance sheet, as ably proxied by the book values. Relevant information is such that it influences the economic decisions of users by helping them evaluate past, present and future events.

Eds) TAG Oladimeji, JA Durojaye, RA Oyeyinka, and …, Jan 1, 2003