Small and Medium Scale Enterprises play vital roles in the economy which are usually instrumental in achieving macroeconomic goals. This has attracted the attention of monetary authorities to institute policiesto boostconducive environment for SMEs to thrive. This study therefore empirically investigates the impact of monetary policy on SMEs financing in Nigeria spanning from the first quarter of 1992 to the last quarter of 2016. The time series data were subjected to unit root test to ascertain the stationarity of the variables and thereafter, cointegration and Error Correction Model (ECM) technique were used for the analysis. The residuals of the analysis were further subjected to various diagnostics tests. The result revealed that interest rate has a positive and significant impact on the SMEs financing in Nigeria. On the other hand, inflation rate was found to have a significant but negative impact on SMEs financing in Nigeria. Money supply and exchange rate were found to be insignificant in impactingSMEs financing. Based on this finding, the study recommends that, monetary authorities should give special attention to SMEs in specific sectors by creating special windows through various financial institutions to grant low interest rate so as to grant SMEs access to funds.This will boost business growth and consequently achieve macroeconomic goals.
Purpose This study aims to examine the effect of various forms of capital flows on financial stability in middle-income countries from 2010 to 2017 using the World Bank economy classifications of 121 economies. Design/methodology/approach Panel spatial correlation consistent approach was used in this study. Findings The findings provide convincing evidence that in middle-income countries, capital flows are positive and significant predictors of financial stability and that financial systems in advanced economies are more stable than those of emerging and developing countries. However, outward foreign direct investments are shown to have the largest potential for ensuring financial stability. Originality/value Globalization has fostered financial integration of nations, which is manifested in capital flows from lower-income countries to middle-income and upper-income countries and vice versa. These flows can lead to financial instability if not properly controlled. The authors show how the various forms of capital flows affect the financial stability in middle-income countries.
To attract more Foreign Direct Investment (FDI) inflows is the important institutional policies of the most of nations all over the world. Identifying the key determinants of FDI inflows is therefore seen as an important task for policy makers. This study, therefore, investigates the major determinants of FDI in Nigeria spanning from 1986-2017. The secondary source of data was used for the study which was first subjected to stationarity test using Augmented Dickey-Fuller and Phillips Perron test. Findings showed that all variables were found to be integrated order one. Cointegration analysis showed that there exists a long run relationship among the variables. Based on this findings, Error Correction Mechanism was used in testing the hypotheses. The result showed that exchange rate, GDP, first lag of GDP, military expenditure, first lag of military expenditure, political stability and financial development are the major determinants of FDI inflows to Nigeria. The empirical findings of this study show that government at all levels should tackle the menace of insecurity ravaging the economy and portraying the country as insecure thereby creating a secure environment for FDI inflows. Democratic regimes should be sustained and investment policies should be instituted or improved on, in order to create a friendly environment to attract more FDI inflows.
Purpose This paper aims to assess the roles of agencies in combating illicit financial flows (IFFs) in Nigeria. Specifically, this paper explores the roles of the major anti-corruption agencies – the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and other Related Offences Commission (ICPC) – in curbing IFFs in Nigeria. This paper reviews the various activities and achievements of these agencies in combating IFFs and concludes that in spite of the effort made by these anti-graft agencies, Nigeria still ranks top among African countries suffering from IFFs. Therefore, this study recommends a need for a collective and coordinated strategy by authorities worldwide to address the difficulties posed by financial crimes. Design/methodology/approach This study reviews the roles of anti-graft agencies in combating IFFs in Nigeria. Specifically, this study explores the roles of EFCC and ICPC in combating IFFs. Findings This study concludes that in spite of the effort made by Nigeria’s anti-graft agencies, IFFs have continued to increase thereby impeding the effort to achieve Sustainable Development Goal 16.4 – reduce IFFs. Originality/value This study contributes to the existing body of knowledge by exploring Nigeria's major anti-graft agencies and their effort in curbing IFFs in Nigeria.
The corporate governance code mandates all publicly quoted firms in Nigeria to establish an audit committee to ensure transparency in financial reporting and protect shareholders' interests. This study examined the effect of audit characteristics on the corporate performance of listed conglomerates in Nigeria from 2015 to 2021. Audit characteristics was proxy as audit committee size, audit committee meetings and audit committee independence, while corporate performance was proxy as return on asset. The secondary data were sourced from the firms' annual reports and were analysed using correlation matrix and panel fixed regression. The result from the panel regression showed that audit committee size and independence do not significantly affect the performance of listed conglomerates in Nigeria. In contrast, audit committee meetings significantly but negatively affect listed conglomerates in Nigeria. This study concludes that the frequency of audit committee meetings does not increase the performance of firms. This study recommends that the Security and Exchange Commission ensure that conglomerate firms in Nigeria comply with at least four audit committee meetings in a year to improve monitoring mechanisms and corporate performance.
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