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Adebayo Olagunju

Bio: Adebayo Olagunju is an academic researcher. The author has contributed to research in topics: Business & Corporate social responsibility. The author has an hindex of 3, co-authored 3 publications receiving 95 citations.

Papers
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Journal Article
TL;DR: In this article, the authors examined the relationship between liquidity management and commercial banks' profitability in Nigeria and concluded that profitability in commercial banks is significantly influenced by liquidity and vice versa, and that both illiquidity and excess liquidity are "financial diseases" that can easily erode the profit base of a bank as they affect bank's attempt to attain high profitability-level.
Abstract: This study examined liquidity management and commercial banks' profitability in Nigeria. The major aims of the study were to find empirical evidence of the degree to which effective liquidity management affects profitability in commercial banks and how commercial banks can enhance their liquidity and profitability positions. Considering the nature of the survey, quantitative methods of research were applied. In attempt to achieve the objectives of the study, several findings were made through the analysis of both the structured and unstructured questionnaire on the management of banks and the financial reports of the sampled banks. The data obtained from the Primary and Secondary sources were analyzed through collection, sorting and grouping of the data in tables of percentages and frequency distribution. We formulated a hypothesis, which were statistically tested through Pearson correlation data analysis. Findings from the testing of this hypothesis indicate that there is significant relationship between liquidity and profitability. That means profitability in commercial banks is significantly influenced by liquidity and vice versa. The study concluded that for the success of operations and survival, commercial banks should not compromise efficient and effective liquidity management and that both illiquidity and excess liquidity are "financial diseases" that can easily erode the profit base of a bank as they affect bank's attempt to attain high profitability-level. Finally the study recommends): The Central Bank should be encourage maintaining a flexible Minimum Monetary Policy [MPR] or discount rate so as to enable the commercial banks take advantage of the alternative measures of meeting the unexpected withdrawal demands, and reduce the tendency of maintaining excess idle cash at expense of profitability, the monetary authority should as a matter of urgency encourage and legitimate the use of credit cards and enforce cheque usage for huge amounts in the day to day business transaction, finally , interested researchers should dwell on the same area of this research extensively using a wider data and area of coverage. Key words : Liquidity Management, Profitability, Commercial Bank

96 citations

Journal Article
TL;DR: In this paper, the authors discuss the concept and history of corporate social responsibility, environment, stakeholders and sustainable development, regulatory framework and corporate Social responsibility and environmental audit, and discuss the impact of industrial sector activity on the environment.
Abstract: The effect of different industrial sector activity on the environment varies enormously but it is an incontrovertible statement that damages are been done to the environment world wide. Environmental concerns rarely form an integral part of development plans particularly in third world countries like Nigeria. The realization that sustainable development can only be achieved through interdependence between economic growth and environmental quality through compliance with existing regulations has compelled some governments to now regard the environment as valued and integral part of Economic growth. Hence, environmental problems have become a priority by Government both in domestic and international scene. However, environmental policies and regulations are not lacking but are rarely enforced especially in Nigeria. The inability of Government to implement stringent environmental regulations is compounded by the fact that the goals of most corporate organizations are purely economic. Little attention is devoted to their social responsibilities. Corruption is another aspect. Most corporate bodies saddled with the responsibilities of implementing these regulations lack the political will to do so. This paper attempts to discuss the concept and history of corporate social responsibility, environment, stakeholders and sustainable development, regulatory framework and corporate social responsibility and environmental audit.

5 citations

Journal Article
TL;DR: In this paper, the authors discuss the concept and history of corporate social responsibility, environment, stakeholders and sustainable development, regulatory framework and corporate social responsible and environmental audit in third world countries like Nigeria.
Abstract: The effect of different industrial sector activity on the environment varies enormously but it is an incontrovertible statement that damages are been done to the environment world wide. Environmental concerns rarely form an integral part of development plans particularly in third world countries like Nigeria. The realization that sustainable development can only be achieved through interdependence between economic growth and environmental quality through compliance with existing regulations has compelled some governments to now regard the environment as valued and integral part of Economic growth. Hence, environmental problems have become a priority by Government both in domestic and international scene. However, environmental policies and regulations are not lacking but are rarely enforced especially in Nigeria. The inability of Government to implement stringent environmental regulations is compounded by the fact that the goals of most corporate organizations are purely economic. Little attention is devoted to their social responsibilities. Corruption is another aspect. Most corporate bodies saddled with the responsibilities of implementing these regulations lack the political will to do so. This paper attempts to discuss the concept and history of corporate social responsibility, environment, stakeholders and sustainable development, regulatory framework and corporate social responsibility and environmental audit.

4 citations

Journal ArticleDOI
TL;DR: In this article , the authors investigated the impact of HRM practices on competence, commitment, job satisfaction, motivation, cooperation with management, Cooperation with co-workers, employee presence and compliance in the manufacturing sub-sector of South-Western Nigeria.
Abstract: "Most authors agree that Human Resources is the most crucial input to any organisation. As such, scholars generally believe that Human Resource Management (HRM) practices positively impact firm performance. This belief persists because positive HRM practices strengthen competence, motivation, commitment and other employee outcomes leading to improved organisational performance. However, limited empirical evidence connects HRM practices to employee outcomes. This study investigated the impact of HRM practices on competence, commitment, job satisfaction, motivation, Cooperation with management, Cooperation with co-workers, employee presence and Compliance in the manufacturing sub-sector of South–Western Nigeria. To this end, the study adopted a cross-sectional survey research design which involved the collection of data from 381 middle-level managers of manufacturing companies in Lagos, Nigeria, selected using stratified and random sampling techniques. A Structural Equation Model (SEM) was used to analyse the data. Results show that HRM practices determine and predict components of employee outcomes. In other words, recruitment and selection, training and development, performance appraisal, compensation management, occupational health and safety, and career growth and development all determine competence, commitment, job satisfaction, motivation, Cooperation with management, Cooperation with co-workers, and Presence and Compliance all in varying degrees. The study justified investment in HRM and recommended a bundled approach to applying HRM practice."
Journal ArticleDOI
TL;DR: In this paper , the effects of sustainability reporting on earnings management was examined in the study extensively, and the authors concluded that the firms with low sustainability disclosure will probably be more involved in earnings management practices than the firms who actively disclosed their sustainability matters in details.
Abstract: Abstract The effects of sustainability reporting on earnings management was examined in the study extensively. Causal research design was employed in this study. The study population comprises of all the 112 quoted non-financial firms in Nigeria, sample size is 22 listed manufacturing firms purposively selected for the purpose of this study. The study covered 7 years’ period ranging from 2015-2021. The data used for this study were gotten from the annual reports and sustainability reports of the selected firms. Data used for this study were analyzed with the use of descriptive statistics and panel regression analysis. Sustainability reporting was measured in this study by using the social, economic and environmental disclosures index, whereas earnings management was measured using discretionary accrual and real earning. The outcome of the analysis of the study revealed that sustainability reporting has a significant negative effect on discretionary accruals and real earnings evidenced by t-statistics = (-2.31, -2.54, -2.95) and p-values of (0.037, 0.018 and 0.023) respectively for social, environmental and economic report disclosures on discretionary accruals and t-statistics of = (-2.53, -2.23, -2.86) and p-values of (0.012, 0.029 and 0.005) respectively for social, environmental and economic report disclosures on real earnings. The study concludes that the firms with low sustainability disclosure will probably be more involved in earnings management practices than the firms who actively disclosed their sustainability matters in details. The study recommends that firms should ensure they disclose in details the true state of their sustainability activities.

Cited by
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Journal ArticleDOI
TL;DR: In this article, content analysis was conducted to extract CSR and financial data from annual reports of 68 companies listed on the Nigeria Stock Exchange and the results of the descriptive statistics show that the listed companies used CSR initiatives to communicate social pe...
Abstract: Purpose – The purpose of this paper is to describe the nature and trend of corporate social responsibility (CSR) practices in Nigeria. The second objective of this paper is to examine the relationship between the dimensions of CSR disclosures and corporate financial performance (CFP) among Nigerian listed companies. Design/methodology/approach – To carry out this research, content analysis was conducted to extract CSR and financial data from annual reports of 68 companies listed on the Nigeria Stock Exchange. Financial data were cross-referenced with the NSE Factbook. CSR indexes and financial performance measures were computed for estimation of the regression analysis equation. The percentages were used to describe the nature and trend of CSR practice in Nigeria. This was followed by the hierarchical multiple regression analysis to examine the relationship between CSR and CFP. Findings – The results of the descriptive statistics show that the listed companies used CSR initiatives to communicate social pe...

85 citations

Journal ArticleDOI
TL;DR: In this paper, the authors investigated the effect of the liquidity management on profitability in Jordanian commercial banks during the time period (2005-2012) and found that a positive effect of an increase in the quick ratio and the investment ratio of the available funds on the profitability, while there is a negative effect of increased capital ratio and increased liquid assets ratio on profitability.
Abstract: This research seeks to investigate the effect of the liquidity management on profitability in the Jordanian commercial banks during the time period (2005–2012). Thirteen banks have been chosen to express on the whole Jordanian commercial banks. The liquidity indicators are investment ratio, Quick ratio, capital ratio, net credit facilities/ total assets and liquid assets ratio, while return on equity (ROE) and return on assets (ROA) were the proxies for profitability. Augmented Dickey Fuller (ADF) stationary test model was used to test for a unit root in a time series of the research variables and then testing hypothesis by using regression analysis. The empirical results show that a positive effect of the increase in the quick ratio and the investment ratio of the available funds on the profitability, while there is a negative effect of the capital ratio and the liquid assets ratio on the profitability of the Jordanian commercial banks. The researcher recommends that there is a need for an optimum utilization of the available liquidity in a various aspects of investment in order to increase the banks' profitability, and banks should adopt a general framework of liquidity management to assure sufficient liquidity for executing their operations efficiently, and they should initiate an analytical study of the evolution rates of liquidity and their ability to achieve a balance between sources and uses of funds.

84 citations

Journal ArticleDOI
30 Apr 2015
TL;DR: In this paper, the authors employed the Autoregressive Distributed Lag (ARDL)-bound testing approach and the Ordinary Least Squares (OLS) to examine the nexus between net interest margin and liquidity.
Abstract: This article is based on empirical research on the relationship between liquidity and bank performance for South African banks for the period between 1998 and 2014. The study employed the Autoregressive Distributed Lag (ARDL)-bound testing approach and the Ordinary Least Squares (OLS) to examine the nexus between net interest margin and liquidity. Liquidity in this article is viewed in the context of the market liquidity risk and funding liquidity risk. The study observes that there is a negative significant deterministic relationship between net interest margin and funding liquidity risk. However, there is an insignificant co-integrating relationship between net interest margin and the two measures of liquidity. Based on this research it is recommended that further research should be conducted to investigate liquidity in the context of asset- liability mismatches. Financial institutions also should realise that liquidity is a short-run phenomenon that has to be analysed as such.

74 citations

Journal Article
TL;DR: In this paper, the authors studied the impact of the independent variable quick ratio on Jordanian banks' profitability through return on asset (ROA) and showed that the effect of quick ratio has a significant impact on bank profitability.
Abstract: Every stakeholder has interest in the liquidity situation of a company. Suppliers of goods will review the liquidity of the company before selling goods on credit. Employees should also be worried about the company’s liquidity to know whether the company can cover its employee related obligations–salary, pension, etc. So, a company needs to keep sufficient liquidity so that liquidity extremely affects profits of which some part that will be divided to shareholders. Liquidity and profitability are closely related because one increases the other decreases. Bank profitability is the ability of a bank to generate revenue in excess of cost, in relation to the bank’s capital base. A profitable banking sector is better able to resist negative impact and share in to the stability of the financial system. This study sought to find out whether liquidity through quick ratio has significant impact on Jordanian banks profitability through return on asset (ROA). The study used the 2005-2011 financial reports of 15 Jordanian banks listed at Amman Stock Exchange (ASE). The study revealed that there is significant impact of independent variable quick ratio on dependent variable return on asset (ROA). That means profitability through return on assets (ROA) in Jordanian banks is significantly influenced by liquidity through quick ratio.

58 citations

Journal ArticleDOI
TL;DR: In this article, the authors investigate the relationship between credit risk, liquidity risks and bank profitability within the Middle East and North African (MENA) countries, and propose a model to evaluate the impact of these risks on bank profitability.
Abstract: The purpose of this article is to investigate the relationship between credit risk, liquidity risks and bank profitability within the Middle East and North African (MENA) countries. We sele...

37 citations