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Effect of Family Ownership on Dividend per Share of Conglomerate Firms in Nigeria


Oranef, Patricia C.

Department of Accountancy

Nnamdi Azikiwe University, Awka



The study determined the effect of family ownership on dividend per share of Conglomerate firms in Nigeria. Ex Post Facto research design was adopted. The population of the study consists of the seven Conglomerate firms quoted on the Nigerian Stock Exchange. The study covered nine years annual reports and accounts of these firms from 2012 to 2020.Using regression analysis, the result stated that family ownership has a negative significant effect on dividend per share of quoted Conglomerate firms. According to the study, companies may adjust dividend payouts in response to a country’s economic climate, highlighting the controlling shareholders’ motivation.

Keywords: Family ownership, Dividend per share and Firm size


One of the significant issues lately following monetary huge outrages in corporate-level is corporate administration for specialists and financial backers. According to Mahdi and Alireza (2017), it addresses the necessity of keeping an eye on the management of the company, separating the economic entity from its ownership, and ultimately safeguarding the rights of investors and stakeholders. On the other hand, the dividend payout policy has sparked numerous accounting and finance studies.

According to Al-Gharaibeh, Ziad, and Al-Harahsheh (2013), dividend policy and ownership structure have been the subject of extensive research worldwide and have been a source of concern for other stakeholders other than management. Other stakeholders, such as customers, shareholders, and employers (Obaidat, 2018;) are of the opinion that management smoothed dividends for personal gain (2013, Al-Nawaiseh). In a similar vein, they are of the opinion that management possesses first-hand information, which entitles them to manipulate the situation to their own advantage (Arshad, Akram, Amjad, & Usman, 2013; Famous and Elijah, 2019).

In the field of corporate finance and financial economies, dividend policy is one of the most striking and contentious topics. As remuneration for supporting the business’s inherent risks, the dividend is paid to equity shareholders in exchange for their investment. The decision about how much of the company’s earnings will be distributed to shareholders as dividends at the end of each year are critical for the company’s management. The dividend, according to Hanady (2020), is the shareholders’ compensation for their investments, and they want to maximize their wealth and earn extremely high returns. However, in order to finance its long-term expansion, the business must retain profits. As a result, the dividend policy is a sensitive issue, and management must be extremely vigilant about its profit-sharing policies and dividend distribution amounts to maintain shareholders’ trust and finance the company’s expansion and growth (Hanady, 2020).

The shareholders of a typical publicly traded company are quite diverse, and each shareholder may have distinct goals regarding their stake in the corporation’s capital. In Nigeria, the connection between dividend policy and ownership structure has been the subject of debate (Mukhtar).2015, Dandago, Farouk, & Muhibudeen, 2015), and the results have been as varied as the amount of attention paid to the problem.

Both Anton’s (2016) research in Romania and Subramanian’s (2018) research in Malaysia came to the conclusion that management has the potential to raise the value of a company. Senata’s (2016) research in Indonesia demonstrated that investors received a signal about the company’s prospects for future growth when dividends were increased. In the meantime, Marangu and Jagongo (2015) in Kenya demonstrated that the profit strategy got adverse consequences on the firm worth. In addition, Gharaibeh and Qader (2017) in Saudi Arabia came to the conclusion that the dividend policy was not the primary factor that contributed to the value of the company.

In the past, the results of some studies have been inconsistent. It was thought that the concentration of ownership could be affected by other factors. According to Zhang, Edwards, and Capulong (2000), the majority of ownership shares were concentrated in Asian nations, including Indonesia. The potential of shareholders in charge of running the business has been demonstrated by the structure of centralized ownership (Prencipe, Bar-Yosef, & Dekker, 2014). As a result, the majority owner would have the opportunity to stifle the minority owner’s rights because there would be a conflict of interest between the majority and minority shareholders (Mitton, 2002). Additionally, more attention should be paid to the fact that some of the investigated factors resulted in ambiguous and inconsistent findings. The ownership structure was one of the aforementioned factors that were very important. The study is to determine the effect of family ownership on dividend per shareof Conglomerate firms in Nigeria.


Dividend Policy

A company’s dividend policy is one of the most important decisions managers make regarding how much of a company’s earnings should be given to shareholders as dividends and how much should be kept for the company’s growth. It likewise remembers choice of the chiefs for whether to deliver profit or hold income, by taking into account its income, benefit and business valuable open doors (Ibrahim and Shuaibu, 2016). The dividend payment is regarded as relevant due to its informational value. Additionally, it is believed that the informational content of dividend payments can have a significant impact on shareholders and potential investors; and the company’s stock market share price will be affected as a result (Adesola & Okwong, 2009).

According to Glen et al. 1995, managers’ dividend policies serve the interests of investors in every nation. Dividends may be paid out or retained for the company’s use, depending on the investor’s preference. Proprietorship structure is one of the significant factors which impact the profit payout approaches; despite the fact that the relationship varies depending on the class and level of owners. According to Kumar (2003), ownership structure has different effects on dividend payment. Managers believe that foreign investors are more concerned with dividends than local and institutional investors are with growth and the retention of earnings for future investments.

The dividend policy that maximizes the firm’s value is said to be the best dividend policy for increasing the company’s value. As a result, dividend policy has been viewed as an intriguing problem in a company to replace large ownership as monitoring tools. It is one of the central mechanisms of firm strategies. Additionally, larger investors may be able to divert corporate resources for personal gain through their influence. Companies that develop agency conflict may have their dividend payments restricted as a result of this. As a result, in order to gain a deeper comprehension of corporate dividend decisions, it is essential to investigate the relationship between dividend policy and larger shareholders (Jensen, 1986). As a result, dividend policy is a powerful instrument for managing and reducing conflicts of interest between managers and investors. Managers favor retained earnings, while investors are interested in dividends. According to Stouraitis and Wu (2004), corporations’ excess investment issues could be reduced by using the dividend. One of the fundamental components of corporate policies is decisions regarding dividends (Kouki and Guizani, 2009). As a consequence of this, the dividend policy will both contribute to the reduction of agency costs and act as a signal to inform investors about the company’s circumstances.

Family ownership and dividend policy

Due to the high concentration of ownership, family-owned businesses play a significant role in the majority of emerging market economies (Rajverma, Arrawatia, Misra, Chandra, & McMillan, 2019). It is well known that prior research on dividend policy and family businesses primarily relied on agency theory; According to Charitou, Louca, and Tsalavoutas (2016), a number of studies, agency theory has a mixed perspective on agency issues in family businesses, (Villalonga and Amit. 2006). There are two kinds of organization issues. First, the conflict between principals and agents—also known as the agency problem—occurs when the principals’ (family shareholders) interests do not align with the agents’ (managers’) interests in the company. As a result, family shareholders can keep an eye on managers to prevent problems at the company by having members of their own families appointed to top management and board positions (González, Guzmán, Pombo, & Trujillo, 2014; Setia-Atmaja, 2017). Second, an agency problem of type II: a conflict of interest between minority and controlling shareholders. The excessive control rights of the controlling family shareholders may cause this agency conflict. However, the divergence of interests that exists between minority and controlling shareholders may cause controlling shareholders to abuse their power and control in order to obtain personal benefits, such as elevating their own salaries and appointing members of their families to high-ranking managerial positions and board seats despite the fact that they are incapable of doing so. Therefore, rather than enhancing the shareholders’ overall wealth, this may result in an increase in expropriation costs for minority shareholders (Xu’nan, 2011; Young, Peng, Ahlstrom, Bruton, and Jiang, 2008).

The majority of recent studies reported a significant positive association between family ownership and dividend payouts (Adjaoud & Hermassi, 2017; Adjaoud & Hermassi, 2017; Adjaoud & Hermassi, 2017; Adjaoud & Hermassi, 2017; Adjaoud & Hermassi, 2017; Adja, Setia-Atmaja, 2010; Subramaniam, 2018). Three perspectives were revealed in their findings to support this positive correlation. The first view of dividend is one based on reputation, which states that controlling family shareholders may have a tendency to build a good reputation for treating minority shareholders well by paying them high dividend payouts to keep them happy. When a family business plans to increase its capital in the near future, reputation is especially important (Benjamin, Wasiuzzaman, Mokhtarinia, & Nejad, 2016; (Subramaniam, 2018). According to La Porta, Lopez-de-Silanes, Shleifer, & Vishny (2000), the second viewpoint is the widely accepted explanation that a policy of increasing dividend payouts can serve as a corporate governance mechanism for resolving agency conflicts (both Type 1 and Type 2) by decreasing the amount of cash that is available at the discretion of managers (Jensen, 1986) and controlling the discretion of shareholders in family businesses. The third and final perspective demonstrated that dividends are a source of income for family shareholders, and as a result, family businesses may also pay high dividends to satisfy shareholders’ income requirements (Isakov & Weisskopf, 2014; Setia-Atmaja, 2017; Subramaniam, 2018). However, contrary to the previous argument, other studies (Villalonga & Amit, 2006) suggested that, in comparison to non-family businesses, family businesses tend to distribute dividends less frequently and pay out fewer cash dividends As a result of their preference for controlling resources and reaping some benefits from them at the expense of minority shareholders, family businesses typically pay lower dividends (Rajverma, 2019).

Firm size

Firm size, according to Hirschinis (2019), is a significant factor in a company’s profits. The company’s asset ownership indicates whether it is a large or small business. In most cases, total assets are used to determine a company’s size. Firm size and performance have been the subject of a variety of studies, with varying degrees of support for and opposition to a positive relationship. According to Aduralere and Opeyemi (2019), every study conducted in Nigeria demonstrated a positive correlation between a company’s performance and its size. However, other studies demonstrated a weak or negative correlation between firm performance and size. Using a sample of 782 Slovenian fast-growing companies, for instance, Monik & Irec (2015) and Banchuenvijit & Pariyanont (2012) shed light on factors like firm size that determine the profitability of a developing company. The findings revealed a negative relationship between firm company profitability.

Elijah and Famous (2019) investigated the connection between Nigeria’s dividend policy and ownership structure. The following variables of ownership structure were examined: Institutional ownership, foreign ownership, and managerial ownership. The study used a longitudinal research design because it looked at dividend policy across time and across a cross section. Secondary data used in the study were retrieved from the audited financial statements of various quoted companies from 2009 to 2016. The study used the simple random sampling technique to select a sample size of 70 companies. Managerial ownership (MOWN), institutional ownership (IOWN), and foreign ownership (FOWN) all have a significant impact on dividend policy, according to the study’s findings. The dividend adjustment models show that earnings changes strongly moderate the effect of ownership structure variables on dividend payout, especially in the full adjustment model. Ajadi, Bakare, and Mohammed (2018) looked at how the ownership structure of listed insurance companies in Nigeria affected their dividend policies. Management and institutional ownership served as proxies for the structure of ownership. Secondary data from audited financial reports of twenty-six (26) insurance companies that are listed on the Nigerian Stock Exchange (NSE) and have their annual financial reports available from 2013 to 2017 are used in this study. For the analysis, the study used the results of fixed effect panel regression. The analysis showed that managerial ownership has a big impact on dividend policy, while institutional ownership only has a small, negative impact. Ibrahim and Shuaibu (2016) conducted research on the Dividend Policy and Ownership Structure of Listed Deposit Money Banks in Nigeria from 2010 to 2014. Managerial ownership, institutional ownership, ownership concentration, and foreign ownership served as proxies for the independent variable, while the dividend payout ratio served as a proximate for the dependent variable (dividend policy).As a method of data analysis, panel data Tobit regression was used to analyze the data. The dividend policy of Nigerian deposit money banks was found to have a negative and significant relationship with managerial ownership. Nuraddeen and Hasnah (2015) researched the effect of proprietorship structure on profit strategy of recorded combinations firms in Nigeria for the period 2001-2010. The study found that managerial ownership and the dividend policy of Nigerian listed conglomerates are negatively correlated. However, due to the time period examined, the study cannot be applied to current events. Adeiza, Kabiru, and Muhibudeen (2015) looked at how corporate shareholding structure affected the dividend payout ratio of chemical and paint companies that were listed on the Nigerian stock exchange between 2008 and 2013.In the study, each of the eight businesses was used. Corporate shareholdings were represented by managerial, institutional, block, and foreign shareholdings, and dividend payout ratio was represented by dividends to net income for the same time period. Corporate shareholdings Structure was represented by dividend payout ratio. The multiple regression method was used in the study. The results showed that listed Nigerian Chemical and Paints Companies’ dividend payout ratios have been negatively, strongly, and significantly impacted by managerial shareholdings. Using a regression discontinuity design, Crane, Michenaud, and Weston (2014) investigated the impact of institutional ownership on payout policy. They demonstrate that businesses increase their dividend payments and share repurchases when they have more institutional ownership. The annual composition of the Russell 1,000 and 2,000 indices serves as the basis for their identification strategy, which relies on a discontinuity in ownership. Additionally, they discover evidence of a causal effect on equity issuance, corporate investment, R&D, and proxy voting. The findings, taken as a whole, lend credence to agency models in which concentrated ownership reduces the marginal cost of delegated monitoring. The effect of incentive regulation on the dividend policy of regulated electricity companies was investigated by Bremberger, Cambini, Gugler, and Rondi (2013). They make a connection between the implementation of a new regulatory mechanism (rate of return vs. incentive regulation) and dividend pay-out and smoothing ratios using a panel of 106 publicly traded European electric utilities from 1986 to 2011.Their findings demonstrate that electric utilities subject to incentive regulation not only have higher target payout ratios but also smooth their dividends less smoothly than businesses subject to ROR regulation; As a result, firms adopt dividend policies that are more in line with efficiency-enhancing pressures and more responsive to earnings variability as a result of incentive regulation. This suggests that managers are more likely to cut dividends when necessary when they are more sensitive to competition-like efficiency pressures following the implementation of incentive regulation. Al-Gharaibeh, Ziad, and Al-Harahsheh (2013) looked at how ownership structure affected dividend policies in Jordanian businesses between 2005 and 2010.A sample of 35 companies that were listed on the Amman Stock Exchange during that time were used. The study used two distinct models for its methodology: the partial adjustment model and the full adjustment model. They found that the full adjustment model was superior to the partial model, which only explained 20.65% of the variation in dividend policy, because it explained 61.5 percent of the variation. The study’s conclusion was that managerial ownership has a negative partial adjustment coefficient.


Research Design

The Ex-Post Facto research design was adopted for the study. This is appropriate because the study aims at measuring the relationship between one variable and another, in which the variables involved are not manipulated by the researcher.

Population of the Study

The population of the study consists of the seven Conglomerate firms quoted on the Nigerian Stock Exchange. The study covered nine years annual reports and accounts of these firms from 2012 to 2020.

Data Collection

Data were collected from only secondary sources. The data were sourced from publications of the Nigerian Stock Exchange Factbook and the Annual Reports and Accounts of the sampled firms from 2012 to 2020. The dependent variable is proxied using dividend per share, while the independent variables are family ownership and audit firm size.

Model Specification

In specifying the model for the study, the researcher modified the econometrics model of Bamigboye and Akinadewo (2020), as represented dividend payout policy as dependent on the ownership structure. Hence it was given as

Y = α + β1X1 …..+ βnXn + ε ………,……………………….….………….i

Y = value of dependent variable

α = constant term i.e. the intercept of the equation

β = slope of the equation i.e. regression coefficient.

X = value of the independent and control variable.

ε = error term.

Hence the regression equation became:

DPS= α0 + β1MAO + β2FMS + ε ………………………………………….ii


DPS is the dividend per share

MAO is the managerial ownership

FMS is the firm size

The researcher modified the model in the following form:

DVPίt  =β0 + β1FMOίt + β2FMSίt + µίt


β0         =          Constant term (intercept)

βίt         =          Coefficients to be estimated for firm ί in period t

µίt        =          Error term/Stochastic term for firm ί in period t

DPίt     =          Dividend policy of firm ί in period t

FMOίt  =          Family ownership of firm ί in period t

FMSίt   =          Firm size of firm ί in period t

et         =          Error term.

Method of Data Analysis

Regression analysis will be used to test the relationship between the independent variables and the dependent variable. This will be done with aid of e-view version 9.0 at 95% confidence at five degree of freedom (df).

Decision Rule

Reject Ho if the P-value of the test is less than α-value (level of significance) at 5%, otherwise accept HI.


Table 1: Descriptive Statistics

 Mean  0.355556  68.51556  4.07E+09
 Median  0.290000  69.08000  3.48E+09
 Maximum  0.650000  74.97000  8.68E+09
 Minimum  0.100000  61.92000  1.75E+09
 Std. Dev.  0.172490  6.528432  2.46E+09
 Skewness  0.285272 -0.034269  0.829749
 Kurtosis  2.087335  1.123431  2.374386
 Jarque-Bera  0.434429  1.322328  1.179496
 Probability  0.804757  0.516250  0.554467
 Sum  3.200000  616.6400  3.66E+10
 Sum Sq. Dev.  0.238022  340.9634  4.83E+19
 Observations  9  9  9

Table 1 shows the mean (average) for each of the variables, their maximum values, minimum values, standard deviation and Jarque-Bera (JB) Statistics (normality test). The results in table 1 provided some insight into the nature of the selected Nigerian quoted companies that were used in this study.

Firstly, it was observed that on the average over the nine (9) years (2012-2020), the sampled quoted companies family ownership (FMO) in Nigeria were characterized by negative effects. While firm size characterized with positive effect.

The Jarque-Bera (JB) which test for normality or the existence of outliers or extreme values among the variables shows that most of the variables are normally distributed at 5% level of significance. This means that any variables with outlier are not likely to distort our conclusion and are therefore reliable for drawing generalization.

Test of Hypothesis

Ho: Family ownership has a significant effect on dividend per share of Conglomerate firms.

Table 2: Regression analysis of FMO, FMS and DPS

Dependent Variable: DPS    
Method: Least Squares    
Date: 10/28/22   Time: 23:22    
Sample: 1 72      
Included observations: 72    
Variable Coefficient Std. Error t-Statistic Prob.  
C 2.907975 1.243861 2.337862 0.0223
FMO -2.583719 1.306924 -1.976947 0.0520
FMS 1.16E-10 2.76E-10 0.420478 0.6754
R-squared 0.057838     Mean dependent var 2.073333
Adjusted R-squared 0.030529     S.D. dependent var 5.595639
S.E. of regression 5.509563     Akaike info criterion 6.291621
Sum squared resid 2094.514     Schwarz criterion 6.386482
Log likelihood -223.4984     Hannan-Quinn criter. 6.329386
F-statistic 2.117909     Durbin-Watson stat 0.723311
Prob(F-statistic) 0.128036      

In Table 2, R-squared and adjusted Squared values were (0.059) and (0.031) respectively. This indicates that the independent variable jointly explain about 3% of the systematic variations in dividend per share (DPS) of our sampled companies over the nine years period (2012-2020). The F-statistics (2.117) and its P-value of FMO and FMS are 0.052 and 0.675 respectively; show that the family ownership (FMO) regression model is well specified.

Using Durbin-Waston (DW) statistics which we obtained from our regression result in table 2, it is observed that DW statistics is 0.723 and an Akika Info Criterion and Schwarz Criterion which are 6.292 and 6.386 respectively also further confirmed that our model is well specified. In addition to the above, the specific finding from the explanatory variable is provided below.

Based on the coefficient of -2.583719 and p-value of 0.05, was found to have a negative and significant effect on dividend per shares of sampled quoted firms This result, therefore suggests that we should accept our alternate hypothesis which stated that family ownership has a significant effect on dividend per share of quoted Conglomerate firms.


The study determined the effect of family ownership on dividend per share of Conglomerate firms in Nigeria. The population of the study consists of the seven Conglomerate firms quoted on the Nigerian Stock Exchange. The study covered nine years annual reports and accounts of these firms from 2012 to 2020.Using regression analysis, the result stated that family ownership has a negative significant effect on dividend per share of quoted Conglomerate firms. The result shows that a decrease in family ownership leads to decreases in dividend per share.

This result is in line with Villalonga and Amit (2006) that comparison to non-family businesses, family businesses tend to distribute dividends less frequently and pay out fewer cash dividends. Family businesses typically pay lower dividends due to their preference for controlling resources and gaining some benefits from them at the expense of minority shareholders. According to the study, companies may adjust dividend payouts in response to a country’s economic climate, highlighting the controlling shareholders’ motivation.


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rTMS in Child and Adolescent Psychiatry: A Literature Review

rTMS in Child and Adolescent Psychiatry: A Literature Review.


Ar-Razi University Psychiatric Hospital, Salé.

Faculty of Medicine and Pharmacy.

Mohammed V University of Rabat- Morocco.


Transcranial magnetic stimulation (TMS) is an emerging neuropsychiatric tool with therapeutic and research applications. The three most common types of TMS delivery include single-pulse, paired-pulse, and repetitive transcranial magnetic stimulation (rTMS).

The largest trial to date was a multicenter, doubleblind, sham-controlled trial of 301 subjects with MDD which involved high frequency stimulation of the LDLPFC, five times per week at 120% motor threshold for 4 to 6 weeks. In 2008, this culminated in US Food and Drug Administration (FDA) clearance for rTMS treatment of adults with MDD who have failed one previous medication trial of an adequate dose and duration. Previously, rTMS has been approved for treatment refractory depression in other countries such as Israel and Canada.

The purpose of this paper is to present an overview of rTMS research in child and adolescent psychiatry. Literature was reviewed and collected with Sciencedirect, CAIRN, Google Scholar, NCBI and PubMed searches.

rTMS, noninvasive, neurostimulation, child, adolescent.


Transcranial magnetic stimulation (TMS) is an emerging neuropsychiatric tool with therapeutic and research applications. Dr. Anthony Barker and his associates first developed transmagnetic stimulation (TMS) in 1985 when they observed movement in the right hand upon holding a conducting coil to the scalp above the left cerebral motor strip [1]. This involves the non-invasive stimulation of cortical neurons by means of a rapidly changing magnetic field which induces weak electric currents in the brain [2].

The three most common types of TMS delivery include single-pulse, paired-pulse, and repetitive transcranial magnetic stimulation (rTMS).

Overall, TMS is considered safe with the most serious risk involving the accidental induction of seizures. With proper safety precautions the risk of seizure from rTMS and TMS is low (0.1 – 0.6%). Other potential risks include syncope, scalp discomfort, and changes in auditory thresholds.

The largest trial to date was a multicenter, doubleblind, sham-controlled trial of 301 subjects with MDD which involved high frequency stimulation of the LDLPFC, five times per week at 120% motor threshold for 4 to 6 weeks. In 2008, this culminated in US Food and Drug Administration (FDA) clearance for rTMS treatment of adults with MDD who have failed one previous medication trial of an adequate dose and duration. Previously, rTMS has been approved for treatment refractory depression in other countries such as Israel and Canada[2].

Despite promising potential in the diagnosis, examination, and treatment of psychiatric disorders in adults, this technology has had somewhat limited use in children and adolescents thus far.


The purpose of this paper is to present an overview of rTMS research in child and adolescent psychiatry. Literature was reviewed and collected with Sciencedirect, CAIRN, Google Scholar, NCBI and PubMed searches. Search terms included adolescent (including psychiatry and psychology), anxiety disorder, attention deficit hyperactivity disorder, autism spectrum disorder, bipolar disorder, child (including psychiatry and psychology) major depressive disorder, mood disorder, schizophrenia, Tourette’ s syndrome, transcranial magnetic stimulation. Articles describing the delivery of rTMS in children and adolescents were included.

Therapeutic rTMS in child and adolescent psychiatry :

Repetitive transcranial magnetic stimulation (rTMS) is a non-invasive brain stimulation tool with potential for broad application in individuals with neuropsychiatric conditions. As in adults, most rTMS research in youth has focused on treatment-resistant depression. A limited number of rTMS studies have also been conducted in children and youth with primary diagnoses of Autism Spectrum Disorder (ASD), Attention-Deficit/Hyperactivity Disorder (ADHD) or Tourette’s syndrome. Across the available rTMS literature, rTMS appears to be well tolerated with few adverse effects reported when applied to child and youth research samples. However, the potential efficacy of rTMS treatment for a variety of targets in children and youth remains unclear, due in part to limitations of the current literature, including studies using diverse protocols, potential for bias in existing clinical trial designs, variability in the research samples, and the use of heterogenous outcome measures. While rTMS is unlikely to take the place of more accessible treatments (e.g., psychopharmacological, psychosocial, psychotherapeutic), rTMS may provide a valuable alternative treatment option, particularly for those individuals where conventional treatments are inaccessible, poorly tolerated, or ineffective. A more robust body of well-designed, controlled trials, is needed in order to clarify rTMS treatment efficacy across relevant neuropsychiatric conditions, optimize treatment protocols, and meet the critical need for novel mental health interventions in children and youth[3].

In children and adolescents with autism spectrum disorder:

The term autism spectrum disorder (ASD) describes a range of conditions characterized by impairments in social interactions, communication, and by restricted and repetitive behaviors. Autism spectrum disorder may also present with symptoms suggestive of autonomic nervous system (ANS) dysfunction. A study which has the objective to determine the effect of 18 sessions of low frequency (LF) repetitive transcranial magnetic stimulation (rTMS) on autonomic function in children with ASD by recording electrocardiogram (ECG) and electrodermal activity (EDA) pre- post- and during each rTMS session is realised by M.F. Casanova et al. (USA; 2014). Behavioral evaluations post-18 TMS showed decreased irritability, hyperactivity, stereotype behavior and compulsive behavior ratings while autonomic measures indicated a significant increase in cardiac interval variability and a decrease of tonic SCL. The results suggest that 18 sessions of LF rTMS in ASD results in increased cardiac vagal control and reduced sympathetic arousal[4].

In a Short-Term Study on Non-Invasive Brain Stimulation for Children with Autism Spectrum Disorders. Twenty-four patients with ASD (mean age: 12.2 years) received 20 sessions of rTMS over the left dorsolateral prefrontal cortex. The total score on the Autism Behavior Checklist, Autism Treatment Evaluation Checklist, and the Autism Diagnostic Interview were used to determine the short-term outcome. A significant reduction in the total score on the three clinical scales was observed and maintained during the first six months after treatment, with a slight and non-significant tendency to increase the scores in the last evaluation. Twenty sessions of NIBS over the L-DLPFC improves autistic symptoms in ASD children, with a lasting effect of six months[5].

In the systematic review of MASUDA and al. examined literature on repetitive transcranial magnetic stimulation for children and adolescents with neurodevelopmental disorders published up to 2018, confirmed that No severe adverse effects were reported and that In patients with autism spectrum disorder, low-frequency repetitive transcranial magnetic stimulation and intermittent theta burst stimulation applied to the dorsolateral prefrontal cortex may have therapeutic effects on social functioning and repetitive behaviors[6].

Meta-analyses of Barahona and al. showed a significant, but moderate, effect on repetitive and stereotyped behaviors, social behavior, and number of errors in executive function tasks, but not other outcomes. Most integrated studies had a moderate to high risk of bias, mostly due to lack of subject- and evaluator-blinding to treatment allocation. Only 5 studies reported stability of these gains for periods of up 6 months, with descriptions that improvements were sustained over time[7].

In A 4-week randomized blinded controlled trial followed by another 4-week open-label intervention, in a hitherto, largest sample of intellectually able children with autism realised on 78 patients. Continuous 8-week intermittent theta burst stimulation on the bilateral posterior superior temporal sulcus in children with autism is safe and tolerable, and it produced greater therapeutic efficacy, although, there is no significant effects of 4-week intermittent theta burst stimulation on core symptoms and social cognitive performances in autism. Further analysis revealed that participants with higher intelligence and better social cognitive performance, alongside less attention-deficit hyperactivity disorder severity at baseline, were more likely to be responders[8].

In a pilot randomized, double-blind, parallel, controlled trial evaluating repetitive transcranial magnetic stimulation (rTMS) for executive function’s deficits in ASD realised on 16-35-year-olds with ASD (28 male/12 female), without intellectual disability. No evidence for efficacy of active versus sham rTMS on EF performance was found. However, promising preliminary evidence of EF performance improvement following active versus sham rTMS in participants with ASD with more severe adaptive functioning deficits was found[9].

Table-1: Original studies on TMS use in children and adolescents with autism spectrum disorder.

Study Year Study Type Sample size and type rTMS type Length Results
Casanova and al. 2014 Prospective follow up study 18 children with ASD (mean age = 13,1 years; 14 boys and 4 girls) 18 weekly inhibitory LF rTMS to dorsolateral prefrontal cortex DLFPC 18 weeks Decreased irritability, hyperactivity, stereotyped behaviors, and compulsive behaviors.
Gomez and al. 2017 Short term, controlled, randomized and partial crossover study 24 children with ASD (mean age = 12,2 years) 20 sessions of left DLPFC rTMS 2 years Significant reduction in scores (autism behavior checklist, autism treatment evaluation checklist, and autism diagnostic interview). And lasting effect of 6 months.
Barahona and al. 2018 Systematic review and meta-analysis 23 studies (4 case reports, 7 non-controlled clinical trials and 12 controlled clinical trials rTMS Significant but moderate effect on repetitive and stereotyped behaviors, and number of errors in executive functions.
Masuda and al. 2019 Systematic review 14 studies included Low frequency rTMS and theta burst stimulation of DLPFC Evidence of therapeutic effect on social functioning and repetitive behaviors.
Ameis and al. 2020 Double blind, sham controlled, clinical trial 40 patients (28 males, 12 females; 16-35 years) with ASD 20 Hz rTMS targeting DLPFC 4 weeks No significant efficacy on executive function’s performances in patients
Chang Ni and al. 2021 Single blind, sham controlled, parallel randomized, clinical trial 78 children with ASD, intellectually able. 8 weeks intermittent theta burst stimulation rTMS. 8 weeks Safety of this protocol of rTMS. Significant therapeutic efficacy on core symptoms and social cognitive performance.

In children and adolescents with depression:

Transcranial Magnetic Stimulation (TMS), a form of Non-Invasive Brain Stimulation (NIBS), has gained popularity in the last couple of decades. It is approved for treating depression in adults and is under investigation in pediatric depression. Recent evidence suggests that in pediatric patients of treatment-resistant depression, repetitive Transcranial Magnetic Stimulation (rTMS) of the frequency of 10 Hz when applied to the left dorsolateral prefrontal cortex (DLPFC), can lead to remission, improvement in depressive symptoms, or decrease in recurrence of episodes. Existing literature also suggests that TMS’s adverse effects in the pediatric population are minimal and comparable to those in the adult population. However, the limitations of existing studies, including lack of double-blind sham-controlled randomized trials or RCTs (only one RCT exists to date), small sample sizes, absence of long term follow-ups, and lack of homogenous age distribution, render the evidence insufficient for approval of TMS use in pediatric depression[10].

Table-2: Original studies on TMS use in children and adolescents with treatment-resistant major depressive disorder (MDD) or depressive symptoms[10].

List of abbreviations: RCT: Randomized Control Trial; rTMS: Repetitive Transcranial Magnetic Stimulation; DLPFC: Dorsolateral prefrontal cortex; SEs: Side effects; SMA: Supplementary Motor Area; sp/pp TMS: Single-pulse/paired-pulse TMS; MDD: Major Depressive Disorder; Hz: Hertz

Another more recent systematic review summarized the findings of fourteen publications using rTMS in young people aged 12-25 years with depression. Thirteen of these studies included adolescents with treatment resistant depression (TRD) which was most commonly defined as at least one failed antidepressant trial. Eight of these 14 studies were independent open-label trials (uncontrolled) (total N=142 participants across studies), and six publications reported on secondary analyses using data acquired in the original open-label studies. Although the summarized research indicated that a course of rTMS reduced depression scores in adolescents, design challenges present in each of the available trials limit the ability to draw firm conclusions regarding treatment efficacy[11].

In children and adolescents with ADHD:

In the systematic review of MASUDA and al., In patients with attention deficit/hyperactivity disorder, low-frequency repetitive transcranial magnetic stimulation applied to the left dorsolateral prefrontal cortex and high-frequency repetitive transcranial magnetic stimulation applied to the right dorsolateral prefrontal cortex may target inattention, hyperactivity, and impulsivity.

Three studies in a recent systematic review have applied rTMS in children and youth with ADHD, targeting either motor or DLPFC sites; including two randomized sham-controlled studies and one open-label tolerability and safety study, each including ≦25 participants, age range=7-20 years, and using heterogeneous treatment protocols. While Weaver et al. showed reduced ADHD symptoms following active rTMS, differences between sham and active rTMS arms were not significant. Helfrich et al. suggested a decrease in intracortical inhibition but did not study change in clinical/behavioural symptoms after rTMS, and Gómez et al. noted that qualitative reports from parents and teachers revealed improvements in inattentiveness and hyperactivity/impulsivity[3].

In children and adolescents with Tourette’s syndrome and tic disorders:

Neurostimulation is an alternative to behavioral therapy and medication. The number and the range of Neuropsychiatric disorders treated with repetitive transcranial magnetic stimulation (rTMS) continue to grow. Several small studies have suggested improvement in tic severity after rTMS for TS, whereas others have found no change. A pilot study of rTMS in children with TS used a novel functional MRI (fMRI) targeting design for ADM targeting. This pilot study showed significant improvements in tic severity in all participants (N=10, 8M, mean age 11.52 years) after 15 sessions of low-frequency (1 Hz) rTMS on the SMA (1800 stims/session). The mean decrease in tic severity was 60.4% (range 38.1% to 74.1%) according to the Yale Global Tic Severity Scale (YGTSS)[12].

Three studies have used rTMS to reduce tics targeting the supplementary motor area (SMA) due to its connections with cortical and subcortical motor areas [13]. Only the study by Wu et al. involved a randomized, double blinded, sham controlled design. In this study, participants with Tourette syndrome/chronic tic disorders between 10 and 22 years of age (n=12) were randomized to functional MRI navigated sham or active 30Hz continuous theta burst stimulation (cTBS) on two consecutive days. No differences in tic reduction were identified between active and sham groups, though cTBS was well tolerated [14].

In a recent study, ten children with Tourette syndrome (eight males, two females; 9–15y) participated in an open-label, phase 1 clinical trial. Treatment consisted of 1800 low-frequency (1Hz) neuronavigated robotic rTMS (100% resting motor threshold) to the SMA, bilaterally for 15 sessions. The primary outcome was a decreasing in Yale Global Tic Severity Scale (YGTSS) total score from baseline to posttreatment and All procedures were well-tolerated[15].

In children and adolescents with schizophrenia:

Jardri et al. reported on the treatment of an 11-year-old boy with medication resistant schizophrenia. This patient had a high level of impairment, aggression, and had struggled with delusions and hallucinations for 2 years. Antipsychotic medications had been ineffective and problematic due to side effects. An fMRI scan displayed increased auditory cortex activity with concurrent auditory hallucinations. This boy subsequently received 10 sessions of 1 Hz rTMS administered to the left temporoparietal cortex. His auditory hallucinations decreased by 50% as assessed by the Auditory Hallucinations Rating Scale. His progress was maintained with repeated sessions over 5 weeks. Based on the Children’s Global Assessment Scale his functioning improved as well. As a result, he was discharged home, and returned to school. There were no side effects or adverse effects during the rTMS treatment course[16].

Expected benefits of rTMS in children and adolescents:

Currently, 40% of adolescents with major depressive disorder (MDD) fail to respond to treatment with an antidepressant medication or evidence-based psychotherapy, resulting in treatment-resistant depression. In successfully treated youth, the relapse rates for depression are as high as 50-75%. Additional limitations include the need for monitoring adherence to antidepressant medications which are often discontinued due to difficulties tolerating side effects. In autism, there are no effective biomedical interventions that target core symptoms. Although rTMS requires a commitment of time and resources up front, it is an attractive option as it targets specific brain circuitry, treatment can be personalized and its use may limit or eliminate the need for long term medication treatment or monitoring for adherence. rTMS may also be helpful in minimizing multiple psychotropic medication treatments used in treating refractory depression and the resulting exposure to adverse effects.

While rTMS is unlikely to take the place of more accessible treatments, rTMS may in future provide a valuable alternative mental health treatment option, particularly for those individuals where conventional treatments are inaccessible, poorly tolerated, or ineffective. The fact that at least half of mental health conditions have their onset in the adolescent period and evidence that ineffective treatment leads to long term morbidity underscores the critical need to develop promising new mental health treatments for children and youth. Thus, while rTMS is not clinic-ready for any mental health target in children and youth, for the above reasons, further research and development of rTMS intervention options are critically needed[3].


rTMS is a non-invasive tool with applications in clinical and neurophysiological research. At present the majority of psychiatric studies involve adult depression. However, researchers are now utilizing this modality in pediatric populations. Ethical principles and mitigation of risks for vulnerable subjects must remain at the forefront of every study in this area.

Future work in this area could serve to develop rTMS as a clinical intervention in child and adolescent psychiatry and a tool for developmental neuroscience. This will involve optimization of stimulation site, stimulation parameters, and the role of rTMS in existing treatment guidelines.


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[2]Paul E. Croarkin, Christopher A. Wall & Jon Lee (2011) Applications of transcranial magnetic stimulation (TMS) in child and adolescent psychiatry, International Review of Psychiatry, 23:5, 445-453, DOI: 10.3109/09540261.2011.623688

 [3]Jamil Jivraj MD, MSc1,2, Stephanie H. Ameis MD, MSc, FRCPC1,3,4 ;Is Repetitive Transcranial Magnetic Stimulation (rTMS) Ready for Clinical Use as a Treatment Tool for Mental Health Targets in Children and Youth?. J Can Acad Child Adolesc Psychiatry, 31:2, May 2022 93

[4]Manuel Fernando Casanova1,2*, Marie K. Hensley2, Estate M. Sokhadze1,2, Ayman S. El-Baz1,2, Yao Wang1,3, Xiaoli Li3 and Lonnie Sears4; Effects of weekly low-frequency rTMS on autonomic measures in children with autism spectrum disorder. Frontiers in Human Neuroscience, published: 21 October 2014 doi: 10.3389/fnhum.2014.00851.

[5] Gómez L, Vidal B, Maragoto C, Morales LM, Berrillo S, Vera Cuesta H, Baez M, Denis M, Marín T, Cabrera Y, Sánchez A, Alarcón C, Selguera M, Llanez Y, Dieguez L, Robinson M. Non-Invasive Brain Stimulation for Children with Autism Spectrum Disorders: A Short-Term Outcome Study. Behav Sci (Basel). 2017 Sep 17;7(3):63. doi: 10.3390/bs7030063. PMID: 28926975; PMCID: PMC5618071.

[6]Masuda F, Nakajima S, Miyazaki T, Tarumi R, Ogyu K, Wada M, Tsugawa S, Croarkin PE, Mimura M, Noda Y. Clinical effectiveness of repetitive transcranial magnetic stimulation treatment in children and adolescents with neurodevelopmental disorders: A systematic review. Autism. 2019 Oct;23(7):1614-1629. doi: 10.1177/1362361318822502. Epub 2019 Jan 20. PMID: 30663323.

[7]Barahona-Corrêa JB, Velosa A, Chainho A, Lopes R, Oliveira-Maia AJ. Repetitive Transcranial Magnetic Stimulation for Treatment of Autism Spectrum Disorder: A Systematic Review and Meta-Analysis. Front IntegrNeurosci. 2018 Jul 9;12:27. doi: 10.3389/fnint.2018.00027. PMID: 30038561; PMCID: PMC6046620.

[8]Ni HC, Chen YL, Chao YP, Wu CT, Wu YY, Liang SH, Chin WC, Chou TL, Gau SS, Huang YZ, Lin HY. Intermittent theta burst stimulation over the posterior superior temporal sulcus for children with autism spectrum disorder: A 4-week randomized blinded controlled trial followed by another 4-week open-label intervention. Autism. 2021 Jul;25(5):1279-1294. doi: 10.1177/1362361321990534. Epub 2021 Feb 25. PMID: 33631943.

[9]Ameis SH, Blumberger DM, Croarkin PE, Mabbott DJ, Lai MC, Desarkar P, Szatmari P, Daskalakis ZJ.Treatment of Executive Function Deficits in autism spectrum disorder with repetitive transcranial magnetic stimulation: A double-blind, sham-controlled, pilot trial. Brain Stimul.2020 May-Jun;13(3):539-547. doi: 10.1016/j.brs.2020.01.007. Epub 2020 Jan 15. PMID: 32289673; PMCID: PMC8129776.

[10] Vishal Gupta, Shivangini Singh, Pawan Kumar Gupta, Sujita Kumar Kar; Safety and Efficacy of Transcranial Magnetic Stimulation (TMS) in Pediatric Depression. J. Indian Assoc. Child Adolesc. Ment. Health 2021 ;17(3) :154-166.

[11]Hett D, Rogers J, Humpston C, Marwaha S. Repetitive Transcranial Magnetic Stimulation (rTMS) for the Treatment of Depression in Adolescence: A Systematic Review. Journal of Affective Disorders. 2021; 278:460-9.

[12]Kahl CK, Swansburg R, Kirton A, et al. Targeted; Interventions in Tourette’s using Advanced Neuroimaging and Stimulation (TITANS): study protocol for a double-blind, randomised controlled trial of transcranial magnetic stimulation (TMS) to the supplementary motor area in children with Tourette’s syndrome. BMJ Open 2021;11:e053156. doi:10.1136/ bmjopen-2021-053156.

[13]Kwon HJ, Lim WS, Lim MH, Lee SJ, Hyun JK, Chae JH, et al. 1-Hz low frequency repetitive transcranial magnetic stimulation in children with Tourette’s syndrome. Neurosci Lett. 2011;492(1):1-4.

[14]Wu SW, Maloney T, Gilbert DL, Dixon SG, Horn PS, Huddleston DA, et al. Functional MRI-navigated repetitive transcranial magnetic stimulation over supplementary motor area in chronic tic disorders. Brain Stimul. 2014;7(2):212-8.

[15]Kahl CK, Kirton A, Pringsheim T, Croarkin PE, Zewdie E, Swansburg R, Wrightson J, Langevin LM, Macmaster FP. Bilateral transcranial magnetic stimulation of the supplementary motor area in children with Tourette syndrome. Dev Med Child Neurol. 2021 Jul;63(7):808-815. doi: 10.1111/dmcn.14828. Epub 2021 Feb 25. PMID: 33634500.

[16]Jardri, R., Lucas, B., Delevoye-Turrell, Y., Delmaire, C., Delion, P., Thomas, P. &Goeb, J.L. (2007). An 11-year-old boy with drugresistant schizophrenia treated with temporo-parietal rTMS. MolecularPsychiatry, 12, 320.

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Effect of Capital Flight on Economic Growth in Nigeria


Oranefo, Patricia C.

Department of Accountancy

Nnamdi Azikiwe University, Awka



This study examined the effect of external reserves on economic growth in Nigeria. The study employed a descriptive and time series research design, which is very important in determining the relationship between time-series variables. Data were on capital flight and economic growth from inception to the 2020 period in the Central Bank of Nigeria Statistical Bulletin. The Descriptive Statistics and Least Squares regression technique were adopted to analyze the variables. The results show that external reserve has a negative and insignificant effect on gross domestic product. It has the expected theoretical sign as debt servicing acts as a drag on economic growth because it diverts the availability of public funds for investments purposes to payments of debt. In light of the study’s findings, the study also recommended that reserves be encouraged at this time because they are important for macroeconomic stability and must be addressed in order to improve Nigeria’s economic growth.

Keywords: Capital Flight, External reserve, Economic growth


As politicians, corporations, and foreign investors massively move funds out of the country, the Nigerian economy is losing a lot of money. According to a survey of public payments made by the Central Bank of Nigeria (CBN), $22.1 billion left the country over the course of five weeks, or an average of $4.5 billion per week. Foreign exchange outflows increased to $5.35 billion for the week ending November 30, 2014, compared to approximately $3.083 billion for the week ending July 31, 2014 (CBN Statistical Bulletin 2014). The naira exchange rate, which had been stable prior to the 2015 elections, is said to have fallen as a result of capital flight. Although the Central Bank of Nigeria (CBN) has said that currency speculators who buy and hold currency to sell at a later date at a higher rate in order to make money are to blame for the collapse of the naira, Nigerians themselves are to blame for the movement of funds out of the country by purchasing dollars with their naira and moving them offshore. Nigeria’s foreign reserves are said to have been depleted as a result of capital flight, weakening the naira.

At $5.4 billion in 1999, Nigeria’s foreign exchange reserves increased dramatically to $51.3 billion at the end of 2007 and $53.0 billion in 2008.However, the reserves fell further from $38.138 billion at the end of April 2014 to $33.04 billion in February 2015 due to the 2008 crash in the international price of crude oil and the global financial crisis that followed (World Bank, 2015).

With these brief records, one can then speculate on the actual quantity that traveled from Nigeria’s shores to developed nations via legal and illegal routes. Since Nigeria’s economy relies more heavily on foreign direct investment (FDI) than on domestic investment, the prevalence of capital flight is even more concerning. Researchers are now looking into the effects of capital flight on the domestic economy as a result of this fact. Even though there is a lot of literature on the ongoing debate about the connection between capital flight and domestic investment, little has been written about doing an analysis of a specific country like Nigeria.

The term “foreign direct investment” (FDI) refers to investments made by individuals or corporations in a nation other than the investor’s home nation for the purpose of starting a business or purchasing an asset there. According to John (2016), foreign direct investment is viewed as the transfer of capital and technology from a developed or developing nation to another. According to Farrel (2008), “foreign direct investment” refers to a company’s use of technology, capital, management, and entrepreneurial skills to operate in a foreign market and provide goods and services. Nigeria is the third economy in Africa to welcome FDI, following Ethiopia and Egypt. The United States, the United Kingdom, China, the Netherlands, and France are among the nations that invest in Nigeria. According to UNCTAD (2018), political instability, widespread corruption, a lack of transparency, and subpar infrastructure may have contributed to a 21 percent decline in Nigeria’s FDI flows in 2017. However, this study tends to re-examine the impact of external reserves on economic growth in Nigeria.


The process of maximizing a nation’s external resources to meet its economic needs is known as foreign reserves management. The management of foreign reserves is the sole responsibility of the Central Bank in Nigeria. Monetary gold, a reserve position at the International Monetary Fund (IMF), the holding of special drawing rights (SDRs), and foreign exchange, which are convertible currencies of other nations, are all components of foreign reserves (CBN, 1997).According to Aluko (2007), the Nigerian economy has recently benefited significantly from external reserves. It has increased the amount of money in circulation, which has had a positive effect on economic activity because more money could be invested in productive endeavors. In turn, employment was created, output increased, and consumption increased. The people’s standard of living significantly improved as a result of their multiplier effects on the economy and effective financial resource management. In addition, there was an increase in the manufacturing sector’s contribution to GDP, which had been decreasing. Obaseki (2007) made the observation in a related study that the applications of external reserves cannot be overstated. The majority of external obligations must be settled in foreign currency. As a result, reserves grow in importance as a means of financing external imbalances. Intervention in the foreign exchange market, protection against unanticipated volatility, and preservation of natural wealth for future generations are additional uses for external reserves.

The government, according to Benigno and Fornaro (2012), induces a real exchange rate depreciation and a reallocation of production toward the tradable sector, which boosts growth, by accumulating foreign reserves. Central banks must switch from holding their external reserves in the conventional gold reserve assets to a basket of foreign currencies and securities in order to implement currency diversification. The majority of nations’ monetary authorities are influenced by historical, economic, and political fundamentals when determining the basket of foreign currencies to hold. Although Central Banks’ investment in foreign currencies and securities is a general economic objective of currency composition of reserves to maximize returns on financial resources, the monetary authorities frequently minimize profitability and focus on their liquidity requirements, particularly when they are experiencing balance of payments disequilibrium (Nwafor, 2017). At the time the Central Bank of Nigeria (CBN) was established, legislation made it relatively difficult to diversify the reserve assets away from gold (10%) and pounds sterling (90%) until the CBN Act was changed in 1962, the dollar assets did not even count as part of the official reserve holdings. Thusly, in the 1960s, outside of the country, most real resources were held in pounds consequently adjusting to the plan of authentic Trade Framework (Nwafor 2017).

From 1959 to 1970, assets in US dollars made up 12.5 percent of the external reserve, while the pound sterling averaged 78.4 percent. The country’s foreign reserves are currently held by the central bank in major currencies like: the Euro, the US dollar, the Japanese yen, the British pound, the Swiss Franc, and the currencies of other trading partners. However, due to the fact that Nigeria’s crude oil exports are invoiced in the US dollar and the majority of its obligations, such as external debt service, foreign exchange intervention, and other service obligations, are also denominated in the US dollar, over 90% of Nigeria’s foreign reserves are denominated in the US dollar (Nda, 2006).


In the year 2020, Orji, Ogbuabor, Kama, and Anthony-Orji looked into how capital flight affected Nigeria’s economic growth. In doing the examination, information from CBN factual release was utilized for the period 1981 to 2017. The study used the Autoregressive Distributed Lag (ARDL) bounds test method. According to the study, both short-term and long-term economic growth are significantly hampered by capital flight. Money supply, credit to the private sector, and domestic investment are additional variables that have been found to have a significant impact on economic growth. From 1981 to 2015, Anetor (2019) investigated the macroeconomic factors that led to capital flight from Sub-Saharan African (SSA) nations. The autoregressive distributed lag (ARDL) model was used in conjunction with secondary data from the World Bank Development Indicators (WDI) to identify the macroeconomic factors that influence capital flight from the SSA region. The study’s findings demonstrated a significant negative relationship between economic expansion and capital flight in both the long and short term. Between 1990 and 2017, Makwe and Oboro (2019) looked at how capital flight affected Nigeria’s economic growth. Cointegration analysis was used to analyze the data for both the short run and the long run, and ADF tests were used to test for the time series’ stationarity. Time series data covering these study periods were used. The ordinary least square (OLS) econometrics approach was utilized by the researchers for the purpose of data analysis. The results of the T-test showed that the proxies of capital flight and the gross domestic product, which is a proxy for economic growth, had a strong relationship. The work by Adedayo and Ayodele (2016) provides an empirical analysis of the impact that capital flight has on the economy of Nigeria. Secondary data from the National Bureau of Statistics and the Central Bank of Nigeria’s Statistical Bulletin of various issues were used in the study. The sample period from 1980 to 2014 is the subject of the empirical measurement. The adopted variables, which include Gross Domestic Product, Capital Flight, and Exchange Rate, were subjected to a comprehensive analysis using the Ordinary Least Square (OLS), Augmented Dickey-Fuller unit root test, and Co-integration test. The findings demonstrated that the variables have a significant positive influence. This suggests that, during the time period under consideration, the Nigerian economy will benefit from an increase in the exchange rate as a result of an increase in capital flight into the economy. Using data from 1981 to 2015, Lawal, Kazi, Adeoti, Osuma, Akinmulegun, and Ilo (2017) used the Autoregressive Distributed Lag (ARDL) model to examine the impact of capital flight and its determinants on the Nigerian economy. Current account balance, capital flight, foreign direct investments, foreign reserve, inflation rate, external debt, and real gross domestic product were among the variables. The finding suggests that Nigeria’s economic expansion is hindered by capital flight. Wujung and Mbella (2016) looked into the connection between capital flight and Cameroon’s economic growth from 1970 to 2013. They found evidence supporting a negative significant relationship between capital flight and economic development in Cameroon over the study period using the Fully Modified Least Squares (FMOLS) method. Exports and external debt are two additional variables that have a significant negative impact on economic development. The real interest rate, on the other hand, was found to be positively correlated with economic growth. Between 1980 and 2012, Olawale and Ifedayo (2015) looked at how capital flight affected Nigeria’s economic growth. Co-integration, Ordinary Least Square (OLS), and Error Correction Mechanism (ECM) were the primary estimation methods utilized in the study. During the study year, findings showed that capital flight, foreign reserve, external debt, foreign direct investment, and current account balance all cointegrate with GDP in Nigeria. Additionally, it was discovered that the economy was adversely affected by capital flight. Over the course of 30 years, from 1981 to 2010, Olugbenga and Alamu (2013) conducted an in-depth investigation into the effects of capital flight on Nigeria’s economic expansion. The dynamic relationship between capital flight and economic expansion was examined using the Johansen co-integration test. The outcomes demonstrate that the variables have a long-term co-integration. In addition, the notion that capital flight has a negative effect on economic expansion is only true in the short term. In addition, it was discovered that capital flight has a positive and significant long-term impact on Nigerian economic growth. The research was carried out in China by Lan, Wu, and Zhang (2010) using the ARDL bounds testing procedure and annual data that spanned the years 1992 to 2007.They discovered that capital flow would be affected by changes in the domestic economy and political environment. These included economic policy shifts and political instability like social unrest.


The study employed a descriptive and time series research design, which is a very important in determining the relationship between time-series variables. The population of the study consist of all data on capital flight and economic growth from inception to the 2020 period in the Central Bank of Nigeria Statistical Bulletin. Data are quarterly data from 1981 to 2020 from Central Bank of Nigeria Statistical Bulletin.

Method of Data Analysis

The Descriptive statistics and Least Squares regression technique were adopted to analyze the relationship between the variables. Preliminary tests to know the normality and stationarity of the data are conducted through Jarque- Bera, Skewness, Kurtosis tests, and the unit root test. The test for the Jarque-Bera, Skewness and Kurtosis tests is to find out whether that the data are normal. This is because it includes macroeconomic variables that determine the economic growth in Nigeria.

Model Specification

In order to achieve the broad objective of this study, the model of John (2016) was adapted.

In his study of the effect of foreign direct investment on economic growth in

Nigeria, the model was specified as:

NEG = CF …………………………………………………..……………… i


NEG = Nigeria Economy Growth

CF = Capital Flight

NEG is measured by GDP and CF is measured by EXR,. Further, equation i is expanded below to capture the objectives of the study;

GDP = f (EXR) ……………………………………………..………………..ii

The econometric form of the functional model is specified as:

GDP = μ0 + μ1EXR + εt


GDP = Gross Domestic Product

EXR = External reserves

μ0 = Constant

μ1 = Shift Parameters

ε = error term

t = time series.


Table 1. Descriptive Statistics

Mean 34690.67 17959.32
Maximum 71387.83 53000.36
Minimum 13779.26 224.4
Std. Dev. 20237.78 17479.61
Skewness 0.673787 0.622229
Kurtosis 1.880848 1.787424
Jarque-Bera 4.986242 4.905902
Probability 0.082652 0.086039
Observations 39 39

Source: Researcher’s compilation (2022).

GDP had a mean of $34690.67 billion, a standard deviation of 20237.78 billion, and maximum and minimum values of 71387.83 billion and 13779.26 billion, respectively. The large standard deviation suggests significant GDP variations over time, and the variable appears positively skewed (0.673).The Jacque-bera statistics’ p-value of 0.083 indicates that the series is normally distributed and that outliers are unlikely to occur. With a standard deviation of 17479.61, the EXR mean was 17959.32bn.Positively skewed (0.62), the maximum and minimum values were 53000.36 and 224.4000, respectively. The Jacque-bera statistics’ p-value of 0.086 indicates that the series is normally distributed and that outliers are unlikely to occur.

Test of Hypothesis

H01: There is no significant relationship between external reserve and the growth of the Nigerian economy

Table 2: Co-integrating Regression

5537.481 5164.172 5756.477
-3084.7 -3066.93 -3194.69
EXR {0.0821} {0.10955} {0.0810}
-1.037 -1.33157 -1.0188
   R2 Adjusted -2.815 0.977 0.922
-15.394 0.956 0.91

      Source: Researchers compilation (2022).

In small sample sizes, these methods can produce accurate estimates and provide a check for results’ robustness. There are many reasons why CCR, DOLS, and FMOLS are superior to OLS; let me list the most important ones:1) The t-statistic obtained without stationary 0r I(0) terms is only approximately normal, despite the extremely consistent OLS estimates. OLS estimates may suffer from serial correlation and heteroskedasticity because the omitted dynamics are captured by the residual, so inference using the normal tables will not be valid—even asymptotically—despite the fact that OLS is super-consistent in the presence of “a large finite sample bias.” (2) As a result, the OLS estimates’ “t” statistics are useless. (3) DOLS and FMOLS deal with endogeneity by adding leads and lags (DOLS).White heteroskedastic standard errors are also utilized. FMOLS uses a nonparametric method to accomplish the same thing.

The outcomes for the impact of EXR on Gross domestic product is negative and immaterial across every one of the assessments; FMOLS (-1.0188, p=0.2978), CCR (-1.037, p=0.320), and DOLS (-1.332, p=0.3762).The expected theoretical sign for the variable EXR is that debt servicing slows economic expansion because it diverts public funds intended for investments to debt payments. The direction of the relationship is in line with the debt overhang hypothesis, which states that debt servicing can lead to a situation in which debt obstructs economic growth, particularly in developing economies.

Across all estimations, the effect of EDS on RGDP is negative and insignificant; FMOLS (-1.0188, p=0.2978), CCR (-1.0360, p=0.320), and DOLS (-1.332, p=0.3762).The expected theoretical sign for the variable EXR is that debt servicing slows economic expansion because it diverts public funds intended for investments to debt payments. As a result, the null hypothesis that there is no significant connection between Nigeria’s expanding economy and its external reserve is accepted.


Across all estimations, the effects of EDS on RGDP are negative and insignificant. The expected theoretical sign for the variable EDS is that debt servicing slows economic expansion because it diverts public funds intended for investments to debt payments. In light of the study’s findings, the study also recommended that reserves be encouraged at this time because they are important for macroeconomic stability and must be addressed in order to improve Nigeria’s economic growth.


Adedayo O. C. & Ayodele S.O. (2016). An Empirical Analysis of the Impact of Capital Flight on Nigeria Economy. International Journal of Academic Research in Economics and Management Sciences. 5(2); 1-4.

Aluko, J.J. (2007). The Monetization of Nigeria’s Foreign Exchange Inflows. CBN Bullion, 31(2)

Anetor F.O. (2019). Macroeconomic Determinants of Capital Flight: Evidence from the SubSaharan African Countries. International Journal of Management, Economics and Social Sciences. 8(1), 40–57.

Benigno G. & Fornaro L. (2012). Reserve accumulation, growth and financial crises. CEP Discussion Papers dp1161, Centre for Economic Performance, LSE, August

CBN Statistical           Bulletin.          (2017). Retrieved        from

Farrell, R. (2008) Japanese Investment in the World Economy: A Study of Strategic Themes in the Internationalisation of Japanese Industry. Edward Elgar, Britain.

John, E.I. (2016) Effect of Foreign Direct Investment on Economic Growth in Nigeria. European Business & Management, 2, 40-46.

Lan, Y., Wu, Y., & Zhang, C. (2010). Capital flight from China: Further evidence. Journal of International Finance and Economics, 10(2), 13-31.

Lawal, A. I, Kazi, P. K., Adeoti, O. J., Osuma, G. O., Akinmulegun, S., & Ilo, B. (2017). Capital Flight and the Economic Growth: Evidence from Nigeria. Binus Business Review, 8(2), 125-132.

Makwe E.U. & Oboro O.G. (2019). Capital flight and economic growth in Nigeria. International Journal of Business and Management Review. 7(8); 47-76

Nwafor M.C. (2017). External Reserves: Panacea for Economic Growth in Nigeria. European Journal of Business and Management. 9(33), 36-47

Obaseki, P.J. (2007). Foreign Exchange Management in Nigeria. Past, Present and Future. CBN Economic and Financial Review, 29(1) 125-132

Olawale O. & Ifedayo O.M. (2015). Impacts Of Capital Flight On Economic Growth In Nigeria. International Educative Research Foundation and Publisher. 3(8); 10-46

Olugbenga A.A. & Alamu O.A. (2013). Does Capital Flight Have a Force to Bear on Nigerian Economic Growth? International Journal of Developing Societies. 2(2), 80-86. DOI: 10.11634/216817831302422

Orji A., Ogbuabor J.E., Kama K. & Anthony-Orji O. (2020). Capital Flight and Economic

Growth in Nigeria: A New Evidence from ARDL Approach. Asian Development Policy Review. 8(3); 171-184

World Bank. (1985) Case study: Mexico. In D. R. Lessard & J. Williamson, (Ed.), Capital flight and third World debt. Washington, D. C.: Institute for International Economics.

World Bank. (2015). World development indicators 2015. Washington, D.C.: World Bank.

Wujung V.A., Mbella M.E. (2016). Capital Flight and Economic Development: The Experience of Cameroon. Economics. 5(5); 64-72. doi: 10.11648/

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Environmental Accounting and Caliber of Financial Reporting of Nigerian Quoted Firms


Oranefo, Patricia C.

Department of Accountancy

Nnamdi Azikiwe University, Awka



This study therefore examined the environmental accounting and the caliber of financial reporting of Nigerian quoted firms. The study employed survey research design. The entire number of service companies listed on the Nigerian Stock Exchange (NSE) made up the population of this study.  Data were generated through questionnaires distributed to respondents. Pearson’s Chi-square method was employed to test the hypothesis. The result shows that capitalizing environmental resource expenses including those for hiring, choosing, training, education, welfare, contributing to a pension fund and subsistence allowance allows for better accounting of these costs. As a result, they must be capitalized and reported as assets. When this is done, listed service businesses in Nigeria can be more accurately valued, and their financial reports can more reliably convey important financial data for use by different report users. Based on the result, it was recommended that backup plans for dealing with unusual and unintentional discharges as well as programs for reducing waste should be required of businesses.

Keywords: Environmental accounting, Financial reporting and Service companies


Environmental accounting covers the identification, measurement, and allocation of environmental expenses, as well as their integration into corporate operations and dissemination to stakeholders. Since it incorporates transparency into its societal actions, it is a comprehensive strategy for ensuring excellent corporate governance. Because of some people’s rude attitudes and lack of respect for environmental accounting, performance falls short of expectations. This is because environmental accounting makes it possible for the company to keep track of all the money it spends on the environment. This helps the company figure out how to cut those costs (known as environmental expenses) and make more money for the business. Additionally, environmental accounting assists in demonstrating a company’s environmental stewardship to the outside world (Ahmad & Courtis, 2022).

In order for societies to transition from manufacturing-based to information-based and eventually to knowledge-based societies, certain processes and procedures—like those pertaining to management, accounting, and finance—must be unfrozen. In today’s knowledge society, all economic activity revolves around environmental accounting. The creation and application of knowledge are the primary drivers of wealth creation in a knowledge economy (United Kingdom Department of Trade & Industry, 2019). Therefore, knowledge workers rather than machines are the primary resource in knowledge-based economies. As a result, without stressing the significance of environmental accounting, it will be impossible to report the financial performance and position of knowledge-based enterprises (also known as service-based companies).

Due to the fact that the term “financial accounting” is frequently used in relation to monetary terms (Bartolomeo, et al., 2020), the distinction between regulatory and environmental accounting dates back to a time when regulatory agencies introduced external accounting.2020).It is clear that environmental accounting can be used not only at the organizational level, but also at the plant, company, regional, and national levels. In order to inform their stakeholders, businesses currently voluntarily account for physical and financial information (Bartolomeo et al.,2020).

The remarkable expansion and financial impact that the banking sector, the technology and communication industry, and other service-oriented businesses have had on the Nigerian economy over the past ten years demonstrates the significance of the service sector. Over the past ten years, activity at the Nigerian Stock Exchange (NSE) has been dominated by the service sector, particularly the banking sector (NSE Fact Book, 2020).During that time, investors expressed a significant amount of interest in the shares of the service sector and made substantial investments in that sector. Investors and other stakeholders in this scenario heavily rely on the service companies’ published financial reports when making investment decisions. They expect service providers to provide sufficient data to present a true and accurate picture of their business practices, which may be crucial to all parties involved.

When a listed service company publishes its financial performance and position for a particular time, it is anticipated that all significant and pertinent information will be included. If these businesses fail to disclose their key asset (environmental accounting), the adequacy and significance of their financial information disclosure is questioned. Therefore, the intangible assets that corporations do not record, primarily environmental resources, frequently play a significant role in the difference between their shares’ book value and market value (Abubakar, 2020; Lev, 2021).

When this company only mentions the value of its corporate buildings, furniture, and technological devices without mentioning the value of its environmental resources, should the financial statements be considered to be true and fair? The probability of a negative response is higher. A significant number of intangibles are also indicated by the size of the disparity between the company’s book value and market value. This study therefore examines the environmental accounting and the caliber of financial reporting of Nigerian quoted firms.

Literature Review  

Environmental Accounting

The early days of environmental accounting were marked by uncertainty. According to studies from that time period, the first studies in the field of environmental accounting began in 1970 and were more descriptive. Between 1970 and 1980, environmental accounting went through four stages (Vasile & Man, 2020).There have been conversations about the job of bookkeeping in revealing data about natural drives from 1981 to 1994.During this time, researchers have become more interested in this topic, and environmental accounting is starting to get more attention from managers and even accountants. Additionally, research on social accounting has suffered as a result of an increase in environmental accounting researchers (around 267) (Vasile & Man, 2020).

Between 1995 and 2001, environmental accounting entered its mature phase. An environmental audit is currently being carried out, and environmental information is now beginning to be taken into consideration. Theoretically and practically, environmental accounting was also discussed, particularly in developed nations. Environmental reports are still the primary subfield that researchers have focused on, but the number of studies from this time period is beginning to significantly increase. The adoption of environmental management standards, which have been dubbed the “cornerstone” of environmental accounting (Vasile & Man, 2020), has sparked interest in this subfield. Rules for environmental accounting and reporting environmental data have also been published since 2002.

Financial Reporting

According to Nzekwu (2019), the supply of key quantitative representations of individual corporations that support a wide range of contractual relationships and enhance the information environment as a whole is referred to as corporate financial reporting. He added that the nature of monetary revealing of an element influence on the company’s income as well as impacting the expense of capital on which the incomes are limited. It can also help investors and managers find and analyze investment opportunities. This definition focused on how an entity provides information and how that information affects the reporting entity’s cash flow.

From a different point of view, corporate financial reporting is thought to be an important and effective way to spread financial information. According to Salawu (2019), corporate financial reporting is the public reporting of a company’s operating and financial data through annual reports and accounts. It is a process that has many benefits for the people who use the reports, who use them more often to make decisions. However, Beuselinck and Manigart (2017) identified a number of major issues with corporate financial reporting, including the use of out dated technology, the use of out dated technology, a lack of timely information, increased printing costs, and limited copies available to a select market. Accounting records are the primary source of information for the preparation of annual financial statements and for the effective operation of an organization’s affairs, making up an organization’s financial reporting (Barth, Landsman, Lang, & Williams, 2016;Lee, 2016).As a result, it’s critical that they serve their intended functions accurately. According to Mainnes & Wahlen (2016), the accounting and information systems that are used to prepare financial reports need to provide a foundation for the generation of management information that is required for the organization’s effective and efficient day-to-day operation. This information needs to be consistent and compatible with the information that is included in the financial statements. Members’ responsibilities to the organization and its stakeholders are fundamentally supported by the records and reports they generate.

Empirical Review

Field (2021), who has written a lot about the economics of natural resources, looked at the benefit-cost analysis method by discounting environmental project and activity input and output values based on the future. The regulatory Evaluation Impact Assessment (EIA) study on the environment has largely served as the method for measuring benefit-cost analysis. Using T-test statistics, Pearson product-moment correlation, and regression analysis, Enahoro (2019) discovered that environmental accounting disclosure differs between Nigerian quoted companies. Bassey, Sunday and Okon (2016) then again utilized Pearson’s item second relationship examination of oil and gas organizations in the Niger Delta district of Nigeria. They observed a positive correlation between the company’s profitability and environmental costs. According to Epstein (2016), the costs of environmental degradation include emissions into the air, water, and land. It also includes quantities of solid water that must be disposed of, possibly through land spreading or incineration, as well as aspects of untreated domestic waste outflows into rivers and coastal oceans. Airborne S02 emissions from power plants caused by stack-gas scrubbing, which results in a highly concentrated sludge, and degradation, such as illegal dumping along the sides of roads or in remote areas at night, are examples of pollution.


Research Design

With a large sample size of 102 quoted service companies in Nigeria and approximately 9100 respondents, this study combined descriptive and survey research methods. Questionnaires are typically regarded as a more objective research strategy that can produce generalizable results when the sample size is large.

This study’s population consisted of all service businesses listed on the Nigerian Stock Exchange (NSE).The review populace is classified into NSE areas and is believed to be limited. On the NSE, there are 35 different industries, 13 of which are housing service-oriented businesses. The information about the service-oriented industries as well as the number of businesses in each industry is presented in Table 1.

The questionnaire was used in this study to test a particular hypothesis by utilizing the Pearson’s Chi-square method and questions 7 through 15.

23 quoted service providers made up the sample, or 22.55 percent of the total population, according to the calculations. Every person in the population had the same chance of being selected for the sample when proportional and basic random sampling methods were combined.

Questionnaires Administered

Where the number of respondents is quite vast, Yemane (1967) sampling technique was thought to be better suitable (Eric, 2009). It was taken into account and used in this investigation for this reason. Due to the nature of the research, emphasis was placed during the administration of the questionnaire on the executive officers and other management personnel of the companies. Using practicality and value judgment, the number of questionnaires distributed to additional types of respondents was determined.

Data Analysis Methods

The study hypothesis, which was based on rankings of environmental expenditure, was put to the test with the help of the Kendall’s Coefficient of Concordance (KCC) as a tool. The respondent’s agreement with the significance placed on environmental expenditures for capitalization as assets was determined using this method.

Model Requirements for Validation of the Developed Model

EBO (1995) Model was utilized to determine the value significance of the “Salisu environmental accounting Model” on the caliber of financial reporting of listed service firms in Nigeria. Here, we want to test hypothesis 2 by demonstrating empirically the effects of the “Salisu environmental accounting Model” (2). Accordingly, the study developed the following equations to determine the outcomes of multiple regression utilizing the EBO (1995) Model.

AMPi is equal to I plus i1BVPS  +     i. ………………………………..i

AMPt = t+ t1BVPS + ———————————————————–ii

AMP stands for Average Annual Market Price.

Book Value Per Share is BVPS.

  Data Analysis

  Basic Descriptive Statistics

In this section, the descriptive statistics, tolerance and Variance Inflation Factor (VIF) are presented and discussed. The objective here is to provide explanations on the basic features of the data used. Table 4.9 below shows the mean, standard deviation, tolerance and VIF values of the variables considered.

Table 1:  Descriptive Statistics Results

Variables With HR Value:   BVPS   AMP
Mean Std. Deviation Tolerance VIF   12.0858 8.20164 0.305 3.278   24.9867 15.58926 N/A N/A
Without HR Value: Mean Std. Deviation Tolerance VIF   12.1275 8.20164 0.307 3.260   24.9867 15.58926 N/A N/A  

Source: SPSS Regression Results

When the HR value is excluded from their financial reports, the figures in Table 1 show that the average BVPS of the banks under examination is N12.13. However, when the HR value, which was calculated using the “Salisu HRV Model,” is taken into account, the BVPS is N12.09, which represents a 4k drop. Low standard deviation coefficients for each of the independent variables (BVPS) show their importance to the “Salisu HRV Model.”

The tolerance and VIF values are used to evaluate the multicolinearity of the variables taken into consideration.

Table 2: Regression Results Computed from the Data on Table 4.8

Statistical Variables Without HR Value With HR Value Difference
R 0.914 0.922 +0.008
R Square 0.836 0.850 +0.014
Adjusted R Square 0.775 0.794 +0.019
F Statistics 13.594 15.126 +1.532
t – values: BVPS 0.342 0.741 2.146 0.064**  
Significant 0.002* 0.001*  

Source: SPSS Regression Result

Because estimated R is greater than 0.875, the statistical findings in table 2 above indicate that there is a significant connection between AMP, the dependent variable, and BVPS in both scenarios. The EBO regression model was found to be broadly fit based on the two scenarios’ modified coefficients of determination (R2) values of 83.6 and 85.0 percent, respectively. This suggests that 83.6 percent of the changes in the market share prices of the Nigerian banks chosen for quotation are explained by BVPS, which does not take HR value into account. Similarly, if HR value is incorporated, BVPS account for 85.0 percent of the variances in the selected Nigerian banks’ market share prices. This demonstrated that the variable whose HR value is included in the selected banks’ financial reports has a greater impact on the share price.


Although it employs mathematical modeling techniques, this study is more of a survey. The questionnaire itself was used as the data source for the study. The responses to the questionnaire were analyzed using chi-square, tables, percentages, problems, Kendall’s coefficient of Concordance, respondents’ knowledge of existing models for the use of environmental resources and their shortcomings, and potential approaches for including environmental resource value in a service company’s financial statements. All aspects of environmental accounting, both controversial and noncontroversial, were covered in detail in the surveys, which also required respondents to rank certain well-known expenditures on environmental resources.

In addition to the developed model, this study’s findings demonstrated that quoted service providers in Nigeria receive higher valuations for their environmental resources when all relevant expenditures are capitalized. As a result, accounting for environmental resource expenses, such as hiring, choosing, training, education, welfare, and subsistence allowance, can be improved by capitalizing these costs. They must therefore be reported as assets and capitalized. When this is done, Nigeria’s listed service businesses can be valued more accurately, and their financial reports can reliably provide various report users with important financial data.

The concept of environmental accounting was thoroughly examined in the research paper. To put it another way, the findings of the study demonstrated how crucial it is for service organizations to value the environment as an asset in their financial reporting and to account for it. Based on the majority of the existing literature, the study came to the conclusion that the cited service providers can gain in a way that is sufficiently justifiable from using the created model to evaluate and report environmental data. The justifications are supported by scientific evidence in the study.


  1. Backup plans for dealing with unusual and unintentional discharges as well as programs for reducing waste should be required of businesses.
  2. The government ought to mandate environmental reporting in annual reports because the majority of businesses rarely document their environmental activities.


Abubakar, S. (2020). Environmental Accounting: An Assessment of the Valuation Models and Methods. Nigerian Journal of Accounting Research, Vol. 4, No. 2, June, pp. 80-102.

Ahmad, K., & Courtis, J. K. (2022). Association between Corporate Characteristics and Disclosure Levels in Annual Reports: A Meta-Analysis. British Accounting Review, 31, 35–61.

Barth, M., Landsman, W., Lang, M. & Williams, C. (2016). Accounting Quality: International Accounting Standards and US GAAP. Working paper series.

Bassey, E.B; Sunday, O. E & Okon, E. E. (2019). The Impact of Environmental Accounting and Reporting on Organizational Performance of selected Oil and Gas Companies in Nigeria Delta Region of Nigeria. Research Journal of Financial and Accounting, 4(3).

Beuselinck, C. & Manigart, S. (2017). Financial Reporting Quality in Private Equity Backed Companies: The Impact of Ownership Concentration. Small Business Economics, 19, 201-214.

Enahoro. J.A (2019). Design and Bases of Environmental Accounting in Oil and Gas and            Manufacturing Sectors in Nigeria. Ph.D Thesis, Covenant University Ota, Nigeria. p.92.

Epstein, M. J. (2016). Making sustainability work: Best practices in managing and measuring corporate Social, environmental, and economic impacts, UK: Greenleaf Publishing  Limited

Field, B.C (2021). Natural Resource Economics, An Introduction, Boston, McGraw-Hill

Lee, T. A. (2016). Financial Reporting and Corporate Governance. Chichester, England: John Wiley & Sons.

Lev, B. (2021). Intangibles: Management, Measurement, and Reporting. Washington, D.C.: Brookings Institution Press.

Maines, L. & Wahlen, J. (2016). The Nature of Accounting Information Reliability: Inferences from Archival and Experimental Research. Accounting Horizons, 20(4), 399-425.

Salawu, R. O. (2019). Financial Reporting on the Internet by Quoted Companies in Nigeria. A Paper Presented at a Conference on “Repositioning African Business and Development for the 21st Century”, Ife, Osun State.

United Kingdom Department of Trade and Industry (2019). Corporate Reporting under a Knowledge Economy. London: Jossey-Bass.

Vasile, R. L. & Man, R. C. (2020). Discussion: R.G. Barry Environmental resource Accounting, In The Behavioural Aspects of Accounting Data for Performance Evaluation, Edited by Burns, T.J. Columbus: Ohio State University.

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Category : Latest Publications


Ejike, Kenneth Agbiriogu (FCA, FCIT, ACCA)

Department of Management

Faculty of Management Sciences

University of Port Harcourt.

Prof. B. C. Onuoha

Department of Management

Faculty of Management Sciences

University of Port Harcourt.


Globally, public enterprises are established to act as the pivot to propel economic and social development in areas of need. While the intention is the same in Nigeria, most public enterprises in the country are bedevilled by myriads of problems which constrain their ability to deliver on their core mandate. This has necessitated the need to critically evaluate public enterprises and the challenges of national economic development in Nigeria. A theoretical approach was adopted to explain the idea of public enterprises, economic development, the challenges bedevilling the sector and possible solutions as a result. It was concluded that the inability of public enterprises to deliver in the areas of their core mandate has negatively impacted on the economic development of the nation, leading to the clamour by the public for the transfer of these enterprises to the private sector for management. To this end, it was considered plausible to advocate for a well-monitored and structured public-private partnership to help government-owned businesses thrive and achieve their original purpose for being set up.

Keywords:       Public Enterprises, Economic Development, Public-Private Partnership

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Volume 3, Issue 10 (October 2017 Edition)

Category : Uncategorized

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Language translation


Journals (with countries)

For submission, kindly send paper, indicating journal, to


Call for papers

Research Articles written in English Language are invited from interested researchers in the academic community and other establishments for publication. Authors who wish to submit manuscripts should ensure that the manuscripts have not been submitted elsewhere neither is it under consideration in another journal. The articles should be the original work of the authors. High quality theoretical and empirical original research papers, case studies, review papers, literature reviews, book reviews, conceptual framework, analytical and simulation models, technical note from researchers, academicians, professional, practitioners and students from all over the world are welcomed.


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