Effects of Audit Quality and Corporate Governance on Earnings Management of Quoted Deposit Money Banks in Nigeria

The stakeholders’ pressure on corporate managers to maintain firm’s profitability has created economic incentives for management to engage in earnings management practices. Therefore, this study examines the effects of audit quality and corporate governance on earnings management of quoted deposit money banks (DMBs) in Nigeria. This study specifically investigates the influence of audit tenure, audit fee, board independence, and board size on earnings management of DMBs. Explanatory research design was employed in carrying out the study while secondary data were sourced from the annual reports and accounts of all the 15 quoted DMBs in Nigerian Stock Exchange as at December 31, 2015 for a period of 10 years covering from 2006 to 2015. The data obtained for the study were analyzed using panel regression analysis approach. The findings reveal that board independence has a negative significant effect on earnings management at a 5% level of significance (p=0.002), while audit fee has a positive significant effect on earnings management at a 5% level of significance (p=0.013) and audit tenure has a negative significant effect on earnings management of DMBs at a 5% level of significance (p=0.003). Surprisingly, board size was statistically not significant at a 5% level of significance (p=0.086). The study concludes that high audit quality and sound corporate governance could improve the earnings quality of DMBs. Hence, the study recommends that the authorities saddled with the responsibility of banking supervision in Nigeria such the Securities and Exchange Commission (SEC) and CBN to advise the National Assembly in Nigeria to pass into law the three years professional requirement for audit tenure.

Governance Commitment and Time Differences in Aspects of Sustainability Reporting in Nigerian Banks

This study examined the extent of statistical significant difference between the economic, environmental, governance and social aspects of sustainability reporting as a result of board committee on sustainability and time (year) of reporting for business organizations in the Nigerian banking sector. The years of reporting under consideration were 2010, 2011, 2012 and 2013. Content analysis methodology was employed through a reporting index used to score the amount of economic, environmental, governance and social indicators of sustainability reporting. The results of this study indicated that business organizations with board committee on sustainability had more indicators of sustainability reporting than those without board committees on sustainability issues. Also, sustainability reporting in 2013 was higher than that of prior years (2012, 2011 and 2010) for the economic, environmental and social indicators. The governance indicators of 2012 was highest compared to the other years (2013, 2011 and 2010) under consideration in this study. The implication of this finding is that business organizations that have board committees on sustainability are monitored by such boards to report more to their stakeholders. On the other hand, business organizations are appreciating the need to engage in sustainability reporting with each passing year. This could be due to the Central Bank of Nigeria (CBN) Sustainability Reporting framework that business organizations in the banking sector have to adhere to. When sustainability issues are monitored from the board of directors, business organizations are likely to increase and improve on their sustainability reporting.

The Impact of Bank Consolidation on the Performance of SMES in Nigeria

This paper seeks to assess the implications of bank consolidation on the performance of small and medium scale enterprises in the Nigerian economy. Multiple linear regression technique and correlation matrix test were employed to measure the extent to which small and medium scale enterprises asset size, survival and access to credit were influenced. The result showed that bank deposit (BD) and bank credit (L or BC) impacted on asset size and survival of small and medium scale enterprises. None of the variables had significant impact on SMEs access to credit. There is a shift of focus by commercial banks away from small and medium scale enterprises (small customers), which is evidenced by the significant negative influence of bank credit to both the survival and asset size of small and medium enterprises. While micro finance banks work hard at providing funds to small and medium scale entrepreneurs, their capacity to meet the needs of these entrepreneurs is constrained. CBN should make policies that will boost micro finance bank’s capital and also monitor closely the management of the banks to ensure prudent financing of small and medium scale investments.

Interest Rate Fluctuation Effect on Commercial Bank’s Fixed Fund Deposit in Nigeria

Commercial banks in Nigeria adopted many strategies to attract fresh deposits including the use of high deposit rate. However, pricing of banking services moved in favor of the banks at the expense of customers, resulting in their seeking other investment alternatives rather than saving their money in the bank. Both deposit and lending rates were greatly influenced by the Central Bank of Nigeria (CBN) decision on interest rate. Therefore, commercial bank effort to attract deposits via manipulation of her rates was greatly limited, otherwise the banks will be giving out more than it earned. The study aimed at examining the relationship between interest rate and fixed fund deposit of commercial banks, how policy-controlled interest rate affected commercial bank’s fixed fund deposit The researcher employed ordinary least square technique, using, multiple linear regression, unrestricted vector auto-regression, correlation matrix test, granger causality and impulse response graph in the analysis. Commercial bank’s interest rates affected commercial bank’s fixed fund deposit significantly while policy-controlled interest rate did not significantly transmit through the commercial bank’s interest rates to affect fixed fund deposit. While commercial banks seek creative ways to expand their fixed fund deposit, policy authorities in Nigeria should better coordinate interest rate fluctuation and induce competition in the entire financial sector.

Optimization of Cutting Parameters during Machining of Fine Grained Cemented Carbides

The group of progressive cutting materials can include non-traditional, emerging and less-used materials that can be an efficient use of cutting their lead to a quantum leap in the field of machining. This is essentially a “superhard” materials (STM) based on polycrystalline diamond (PCD) and polycrystalline cubic boron nitride (PCBN) cutting performance ceramics and development is constantly "perfecting" fine coated cemented carbides. The latter cutting materials are broken down by two parameters, toughness and hardness. A variation of alloying elements is always possible to improve only one of each parameter. Reducing the size of the core on the other hand doing achieves "contradictory" properties, namely to increase both hardness and toughness.

The Impact of Cutting Tool Materials on Cutting Force

A judicious choice of insert material, tool geometry and cutting conditions can make hard turning produce better surfaces than grinding. In the present study, an attempt has been made to investigate the effect of cutting tool materials on cutting forces (feed force, thrust force and cutting force) in finish hard turning of AISI D2 cold work tool steel. In conclusion of the results obtained with a constant depth of cut and feed rate, it is important to note that cutting force is directly affected by cutting tool material.

A Fuzzy Logic Based Model to Predict Surface Roughness of A Machined Surface in Glass Milling Operation Using CBN Grinding Tool

Nowadays, the demand for high product quality focuses extensive attention to the quality of machined surface. The (CNC) milling machine facilities provides a wide variety of parameters set-up, making the machining process on the glass excellent in manufacturing complicated special products compared to other machining processes. However, the application of grinding process on the CNC milling machine could be an ideal solution to improve the product quality, but adopting the right machining parameters is required. In glass milling operation, several machining parameters are considered to be significant in affecting surface roughness. These parameters include the lubrication pressure, spindle speed, feed rate and depth of cut. In this research work, a fuzzy logic model is offered to predict the surface roughness of a machined surface in glass milling operation using CBN grinding tool. Four membership functions are allocated to be connected with each input of the model. The predicted results achieved via fuzzy logic model are compared to the experimental result. The result demonstrated settlement between the fuzzy model and experimental results with the 93.103% accuracy.

Tool Wear of Titanium/Tungsten/Silicon/Aluminum-based-coated end Mill Cutters in Millin Hardened Steel

In turning hardened steel, polycrystalline cubic boron nitride (cBN) compacts are widely used, due to their higher hardness and higher thermal conductivity. However, in milling hardened steel, fracture of cBN cutting tools readily occurs because they have poor fracture toughness. Therefore, coated cemented carbide tools, which have good fracture toughness and wear resistance, are generally widely used. In this study, hardened steel (ASTM D2, JIS SKD11, 60HRC) was milled with three physical vapor deposition (PVD)-coated cemented carbide end mill cutters in order to determine effective tool materials for cutting hardened steel at high cutting speeds. The coating films used were (Ti,W)N/(Ti,W,Si)N and (Ti,W)N/(Ti,W,Si,Al)N coating films. (Ti,W,Si,Al)N is a new type of coating film. The inner layer of the (Ti,W)N/(Ti,W,Si)N and (Ti,W)N/(Ti,W,Si,Al)N coating system is (Ti,W)N coating film, and the outer layer is (Ti,W,Si)N and (Ti,W,Si,Al)N coating films, respectively. Furthermore, commercial (Ti,Al)N-based coating film was also used. The following results were obtained: (1) In milling hardened steel at a cutting speed of 3.33 m/s, the tool wear width of the (Ti,W)N/(Ti,W,Si,Al)N-coated tool was smaller than that of the (Ti,W)N/(Ti,W,Si)N-coated tool. And, compared with the commercial (Ti,Al)N, the tool wear width of the (Ti,W)N/(Ti,W,Si,Al)N-coated tool was smaller than that of the (Ti,Al)N-coated tool. (2) The tool wear of the (Ti,W)N/(Ti,W,Si,Al)N-coated tool increased with an increase in cutting speed. (3) The (Ti,W)N/(Ti,W,Si,Al)N-coated cemented carbide was an effective tool material for high-speed cutting below a cutting speed of 3.33 m/s.