JOURNAL OF ACCOUNTING AND BUSINESS

OFF-FINANCIAL POSITION INFORMATION REPORTING EFFECT ON FINANCIAL PERFORMANCE A STUDY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

ADESHINA, ADEJUMOKE TEMILADE, JOSIAH MARY

January 21, 2025

Citation

JOURNAL OF ACCOUNTING AND BUSINESS , Vol. 12 (1) (2025) , pp. 21-37

Details

ISSN: 1596-9912
Published: January 21, 2025
Status: Published

Abstract

The broad objective of this study is to examine the effect of off-financial position item information disclosure on financial performance of listed deposit money banks in Nigeria with data covering 2017 to 2023 period. Specifically, this study focuses on the impact of financial derivative assets, financial derivative liabilities, financial derivative trading income, and intellectual property rights disclosures on firm performance, with return on capital employed serving as the performance measure. This study adopts ex-post facto research design, analyzing secondary data collected from annual reports of eight (8) purposively selected deposit money banks. Using Random Effect Robust Regression technique, this study reveals mixed evidence. First, financial derivative assets, liabilities and intellectual property rights disclosures show insignificant effects on firm performance, suggesting that information disclosures of these items do not directly influence financial performance. Second, financial derivative trading income show a significant negative impact on performance, indicating potential risk exposure. Consequent on the findings, this study recommends that stakeholders in the Nigerian deposit money banks should adopt a more cautious and strategic approach to off-financial position item information disclosure, particularly regarding financial derivatives and intellectual property rights. Additionally, there is need for regulatory frameworks that will balance transparency with the protection of sensitive financial information to foster a more stable financial environment. 

Download Full PDF

This article is available as a PDF download