ABSTRACT
Effort is made to access the effect of formal accounting reporting on the management of a business financial accounting covers those activities related to the preparation of certain reports which are known as financial statements. These statement report the financial status of a firm at a particular time. The firms activities and resulting profit/losses during the most recent period and the flow of resources occurring within the firm during the same period.
I draw my research from the work of many authors. Such work done have included textbooks in all forms, magazine and Encyclopedias.
Apart from extensive use of literature, other method of research include (a) interview with businessmen. (b) Questionnaires have been designed and distributed to some businessmen (especially at trade fair). The questionnaires have been designed for officers in management cadre in public and private companies, shareholders, staff, partners and owners in sole proprietorship
CHAPTER ONE
INTRODUCTION
Financial accounting covers those activities related to the preparation of certain reports which are known as financial statement. These statements reports the financial status of a firm at a particular time the firms activities and resulting profit or losses during the most recent period and the flow of resources occurring within the firm during the same period.
This statement made by A. THOPSON MONTAOMERY gives us an idea on the meaning of financial accounting. However the question arises what are the efforts of these financial account reports in the management of business? The answer poses a problem which the paper will seek to solve. Not all business persons understand the impact of financial accounting information on the management of their business, some manages business intuitively. Other, like traffic defaulters who disobey road signs, disobey the warning of communicated by financial accounting information and end up in a “Business Accident”
There are other sources of information which have impact on the management of Business and the combination of these sources give an information system in the complex nature. As FARM WOOD puts it, “it must not be thought that accounting of any form is the management control system. Instead it is part of it”. But accounting information is the only system through which both mangers and external users get a picture of the organization as a total entity.
Moreover, financial accounting information usually comes in the disguised form by “wearing” the cloak of technicalities. Such technicalities include calculation which need expert knowledge in its interpretation. But when some business because of low financial layout, cannot employ such experts hands, they tend to ignore financial accounting information system which has an effect on the management of any business concern. The problem is: Do all businessmen know this? This is the question that the researcher seeks to answer also.
1.1 STATEMENT OF THE PROBLEM.
Is very important for the functioning of any business. The finacial accounting system in most business organization do not potrary fully the principles of accounting systems. The flow of information, the cost of collecting any information and the internal control procedures have some loops holes.
In reality, it would be impossible for the researcher to study all the information system in all or even one of the organization. The study therefore involves a study of some typical financial accounting reporting on the management of a business. The researcher will carry out an empirical study and appraisal of a business financial accounting and see whether there is room for improvement to be made. It will therefore involve a review of the financial accounting and its related procedures.
1.2 PURPOSE OF STUDY
The goal of every business is profit optimization. The management of most business exist primarily for this purpose. Whether the business ownership is separated from the management, the rules for profit optimization (or maximization as some books may choose to call it) are still the same. Profit optimization is used rather than maximization. In this paper because optimization has a social effect.
The mangement is able to do this as long as they are able to use their financial resources profitably they must know the effect which financial accounting information has on the management of the business. Financial accounting measures, by means of the reports they prepare the extent to which management has succeeded in their goals of profit optimization.
The report which serves as financial information of the accounting period has an impact on the future achievement of the business. This effect now becomes the goal of this research. The researcher seeks to know more about this effect (ie the financial accounting effect on the management of business) and also advices all business persons on the effect.
1.3 SIGNIFICANCE OF THE STUDY
The research will be significant or useful in
- Examining the effect of financial accounting as information system.
- Directing the business person to such effect
- Warning, not only business persons but all person’s from neglect of financial accounting
- Encouraging all to obey head the warning of financial accounting information.
The following classes of people will find the work as useful references.
- Managers of companies, corporations and any other firm business whether such business are owned by management or not.
- Actual and potential leaders of money to business.
- Customers
- Owners and shareholders
- Government
- Other researchers.
1.4 STATEMENT OF HYPOTHESIS.
Hypothesis is defined by the Encyclopedia Americana as “ a proposition assumed to be true merely for purpose of argument or a proposition/theory put forward to account for under a body of facts” The hypothesis of this research work are: this will be used.
- Financial accounting information has both positive and negative impact on the management of a business and as such there is a common need for accounting to supply to its owners information about the business.
HYPOTHESIS I
THE NULL HYPOTHESIS HO: Financial accounting information has negative impact on the management of a business.
THE ALTERNATIVE HYPOTHESIS H1: Financial accounting information has a positive impact on the management of a business.
HYPOTHESIS II
THE NULL HYPOTHESIS HO: Neglect of financial accounting information will not have any effect on the business.
THE ALTERNATIVE HYPOTHESIS H1:Neglect of financial accounting information will have effect on the business
1.5 SCOPE OF THE STUDY
No research work is purely original. Something’s have to be drawn from work of others. With acknowledgement and appreciation, the researcher will include textbooks in all forms or branches of accounting. Textbooks in management, finance and marketing, magazines and encyclopedia will be used extensively.
Apart from extensive use of literature, other method of research will include.
- Interview with business / staff
- Questionnaires will be design and distributed to some businessmen. The questionnaires will be designed for officers in management of public and private companies, shareholders, pertness and owners in sole proprietorship.
- A look into the document of some business and drawing heavily from such records is intended. Financial accounting information is often regarded as “figure” information and the method used in this research is the “transformation” of the data into information such be useful to both those who have knowledge of accounting and those who do not.
1.6 LIMITATION OF STUDY
A voluminous work would result, as it were in all research work done on all parts of account information generally (since this might lead to researching into all the different branches of accounting ie cost accounting financial accounting, Auditing etc. still voluminous would be a research into the financial accounting information since this would include what it is, how it can be prepared its usefulness effect, historical information interpretation, analysis and most of others.
Bearing this in mind this research work shall then be limited to THE EFFECT OF FINACIAL ACCOUNTING INFORMATION TO THE MANAGEMENT OF A BUSINESS.
The researcher is aware of the fact that other types of information play a part in management of a business but this research is based on the question. If those where types of information are readily available and only financial accounting information is lacky.
1.7 DEFINITION OF TERMS
The following are defined in this section
- Effect
- Financial accounting
- Information
- Management
- Business.
- EFFECT: The oxford Adrancer learners Dictionary of English dexntes effect as “ Influence one effect has on another” it can therefore be good or bad.
- FINANCIAL ACCOUNTING: Financial accounting “is concerned with the recording of transactions for a business enterprises or other economic units and the periodic preparation of various reports from such records”. Financial accounting then can be said to be a systematic gathering, summarizing and reporting of business transaction in monetary terms such that it provide information which permits informed judgment by the users of such information
- INFORMATION OR REPORT: These can be thought of as being facts needed or received by a person or group of persons which is or will be useful to him/her. These information or reports may be spoken / written programmed or teleprinted.
- MANAGEMENT: Management can be defined as the rational selection of courses of action to optimize the interrelationship of man, materials and money for the survival and growth of the organization. It can be regarded as the “process of getting things done through people” A person who manages is called a manager.
- BUSINESS: Business is a process whereby human materials amd capital resources are combined to earn/satisfy human needs and wants. An entity which carries on such organized efforts is known as a business entity.
TABLE OF CONTENT:
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Conceptual and Operational Definition
1.8 Assumptions
1.9 Limitations of the Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Sources of Literature
2.2 The Review
2.3 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Method
3.2 Research Design
3.3 Research Sample
3.4 Measuring Instrument
3.5 Data Collection
3.6 Data Analysis
3.7 Expected Result
CHAPTER FOUR
DATA ANALYSIS AND RESULTS
4.1 Data Analysis
4.2 Results
4.3 Discussion
CHAPTER FIVE
SUMMARY AND RECOMMENDATIONS
5.1 Summary
5.2 Recommendations for Further Study
Bibliography
HOW TO GET THE FULL PROJECT WORK
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We will send your material(s) immediately we receive bank alert
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Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
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CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
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www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
Tags: THE EFFECT OF FINANCIAL ACCOUNTING REPORTING ON THE MANAGEMENT OF A BUSINESS (A CASE STUDY OF EMENITE LTD)
ABSTRACT
Effort is made to access the effect of formal accounting reporting on the management of a business financial accounting covers those activities related to the preparation of certain reports which are known as financial statements. These statement report the financial status of a firm at a particular time. The firms activities and resulting profit/losses during the most recent period and the flow of resources occurring within the firm during the same period.
I draw my research from the work of many authors. Such work done have included textbooks in all forms, magazine and Encyclopedias.
Apart from extensive use of literature, other method of research include (a) interview with businessmen. (b) Questionnaires have been designed and distributed to some businessmen (especially at trade fair). The questionnaires have been designed for officers in management cadre in public and private companies, shareholders, staff, partners and owners in sole proprietorship
CHAPTER ONE
INTRODUCTION
Financial accounting covers those activities related to the preparation of certain reports which are known as financial statement. These statements reports the financial status of a firm at a particular time the firms activities and resulting profit or losses during the most recent period and the flow of resources occurring within the firm during the same period.
This statement made by A. THOPSON MONTAOMERY gives us an idea on the meaning of financial accounting. However the question arises what are the efforts of these financial account reports in the management of business? The answer poses a problem which the paper will seek to solve. Not all business persons understand the impact of financial accounting information on the management of their business, some manages business intuitively. Other, like traffic defaulters who disobey road signs, disobey the warning of communicated by financial accounting information and end up in a “Business Accident”
There are other sources of information which have impact on the management of Business and the combination of these sources give an information system in the complex nature. As FARM WOOD puts it, “it must not be thought that accounting of any form is the management control system. Instead it is part of it”. But accounting information is the only system through which both mangers and external users get a picture of the organization as a total entity.
Moreover, financial accounting information usually comes in the disguised form by “wearing” the cloak of technicalities. Such technicalities include calculation which need expert knowledge in its interpretation. But when some business because of low financial layout, cannot employ such experts hands, they tend to ignore financial accounting information system which has an effect on the management of any business concern. The problem is: Do all businessmen know this? This is the question that the researcher seeks to answer also.
1.1 STATEMENT OF THE PROBLEM.
Is very important for the functioning of any business. The finacial accounting system in most business organization do not potrary fully the principles of accounting systems. The flow of information, the cost of collecting any information and the internal control procedures have some loops holes.
In reality, it would be impossible for the researcher to study all the information system in all or even one of the organization. The study therefore involves a study of some typical financial accounting reporting on the management of a business. The researcher will carry out an empirical study and appraisal of a business financial accounting and see whether there is room for improvement to be made. It will therefore involve a review of the financial accounting and its related procedures.
1.2 PURPOSE OF STUDY
The goal of every business is profit optimization. The management of most business exist primarily for this purpose. Whether the business ownership is separated from the management, the rules for profit optimization (or maximization as some books may choose to call it) are still the same. Profit optimization is used rather than maximization. In this paper because optimization has a social effect.
The mangement is able to do this as long as they are able to use their financial resources profitably they must know the effect which financial accounting information has on the management of the business. Financial accounting measures, by means of the reports they prepare the extent to which management has succeeded in their goals of profit optimization.
The report which serves as financial information of the accounting period has an impact on the future achievement of the business. This effect now becomes the goal of this research. The researcher seeks to know more about this effect (ie the financial accounting effect on the management of business) and also advices all business persons on the effect.
1.3 SIGNIFICANCE OF THE STUDY
The research will be significant or useful in
- Examining the effect of financial accounting as information system.
- Directing the business person to such effect
- Warning, not only business persons but all person’s from neglect of financial accounting
- Encouraging all to obey head the warning of financial accounting information.
The following classes of people will find the work as useful references.
- Managers of companies, corporations and any other firm business whether such business are owned by management or not.
- Actual and potential leaders of money to business.
- Customers
- Owners and shareholders
- Government
- Other researchers.
1.4 STATEMENT OF HYPOTHESIS.
Hypothesis is defined by the Encyclopedia Americana as “ a proposition assumed to be true merely for purpose of argument or a proposition/theory put forward to account for under a body of facts” The hypothesis of this research work are: this will be used.
- Financial accounting information has both positive and negative impact on the management of a business and as such there is a common need for accounting to supply to its owners information about the business.
HYPOTHESIS I
THE NULL HYPOTHESIS HO: Financial accounting information has negative impact on the management of a business.
THE ALTERNATIVE HYPOTHESIS H1: Financial accounting information has a positive impact on the management of a business.
HYPOTHESIS II
THE NULL HYPOTHESIS HO: Neglect of financial accounting information will not have any effect on the business.
THE ALTERNATIVE HYPOTHESIS H1:Neglect of financial accounting information will have effect on the business
1.5 SCOPE OF THE STUDY
No research work is purely original. Something’s have to be drawn from work of others. With acknowledgement and appreciation, the researcher will include textbooks in all forms or branches of accounting. Textbooks in management, finance and marketing, magazines and encyclopedia will be used extensively.
Apart from extensive use of literature, other method of research will include.
- Interview with business / staff
- Questionnaires will be design and distributed to some businessmen. The questionnaires will be designed for officers in management of public and private companies, shareholders, pertness and owners in sole proprietorship.
- A look into the document of some business and drawing heavily from such records is intended. Financial accounting information is often regarded as “figure” information and the method used in this research is the “transformation” of the data into information such be useful to both those who have knowledge of accounting and those who do not.
1.6 LIMITATION OF STUDY
A voluminous work would result, as it were in all research work done on all parts of account information generally (since this might lead to researching into all the different branches of accounting ie cost accounting financial accounting, Auditing etc. still voluminous would be a research into the financial accounting information since this would include what it is, how it can be prepared its usefulness effect, historical information interpretation, analysis and most of others.
Bearing this in mind this research work shall then be limited to THE EFFECT OF FINACIAL ACCOUNTING INFORMATION TO THE MANAGEMENT OF A BUSINESS.
The researcher is aware of the fact that other types of information play a part in management of a business but this research is based on the question. If those where types of information are readily available and only financial accounting information is lacky.
1.7 DEFINITION OF TERMS
The following are defined in this section
- Effect
- Financial accounting
- Information
- Management
- Business.
- EFFECT: The oxford Adrancer learners Dictionary of English dexntes effect as “ Influence one effect has on another” it can therefore be good or bad.
- FINANCIAL ACCOUNTING: Financial accounting “is concerned with the recording of transactions for a business enterprises or other economic units and the periodic preparation of various reports from such records”. Financial accounting then can be said to be a systematic gathering, summarizing and reporting of business transaction in monetary terms such that it provide information which permits informed judgment by the users of such information
- INFORMATION OR REPORT: These can be thought of as being facts needed or received by a person or group of persons which is or will be useful to him/her. These information or reports may be spoken / written programmed or teleprinted.
- MANAGEMENT: Management can be defined as the rational selection of courses of action to optimize the interrelationship of man, materials and money for the survival and growth of the organization. It can be regarded as the “process of getting things done through people” A person who manages is called a manager.
- BUSINESS: Business is a process whereby human materials amd capital resources are combined to earn/satisfy human needs and wants. An entity which carries on such organized efforts is known as a business entity.
TABLE OF CONTENT:
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Conceptual and Operational Definition
1.8 Assumptions
1.9 Limitations of the Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Sources of Literature
2.2 The Review
2.3 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Method
3.2 Research Design
3.3 Research Sample
3.4 Measuring Instrument
3.5 Data Collection
3.6 Data Analysis
3.7 Expected Result
CHAPTER FOUR
DATA ANALYSIS AND RESULTS
4.1 Data Analysis
4.2 Results
4.3 Discussion
CHAPTER FIVE
SUMMARY AND RECOMMENDATIONS
5.1 Summary
5.2 Recommendations for Further Study
Bibliography
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#10000) into our bank Account below, send the following information to
08139462710 or 08137701720
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
Tags: THE EFFECT OF FINANCIAL ACCOUNTING REPORTING ON THE MANAGEMENT OF A BUSINESS (A CASE STUDY OF EMENITE LTD)
ABSTRACT
Effort is made to access the effect of formal accounting reporting on the management of a business financial accounting covers those activities related to the preparation of certain reports which are known as financial statements. These statement report the financial status of a firm at a particular time. The firms activities and resulting profit/losses during the most recent period and the flow of resources occurring within the firm during the same period.
I draw my research from the work of many authors. Such work done have included textbooks in all forms, magazine and Encyclopedias.
Apart from extensive use of literature, other method of research include (a) interview with businessmen. (b) Questionnaires have been designed and distributed to some businessmen (especially at trade fair). The questionnaires have been designed for officers in management cadre in public and private companies, shareholders, staff, partners and owners in sole proprietorship
CHAPTER ONE
INTRODUCTION
Financial accounting covers those activities related to the preparation of certain reports which are known as financial statement. These statements reports the financial status of a firm at a particular time the firms activities and resulting profit or losses during the most recent period and the flow of resources occurring within the firm during the same period.
This statement made by A. THOPSON MONTAOMERY gives us an idea on the meaning of financial accounting. However the question arises what are the efforts of these financial account reports in the management of business? The answer poses a problem which the paper will seek to solve. Not all business persons understand the impact of financial accounting information on the management of their business, some manages business intuitively. Other, like traffic defaulters who disobey road signs, disobey the warning of communicated by financial accounting information and end up in a “Business Accident”
There are other sources of information which have impact on the management of Business and the combination of these sources give an information system in the complex nature. As FARM WOOD puts it, “it must not be thought that accounting of any form is the management control system. Instead it is part of it”. But accounting information is the only system through which both mangers and external users get a picture of the organization as a total entity.
Moreover, financial accounting information usually comes in the disguised form by “wearing” the cloak of technicalities. Such technicalities include calculation which need expert knowledge in its interpretation. But when some business because of low financial layout, cannot employ such experts hands, they tend to ignore financial accounting information system which has an effect on the management of any business concern. The problem is: Do all businessmen know this? This is the question that the researcher seeks to answer also.
1.1 STATEMENT OF THE PROBLEM.
Is very important for the functioning of any business. The finacial accounting system in most business organization do not potrary fully the principles of accounting systems. The flow of information, the cost of collecting any information and the internal control procedures have some loops holes.
In reality, it would be impossible for the researcher to study all the information system in all or even one of the organization. The study therefore involves a study of some typical financial accounting reporting on the management of a business. The researcher will carry out an empirical study and appraisal of a business financial accounting and see whether there is room for improvement to be made. It will therefore involve a review of the financial accounting and its related procedures.
1.2 PURPOSE OF STUDY
The goal of every business is profit optimization. The management of most business exist primarily for this purpose. Whether the business ownership is separated from the management, the rules for profit optimization (or maximization as some books may choose to call it) are still the same. Profit optimization is used rather than maximization. In this paper because optimization has a social effect.
The mangement is able to do this as long as they are able to use their financial resources profitably they must know the effect which financial accounting information has on the management of the business. Financial accounting measures, by means of the reports they prepare the extent to which management has succeeded in their goals of profit optimization.
The report which serves as financial information of the accounting period has an impact on the future achievement of the business. This effect now becomes the goal of this research. The researcher seeks to know more about this effect (ie the financial accounting effect on the management of business) and also advices all business persons on the effect.
1.3 SIGNIFICANCE OF THE STUDY
The research will be significant or useful in
- Examining the effect of financial accounting as information system.
- Directing the business person to such effect
- Warning, not only business persons but all person’s from neglect of financial accounting
- Encouraging all to obey head the warning of financial accounting information.
The following classes of people will find the work as useful references.
- Managers of companies, corporations and any other firm business whether such business are owned by management or not.
- Actual and potential leaders of money to business.
- Customers
- Owners and shareholders
- Government
- Other researchers.
1.4 STATEMENT OF HYPOTHESIS.
Hypothesis is defined by the Encyclopedia Americana as “ a proposition assumed to be true merely for purpose of argument or a proposition/theory put forward to account for under a body of facts” The hypothesis of this research work are: this will be used.
- Financial accounting information has both positive and negative impact on the management of a business and as such there is a common need for accounting to supply to its owners information about the business.
HYPOTHESIS I
THE NULL HYPOTHESIS HO: Financial accounting information has negative impact on the management of a business.
THE ALTERNATIVE HYPOTHESIS H1: Financial accounting information has a positive impact on the management of a business.
HYPOTHESIS II
THE NULL HYPOTHESIS HO: Neglect of financial accounting information will not have any effect on the business.
THE ALTERNATIVE HYPOTHESIS H1:Neglect of financial accounting information will have effect on the business
1.5 SCOPE OF THE STUDY
No research work is purely original. Something’s have to be drawn from work of others. With acknowledgement and appreciation, the researcher will include textbooks in all forms or branches of accounting. Textbooks in management, finance and marketing, magazines and encyclopedia will be used extensively.
Apart from extensive use of literature, other method of research will include.
- Interview with business / staff
- Questionnaires will be design and distributed to some businessmen. The questionnaires will be designed for officers in management of public and private companies, shareholders, pertness and owners in sole proprietorship.
- A look into the document of some business and drawing heavily from such records is intended. Financial accounting information is often regarded as “figure” information and the method used in this research is the “transformation” of the data into information such be useful to both those who have knowledge of accounting and those who do not.
1.6 LIMITATION OF STUDY
A voluminous work would result, as it were in all research work done on all parts of account information generally (since this might lead to researching into all the different branches of accounting ie cost accounting financial accounting, Auditing etc. still voluminous would be a research into the financial accounting information since this would include what it is, how it can be prepared its usefulness effect, historical information interpretation, analysis and most of others.
Bearing this in mind this research work shall then be limited to THE EFFECT OF FINACIAL ACCOUNTING INFORMATION TO THE MANAGEMENT OF A BUSINESS.
The researcher is aware of the fact that other types of information play a part in management of a business but this research is based on the question. If those where types of information are readily available and only financial accounting information is lacky.
1.7 DEFINITION OF TERMS
The following are defined in this section
- Effect
- Financial accounting
- Information
- Management
- Business.
- EFFECT: The oxford Adrancer learners Dictionary of English dexntes effect as “ Influence one effect has on another” it can therefore be good or bad.
- FINANCIAL ACCOUNTING: Financial accounting “is concerned with the recording of transactions for a business enterprises or other economic units and the periodic preparation of various reports from such records”. Financial accounting then can be said to be a systematic gathering, summarizing and reporting of business transaction in monetary terms such that it provide information which permits informed judgment by the users of such information
- INFORMATION OR REPORT: These can be thought of as being facts needed or received by a person or group of persons which is or will be useful to him/her. These information or reports may be spoken / written programmed or teleprinted.
- MANAGEMENT: Management can be defined as the rational selection of courses of action to optimize the interrelationship of man, materials and money for the survival and growth of the organization. It can be regarded as the “process of getting things done through people” A person who manages is called a manager.
- BUSINESS: Business is a process whereby human materials amd capital resources are combined to earn/satisfy human needs and wants. An entity which carries on such organized efforts is known as a business entity.
TABLE OF CONTENT:
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Conceptual and Operational Definition
1.8 Assumptions
1.9 Limitations of the Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Sources of Literature
2.2 The Review
2.3 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Method
3.2 Research Design
3.3 Research Sample
3.4 Measuring Instrument
3.5 Data Collection
3.6 Data Analysis
3.7 Expected Result
CHAPTER FOUR
DATA ANALYSIS AND RESULTS
4.1 Data Analysis
4.2 Results
4.3 Discussion
CHAPTER FIVE
SUMMARY AND RECOMMENDATIONS
5.1 Summary
5.2 Recommendations for Further Study
Bibliography
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
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Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
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CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
Tags: THE EFFECT OF FINANCIAL ACCOUNTING REPORTING ON THE MANAGEMENT OF A BUSINESS (A CASE STUDY OF EMENITE LTD)
ABSTRACT
This paper examines the relationship between stock returns
and inflation. We focus on various econometric techniques to
test this relationship, using monthly values of the Nigeria Stock
Exchange Price index and the Nigeria Consumer Price index over
the period 1988-2013.
The results from a simple OLS model show evidence of a positive but not significant relationship, while when we consider a system of equations including lagged values of inflation we find a negative but not significant effect of lagged inflation to stock returns.
Using the correlation test, we find that there is no long-run relationship between stock returns and inflation in Nigeria. The results indicate that the inflation rate is not correlated with stock returns.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The last two decades have been a tranquil for the Nigerian economy. Inflation rate for example, rose markedly in the fourth quarter of 2008 reaching a 3-year high of 15.1 per cent in December from its single digit level of 7.8 per cent at end of March, 2008. Precisely, the inflation rate was 6.5 per cent in December 2007. The inflationary
pressure which continued into 2009 as some sources have it (notably the Central Bank of Nigeria, 2009), may have been attributed to rising food prices, inefficient and poor transport services, port congestion, depreciation of the naira and the rush to spend budgetary allocations by government agencies before fiscal year end (Sampson, 2009).
During the same periods, the Nigerian capital market experienced a bullish trend when it started the year 2008 at 58,580 (with a market capitalization of N10.284 trillion), and went on to achieve its highest value ever of 66,371 on March 5, 2008,with a market capitalization of about N12.640 trillion (Aluko, 2008). The capital market has
since the March 5 to October, 2008 lost about N3.38 trillion, over 26.7 percent; as market capitalization stood at N9.11 trillion. Nigeria equally faced a major decline in portfolio equity flows perceived to be correlated with the sharp fall in stock market. For instance, foreign portfolio investors withdrew $15 billion from the Nigerian capital market in January 2009 (Ajakaiye and Fakiyesi, 2009).
The All Share Index (ASI) consequently shred a total share of 67 per cent from March 2008 to March 2009. In attempt to find some reprieves for the continuous bearish trend in the market, the Central Bank of Nigeria took over the management team of 8 commercial banks effective from August 14, 2009 as the illiquidity in the capital
market dove-tailed into the money market. The action described as a hybrid attempt to restructure these banks as a result of their debt exposure to the capital market is beginning to have its toll on the average general price level as analysts speculate precautionary cash balances. One puzzle left to be answered is if the sharp movements in general prices (inflationary) during these years have any linkage with the bullish/bearish capital market dominated activities before and after the 2008 crash.
This paper investigates the relationship between inflation and stock market returns using Nigerian data. Specifically, we effect the analysis by exploring the distinct impacts of inflation on the stock market returns at different time horizons, and also test the Fisher hypothesis by examining the relationship between, (b)
contemporaneous inflation and stock market returns, and (c) between inflation and money on the one hand, and
between inflation and real activity on the other. The outcomes of the analyses are expected to be of immense importance to investors particularly, in reaching rational decisions on asset allocation and advancement of the literature on financial economies.
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVE OF THE STUDY
The aim of the study is to examine the relationship between inflation and stock returns in Nigeria. Here are the following objectives of the study:
1. Examine the the relationship between inflation and stock market prices.
2. Examine the relationship,money,and real stock market activities
3. Critically examine why there is seem to be abnormal effects on the stock market prices when there is an increase or decrease in inflation
4. Make recommendations in the night of the finding from the above objective.
1.4 SIGNIFICANCE THE STUDY
This paper examines the relationship between stock returns and
inflation in Nigeria. Also, in this study we test for correlation and
causality among these variables.
The main goal of this paper is to analyse the above relationship for a recent period, considering data after the date of Nigeria’s entry into the stock market. So, we employ monthly values of the Nigeria Stock
Exchange (NSE) General Price Index and the Nigeria Consumer Price
Index for the period October 1988 to December 2013. All data are
collected from DATASTREAM.
1.5 LIMITATIONS OF THE STUDY
This study will be limited to the following areas: limited number of companies. Also,most companies are very reluctant to give out their data. The various NSE quarters were also reluctant to release all our requested data for protective reasons.
Any short coming that may arise in this research project is a result of factors which are beyond the researchers control such as limited amount of time available to the researcher and the extent to which the information obtained from bank is correct.
TABLE OF CONTENT:
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Conceptual and Operational Definition
1.8 Assumptions
1.9 Limitations of the Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Sources of Literature
2.2 The Review
2.3 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Method
3.2 Research Design
3.3 Research Sample
3.4 Measuring Instrument
3.5 Data Collection
3.6 Data Analysis
3.7 Expected Result
CHAPTER FOUR
DATA ANALYSIS AND RESULTS
4.1 Data Analysis
4.2 Results
4.3 Discussion
CHAPTER FIVE
SUMMARY AND RECOMMENDATIONS
5.1 Summary
5.2 Recommendations for Further Study
Bibliography
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#3000) into our bank Account below, send the following information to
08139462710 or 08137701720
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
Tags: THE IMPACT OF STOCK RETURNS ON INFLATION
ABSTRACT
This paper examines the relationship between stock returns
and inflation. We focus on various econometric techniques to
test this relationship, using monthly values of the Nigeria Stock
Exchange Price index and the Nigeria Consumer Price index over
the period 1988-2013.
The results from a simple OLS model show evidence of a positive but not significant relationship, while when we consider a system of equations including lagged values of inflation we find a negative but not significant effect of lagged inflation to stock returns.
Using the correlation test, we find that there is no long-run relationship between stock returns and inflation in Nigeria. The results indicate that the inflation rate is not correlated with stock returns.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The last two decades have been a tranquil for the Nigerian economy. Inflation rate for example, rose markedly in the fourth quarter of 2008 reaching a 3-year high of 15.1 per cent in December from its single digit level of 7.8 per cent at end of March, 2008. Precisely, the inflation rate was 6.5 per cent in December 2007. The inflationary
pressure which continued into 2009 as some sources have it (notably the Central Bank of Nigeria, 2009), may have been attributed to rising food prices, inefficient and poor transport services, port congestion, depreciation of the naira and the rush to spend budgetary allocations by government agencies before fiscal year end (Sampson, 2009).
During the same periods, the Nigerian capital market experienced a bullish trend when it started the year 2008 at 58,580 (with a market capitalization of N10.284 trillion), and went on to achieve its highest value ever of 66,371 on March 5, 2008,with a market capitalization of about N12.640 trillion (Aluko, 2008). The capital market has
since the March 5 to October, 2008 lost about N3.38 trillion, over 26.7 percent; as market capitalization stood at N9.11 trillion. Nigeria equally faced a major decline in portfolio equity flows perceived to be correlated with the sharp fall in stock market. For instance, foreign portfolio investors withdrew $15 billion from the Nigerian capital market in January 2009 (Ajakaiye and Fakiyesi, 2009).
The All Share Index (ASI) consequently shred a total share of 67 per cent from March 2008 to March 2009. In attempt to find some reprieves for the continuous bearish trend in the market, the Central Bank of Nigeria took over the management team of 8 commercial banks effective from August 14, 2009 as the illiquidity in the capital
market dove-tailed into the money market. The action described as a hybrid attempt to restructure these banks as a result of their debt exposure to the capital market is beginning to have its toll on the average general price level as analysts speculate precautionary cash balances. One puzzle left to be answered is if the sharp movements in general prices (inflationary) during these years have any linkage with the bullish/bearish capital market dominated activities before and after the 2008 crash.
This paper investigates the relationship between inflation and stock market returns using Nigerian data. Specifically, we effect the analysis by exploring the distinct impacts of inflation on the stock market returns at different time horizons, and also test the Fisher hypothesis by examining the relationship between, (b)
contemporaneous inflation and stock market returns, and (c) between inflation and money on the one hand, and
between inflation and real activity on the other. The outcomes of the analyses are expected to be of immense importance to investors particularly, in reaching rational decisions on asset allocation and advancement of the literature on financial economies.
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVE OF THE STUDY
The aim of the study is to examine the relationship between inflation and stock returns in Nigeria. Here are the following objectives of the study:
1. Examine the the relationship between inflation and stock market prices.
2. Examine the relationship,money,and real stock market activities
3. Critically examine why there is seem to be abnormal effects on the stock market prices when there is an increase or decrease in inflation
4. Make recommendations in the night of the finding from the above objective.
1.4 SIGNIFICANCE THE STUDY
This paper examines the relationship between stock returns and
inflation in Nigeria. Also, in this study we test for correlation and
causality among these variables.
The main goal of this paper is to analyse the above relationship for a recent period, considering data after the date of Nigeria’s entry into the stock market. So, we employ monthly values of the Nigeria Stock
Exchange (NSE) General Price Index and the Nigeria Consumer Price
Index for the period October 1988 to December 2013. All data are
collected from DATASTREAM.
1.5 LIMITATIONS OF THE STUDY
This study will be limited to the following areas: limited number of companies. Also,most companies are very reluctant to give out their data. The various NSE quarters were also reluctant to release all our requested data for protective reasons.
Any short coming that may arise in this research project is a result of factors which are beyond the researchers control such as limited amount of time available to the researcher and the extent to which the information obtained from bank is correct.
TABLE OF CONTENT:
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Conceptual and Operational Definition
1.8 Assumptions
1.9 Limitations of the Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Sources of Literature
2.2 The Review
2.3 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Method
3.2 Research Design
3.3 Research Sample
3.4 Measuring Instrument
3.5 Data Collection
3.6 Data Analysis
3.7 Expected Result
CHAPTER FOUR
DATA ANALYSIS AND RESULTS
4.1 Data Analysis
4.2 Results
4.3 Discussion
CHAPTER FIVE
SUMMARY AND RECOMMENDATIONS
5.1 Summary
5.2 Recommendations for Further Study
Bibliography
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#10000) into our bank Account below, send the following information to
08139462710 or 08137701720
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
Tags: THE IMPACT OF STOCK RETURNS ON INFLATION
ABSTRACT
This paper examines the relationship between stock returns
and inflation. We focus on various econometric techniques to
test this relationship, using monthly values of the Nigeria Stock
Exchange Price index and the Nigeria Consumer Price index over
the period 1988-2013.
The results from a simple OLS model show evidence of a positive but not significant relationship, while when we consider a system of equations including lagged values of inflation we find a negative but not significant effect of lagged inflation to stock returns.
Using the correlation test, we find that there is no long-run relationship between stock returns and inflation in Nigeria. The results indicate that the inflation rate is not correlated with stock returns.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The last two decades have been a tranquil for the Nigerian economy. Inflation rate for example, rose markedly in the fourth quarter of 2008 reaching a 3-year high of 15.1 per cent in December from its single digit level of 7.8 per cent at end of March, 2008. Precisely, the inflation rate was 6.5 per cent in December 2007. The inflationary
pressure which continued into 2009 as some sources have it (notably the Central Bank of Nigeria, 2009), may have been attributed to rising food prices, inefficient and poor transport services, port congestion, depreciation of the naira and the rush to spend budgetary allocations by government agencies before fiscal year end (Sampson, 2009).
During the same periods, the Nigerian capital market experienced a bullish trend when it started the year 2008 at 58,580 (with a market capitalization of N10.284 trillion), and went on to achieve its highest value ever of 66,371 on March 5, 2008,with a market capitalization of about N12.640 trillion (Aluko, 2008). The capital market has
since the March 5 to October, 2008 lost about N3.38 trillion, over 26.7 percent; as market capitalization stood at N9.11 trillion. Nigeria equally faced a major decline in portfolio equity flows perceived to be correlated with the sharp fall in stock market. For instance, foreign portfolio investors withdrew $15 billion from the Nigerian capital market in January 2009 (Ajakaiye and Fakiyesi, 2009).
The All Share Index (ASI) consequently shred a total share of 67 per cent from March 2008 to March 2009. In attempt to find some reprieves for the continuous bearish trend in the market, the Central Bank of Nigeria took over the management team of 8 commercial banks effective from August 14, 2009 as the illiquidity in the capital
market dove-tailed into the money market. The action described as a hybrid attempt to restructure these banks as a result of their debt exposure to the capital market is beginning to have its toll on the average general price level as analysts speculate precautionary cash balances. One puzzle left to be answered is if the sharp movements in general prices (inflationary) during these years have any linkage with the bullish/bearish capital market dominated activities before and after the 2008 crash.
This paper investigates the relationship between inflation and stock market returns using Nigerian data. Specifically, we effect the analysis by exploring the distinct impacts of inflation on the stock market returns at different time horizons, and also test the Fisher hypothesis by examining the relationship between, (b)
contemporaneous inflation and stock market returns, and (c) between inflation and money on the one hand, and
between inflation and real activity on the other. The outcomes of the analyses are expected to be of immense importance to investors particularly, in reaching rational decisions on asset allocation and advancement of the literature on financial economies.
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVE OF THE STUDY
The aim of the study is to examine the relationship between inflation and stock returns in Nigeria. Here are the following objectives of the study:
1. Examine the the relationship between inflation and stock market prices.
2. Examine the relationship,money,and real stock market activities
3. Critically examine why there is seem to be abnormal effects on the stock market prices when there is an increase or decrease in inflation
4. Make recommendations in the night of the finding from the above objective.
1.4 SIGNIFICANCE THE STUDY
This paper examines the relationship between stock returns and
inflation in Nigeria. Also, in this study we test for correlation and
causality among these variables.
The main goal of this paper is to analyse the above relationship for a recent period, considering data after the date of Nigeria’s entry into the stock market. So, we employ monthly values of the Nigeria Stock
Exchange (NSE) General Price Index and the Nigeria Consumer Price
Index for the period October 1988 to December 2013. All data are
collected from DATASTREAM.
1.5 LIMITATIONS OF THE STUDY
This study will be limited to the following areas: limited number of companies. Also,most companies are very reluctant to give out their data. The various NSE quarters were also reluctant to release all our requested data for protective reasons.
Any short coming that may arise in this research project is a result of factors which are beyond the researchers control such as limited amount of time available to the researcher and the extent to which the information obtained from bank is correct.
TABLE OF CONTENT:
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Conceptual and Operational Definition
1.8 Assumptions
1.9 Limitations of the Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Sources of Literature
2.2 The Review
2.3 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Method
3.2 Research Design
3.3 Research Sample
3.4 Measuring Instrument
3.5 Data Collection
3.6 Data Analysis
3.7 Expected Result
CHAPTER FOUR
DATA ANALYSIS AND RESULTS
4.1 Data Analysis
4.2 Results
4.3 Discussion
CHAPTER FIVE
SUMMARY AND RECOMMENDATIONS
5.1 Summary
5.2 Recommendations for Further Study
Bibliography
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5000) into our bank Account below, send the following information to
08139462710 or 08137701720
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
Tags: THE IMPACT OF STOCK RETURNS ON INFLATION
ABSTRACT:
This work focuses on the impact of monetary and fiscal policies on the growth of the
Nigerian Economy with emphases on determining its effects of both
policies on how the economy can be more efficiently and effectively
managed
The data were collected from Central Bank of Nigeria Statistical Bulletin and Annual
reports with inclusion of money supply, Gross Domestic Product,
Government expenditure, tax etc.
The methodology employed was the ordinary least square to analyze the data making use of multiple regression to capture the relationship between the dependent variable gross domestic
product and the independent variables money supply, government expenditure, taxation and gross domestic product.
Highlighting the impact of the mix policies on the findings, its obvious that the individual
significance test show that money supply, government expenditure and taxation impacted significantly.
It’s recommended that government should create a good environment for economic activities to grow and also implement macro-economic policies that will accommodate both policies.
Conclusively, both policies should be geared towards improving the conductive capacity, of the economy and the infrastructures should be
1.1. BACKGROUND OF THE STUDY:
Since its establishment in 1959, the Central Bank of Nigeria (CBN) has continued to play the traditional role expected of a central bank, which is the regulation of the stock of money in such a way as to promote the social welfare (Ajayi, 1999). This role is anchored on the use of monetary and fiscal policy that is usually targeted towards the achievement of full-employment equilibrium, rapid economic growth, price stability, and external balance. Over the years, the major goals of monetary and fiscal policy have often been the two later objectives. Thus, inflation targeting and exchange rate policy have dominated CBN’s monetary and fiscal policy focus based on assumption that these are essential tools of achieving macroeconomic stability.
The economic environment that guided fiscal and monetary policy in the past was characterized by the dominance of the oil sector, the expanding role of the public sector in the economy and over-dependence on the external sector. In order to maintain price stability and a healthy balance of payments position, monetary management depended on the use of direct monetary instruments such as credit ceilings, selective credit controls, administered interest and exchange rates, as well as the prescription of cash reserve requirements and special deposits. The use of market-based instruments was not feasible at that point because of the underdeveloped nature of the financial markets and the deliberate restraint on interest rates.
The most popular instrument of fiscal and monetary policy was the issuance of credit rationing guidelines, which primarily set the rates of change for the components and aggregate commercial bank loans and advances to the private sector. The sectoral allocation of bank credit in CBN guidelines was to stimulate the productive sectors and thereby stem inflationary pressures. The fixing of interest rates at relatively low levels was done mainly to promote investment and growth. Occasionally, special deposits were imposed to reduce the amount of free reserves and credit-creating capacity of the banks. Minimum cash ratios were stipulated for the banks in the mid-1970s on the basis of their total deposit liabilities, but since such cash ratios were usually lower than those voluntarily maintained by the banks, they proved less effective as a restraint on their credit operations.
In general terms, monetary and fiscal policies refer to a combination of measures designed to regulate the value, supply and cost of money in an economy, in consonance with the expected level of economic activity. For most economies, the objectives of monetary and fiscal policy include price stability, maintenance of balance of payments equilibrium, promotion of employment and output growth, and sustainable development (Folawewo and Osinubi, 2006). These objectives are necessary for the attainment of internal and external balance, and the promotion of long-run economic growth.
The importance of price stability derives from the harmful effects of price volatility, which undermines the ability of policy makers to achieve other laudable macroeconomic objectives. There is indeed a general consensus that domestic price fluctuation undermines the role of money as a store of value, and frustrates investments and growth. Empirical studies (Ajayi and Ojo, 1981; Fischer, 1994) on inflation, growth and productivity have confirmed the long-term inverse relationship between inflation and growth.
With the achievement of price stability, the conditions in the financial market and institutions would create a high degree of confidence, such that the financial infrastructure of the economy is able to meet the requirements of market participants. Indeed, an unstable or crisis-ridden financial sector will render the transmission mechanism of fiscal and monetary policy less effective, making the achievement and maintenance of strong macroeconomic fundamentals difficult. This is because it is only in a period of price stability that investors and consumers can interpret market signals correctly. Typically, in periods of high inflation, the horizon of the investor is very short, and resources are diverted from long-term investments to those with immediate returns and inflation hedges, including real estate and currency speculation. It is on this background that this study would investigate the effectiveness of the monetary policy in Nigeria with special focus on major growth components.
1.2. STATEMENT OF THE PROBLEM
One of the major objectives of monetary and fiscal policy in Nigeria is price stability. But despite the various monetary and fiscal regimes that have been adopted by the Central Bank of Nigeria over the years, inflation still remains a major threat to Nigeria’s economic growth.
Nigeria has experienced high volatility in inflation rates. Since the early 1970’s, there have been four major episodes of high inflation, in excess of 30 percent. The growth of money supply is correlated with the high inflation episodes because money growth was often in excess of real economic growth. However, preceding the growth in money supply, some factors reflecting the structural characteristics of the economy are observable. Some of these are supply shocks, arising from factors such as famine, currency devaluation and changes in terms of trade.
The first period of inflation in the 30 percent range (12months moving average) was in 1976 (CBN, 2009). One of the factors often adduced for this inflation is the drought in Northern Nigeria, which destroyed agricultural production and pushed up the cost of agricultural food items, a significant increase in the proportion of the average consumer’s budget. In addition, during this period, there was excessive monetization of oil export revenue, which might have given the inflation a monetary character.
In addition, in the late 1980’s, following the structural Adjustment Program, the effects of wage increases created a cost-push effect on inflation. In the long run, it was the structural characteristics of the economy, coupled with the growth in money supply that translated these into permanent price increases. In 1984, inflation peaked at 39.6 per cent at a time of relatively little growth in the economy. At that time, the government was under pressure from debtor groups to reach an agreement with the International Monetary Fund, one of the conditions of which was devaluation of the domestic currency. The expectation that devaluation was imminent fuelled inflation as prices adjusted to the parallel rate of exchange. Over the same period, excess money growth was about 43 percent and credit to the government had increased by over 70 percent (CBN, 2009). In other respects the cause of the inflation may also be adduced to the worsening terms of external trade experienced by the country at that time. It is possible therefore that Nigeria’s inflationary episodes were preceded by structural or real factors followed by monetary expansion.
The third high inflation episode started in the last quarter of 1987 and accelerated through 1988 to 1989. This episode is related to the fiscal expansion that accompanied the 1988 budget. Though initially the expansion was financed by credit from the CBN, it was later sustained by increasing oil revenue (occasioned by oil price increase following the Persian Gulf War) that was not sterilized. In addition, with the debt conversion exercise, through which “debt for equity” swaps took place, external debt was repurchased with new local currency obligations. However, with the drastic monetary contraction initiated by the authorities in the middle of 1989, inflation fell, reaching one of its lowest points in 1991 i.e 13% (CBN, 2009).
The fourth inflationary episode occurred in 1993, and persisted through the end of 1995. Though inflation gathered momentum towards the tail end of 1992, it reached 57 percent by the end of 1994, the highest rates since the eighties, and by the end of 1995, it was 72.8 per cent (CBN, 2009). As with the third inflation, it coincided with a period of expansionary fiscal deficit and money supply growth. The authorities found it too difficult to contain the growth of private sector domestic credit and bank liquidity. Continuous fall of the inflation rate has been experienced since 1996 as a result of stringent monetary policies of the Central bank. It however, increased in 2001 and 2003, 2004, 2005, 2008 and 2009 to 18.9%, 14%, 15%, 17.9%, 11.6% and 12.4% respectively (CBN, 2009).
Structural factors have proven to be important in the inflation spiral. Reduction in oil revenue (a supply shock) led to a reduction in real income, with serious distributional implications. As workers pushed for higher nominal wages, while producers increased mark-ups on costs, an inflationary spiral followed. In addition to these factors the government also had a transfer problem in order to meet debt obligations.
The failure of the monetary and fiscal policies in curbing price instability has caused growth instability as Nigeria’s record of development has been very poor. In marked contrast to most developing countries, its GDP was not significantly higher in the year 2000 that it was 35 years before. As many economic indicators show, Nigeria’s economy has experienced different growth stages. The GDP growth rate recorded negative growth in the early 1980s (-2.7 in 1982, 7.1 in 1983 and -1.1 in 1984). The growth rate increased steadily between 1985 and 1990 but fell sharply in 1986 and 1987 to 2.5% and -0.2%. Except in 1991 when a negative growth rate of -0.8% was recorded, 1990s witnessed an unstable growth. However, the growth rate has been relatively high since 2001. An examination of the long-term pattern reveals the following secular swings: 1965-1968 Rapid Decline (civil war years), 1969-1971 Revival, 1972-1980 Boom, 1981-1984 Crash, 1985-1991 Renewed Growth, 1992-2010 Wobbling (CBN, 2010).
The main thrust of this study shall be to evaluate the effectiveness of the CBN’s monetary policy and the government’s fiscal policy over the years. This would go along way in assessing the extent to which the monetary and fiscal policies have impacted on the growth process of Nigeria using the major objectives of monetary and fiscal policies as yardsticks.
1.3. OBJECTIVES OF THE STUDY
The main objective of this study is to assess the effectiveness of the monetary and fiscal policies in Nigeria. However, the following specific objectives would also be achieved.
(i) To examine the trend and structure of monetary and fiscal policies in Nigeria;
(ii) To empirically investigate the impact of the monetary and fiscal policies on economic growth and other major growth components in Nigeria;
(iii) Evaluate the performance of monetary and fiscal policies in Nigeria over the years.
(iv) To investigate the relationship and relate impact of money supply, interest rate,taxation,and public expenditure on economic growth.
1.4. RESEARCH QUESTIONS:
This research work seeks to find out reliable solutions to the following research questions.
- To what extent has the Nigeria society been given adequate information on monetary and fiscal policies?
- What is the response of the public and financial institutions towards monetary and fiscal policies?
- How has the offenders of these policies been effective in promoting economic growth in Nigerian economy?
- Are monetary and fiscal policies effective in promoting economic growth in the Nigeria economy?
- How best do government synchronize the conflicting nature of policy objectives and structural rigidity existing in the Nigeria economy?
1.5. RESEARCH HYPOTHESES
The hypotheses to be tested in the course of this research work are:
(1) H0 – That the monetary and fiscal policy instruments do not have significant impact on the economic growth in Nigeria.
H1 – That the monetary and fiscal policy instruments have significant impact on the economic growth in Nigeria.
(2) H0 – That the monetary and fiscal policy instruments do not impact significantly on the general price level in Nigeria.
H1 – That the monetary and fiscal policy instruments impact significantly on the general price level in Nigeria.
(3) H0 – That the monetary and fiscal policy instruments do not impact significantly on the Balance of payment equilibrium of Nigeria.
H1 – That the monetary and fiscal policy instruments impact significantly on the Balance of payment equilibrium of Nigeria.
1.6. SIGNIFICANCE OF THE STUDY:
Going by the core objective of this study which is aimed at determining the influence of the monetary and fiscal policy on economic growth in Nigeria. This research work though serving as a useful document enable policy makers to formulate appropriate policies that enable them combat the decline in Gross Domestic Product(GDP), Per Capita Income and high inflation.
This research work also has the potential of indicating to policy makers the direction of relationship that exist between monetary and fiscal policy, economic growth using Gross Domestic Product( GDP) as an indicator.
1.7. RESEARCH METHODOLOGY
The data for this study were obtained mainly from secondary sources, particularly from Central Bank of Nigeria (CBN) publications. This study makes use of econometric approach in estimating the relationship between selected monetary policy components and major growth components.
The Ordinary Least Square (OLS) technique shall be employed in obtaining the numerical estimates of the coefficients in different equations. The OLS method is chosen because it possesses some optimal properties; its computational procedure is fairly simple and it is also an essential component of most other estimation techniques.
In demonstrating the application of Ordinary Least Square method, the multiple linear regression analysis will be used with gross domestic product (GDP), inflation rate and balance of payment as the dependent variables while liquidity ratio, cash ratio, money supply as the explanatory variables. The method would be applied with the use of Statistical Package for Social Sciences (SPSS).
1.8. SCOPE OF THE STUDY:
The economy is a large component with lot of diverse and sometimes complex parts. This study will only focus on major growth components such as the gross domestic product, price level, exchange rate and the balance of payment equilibrium.
This study will cover all the facets that make up the monetary and fiscal policies, but shall empirically investigate the effect of the major ones.
The study would also examine the monetary and fiscal policy regimes that have adopted in Nigeria since 1960 to date as well as evaluate its performance.
1.9. DEFINITION OF TERMS:
Monetary Policy: This involves any conscious measure taken by the monetary authority to change the quantity and availability and cost of money with a view of achieving internal and external balance in the economy.
Interest Rate: This means the price paid for borrowing money for a period of time, usually expressed as a percentage of the principal per year.
Money Supply: This means the total amount of spendable money at any time period.
Fiscal Policy: A policy where the government uses expenditure and revenue programs to produce desirable effects and avoid undesirable effects on the national income production and employment.
Taxation: This means a compulsory non-liquid-pro-quo withdrawal or resources from the private sector of the economy
TABLE OF CONTENT:
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Conceptual and Operational Definition
1.8 Assumptions
1.9 Limitations of the Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Sources of Literature
2.2 The Review
2.3 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Method
3.2 Research Design
3.3 Research Sample
3.4 Measuring Instrument
3.5 Data Collection
3.6 Data Analysis
3.7 Expected Result
CHAPTER FOUR
DATA ANALYSIS AND RESULTS
4.1 Data Analysis
4.2 Results
4.3 Discussion
CHAPTER FIVE
SUMMARY AND RECOMMENDATIONS
5.1 Summary
5.2 Recommendations for Further Study
Bibliography
HOW TO GET THE FULL PROJECT WORK
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(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
Tags: The Impact of Monetary and Fiscal Policy on Economic Growth of Nigeria
ABSTRACT:
This work focuses on the impact of monetary and fiscal policies on the growth of the
Nigerian Economy with emphases on determining its effects of both
policies on how the economy can be more efficiently and effectively
managed
The data were collected from Central Bank of Nigeria Statistical Bulletin and Annual
reports with inclusion of money supply, Gross Domestic Product,
Government expenditure, tax etc.
The methodology employed was the ordinary least square to analyze the data making use of multiple regression to capture the relationship between the dependent variable gross domestic
product and the independent variables money supply, government expenditure, taxation and gross domestic product.
Highlighting the impact of the mix policies on the findings, its obvious that the individual
significance test show that money supply, government expenditure and taxation impacted significantly.
It’s recommended that government should create a good environment for economic activities to grow and also implement macro-economic policies that will accommodate both policies.
Conclusively, both policies should be geared towards improving the conductive capacity, of the economy and the infrastructures should be
1.1. BACKGROUND OF THE STUDY:
Since its establishment in 1959, the Central Bank of Nigeria (CBN) has continued to play the traditional role expected of a central bank, which is the regulation of the stock of money in such a way as to promote the social welfare (Ajayi, 1999). This role is anchored on the use of monetary and fiscal policy that is usually targeted towards the achievement of full-employment equilibrium, rapid economic growth, price stability, and external balance. Over the years, the major goals of monetary and fiscal policy have often been the two later objectives. Thus, inflation targeting and exchange rate policy have dominated CBN’s monetary and fiscal policy focus based on assumption that these are essential tools of achieving macroeconomic stability.
The economic environment that guided fiscal and monetary policy in the past was characterized by the dominance of the oil sector, the expanding role of the public sector in the economy and over-dependence on the external sector. In order to maintain price stability and a healthy balance of payments position, monetary management depended on the use of direct monetary instruments such as credit ceilings, selective credit controls, administered interest and exchange rates, as well as the prescription of cash reserve requirements and special deposits. The use of market-based instruments was not feasible at that point because of the underdeveloped nature of the financial markets and the deliberate restraint on interest rates.
The most popular instrument of fiscal and monetary policy was the issuance of credit rationing guidelines, which primarily set the rates of change for the components and aggregate commercial bank loans and advances to the private sector. The sectoral allocation of bank credit in CBN guidelines was to stimulate the productive sectors and thereby stem inflationary pressures. The fixing of interest rates at relatively low levels was done mainly to promote investment and growth. Occasionally, special deposits were imposed to reduce the amount of free reserves and credit-creating capacity of the banks. Minimum cash ratios were stipulated for the banks in the mid-1970s on the basis of their total deposit liabilities, but since such cash ratios were usually lower than those voluntarily maintained by the banks, they proved less effective as a restraint on their credit operations.
In general terms, monetary and fiscal policies refer to a combination of measures designed to regulate the value, supply and cost of money in an economy, in consonance with the expected level of economic activity. For most economies, the objectives of monetary and fiscal policy include price stability, maintenance of balance of payments equilibrium, promotion of employment and output growth, and sustainable development (Folawewo and Osinubi, 2006). These objectives are necessary for the attainment of internal and external balance, and the promotion of long-run economic growth.
The importance of price stability derives from the harmful effects of price volatility, which undermines the ability of policy makers to achieve other laudable macroeconomic objectives. There is indeed a general consensus that domestic price fluctuation undermines the role of money as a store of value, and frustrates investments and growth. Empirical studies (Ajayi and Ojo, 1981; Fischer, 1994) on inflation, growth and productivity have confirmed the long-term inverse relationship between inflation and growth.
With the achievement of price stability, the conditions in the financial market and institutions would create a high degree of confidence, such that the financial infrastructure of the economy is able to meet the requirements of market participants. Indeed, an unstable or crisis-ridden financial sector will render the transmission mechanism of fiscal and monetary policy less effective, making the achievement and maintenance of strong macroeconomic fundamentals difficult. This is because it is only in a period of price stability that investors and consumers can interpret market signals correctly. Typically, in periods of high inflation, the horizon of the investor is very short, and resources are diverted from long-term investments to those with immediate returns and inflation hedges, including real estate and currency speculation. It is on this background that this study would investigate the effectiveness of the monetary policy in Nigeria with special focus on major growth components.
1.2. STATEMENT OF THE PROBLEM
One of the major objectives of monetary and fiscal policy in Nigeria is price stability. But despite the various monetary and fiscal regimes that have been adopted by the Central Bank of Nigeria over the years, inflation still remains a major threat to Nigeria’s economic growth.
Nigeria has experienced high volatility in inflation rates. Since the early 1970’s, there have been four major episodes of high inflation, in excess of 30 percent. The growth of money supply is correlated with the high inflation episodes because money growth was often in excess of real economic growth. However, preceding the growth in money supply, some factors reflecting the structural characteristics of the economy are observable. Some of these are supply shocks, arising from factors such as famine, currency devaluation and changes in terms of trade.
The first period of inflation in the 30 percent range (12months moving average) was in 1976 (CBN, 2009). One of the factors often adduced for this inflation is the drought in Northern Nigeria, which destroyed agricultural production and pushed up the cost of agricultural food items, a significant increase in the proportion of the average consumer’s budget. In addition, during this period, there was excessive monetization of oil export revenue, which might have given the inflation a monetary character.
In addition, in the late 1980’s, following the structural Adjustment Program, the effects of wage increases created a cost-push effect on inflation. In the long run, it was the structural characteristics of the economy, coupled with the growth in money supply that translated these into permanent price increases. In 1984, inflation peaked at 39.6 per cent at a time of relatively little growth in the economy. At that time, the government was under pressure from debtor groups to reach an agreement with the International Monetary Fund, one of the conditions of which was devaluation of the domestic currency. The expectation that devaluation was imminent fuelled inflation as prices adjusted to the parallel rate of exchange. Over the same period, excess money growth was about 43 percent and credit to the government had increased by over 70 percent (CBN, 2009). In other respects the cause of the inflation may also be adduced to the worsening terms of external trade experienced by the country at that time. It is possible therefore that Nigeria’s inflationary episodes were preceded by structural or real factors followed by monetary expansion.
The third high inflation episode started in the last quarter of 1987 and accelerated through 1988 to 1989. This episode is related to the fiscal expansion that accompanied the 1988 budget. Though initially the expansion was financed by credit from the CBN, it was later sustained by increasing oil revenue (occasioned by oil price increase following the Persian Gulf War) that was not sterilized. In addition, with the debt conversion exercise, through which “debt for equity” swaps took place, external debt was repurchased with new local currency obligations. However, with the drastic monetary contraction initiated by the authorities in the middle of 1989, inflation fell, reaching one of its lowest points in 1991 i.e 13% (CBN, 2009).
The fourth inflationary episode occurred in 1993, and persisted through the end of 1995. Though inflation gathered momentum towards the tail end of 1992, it reached 57 percent by the end of 1994, the highest rates since the eighties, and by the end of 1995, it was 72.8 per cent (CBN, 2009). As with the third inflation, it coincided with a period of expansionary fiscal deficit and money supply growth. The authorities found it too difficult to contain the growth of private sector domestic credit and bank liquidity. Continuous fall of the inflation rate has been experienced since 1996 as a result of stringent monetary policies of the Central bank. It however, increased in 2001 and 2003, 2004, 2005, 2008 and 2009 to 18.9%, 14%, 15%, 17.9%, 11.6% and 12.4% respectively (CBN, 2009).
Structural factors have proven to be important in the inflation spiral. Reduction in oil revenue (a supply shock) led to a reduction in real income, with serious distributional implications. As workers pushed for higher nominal wages, while producers increased mark-ups on costs, an inflationary spiral followed. In addition to these factors the government also had a transfer problem in order to meet debt obligations.
The failure of the monetary and fiscal policies in curbing price instability has caused growth instability as Nigeria’s record of development has been very poor. In marked contrast to most developing countries, its GDP was not significantly higher in the year 2000 that it was 35 years before. As many economic indicators show, Nigeria’s economy has experienced different growth stages. The GDP growth rate recorded negative growth in the early 1980s (-2.7 in 1982, 7.1 in 1983 and -1.1 in 1984). The growth rate increased steadily between 1985 and 1990 but fell sharply in 1986 and 1987 to 2.5% and -0.2%. Except in 1991 when a negative growth rate of -0.8% was recorded, 1990s witnessed an unstable growth. However, the growth rate has been relatively high since 2001. An examination of the long-term pattern reveals the following secular swings: 1965-1968 Rapid Decline (civil war years), 1969-1971 Revival, 1972-1980 Boom, 1981-1984 Crash, 1985-1991 Renewed Growth, 1992-2010 Wobbling (CBN, 2010).
The main thrust of this study shall be to evaluate the effectiveness of the CBN’s monetary policy and the government’s fiscal policy over the years. This would go along way in assessing the extent to which the monetary and fiscal policies have impacted on the growth process of Nigeria using the major objectives of monetary and fiscal policies as yardsticks.
1.3. OBJECTIVES OF THE STUDY
The main objective of this study is to assess the effectiveness of the monetary and fiscal policies in Nigeria. However, the following specific objectives would also be achieved.
(i) To examine the trend and structure of monetary and fiscal policies in Nigeria;
(ii) To empirically investigate the impact of the monetary and fiscal policies on economic growth and other major growth components in Nigeria;
(iii) Evaluate the performance of monetary and fiscal policies in Nigeria over the years.
(iv) To investigate the relationship and relate impact of money supply, interest rate,taxation,and public expenditure on economic growth.
1.4. RESEARCH QUESTIONS:
This research work seeks to find out reliable solutions to the following research questions.
- To what extent has the Nigeria society been given adequate information on monetary and fiscal policies?
- What is the response of the public and financial institutions towards monetary and fiscal policies?
- How has the offenders of these policies been effective in promoting economic growth in Nigerian economy?
- Are monetary and fiscal policies effective in promoting economic growth in the Nigeria economy?
- How best do government synchronize the conflicting nature of policy objectives and structural rigidity existing in the Nigeria economy?
1.5. RESEARCH HYPOTHESES
The hypotheses to be tested in the course of this research work are:
(1) H0 – That the monetary and fiscal policy instruments do not have significant impact on the economic growth in Nigeria.
H1 – That the monetary and fiscal policy instruments have significant impact on the economic growth in Nigeria.
(2) H0 – That the monetary and fiscal policy instruments do not impact significantly on the general price level in Nigeria.
H1 – That the monetary and fiscal policy instruments impact significantly on the general price level in Nigeria.
(3) H0 – That the monetary and fiscal policy instruments do not impact significantly on the Balance of payment equilibrium of Nigeria.
H1 – That the monetary and fiscal policy instruments impact significantly on the Balance of payment equilibrium of Nigeria.
1.6. SIGNIFICANCE OF THE STUDY:
Going by the core objective of this study which is aimed at determining the influence of the monetary and fiscal policy on economic growth in Nigeria. This research work though serving as a useful document enable policy makers to formulate appropriate policies that enable them combat the decline in Gross Domestic Product(GDP), Per Capita Income and high inflation.
This research work also has the potential of indicating to policy makers the direction of relationship that exist between monetary and fiscal policy, economic growth using Gross Domestic Product( GDP) as an indicator.
1.7. RESEARCH METHODOLOGY
The data for this study were obtained mainly from secondary sources, particularly from Central Bank of Nigeria (CBN) publications. This study makes use of econometric approach in estimating the relationship between selected monetary policy components and major growth components.
The Ordinary Least Square (OLS) technique shall be employed in obtaining the numerical estimates of the coefficients in different equations. The OLS method is chosen because it possesses some optimal properties; its computational procedure is fairly simple and it is also an essential component of most other estimation techniques.
In demonstrating the application of Ordinary Least Square method, the multiple linear regression analysis will be used with gross domestic product (GDP), inflation rate and balance of payment as the dependent variables while liquidity ratio, cash ratio, money supply as the explanatory variables. The method would be applied with the use of Statistical Package for Social Sciences (SPSS).
1.8. SCOPE OF THE STUDY:
The economy is a large component with lot of diverse and sometimes complex parts. This study will only focus on major growth components such as the gross domestic product, price level, exchange rate and the balance of payment equilibrium.
This study will cover all the facets that make up the monetary and fiscal policies, but shall empirically investigate the effect of the major ones.
The study would also examine the monetary and fiscal policy regimes that have adopted in Nigeria since 1960 to date as well as evaluate its performance.
1.9. DEFINITION OF TERMS:
Monetary Policy: This involves any conscious measure taken by the monetary authority to change the quantity and availability and cost of money with a view of achieving internal and external balance in the economy.
Interest Rate: This means the price paid for borrowing money for a period of time, usually expressed as a percentage of the principal per year.
Money Supply: This means the total amount of spendable money at any time period.
Fiscal Policy: A policy where the government uses expenditure and revenue programs to produce desirable effects and avoid undesirable effects on the national income production and employment.
Taxation: This means a compulsory non-liquid-pro-quo withdrawal or resources from the private sector of the economy
TABLE OF CONTENT:
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Conceptual and Operational Definition
1.8 Assumptions
1.9 Limitations of the Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Sources of Literature
2.2 The Review
2.3 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Method
3.2 Research Design
3.3 Research Sample
3.4 Measuring Instrument
3.5 Data Collection
3.6 Data Analysis
3.7 Expected Result
CHAPTER FOUR
DATA ANALYSIS AND RESULTS
4.1 Data Analysis
4.2 Results
4.3 Discussion
CHAPTER FIVE
SUMMARY AND RECOMMENDATIONS
5.1 Summary
5.2 Recommendations for Further Study
Bibliography
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#10000) into our bank Account below, send the following information to
08139462710 or 08137701720
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
Tags: The Impact of Monetary and Fiscal Policy on Economic Growth of Nigeria
ABSTRACT:
This work focuses on the impact of monetary and fiscal policies on the growth of the
Nigerian Economy with emphases on determining its effects of both
policies on how the economy can be more efficiently and effectively
managed
The data were collected from Central Bank of Nigeria Statistical Bulletin and Annual
reports with inclusion of money supply, Gross Domestic Product,
Government expenditure, tax etc.
The methodology employed was the ordinary least square to analyze the data making use of multiple regression to capture the relationship between the dependent variable gross domestic
product and the independent variables money supply, government expenditure, taxation and gross domestic product.
Highlighting the impact of the mix policies on the findings, its obvious that the individual
significance test show that money supply, government expenditure and taxation impacted significantly.
It’s recommended that government should create a good environment for economic activities to grow and also implement macro-economic policies that will accommodate both policies.
Conclusively, both policies should be geared towards improving the conductive capacity, of the economy and the infrastructures should be
1.1. BACKGROUND OF THE STUDY:
Since its establishment in 1959, the Central Bank of Nigeria (CBN) has continued to play the traditional role expected of a central bank, which is the regulation of the stock of money in such a way as to promote the social welfare (Ajayi, 1999). This role is anchored on the use of monetary and fiscal policy that is usually targeted towards the achievement of full-employment equilibrium, rapid economic growth, price stability, and external balance. Over the years, the major goals of monetary and fiscal policy have often been the two later objectives. Thus, inflation targeting and exchange rate policy have dominated CBN’s monetary and fiscal policy focus based on assumption that these are essential tools of achieving macroeconomic stability.
The economic environment that guided fiscal and monetary policy in the past was characterized by the dominance of the oil sector, the expanding role of the public sector in the economy and over-dependence on the external sector. In order to maintain price stability and a healthy balance of payments position, monetary management depended on the use of direct monetary instruments such as credit ceilings, selective credit controls, administered interest and exchange rates, as well as the prescription of cash reserve requirements and special deposits. The use of market-based instruments was not feasible at that point because of the underdeveloped nature of the financial markets and the deliberate restraint on interest rates.
The most popular instrument of fiscal and monetary policy was the issuance of credit rationing guidelines, which primarily set the rates of change for the components and aggregate commercial bank loans and advances to the private sector. The sectoral allocation of bank credit in CBN guidelines was to stimulate the productive sectors and thereby stem inflationary pressures. The fixing of interest rates at relatively low levels was done mainly to promote investment and growth. Occasionally, special deposits were imposed to reduce the amount of free reserves and credit-creating capacity of the banks. Minimum cash ratios were stipulated for the banks in the mid-1970s on the basis of their total deposit liabilities, but since such cash ratios were usually lower than those voluntarily maintained by the banks, they proved less effective as a restraint on their credit operations.
In general terms, monetary and fiscal policies refer to a combination of measures designed to regulate the value, supply and cost of money in an economy, in consonance with the expected level of economic activity. For most economies, the objectives of monetary and fiscal policy include price stability, maintenance of balance of payments equilibrium, promotion of employment and output growth, and sustainable development (Folawewo and Osinubi, 2006). These objectives are necessary for the attainment of internal and external balance, and the promotion of long-run economic growth.
The importance of price stability derives from the harmful effects of price volatility, which undermines the ability of policy makers to achieve other laudable macroeconomic objectives. There is indeed a general consensus that domestic price fluctuation undermines the role of money as a store of value, and frustrates investments and growth. Empirical studies (Ajayi and Ojo, 1981; Fischer, 1994) on inflation, growth and productivity have confirmed the long-term inverse relationship between inflation and growth.
With the achievement of price stability, the conditions in the financial market and institutions would create a high degree of confidence, such that the financial infrastructure of the economy is able to meet the requirements of market participants. Indeed, an unstable or crisis-ridden financial sector will render the transmission mechanism of fiscal and monetary policy less effective, making the achievement and maintenance of strong macroeconomic fundamentals difficult. This is because it is only in a period of price stability that investors and consumers can interpret market signals correctly. Typically, in periods of high inflation, the horizon of the investor is very short, and resources are diverted from long-term investments to those with immediate returns and inflation hedges, including real estate and currency speculation. It is on this background that this study would investigate the effectiveness of the monetary policy in Nigeria with special focus on major growth components.
1.2. STATEMENT OF THE PROBLEM
One of the major objectives of monetary and fiscal policy in Nigeria is price stability. But despite the various monetary and fiscal regimes that have been adopted by the Central Bank of Nigeria over the years, inflation still remains a major threat to Nigeria’s economic growth.
Nigeria has experienced high volatility in inflation rates. Since the early 1970’s, there have been four major episodes of high inflation, in excess of 30 percent. The growth of money supply is correlated with the high inflation episodes because money growth was often in excess of real economic growth. However, preceding the growth in money supply, some factors reflecting the structural characteristics of the economy are observable. Some of these are supply shocks, arising from factors such as famine, currency devaluation and changes in terms of trade.
The first period of inflation in the 30 percent range (12months moving average) was in 1976 (CBN, 2009). One of the factors often adduced for this inflation is the drought in Northern Nigeria, which destroyed agricultural production and pushed up the cost of agricultural food items, a significant increase in the proportion of the average consumer’s budget. In addition, during this period, there was excessive monetization of oil export revenue, which might have given the inflation a monetary character.
In addition, in the late 1980’s, following the structural Adjustment Program, the effects of wage increases created a cost-push effect on inflation. In the long run, it was the structural characteristics of the economy, coupled with the growth in money supply that translated these into permanent price increases. In 1984, inflation peaked at 39.6 per cent at a time of relatively little growth in the economy. At that time, the government was under pressure from debtor groups to reach an agreement with the International Monetary Fund, one of the conditions of which was devaluation of the domestic currency. The expectation that devaluation was imminent fuelled inflation as prices adjusted to the parallel rate of exchange. Over the same period, excess money growth was about 43 percent and credit to the government had increased by over 70 percent (CBN, 2009). In other respects the cause of the inflation may also be adduced to the worsening terms of external trade experienced by the country at that time. It is possible therefore that Nigeria’s inflationary episodes were preceded by structural or real factors followed by monetary expansion.
The third high inflation episode started in the last quarter of 1987 and accelerated through 1988 to 1989. This episode is related to the fiscal expansion that accompanied the 1988 budget. Though initially the expansion was financed by credit from the CBN, it was later sustained by increasing oil revenue (occasioned by oil price increase following the Persian Gulf War) that was not sterilized. In addition, with the debt conversion exercise, through which “debt for equity” swaps took place, external debt was repurchased with new local currency obligations. However, with the drastic monetary contraction initiated by the authorities in the middle of 1989, inflation fell, reaching one of its lowest points in 1991 i.e 13% (CBN, 2009).
The fourth inflationary episode occurred in 1993, and persisted through the end of 1995. Though inflation gathered momentum towards the tail end of 1992, it reached 57 percent by the end of 1994, the highest rates since the eighties, and by the end of 1995, it was 72.8 per cent (CBN, 2009). As with the third inflation, it coincided with a period of expansionary fiscal deficit and money supply growth. The authorities found it too difficult to contain the growth of private sector domestic credit and bank liquidity. Continuous fall of the inflation rate has been experienced since 1996 as a result of stringent monetary policies of the Central bank. It however, increased in 2001 and 2003, 2004, 2005, 2008 and 2009 to 18.9%, 14%, 15%, 17.9%, 11.6% and 12.4% respectively (CBN, 2009).
Structural factors have proven to be important in the inflation spiral. Reduction in oil revenue (a supply shock) led to a reduction in real income, with serious distributional implications. As workers pushed for higher nominal wages, while producers increased mark-ups on costs, an inflationary spiral followed. In addition to these factors the government also had a transfer problem in order to meet debt obligations.
The failure of the monetary and fiscal policies in curbing price instability has caused growth instability as Nigeria’s record of development has been very poor. In marked contrast to most developing countries, its GDP was not significantly higher in the year 2000 that it was 35 years before. As many economic indicators show, Nigeria’s economy has experienced different growth stages. The GDP growth rate recorded negative growth in the early 1980s (-2.7 in 1982, 7.1 in 1983 and -1.1 in 1984). The growth rate increased steadily between 1985 and 1990 but fell sharply in 1986 and 1987 to 2.5% and -0.2%. Except in 1991 when a negative growth rate of -0.8% was recorded, 1990s witnessed an unstable growth. However, the growth rate has been relatively high since 2001. An examination of the long-term pattern reveals the following secular swings: 1965-1968 Rapid Decline (civil war years), 1969-1971 Revival, 1972-1980 Boom, 1981-1984 Crash, 1985-1991 Renewed Growth, 1992-2010 Wobbling (CBN, 2010).
The main thrust of this study shall be to evaluate the effectiveness of the CBN’s monetary policy and the government’s fiscal policy over the years. This would go along way in assessing the extent to which the monetary and fiscal policies have impacted on the growth process of Nigeria using the major objectives of monetary and fiscal policies as yardsticks.
1.3. OBJECTIVES OF THE STUDY
The main objective of this study is to assess the effectiveness of the monetary and fiscal policies in Nigeria. However, the following specific objectives would also be achieved.
(i) To examine the trend and structure of monetary and fiscal policies in Nigeria;
(ii) To empirically investigate the impact of the monetary and fiscal policies on economic growth and other major growth components in Nigeria;
(iii) Evaluate the performance of monetary and fiscal policies in Nigeria over the years.
(iv) To investigate the relationship and relate impact of money supply, interest rate,taxation,and public expenditure on economic growth.
1.4. RESEARCH QUESTIONS:
This research work seeks to find out reliable solutions to the following research questions.
- To what extent has the Nigeria society been given adequate information on monetary and fiscal policies?
- What is the response of the public and financial institutions towards monetary and fiscal policies?
- How has the offenders of these policies been effective in promoting economic growth in Nigerian economy?
- Are monetary and fiscal policies effective in promoting economic growth in the Nigeria economy?
- How best do government synchronize the conflicting nature of policy objectives and structural rigidity existing in the Nigeria economy?
1.5. RESEARCH HYPOTHESES
The hypotheses to be tested in the course of this research work are:
(1) H0 – That the monetary and fiscal policy instruments do not have significant impact on the economic growth in Nigeria.
H1 – That the monetary and fiscal policy instruments have significant impact on the economic growth in Nigeria.
(2) H0 – That the monetary and fiscal policy instruments do not impact significantly on the general price level in Nigeria.
H1 – That the monetary and fiscal policy instruments impact significantly on the general price level in Nigeria.
(3) H0 – That the monetary and fiscal policy instruments do not impact significantly on the Balance of payment equilibrium of Nigeria.
H1 – That the monetary and fiscal policy instruments impact significantly on the Balance of payment equilibrium of Nigeria.
1.6. SIGNIFICANCE OF THE STUDY:
Going by the core objective of this study which is aimed at determining the influence of the monetary and fiscal policy on economic growth in Nigeria. This research work though serving as a useful document enable policy makers to formulate appropriate policies that enable them combat the decline in Gross Domestic Product(GDP), Per Capita Income and high inflation.
This research work also has the potential of indicating to policy makers the direction of relationship that exist between monetary and fiscal policy, economic growth using Gross Domestic Product( GDP) as an indicator.
1.7. RESEARCH METHODOLOGY
The data for this study were obtained mainly from secondary sources, particularly from Central Bank of Nigeria (CBN) publications. This study makes use of econometric approach in estimating the relationship between selected monetary policy components and major growth components.
The Ordinary Least Square (OLS) technique shall be employed in obtaining the numerical estimates of the coefficients in different equations. The OLS method is chosen because it possesses some optimal properties; its computational procedure is fairly simple and it is also an essential component of most other estimation techniques.
In demonstrating the application of Ordinary Least Square method, the multiple linear regression analysis will be used with gross domestic product (GDP), inflation rate and balance of payment as the dependent variables while liquidity ratio, cash ratio, money supply as the explanatory variables. The method would be applied with the use of Statistical Package for Social Sciences (SPSS).
1.8. SCOPE OF THE STUDY:
The economy is a large component with lot of diverse and sometimes complex parts. This study will only focus on major growth components such as the gross domestic product, price level, exchange rate and the balance of payment equilibrium.
This study will cover all the facets that make up the monetary and fiscal policies, but shall empirically investigate the effect of the major ones.
The study would also examine the monetary and fiscal policy regimes that have adopted in Nigeria since 1960 to date as well as evaluate its performance.
1.9. DEFINITION OF TERMS:
Monetary Policy: This involves any conscious measure taken by the monetary authority to change the quantity and availability and cost of money with a view of achieving internal and external balance in the economy.
Interest Rate: This means the price paid for borrowing money for a period of time, usually expressed as a percentage of the principal per year.
Money Supply: This means the total amount of spendable money at any time period.
Fiscal Policy: A policy where the government uses expenditure and revenue programs to produce desirable effects and avoid undesirable effects on the national income production and employment.
Taxation: This means a compulsory non-liquid-pro-quo withdrawal or resources from the private sector of the economy
TABLE OF CONTENT:
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Conceptual and Operational Definition
1.8 Assumptions
1.9 Limitations of the Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Sources of Literature
2.2 The Review
2.3 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Method
3.2 Research Design
3.3 Research Sample
3.4 Measuring Instrument
3.5 Data Collection
3.6 Data Analysis
3.7 Expected Result
CHAPTER FOUR
DATA ANALYSIS AND RESULTS
4.1 Data Analysis
4.2 Results
4.3 Discussion
CHAPTER FIVE
SUMMARY AND RECOMMENDATIONS
5.1 Summary
5.2 Recommendations for Further Study
Bibliography
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Tags: The Impact of Monetary and Fiscal Policy on Economic Growth of Nigeria
PROPOSAL
This research project is an “Appraisal of the economic implication of electronic banking on operation of banks in Nigeria”. (A case study of first bank of Nigeria plc).
Electronic banking more commonly called the electronic funds/monetary transfer system refers to the application of computer technology to banking especially the payment (deposit trasfer aspects of banking). The major distinct pieces of hardware that comproses it are the automated teller machine (ATM), the point of scale (POS) system and the automated clearing houses (ACH). These hardwares carryout significant functions in banking activities.
This research project sets out to achieve the following stated objectives amongst others:
(1) The extent of automation in the payment system.
(2) The various electronic instruments of the bank under study.
(3) The major problems associated with the developmenet of electronic banking system in nigeria economy.
(4) The effect of electronic banking system on bank profitability and operational efficiency.
(5) The effects of such system on branch banking and bank customer relationship.
(6) The impact of electronic payment system on monetary control in the Nigerian economy.
In order to ensure a thorough and well guided research, a number of hypotheses were made.
These include:
(1) There is no correlation between electronic banking system and operational efficiency in banks.
(2) Data were collected from both the primary and secondary sources. Thee were analysed using the simple percentage method and chi-square (x2) for the hypothesis testing.
In this project write up;
Chapter one discusses the introduction which comprises:
(a) The background of the study
(b) Statement of problem
(c) Objectives of the study
(d) Statement of hypothesis
(e) Scope and limitation
(f) Significance of the study
Other chapters will be formulated and discussed subsequently after research on them in due course.
Finally, chapter five will discus the summamry, conclusion and recommendation.
TABLE OF CONTENTS
Title page ii
Certification iii
Dedication iv
Acknowledgement v
Proposal vii
Table of contents x
Chapter one: Introduction
1.1 Background of the study 1
1.2 Statement of the problem 5
1.3 Purpose/objective of the study 6
1.4 Research questions 7
1.5 Research hypothesis 8
1.6 Significance of the study 9
1.7 Scope, limitation/delimitation 10
1.8 Definition of terms 11
Reference 13
Chapter two:
Review of related literature 15
2.1 Introduction 15
2.2 The Nigerian monetary transfer system 17
2.3 Overview of the electronic
monetary transfer system 21
2.4 Electronic payment instruments 24
2.4.1Automated teller machine 24
2.4.2Electronic funds transfer point of sale 26
2.4.3International money transfer 27
2.4.4Computerized inter-bank funds transfer 28
2.4.5Internet payment 28
2.5 Problems associated with the development
of electronic banking system in Nigeria. 34
2.6 Implications of the electronic banking system 35
Reference 38
Chapter three:
Research design and methodology 40
3.1 Areas of study 42
3.2 Sample and sampling techniques 42
3.3 Instruments of data collection 43
3.4 Methods of data presentation 43
3.5 Methods of data analysis 45
Reference 47
Chapter four:
Data presentation and analysis 50
4.1 Data presentation 50
4.2 Data analysis 63
4.3 Test of hypothesis 68
Chapter five:
Findings, recommendation and conclusion 73
5.1 Summary of findings 73
5.2 Conclusion 76
5.3 Recommendation 78
Bibliography 80
Appendix 86
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Prior to the banking emergence of a modern banking system in Nigeria, the payment or settlement of economic transaction was through the barter system. Goods and services purchased them were settled by the exchange of commodities as money was not in existence.
However, owing to the deficiencies inherent or associated with a barter economy, the need for a generally acceptable medium of payment arose.
Consequently, between 1850 and 1882 the introduction of British silver coins was possible through which the Nigerian economy was monetized.
Following the introduction of British coins, the Bank of British West Africa (BBWA) was established in 1892 to facilitate the distribution of these coins. This eventually ushered in a rudimentary form or commercial banking in Nigeria. In 1912 however, the West African Currency Board (WACB) was established to take over the responsibility of the (BBWA) of currency distribution in the then West African region comprising of Nigeria, Ghana, Sierre-leone and Liberia.
As economic activities began to rise and the need for financial services emerged banks began to spring-up in the country and between 1892 and 1959 a total of (39) banks were established but for the fact that this was a banking era, a good number of these banks collapsed. The colossal fall of the monetary system consequently led to the introduction of the banking ordinance or 1952, 1959 (subsequent amendment) to further boost the monetary system, the central bank of Nigeria (CBN) was established in 1959 to act as the “Apex” banking regulatory authority.
Also, the banking acts or 1969, the counterfeit currency (special provisions) decree 1974 and the bills of exchange Acts cap 35 laws of the federation of Nigeria 1990 was promulgated. All these efforts were aimed at ensuring safety, stability and restoring confidence in the monetary system.
When in 1961, the CBN established the Nigeria banks clearing house in Lagos, the use of cheques became a dominant instrument in the payment processed daily in the clearing house. An average of five million (5m) cheques were reported to be processed annually between 1961 and 1970.
According to CBN annual report, 1999, a number of procesedcheques however, increased to 11,005.2 million in 1999. This increase eventually led to an ever-mounting flood or paper that has to be shuffled from place to place before payment is fully effected. Thus, because of frequent indirect routine, it has been estimated that each cheques written is currently handled an average of 10 times and passes through 2 1/3 commercial banks before being returned to its source (journal of Banking and finance 2000). The banking industry thereby incurs record-keeping and processing costs averaging about 20 percent per cheques, a figure that does not reflect the full cost of the present system.
Eventually, this increase in the cost of cheques processing undermines the efficiency, reliability and cost effectiveness of the electronic banking system and with the geometric increase in the volume of cheques as to the likely reduction no clear indication costs of the processed cheques.
The expectation that cheque processing cost will continue to soar, roughly in proportion to cheques volume is the chief motivation spuring commercial banks and the central bank of Nigeria to institute a more economical and efficient mechanism. For as long as cheques remain the dominant mode of payments, the system is intrically too labour intensive to permit much more cost cutting through further automation (Lawrence 1996:295). As a result, the only remaining way to make a meaningful impact on cost is by switching a large part of the burden to an entirely different payments methods, one that can be designed from the groudn up to take full advantage of computage technology namely the electronic banking. (Electronic money transfer system).
Finally, according to Anyanwu (2000), electronic banking which is more commonly called the Electronic Funds Transfer System (EFTS) refers to the application of computer technology to banking especially the payments (deposit transfer) aspect of banking. The major distinct pieces of hardware comprices the Automated Teller Machine (ATM), the Point Of Sale (POS) system, and the Automated Clearing Houses (ACH). He stressed that the major merit of electronic banking lies in its ability to reduce costs given the number of cheques written in the economy each year.
1.2 STATEMENT OF THE PROBLEM
As earlier pointed out, the present payment system is saturated with large volumes of paper work. This obviously is responsible for the delay in cheques clearance in the house. Hence, the need for the adoption of an electronic banking. However, the introduction of electronic banking in place of the existing system has some propounding implications.
First, such a payment mechanism will involve nationwide computer networks linking together virtually all households, business firms and government units. These pre-suppose investing a chunk or large amount of financial resources in computer technology. Obviously, the resource is in short supply in Nigeria, coupled with the high level of poverty.
For an efficient functioning of electronic payment system, the availability of infrastructural facilities such as electricity and telecommunication network are indispensable. However, power supply is epileptic and there is still constant failure links in Nitel lines.
Thirdly, Lawrence (1976) and Uche (2000) noted that the introduction of electronic banking system by banks may lead to a decline in the importance of branch offices and eventual closure of some branches. This likely development is what Woheren (2000) called “Brandless banking system”. A development which wills not angur well for the banking industry as it may affect banking customer relationship.
Finally, the introduction of electronic banking system will alter the definition of money supply and the behaviour of velocity thereby creating problems for the CBN in formulating a sound monetary policy.
1.3 OBJECTIVES OF THE STUDY
This study is set out to find out the following:
(1) To determine the extent of automation in payment of the bank.
(2) To identify the various electronic payments of the bank under study.
(3) To evaluate the major problems associated with the development of electronic banking system in the Nigerian economy in the bank.
(4) To examine the effect of electronic banking system on banks profitability and operational efficiency
(5) To evaluate the impact of electronic payment system on monetary control.
1.4 RESEARCH QUESTIONS
In order to elicit information from respondents, the following research questions were formulated.
- To what extent has automation enhanced the payment system of the bank?
- What are the various electronic payment instruments of the bank?
- What are the major problems associated with the development of electronic banking system in the bank?
- What effect has this system on the bank’s profitability and operational efficiency?
- How has this system affected branch banking and the bank’s customer relationship?
- What impact has this system on monetary control of the bank?
1.5 RESEARCH HYPOTHESIS
On the basis of the objectives of the study the following hypothesis have been formulated.
Hypothesis 1
Ho: Autemation does not enhance the payment system of the bank.
H1: Automation enhances the payment system of the bank.
Hypothesis 2
Ho: Automated Teller Mcachine (ATM) does not facilitate payment.
H1: Automated Teller Machine (ATM) facilitates payment.
Hypothesis 3
Ho: The V-SAT online-realtime does not constitute a major problem to transfer payment system.
H1: The V-SAT online-realtime constitute a major problem to transfer payment system.
Ho – null hypothesis
H1 – alternative hypothesis
1.6 SIGNIFICANCE OF THE STUDY
In the era of electronic banking, automated money transfer system in our economy is a welcome development.
The desired impact of this research on the Nigerian society is over-whelming and cannot be over-emphasized. So, the work is significant in so many respects as thus:
- It would expose vividly the strength and weakness of electronic banking.
- It would expose motivate banks and other economic agents to computerize their services.
- It provides a practical suggestion to and policy formulation by monetary authorities.
- Knowledge in the area of electronic banking (monetary transfer) will be advanced.
- Apart from contributing to the knowledge of electronic banking, it forms a reference for future research in this area.
1.7 SCOPE, LIMITATION AND DELIMITATION
An evaluation of a particular influence on a research situation like the Nigerian economy requires an observation of some entities or economic agents. Such economic agents and government limits which include banks, business fims and households.
In this research endeavour, the topic had been restricted to first bank of Nigeria plc in Enugu metropolis. Hence, banks are the major agents of electronic banking/monetary transfer, the bank has been considered and approved for this project.
Furthermore, there are some delimitations or constraints associated with this study as follows:
The time required to distribute questionnaires within the bank in Enugu was a scarce resource given the congested nature of academic work on campus.
Collection and collation of materials for the project write-up was an up-hill task owing to the fact that some materials pestinent to the work were not easy to get and the researcher is left with no better option than to do with what is obtainable.
The financial back-up with which to execute the work also constituted a major constraint.
1.8 DEFINITION OF TERMS
- Cheque – according to Orjih (1996) p 48 “A cheque is an order in writing drawn on a banker, signed by the drawer, requiring the banker to pay on demand a sum certain in money to the order of a specific person or to the bearer, and which does not order any act to be done in addition to payment of money”.
- Automation – this is the use of automatic equipment in an industry.
- Automated clearing System – according to (Ikamenam, (2001) p. 193. This is a system of clearing where all the banks are linked with the CBN and the clearing settlements are made within 24 hours.
- Electronic banking – according to Anyanwu (2000) this refers to the application of computer technology to banking especially the payment (deposit transfer) aspects of banking. It is also defined as a system of banking with an electronic communication network which permits on-line processing of the same day credit and debit transfers of funds between member institutions of a clearing system.
- Point of sale System(POS) – this is an electronic or computer based mode of payment a system which involves goods and services being paid for at the point of sale.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#3000) into our bank Account below, send the following information to
08139462710 or 08137701720
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 08168759420
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Tags: AN APPRAISAL OF THE ECONOMIC IMPLICATION OF ELECTRONIC BANKING IN OPERATIONS OF BANKS IN NIGERIA (A CASE STUDY OF FIRST BANK OF NIGERIA PLC)
