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EFFECT OF REGULATORY PENALTIES ON FINANCIAL PERFORMANCE OF QUOTED INDUSTRIAL FIRMS IN NIGERIA

EFFECT OF REGULATORY PENALTIES ON FINANCIAL PERFORMANCE OF QUOTED INDUSTRIAL FIRMS IN NIGERIA

ABSTRACT

This paper examined the effect of regulatory penalties on financial performance of quoted industrial goods firm in Nigeria. The study specifically examined the effect of litigation infraction charges, corporate Governance infraction charges and operational Non-Compliance charges on the profit for the year of quoted industrial goods firms. Data for the study were sourced through the annual reports and accounts of First Aluminium Nig Plc, Beta Glass and Dangote Cement Plc. The collected data was analysed using multiple regression analysis. Result of the analysis revealed that litigation infraction charges (LIC) have a positive and significant effect on profit for the year (PFTY) of Quoted industrial goods firms. The study further shows that corporate Governance infraction charges has a positive and significant effect on profit for the year (PFTY) of quoted industrial goods firms. The research equally revealed that operational Non-Compliance charges (ONCC) has a negative and non- significant effect on profit for the year (PFTY) of quoted industrial goods firms. Based on the findings, the study recommended among others that quoted firms should sensitize all their employees on the cumulative effect of operational non-Compliance charges (ONC) on the firms’ performance (PFTY).

Keywords: Litigation Infraction Charges; Corporate Governance Infraction Charges; Operational Non-Compliance Charges; Financial Performance; Industrial Firm; Regulatory Penalties

By

1Ude, Anthony Ejiofor, 2Prof. Uche Ugwuanyi and 3Nwabuisi, Anthony Okoro

FULL PDF  |   DOI: 10.5281/zenodo.8060918

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