ABSTRACT
Access to sustainable microfinance
services enables owners of micro-enterprises to increase income level in the
economy, create employment opportunities and reduce their vulnerability to
external shocks. It also enable poor household to move from by struggle for
survival to planning for the future investing in better nutrition and
empowering them socially.
The Research work is therefore aimed at evaluating the micro enterprises
access to micro credit in which a research design instrument (Questionnaires)
was give out to some micro enterprises in a stratified sampling area to collect
the relevant information needed for proper presentation and analysis.
Pearson coefficient of correlation(r) shows a strong relationship
between having awareness of microfinance services and having access to micro
credit, as one of the micro finance service by the micro enterprises and those
that have access to micro credits even though all the micro enterprises were
aware of it but not all of them have access to it due to some reasons.
TABLE OF CONTENT
Title page
Certification
Dedication
Aknowledgement
Abstract
CHAPTER ONE:
INTRODUCTION
1, 0 Introduction
1.1
Statement of problems
1.2
Research objectives
1.3
Research question
1.4
Research hypothesis
1.5
Significance of the study
1.6
Scope and limitation of study
1.7
Historical background of study
1.8
Definition of terms
CHAPTER TWO:
LITERATURE REVIEW
2.1 Introduction
2.2.1 Definition of
financial statement of fraud
2.2 Types of
financial statement fraud sheme
2.2.1 Fictitious
revenue
2.2.2 Timing
Difference
2.2.3 Improper assets
valuation
2.2.4 Concealed
liabilities and expences
2.2.5 Improper and /
or ineadequate disclosure
2.3 Indicator to
financial statement scandal/fraud
2.4 Tools to
detect fraudulent financial statement the financial statement Analysis.
2.4.1 Vertical
analysis
2.4.2 Horizontal
analysis
2.4.3 Ratios
2.4.3.1 Sales growth index (S G I)
2.4.3.2 Gross marginal index (G M I)
2.4.3.3 Asset Quality Index (A Q I )
2.4.3.4 Days Sales Receivable Index (D S R I )
2.4.3.5 Sales, General and Administrative Expenses Index
2.5 Ratio
analysis and financial statement
2.6 Significance
of ratio analysis
2.7 Limitations
of ratio analysis
2.8
Classifications of ratio
CHAPTER THREE:
RESEARCH METODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Research population/sampling
3.4 Sample size
3.5 Sampling
techniques
3.6 Sources of data collection
3.6.1 Primary source
3.6.2 Secondary source
3.7 Data analysis
techniques
3.8 Constraints in
data collection
CHAPTER FOUR:
DATA ANALYSIS AND INTERPRETATION
4.1 Introduction
4.2 Respondents
characteristics and classification
4.3 Data
presentation and analysis
4.3.1 Analysis of
respondents Bio-data
4.3.2 Analysis of
Individual statement
4.4 Testing of
hypothesis
CHAPTER FIVE:
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of
findings
5.2 Conclusion
5.3 Recommendation
CHAPTER ONE
1.0 INTRODUCTION
Thus, this study is intended to
examine the effects of financial misstatement or scandals on firm‘s profitability.
The study will also cover the control and precautions to financial scandal. The
study also examine how best to handle scandals to ensure efficiency and
effectiveness of firms.
The practice of manipulating the
financial statement to bolster company’s position is not new
According to the Association of
Certified Fraud Examiners (ACFE) fraud is the deliberate misrepresentation of
the financial position of an enterprise, accomplished through the intentional
misstatement or omission of amounts or disclosures in the financial statement
to deceive financial statement users. Also, financial scandals are fraud called
misrepresentation of facts, and its key elements are: -
i. A material false statement
ii. Knowledge of its falsity
iii Reliance on the false statement by the
victim, and
iv Damage suffered by victim
Financial scandals meet the above
criteria. The financial scandal is false because of the degree of manipulation
to present a ‘picture’ that is grossly different from the truth. Those behind
it, the top management know it is false, but want users (banks investors,
public) to rely on it, and there is high risk of financial loss to those who
invest in money losing ventures
1.2
STATEMENT
OF PROBLEM
The major problem of financial
scandals is its adverse effect on the firm’s profitability and the detriments
it holds on the firm’s reputation.
However, this is evident in the
findings carried out on First Bank Nigeria Plc and its directors in the
financial decisions of the firm’s financial misstatement carried out by the
Securities and Exchange Commission (SEC).
1.4
RESEARCH
OBJECTIVES
The main
objectives of this proposed research shall be:
1.
To examine the effects of corporate financial
statement fraud on firm’s profitability.
2.
To identify reason(s) why such falsification is
largely perpetrated by management
3.
To examine how perpetrated scandals are designed to
benefit the organization
4.
To find out how financial fraud affects the
organization generally.
1.5
RESEARCH
QUESTIONS
For the purpose of this research work,
the following research questions will be dealt with.
1 Is there
any significant relationship between financial scandals and firm’s
profitability?
2. Has
the falsification of financial statement improved the volume of investors?
3. is
there any significant relationship between financial scandals and investor’s
turnover?
4. Are
financial scandals aided by the management to the firm’s benefits?
1.4 RESEARCH
HYPOTHESIS
The under listed points are turned
into assumptions and in the cause of this research work shall form the field
work.
Hypothesis: H0 - Null Hypothesis
Hi
- Alternative Hypothesis
1. H0: Corporate financial scandals have no relationship with firms’
profitability
Hi: There is a
relationship between corporate financial scandals and firms profitability.
2. Ho: Corporate financial
scandals are not aided by management.
H1: Most
corporate financial scandals are management aided
3. Ho: Financial scandal does
not affect the overall performance of the firm
H1: Financial
scandals will always affect the overall performance of the firm
4. H0: Corporate financial
misstatement would not lead to high risk of financial loss to investors
H1: corporate
financial misstatement would lead to high risk of financial loss to investors
1.7
SIGNIFICANCE
OF THE STUDY
“The effects of corporate financial
scandals on firm’s profitability” as a subject of study is a research study
that worth it in all aspects of time wasted in carrying out the work.
The beneficiaries of this study are
traceable to owners of the business, the stakeholders, banks, investors and the
government. Thus this work is based on the following premise:
I.To looks
at the reasons why management opts to end fraud.
ii To look
at the essence of an auditor in the prevention of fraud in an organization.
iii. To show
the true picture of the organization to interested investors who will like to
invest their monies in such.
1.8
SCOPE AND
LIMITATION OF STUDY
This study is intended to examine the
effects of financial misstatement or scandals on firm‘s profitability. The
study will also cover the control and precautions to financial scandal. The
study shall also examine how best to handle scandals to ensure efficiency and
effectiveness of firms.
However, the major constraints of this
project work are non availability of sufficient time and material resources
required for a more in-depth research from authorities of Cadbury Nigeria plc.
In spite of all these constraints, an attempt has been made to maximize the
available resources.
1.7 HISTORICAL
BACKGROUND OF STUDY
Cadbury Nigeria Plc, an associate of
Cadbury Schweppes - the global leader in the confectionary market, has its
history dates back to the 50s. The company began as an offshore of Cadbury Fry
Export Limited by a British company.
In 1960, the company began with small
packing operation and grew very rapidly to a point where the factory was then
built. In effect, Cadbury Nigeria
was formally incorporated in January 1965 and thereafter took over the control
of all Cadbury Fry (export) limited assets and activities in Nigeria.
Cadbury Nigeria went public in 1976, when
more of its shares were sold to the public. Cadbury Schweppes holds 46% and
many Nigerians own the remaining 53.7%.
Currently, the company has over 54,000
share holders in her register. Also, the company‘s business is in three major
parts; The confectionary - mostly sugar confectionary, the food drinks and food
seasoning with an array of 22 popular brands in its portfolio not minding that
it started with only two products.
1.8 DEFINITIONS
OF TERMS
In cause of
this research work, the under listed are common terms used.
1. FRAUD
An act of deception deliberately
practiced to gain unlawful or unfair advantage, such deception being directed
to the detriment of another.
2. PROFIT
An excess of revenue over associated
expenses for an activity or over a period. It is the surplus of revenue inflow
over expenditure out flow on related transactions
3. FINANCIAL
STATEMENTS
These are balance sheet, profit or
loss accounts statement of sources and applications of funds, notes and other
statements which collectively are intended to show a true and fair view of
financial position.
4. RATIO
An index that relates two numbers
usually by dividing one number by the other
5. BALANCE
SHEET
This is a firms’ statement of assets and liabilities.
6 INCOME
STATEMENT
Is a record of a company’s receipt and
payment.
7 ASSETS
These are properties
on money which is used to finance a business.
8 LIABILITIES
These
are obligations owed to be fulfilled or money borrowed in order to finance the
business
9 INVESTORS
These
are individuals or financial institutions that invests in a business concern
10 REVENUE
Is the totality of
income generated by a business concern from varying sources?
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