Archives of Business Research

Tax Certification and Tax Compliance in the South West, Nigeria

Muyiwa Alade — 2024-04-05

Purpose: Despite the efforts of Federal and State governments in Nigeria to employ administrative tools to improve tax compliance, the nation is still being bedeviled with the issue of low tax compliance, leading to the inability of the government to finance their statutory responsibilities due to the paucity of funds. Therefore, this study investigated the effects of tax certification on tax compliance in South-west Nigeria. Design/methodology/approach: A survey research design was opted for to obtain primary data from a sample size of 400 participants drawn from a population of 1,194 using Slovin’s formula and purposive sampling technique. Both descriptive and influential statistics were performed. Partial Least Square (PLS) regression was used to analyze the data. Findings: The results show that tax certification (β = 0.261; p-value = 0.044) has a positive effect on tax compliance in South-West Nigeria, which is statistically significant at 0.05 level. Based on these findings, the study concluded that tax certification is an essential tax compliance tool in South West, Nigeria. Research limitations/implications: The results imply that improved efforts in issuing tax certificates tied to public services will enhance taxpayers’ compliance with tax regulations. However, the study is not exhaustive as it specifically focused on a tax enforcement tool in a developing economy. Practical implications: It is therefore recommended that all obstacles around issuance of tax certificates, especially in developing economies, should be surmounted by the government through its tax authority. Originality/value: The study is unique in its approach and population by considering tax officers within South West states in Nigeria.

Provider Exclusion in US Private Health Insurance Contract

Michael M Costello — 2024-04-05

Two national newspaper articles published in the Fall of 2018 addressed the issue of private health insurance provider contracts that act to exclude specific health systems from health plan networks. Inevitably, the question arises: Are such agreements illegal restraints of trade actionable under federal and state antitrust laws? A long-standing tenet of antifrust law is that it exists to protect competition not competitors. Excluding providers may be a legitimate outgrowth of the contracting process and therefore legal. However, an examination of the contracting process may reveal anticompetitive intent to restrain trade. The specific facts surrounding provider exclusion must be analyzed carefully in an effort to determine if there is illegal restraint of trade.

The Effects of Increasing the Full Retirement Age from 66 to 67 on the Retirement Decision at the Early Retirement Age of 62

Chong-Hwan Son — 2024-04-05

In the United States, the full retirement age increases in two-month increments each year until reaching 67 years of age in 2027 for individuals born from 1955 to 1960. The increase in the full retirement age is equivalent to a decline in the Social Security benefits for all new retirees. If the full retirement age is increased from 66 to 67 while the early retirement age remains at 62, then the monthly benefit reduction at age 62 would increase from 25% to 30%. Despite the reduction in Social Security benefits, a significant portion of newly retired workers claim their Social Security benefits as soon as they turn 62, which is the earliest age to claim the benefit. The Social Security Administration predicts that the reduction in Social Security benefits can encourage workers to delay their retirement and that the reduction can restore some financial balance to the Social Security system. Therefore, studying the effects of increasing the full retirement age from 66 to 67 on the retirement decision at 62 is essential for planning future social security reforms. This study conducts a Two-Stage Least Squares (2SLS) regression, using cross-sectional and time series data from the Behavioral Risk Factor Surveillance System (BRFSS) from 2016 to 2021. The empirical results show that the probability of retirement for individuals at age 62 decreased from 2016 to 2021, indicating a trend of delaying retirement as their full retirement age rises. During the same period, the likelihood of men reporting being retired decreases by 35.56%, while for women, it drops by 16.79%. It implies that if male and female workers choose to exit the workforce solely based on the Social Security benefits, the increase in full retirement age appears to have a more significant impact on delaying retirement decisions for male workers than for female workers.

Consensus Analysts Target Price and Stock Price Returns in Nigeria

Efe Allwell Omoduemuke — 2024-04-13

This study focuses on the effect of an Investment Valuation technique (Consensus Analysts Target Price) on Stock Price Return of listed companies in the Nigerian Exchange between the period of 2011 and 2023. The ex-post facto research design was employed in this research due to the use of historic (secondary) data from the selected fifteen (15) companies across 3 major sectors on the Nigeria Exchange (NGX). Panel autoregressive distribution lag model was the estimation techniques and inference made on 5% significance level. Prior to the data analysis, a number or pre-estimation test were carried out such as co-integration, homogeneity, and cross-sectional dependence in addition to basis correlation and descriptive analysis. Findings from the short run reveals a significant negative coefficient (-0.273) for lagged Stock Price Return (L.STR), indicating a substantial short-term correction effect. Conversely, the lagged Consensus Analyst Target Price (L.CATP) shows a positive coefficient (0.141) without statistical significance, suggesting a modest positive relationship without an immediate impact on Stock Price Return. Transitioning to the long run, the highly significant negative coefficient (-1.273) for long-run Stock Price Return (lr_STR) emphasizes a robust and persistent negative adjustment effect. Over an extended period, Consensus Analyst Target Price (lr_CATP) introduces a marginally significant positive coefficient (0.077), implying a modest positive impact on Stock Price Return. Based on the results, one recommendation concerning Consensus Analyst Target Price (CATP) and Stock Price Return is to exercise caution in relying solely on CATP for short-term decision-making. Investors should be aware that, in the short term, deviations from the lagged return may not be significantly influenced by CATP. Therefore, considering additional factors or indicators alongside CATP could enhance the accuracy of short-term decision-making in understanding stock price movements.

Is the Balance Sheet Expansions of the Central Banks Inadequate? The Case of Japan

Yutaka Kurihara — 2024-04-13

The Bank of Japan has continued monetary expansion to combat deflation for over twenty years. However, in March 2024, the Bank raised the negative policy interest rate that had lasted eight years and two months. From now on, the Bank should cope with huge balance sheet expansion. Although yield curve control (YCC) has been abolished, long-term interest rates will continue to be controlled to some degree since the Bank will continue to purchase long-term government bonds. New purchases of exchange-traded funds (ETFs) have been completed, but the main measures of normalization, such as removing ETFs from the huge balance sheet, will not be implemented easily because of increasing risk of stock prices decreasing. Consequently, there will be some possibilities to lead to a rise in long-term interest rates, a strong yen (a decrease in exports), and also to a decline in stock prices. Empirical analyses are conducted to examine the effects of monetary expansion and the results are positive, however, this study emphasizes the importance of the credibility of central banks.

Institutional Efficiency And Financial Performance Of Insurance Companies In Nigeria

Olurotimi Ogunwale — 2024-04-13

This study investigated the impact of institutional efficiency on the financial performance of insurance companies in Nigeria covering the period from 2011 to 2022. The study employed an ex-post facto research design, the estimation techniques utilized were feasible generalized least squares (FGLS) on a sample of five insurance companies were taken. The key variables used in the analysis included net profit margin (NPM) as dependent variable and claims processing efficiency (CPE), risk management effectiveness (RME), and regulatory compliance (RC) as independent variables. The findings displayed that claims processing efficiency (β =0.185, p > 0.05) had positive but no significant effect with net profit margin, risk management effectiveness rate (β =105.910, p > 0.05) is positive but not significantly influencing in net profit margin, regulatory compliance also have negative but does not significantly impact net profit margin of the selected insurance companies in Nigeria at 1% level (β =-12.504, p > 0.05). The study thus recommended, among others, that policy maker should encourage insurance companies to adopt measures that enhance institutional efficiency, such as investing in technology, improving risk management practices, and enhancing customer service.