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For the results of NMA to be valid, transitivity potential modifiers of treatment effects are similarly distributed across trials and consistency indirect effect estimates are consistent with those of direct effects should be present.

Therefore, careful evaluation of clinical and methodological heterogeneity across trials was assessed to ensure that network transitivity was maintained ie, similar patients and characteristics within and across trials.

The data and the results were verified by 2 different quality control agents. All methods were in line with the Cochrane Review Guidelines. An ad hoc scenario analysis was also performed that was limited to studies with regimens containing bortezomib treatment backbones only.

From the SLR, a total of records were identified, and of those, 47 records were selected Table S1 and Table S2 , where a total of 28 phase 2 or 3 RCTs met the inclusion criteria and were extracted Figure 1.

Networks varied between treatment line and outcome assessed. Green line: Retrospective study. For the 2L PFS network, 21 studies were included. The majority of included studies 14 were RCTs with exclusively 2L outcomes reported. Importantly, the activity of the DVd regimen is based on twice weekly bortezomib dosing in the CASTOR study, which is rarely incorporated in current clinical practice.

Moreover, the CASTOR study required that bortezomib was discontinued after 24 weeks in both the DVd and Vd arms, again not consistent with usual clinical practice and magnifies the effects of daratumumab after the first 24 weeks where no therapy was given on the control arm. There was a Out of the three therapies that were more favorable than XVd, none had a statistically significant difference versus XVd. XVd had the 5th best result versus Vd out of 20 regimens assessed RR: 1.

Out of the four therapies that were favorable to XVd, none had a statistically significant improvement versus XVd. XVd had an average rank of There was a 7. Out of the 11 therapies that were favorable to XVd, none had a statistically significant difference versus XVd.

Out of the 10 therapies that were favorable to XVd, none had a statistically significant difference versus XVd. XVd had the 8th best result versus Vd out of 25 regimens assessed RR: 1. Out of the seven therapies that were favorable to XVd, none had a statistically significant improvement versus XVd.

An additional NMA was performed that only included regimens containing Vd. This additional analysis avoided the need for the retrospective study to link between BOR and Vd and also allowed for comparisons between regimens with 1 shared common anchor ie, all included studies in this additional analysis directly compared to Vd.

This translated to a As essentially all patients with MM are expected to inevitably relapse, the treatment landscape for the disease has seen the development of a plethora of options. Since the number of treatment options and lack of multi-arm randomized studies makes head-to-head comparisons challenging, NMAs enable the pooling of direct and indirect evidence from multiple studies, allowing comparison of treatments that were not directly compared in head-to-head trials.

Current clinical practice guidelines from the Mayo Clinic and the European Society for Medical Oncology both recommend that patients experiencing their first relapse after an IMiD-based typically lenalidomide induction therapy move to IMiD-free regimens such as bortezomib and dexamethasone in 2L.

As an oral, first-in-class SINE compound, selinexor works in combination with bortezomib and other PIs and dexamethasone to synergistically and selectively kill malignant plasma cells. Compared to Vd and other Vd-based triplets, XVd is associated with reduced neuropathy rates and requires fewer clinic visits. The additional analysis, which included only regimens containing Vd backbone therapies, was performed to compare more similar treatment options.

Similar results were seen in this analysis. A basic strategy in MM, which is employed for other complex diseases, is to utilize novel mechanisms whenever possible when disease progression occurs. Although patients may be treated with bortezomib in the front-line setting, they are often not treated through disease progression, either because they undergo stem cell transplantation or develop significant toxicity, typically PN.

Thus, patients eligible for transplantation will receive their stem cell transplant while their disease remains sensitive to bortezomib. Furthermore, patients who are transplant ineligible with MM sensitive to bortezomib are frequently treated with an IMiD combination therapy and then transitioned to lenalidomide maintenance.

In addition, while there are some differences in the mechanisms of resistance between carfilzomib and bortezomib, results have shown clinical responses with bortezomib-based therapies in carfilzomib refractory MM. Again, a lack of overlacking toxicities with other anti-MM agents allows for flexibility and broad use of the selinexor-containing regimen. The reduced effect of XVd on OS in younger and more fit patients is expected given the large number of alternative treatments and prolonged expected survival in this population.

If the data are available, future analysis stratified by the type of prior therapy received could also help shed light on the reason for these between-line differences. Futhermore, approximately half of the patients in the BOSTON trial had high risk cytogenetics, a subpopulation higher than that in other studies and an inherently more difficult-to-treat population.

This, combined with its more convenient treatment regimen ie, once weekly bortezomib and substantially reduced bortezomib-induced PN compared to other Vd backbone therapies, support the role of XVd in providing patients a valuable treatment option for previously treated MM. Given that selinexor can work in combination with all anti-MM drug classes including PIs, IMiDs, and mAbs, eg, with carfilzomib and dexamethasone [XKd]; pomalidomide and dexamethasone [XPd]; or daratumumab and dexamethasone [XDd] , clinicians have the opportunity to employ a unique mechanism of action in combination with existing backbone therapies to treat patients refractory to their primary therapy.

Future analyses including a larger sample of studies for each regimen, if they were to become available, would likely improve the precision of the estimates and could allow for adjustment of potentially important effect-modifiers. Furthermore, additional studies could help improve the network links between regimens by reducing the need for non-RCT trials or trials with non-transitive populations to be used. Their findings similarly showed little statistical differences between treatments compared, with the exception of DVd, which significantly prolonged PFS compared with other IMiD-free regimens such as carfilzomib plus dexamethasone [Kd], panobinostat plus Vd [FVd], cyclophosphamide plus Vd [CVd], and Vd.

In terms of OS, DVd showed statistically significant improvements compared with Vd, but other comparisons were inconclusive. The inclusion of these combinations in future NMAs would provide a clearer understanding of their relative efficacy and place in therapy. Current clinical evidence suggests that once weekly oral selinexor in these various combinations offers deep and durable responses with potentially greater convenience and significantly fewer clinical visits.

While the presented analysis is based on robust methods and consists of data obtained from a thorough SLR, there were some key limitations to note. First, there was a limited number of studies, particularly for certain treatment regimens where only 1 study was available.

Furthermore, some of the included studies had very small sample sizes, which added to the overall uncertainty of the NMA results. The lack of consensus has produced a variety of ideas mechanisms on how to deal with the problem of agency. The outsider ownership which may consists of family ownership, state ownership and institutional ownership such as financial institutions like Banks, Pension funds and Insurance Companies.

Hence, this study examines the relationship between ownership structure and capital structure of Listed Industrial Goods Companies in Nigeria. Debt financing and equity financing are two main capital sources in business. Firms issue more debt bear high risk. An optimal capital structure should be the balance of debt and equity. Debt can be classified as long-term debt and short-term debt, long term debt includes bonds, long term loan and long-term notes payable.

Short term debt consists of short-term bank loan and account payable. Equity capital usually consist common stock, preferred stock and retained earnings. Most firms employ the combination of debt and equity to finance their assets to minimize costs of capital.

The formed capital structure is usually referred as leverage. Leverage is the ratio of debt to total assets of the firm. Leverage reflects the proportion of debt financing in total assets, and could be used to measure the level of protection for creditors once the firm facing liquidation.

High level of leverage usually means that a firm takes aggressive strategy for financing its future growth by issuing debt. This may increase firm’s earning volatility due to the arising interest expense.

New businesses usually take certain amount of debt to raise capital. The common form of debt is bank loan, firms issuing debt need to pay interest regularly and repay principal in due. Firms can issue long term or short-term debt according to their financial strategy. Short term debt has maturity with or less than one year of borrowing.

Long term debt refers to the debt that is taken for 10 years or longer. Regarding to equity, common stock is the shares possessed by common shareholders. Common shareholders own the equity of the firm and have voting rights for the control of important company matters.

Common stock holders don’t have fixed dividend and thus their income is highly uncertain and contingent with company earning and market value. Like common shareholders, preferred shareholders receive dividends from firm’s profits but have priority in the payment of dividend and upon bankruptcy.

Besides, preferred shareholders usually have no voting rights. Retained earnings refer to the portion of profits that firm doesn’t distribute to shareholders but are reserved for future investments. In the point of creditors, leverage ratio is expected to be lower. Firms with lower leverage generally have enough assets to repay debt and thus creditors bearing less risk.

If the total profits are higher than debt costs, shareholders obtain the increased earnings. For this reason, shareholders would prefer higher level of leverage. However, if the costs of debt financing exceed the returns of debt, it would cause financial dilemma for the firm and eventually lead to bankruptcy, which leave shareholders nothing. Firms raise too much funds from debt financing will increase future financial risk. Creditors will require adequate collateral to assure their pay-off.

If risky investments fail, firm faces bankruptcy risk and creditors will take over the operation. The optimal capital structure is to balance the costs of debt financing and firm’s economic benefits and future development. Based on Modigliani and Miller trade-off theory, debt financing increases a firm value. This is because of the interest tax shield of debt capital. This explain the trade-off theory of capital structure that states the amount of tax savings will just be offset by the same amount of bankruptcy costs.

Although exact target debt may not be possible to determine, firms having high and consistent profitability with lot of tangible assets to offer as collateral security should be able to have a higher debt ratio.

According to Myers and Majluf , firms that recognize this trade off theory would set their target debt then gradually moves toward the target.

The equity element of capital structure is financed by different interest groups. Ownership structure encourages distribution of power between managers and shareholders. Company ownership structure refers to the composition of the ordinary shareholding of a company in terms of insider, outsider, institutional and government ownership, as well as other dispersed shareholders. Ownership structure ranges from individual to collective; this causes new problems in the area of financial resource management.

Ownership structure is one of the most important instruments in determining the corporate governance system of any country. This is because it determines the nature of the agency conflict that is whether the prevailing conflict is between controlling and minority shareholders or between managers and shareholders Zhuang et el, Abel Ebel and Okafor categorized ownership structure as the percentage of shares held by managers managerial ownership , institutions institutional ownership , government state ownership , foreign investors foreign ownership , family family ownership and so on.

Fazlzadeh stated that ownership structure has two implications: identity of owners and ownership concentration, that is, the distribution of shares owned by controlling shareholders. Arosa et al. There are diverse concepts regarding the significance of corporate Ownership structure. Principal-agent type II theory suggested that greater ownership concentration offers the opportunity for the controlling shareholders to use their power to start the activities projected to gain personal profit at the cost of small shareholders Miller, Ownership structure means distribution of ownership the stock of companies among the corporation’s owners shareholders , which can be evaluated into two perspectives Jiang, One perspective is the concentrated ownership and other perspective is the composition of ownership.

Managerial ownership is the proportion of share ownership by directors, management or any party who actively participate in the company decision-making.

One of the mechanisms used to solve the agency conflict is increasing managerial ownership, so interests of the owner and the manager can be harmonized. The greater managerial ownership is, the more agency cost will decrease, so the value of company can also be increased. Managerial ownership is usually being measured by comparing the managerial share ownership with total of circulated shares. The increase of managerial ownership force managers to take the responsibility of wealth consequence and thus coordinates the interests of management and shareholders.

Kulathunga et al examines the relationship between capital structure and managerial ownership. The results revealed that managerial ownership has a significant positive influence on the capital structure. Also, in support of these findings, Farooq present that firms with high ownership concentration tend to have low debt ratios. Conversely, Al-Fayoumi and Abuzayed examines the relationship between ownership structure and capital structure decisions of listed industrial firms in Jordan.

The empirical results show negative statistically significant relationship between the managerial ownership and capital structure, suggesting that, managers employ lower debt in order reduce the performance pressures associated with high debt capital. Also, Zhang examines the impact of ownership structure on capital structure of non- financial Chinese listed firms.

The findings reveals that there is no evidence that managerial ownership affects firm’s capital structure. In view of the above, this study hypothesized that H1: There is significant positive relationship between managerial ownership and capital structure 2.

Institutional ownership is widely being measures as proportion of institutional share ownership to the total shares in circulation Miller, In theory, institutional investors have been associated with medium- to long-term, not short-term, investment horizons. Hence Rossi and Cebula refer to institutional owners as patient investors. The long-term perspective of institutional investors enables them to take up their monitoring role. This view is against studies about mutual funds in the USA and pension funds in the UK, of which most of the institutional investors had short-term perspectives.

In view of the above, this study hypothesized that H2: There is significant positive relationship between institutional ownership and capital structure 2. Since block holders have large proportions of shares, they tend to have a large proportion of voting rights too. They are therefore able to influence the decisions of their respective firms. Some researchers have measured investor sophistication by block size.

Agency theory postulates that firms consist of a contract between the owner of economic resources the principal and management the agents who is charged with using and controlling these resources Jensen and Meckling, This theory posits an inherent moral hazard problem in these relationships, which in turn give rise to agency costs for the organization. It is suggested that ownership structure tends to mitigate the conflicts of interests between shareholders and managers.

Block-holders are also said to facilitate behavior-based monitoring from the capital market Eisenhardt, Prior studies claim that share ownership by block- holders can help to monitor agency problems Agrawal and Knoeber, This is due to the fact that shareholders of an organization have a residual claim on the earnings and assets of the organization and therefore bear proportional to their share ownership, the economic consequences of actions taken by organization managers and directors.

If managers engage in opportunistic behavior, shareholders bear a portion of the costs of such actions Fama and Jensen, Supporting this idea, it was argued that block holders play an active role in firm performance. Besides that, agency theory is also criticized for its ignorance of the existence of social and authority relationship and assumes social life is a series of contract Johnson and Droege, It is unknown whether the agency theory findings in western countries have equal impact in Asian organizations Ekanayake, ; Johnson and Droege, Previous literature Conlon and Parks, ; Hassab Elnaby and Mosebach, ; Ekanayake, indicates that there is a possibility that given the cultural differences, the typical nature of agents in agency theory may not be the case with regard to non-western countries.

Sharp and Salter argue that the agency effects are lower in Asia. In view of the above, this study hypothesized that H3: There is significant positive relationship between block ownership and capital structure 3.

The population of the study comprised of all the thirteen Industrial Goods Companies that are quoted in the Nigerian Stock Exchange as at 31st December, Two-point criteria was used to select companies for inclusion in the final sample of the study. The first criteria are that a company must be quoted before The second criteria are that the annual report of a company must be intact for the period of The above criteria result to the final sample size of eight 8 quoted industrial goods companies.

The dependent variable of the study is the capital structure, while the explanatory variables are independent variables managerial ownership, institutional ownership and Block ownership and control variables firm size and profitability. The data collected were analyzed using descriptive statistics, correlation and regression analyses using the STATA statistical package.

Debt to equity ratio was derived to be used to proxy on capital structure as the dependent variable as used by Rashid Managerial ownership is the proportion of share ownership by directors, management or any parties who actively participate in the company decision-making to the total outstanding shares in issue Samarakoon, Institutional ownership is measured proportion of shares belonged to the institutional owners such as insurance companies, banks, investment companies and other institutional shareholdings except for subsidiaries and other institutions which have special relationships affiliated companies and associated companies Samarakoon, Table 2 below shows the descriptive statistics of all the variables under investigation.

The result reveals that of the firms studied, CS records a minimum value of 0 and maximum value of 1. The mean value for the CS was 0. Standard deviation, Skewness and Kurtosis for the CS were within acceptable range, implying that the mean deviated from the actual over the periods and within the industry under consideration.

Dev Skewness Kurtosis CS 0. On average, managerial ownership stood at The value of standard deviation implies that the mean value represents the true average for the firms or implies the percentage by which the mean deviates from actual. Standard deviation, the values Skewness and Kurtosis for the MNO were within acceptable range, implying that the mean deviated from the actual over the periods and within the industry under consideration. Institutional ownership INO recorded a minimum value of 0 and a maximum value of 0.

The mean value for institutional ownership was 0. The standard deviation proves that the mean value recorded was the true average for the firms. Block-holders ownership BHO recorded a minimum value of 0. Whereas the Mean of Block-shareholding stood at Table 3 displays the correlation coefficients between dependent and the independent variables and also the relationship between the independent variables themselves of the study together with the results of the multicollinearity test.

Institutional shareholding is positively correlated 0. Moreover, Block-holder ownership is found is found to be positively correlated 0. An aspect of this observation is that larger companies have larger Block-holding — and larger companies with larger assets base are more inclined to incur debt at favorable terms. Table 4 shows the summary of regression coefficient figure R relating to the dependent variable capital structure and the independent variables Managerial shareholding, Institutional shareholding, Block- holder shareholding.

The result of the Hauseman specification test between fixed effect and random effect GLS was 0. This indicate that random effect supersedes. Hence, the results of GLS random effect are presented and discussed in Table 4. Table 4 Regression Results Coef. These results indicate that the higher the managerial ownership, the higher the debt-to-equity ratio. This implies that, firms with higher managerial ownership augment their financing needs with debt capital to benefit from the tax shield of debt and lower their overall cost of capital.

This results in line with findngs of Kulathunga and contradicts Kulathunga and Azeez and Wellalage and Locke The result also shows that the institutional ownership INO has significant negative effect on the capital structure of Industrial Goods companies, from the coefficient of This indicates that when the shareholding by institutions is increased, the debt-to-equity ratio will decrease, suggesting that the higher the institutional ownership, the lower the debt-to-equity ratio.

Hence, they have less reliance on debt capital for both financing and monitoring needs. The result support the tradeoff theory. The result in the table indicates that the block- holder ownership of the sample Industrial Goods firms in Nigeria has significant positive effect on the capital structure of the firms, from the coefficient of 2. This implies that an increase in the block-holders ownership will lead to corresponding increase in the debt-to-equity ratio significantly, suggesting that the larger the size of block-holders ownership the higher will be debt to equity ratio.

Table 5 Hypotheses Relationship Decision Hypoth Relationship Decision eses H1 There is significant positive relationship between managerial Supported ownership and capital structure H2 There is significant positive relationship between Institutional Not Supported ownership and capital structure H3 There is significant positive relationship between Block Supported holder ownership and capital structure 5. The study documents that managerial and block holder ownerships have statistically significant positive relationship with the capital structure.

Conversely, institutional ownership has a statistically significant negative relationship with the capital structure. On the basis of the findings and conclusions, it is recommended that financial managers should ensure that each component of ownership structure managerial ownership, institutional ownership, block-holder ownership are efficiently and effectively managed to avoid waste and create value for the firms.

It is also recommended that firms reduce the borrowing level of the manufacturing firm in order to reduce the overall risk and cost of borrowing. Relevant agencies of the government, especially the Stock exchange commission SEC , Financial Reporting Council of Nigeria FRCN will use this study to identify additional ownership disclosures needed in setting standards or regulation that will ensure the interest of stakeholders especially shareholders are protected by enhancing the selection of ownership structure as a corporate governance mechanism.

Future researchers who want to embark on a study which relate to ownership structure, corporate governance and other related area of interest will find this study a material for references purposes. Future studies should consider in-depth research on other components of ownership structure such as state, legal, and government ownership as well as comparison of each component of ownership structure between different sectors.

Local corporate ownership and capital structure decisions in Nigeria: A developing country perspective. Corporate Governance, 10 3 , Agrawal, A. Al-Fayoumi, N. Ownership structure and corporate financing.

Applied Financial Economics, 19 24 , Arosa, B. Ownership structure and firm performance in non-listed firms: Evidence from Spain. Journal of Family Business Strategy 1: 88— Azeez, A. Corporate governance and firm performance: evidence from Sri Lanka. Journal of Finance, 3 1 , Booth, L. Capital structures in developing countries. The Journal of Finance, 56 1 , Brailsford, T. On the relation between ownership structure and capital structure.

Accounting and Finance, 42 1 , 1— Brigham, E. Conlon, E. Effects of monitoring and tradition on compensation arrangements: An experiment with principal-agent dyads. Academy of Management Journal, 33 3 , Eisenhardt, K. Agency theory: An assessment and review. Academy of management review, 14 1 , Ekanayake, S.

Fama, E. Farooq, O. Fazlzadeh, A. International Journal of Business and Management. Fleming, G. Gitman, L. Principles of Managerial Finance ed. Edinburgh, England: Pearson. Gillan, S. Journal of Financial Econmics, 57 2 , Hasan, A. International Journal of Business and Management, 4 2 , Haniffa, R. Corporate governance structure and performance of Malaysian listed companies. Hassab Elnaby, H.

Jensen, M. Journal of Financial Economics, 3 4 , Jiang, P. The relationship between ownership structure and firm performance: an empirical analysis over Heilongjiang listed companies. Johnson, N. Reflections on the generalization of agency theory: Cross-cultural considerations. Human Resource Management Review, 14 3 , Kulathunga, K. The impact of ownership structure on dividend policy: Evidence from listed companies in Sri Lanka. Journal of Accountancy and Finance, 02 01 , La Porta, R. Corporate ownership around the world.

The Journal of Finance, 54 2 , Li, M. The moderating effect of environmental dynamism on the ownership and performance relationship. Strategic Management Journal, 19 2 , Leland, H. Informational asymmetries, financial structure, and financial intermediation. Journal of Finance 32, Miller, D. Are family firms really superior performers? Journal of Corporate Finance 13 5 : — The International Journal of Applied Economic.

Finance, Myers, S. Journal of Financial Economics, 13, Pindado, J. Capital structure: new evidence from the ownership structure. International Review of Finance, 11 2 , Rajan, R. What do we know about capital structure? The Journal of Finance, 1 5 , Rashid, A. International Journal of Business and Management Invention, Rossi, F.

Debt and ownership structure: evidence from Italy. Samarakoon, L. Sharp, D. Shleifer, A. Journal of Political Economy , 94, A survey of corporate governance. The Journal of Finance, 52 2 , Standard and Poor’s The determinants of capital structure choice.

The Journal of Finance, 43 1 , Wellalage, H. Capital structure and its determinants in New Zealand firms, Journal of Busniess Economics and Management, 14 5 , Zhang, L. The Impact of ownership structure on capital structure: Evidence from listed firms in China.

Zhuang, J. In the course of the study, a content analysis on the descriptive research method was employed and the methods of data collection were through secondary sources such as documents relating to toxic assets treatment as well as the provisions of the CBN prudential guidelines for DMBs in Nigeria following the incorporation of an asset management corporation.

The findings of this study disclosed, among others, that the CBN has a good perspective on toxic assets which are classified into specialized and non-specialized loans and subcategorized based on objective and subjective criteria for provision purposes.

The study also revealed that the toxic assets are represented as assets in the balance sheet and upon sale without recourse to the seller are excluded from the balance sheet and regarded as disposal.

The profit or loss thereof is recognized by the selling bank when the transaction is completed. These components include; financial intermediaries such as deposit money banks DMBs and insurance companies which act as principal agents for assuming liabilities and acquiring claims, markets in which financial assets are exchanged, and also infrastructural components which are necessary for the effective interaction of the intermediaries and markets.

Ultimately, it invariably encompasses all functions that direct actual resources to their ultimate users. These DMBs participate majorly in extending credit and facilitating payments in our market economy.

As such, the Nigerian banking industry has been strained by the deteriorating quality of its credit assets as a result of the significant plunge in the equity market indices, global oil prices and the rapid depreciation of the naira against global currencies. Indications of the crisis became evident in the interbank market where activities diminished as banks responded to the perceived risk of lending to each other. Indeed, in spite of the banking consolidation in the Nigerian Financial environment was in dire need of reforms and the financial standing of DMBs pointed to an inevitable collapse in a system fraught with corruption and poor corporate governance issues exemplified by high turnover in the board and management staff, inaccurate reporting and non-compliance with regulatory requirements, late or non- publication of annual accounts and gross insider abuses resulting in huge non-performing loans NPL , otherwise known as toxic assets Cowry, Owing to these syndromes, various reforms were undertaken by the apex government regulatory body, the Central Bank of Nigeria CBN , aimed at making the fiscal system more effective and strengthening its growth potentials.

The balance sheet being a statement showing the financial position is paramount to be accurate and reliable, thus corroborating the need for the toxic assets to be expunged. With the global financial markets in varying states of disarray, Nigerian financial institutions and government officials continue to seek to stabilize the banking industry and restore the flow of credit in the economy. It is argued that toxic assets are one of the major causes of the economic inertia problems Adeyemi, Each toxic asset in the financial sector is viewed as a facade mirror image of an ailing unprofitable enterprise.

From this point of view, the eradication of toxic assets is a necessary condition in improving the economic status of DMBs. If the toxic assets are kept existing and continuously rolled over, the resources are locked up in unprofitable sectors; thus, thwarting the fiscal growth and impairing the economic efficiency of DMBs.

Nigerian banks have been plagued by continuous losses from maintaining toxic assets in their balance sheet which puts their capital at risk. The problem of toxic assets in our banking industry is one which is prevalent and common. It brings about certain intricate issues, concerns and various questions that have to be answered before a proper representation of toxic assets can be made and ultimately disposed of to AMCON.

These questions include that of methodology of valuation of the toxic assets, techniques of disposal or sale of such assets and treatment of such assets in the books of account. This study is, therefore, undertaken in an attempt to provide the necessary answers to these questions as well as show them from the point of view of CBN, the apex regulatory body of banking in Nigeria.

The main objective of this study is to examine the treatment of toxic assets in the balance sheet with particular references to the regulations laid out by the CBN. The specific objectives thus include examining the role of the Central Bank of Nigeria in the treatment of toxic assets and ascertaining the methods of presenting, valuation and disposal of toxic assets of DMBs in Nigeria.

This study adopted the descriptive research method. It involved the observations and description of the techniques used by DMBs in the treatment, valuation and disposal of toxic assets as specified by the Central bank of Nigeria. The time span of the study covered a period of seven 7 years extending from July – July with emphasis on the time period after the establishment of AMCON in Hence, a content analysis was carried out on the CBN prudential guidelines specifically in relation to the treatment of toxic assets in the balance sheets of DMBs in Nigeria to ascertain the methods of valuating, presenting and disposal of toxic assets.

However, the IAS declared a financial asset impaired if its carrying amount is greater than its estimated recoverable amount. In other words, a non-performing loan could be said to be a sum of borrowed money upon which the debtor has not made his or her scheduled payments of principal or interest for a few months. Basically, NPLs are loans that are no longer producing income for the banks that own them.

Hence, transferring toxic assets to AMCON is most likely to improve the credit ratings of DMBs, reducing borrowing and financing costs for the bank and ultimately increasing earnings potential. Coordination with rating agencies is essential in order to ensure that the desired benefits of the good bank bad bank structure can be obtained Pinedo, But, transferring toxic assets to AMCON does not make them evaporate from the economy nor enable the economy to avoid debt restructuring.

By separating the toxic assets from the banks, it is possible to start the process of focusing the banks back to lending. Trying to solve all the toxic assets inside the bank will only prolong the healing process in the organization and reduce the ability of the bank to lend more to the public and other businesses. A bad bank is a term for a financial institution created to hold toxic assets owned by a state guaranteed, in other words licensed, bank.

Such institutions have been created to address challenges arising during an economic credit crunch wherein private banks are allowed to take problem assets off their books. A challenge in establishing a bad bank is the valuation of troubled assets. These models will vary by institution, resulting in different carrying values for similar assets and asset classes Pinedo, To this effect, the Board of AMCON presented a valuation methodology for toxic assets to be purchased from the banking system.

For NPLs backed by shares of listed companies, AMCON will value the loans at an implied premium of approximately 60 per cent on the day average of recent prices ending November 15th The underlying assumption is that a fair value to ascribe for the purposes of buying the NPLs would be two times book value and this premium approximates that value. The estimate must be based on current market analysis of the collateral and a written guarantee of good faith by the institution.

All unsecured loans or loans with ineligible collateral will be valued by AMCON at 5 per cent of the principal value. See Table 4. Provisions are expected to be made for non-performing loans of specialized loans as follows: 1. See table 4. The implications of the treatment of total assets as sales are such that there is a denial of any form of obligation or assumption of re-purchase of re-performing loans on the part of the seller.

In the final stage of the treatment, an equal proportion of total assets are present in all banks, that is, those which have received assistance from AMCON and also those which have not.

Therefore, based on the facts above, it can be deduced that CBN has the objective of promoting a sound financial system in Nigeria and the function of ensuring financial system stability. Toxic assets are shown on the asset side of the balance sheet under a lump sum of loan and advances. The computation of toxic assets of Nigerian DMBs is shown in the notes to the accounts. The toxic assets are categorized either by maturity and or by industry.

The method of valuation of toxic assets in DMBs is determined by the apex financial regulatory body in the country. According to the prudential guidelines for DMBs, toxic assets are classified as specialized and non-specialized loans. For provisional purposes, non-specialized loans are categorized into substandard, doubtful and lost while specialized loans are categorized into Watch list, substandard, doubtful, very doubtful and lost.

These categories are based on an objective criterion i. In relation to the sale or disposal of toxic assets, the sale of loans without recourse to the seller that is, control is passed to the buyer, the seller can reasonably estimate an outstanding cost and there are no repurchase obligations on the sale is accounted for as a disposal and the assets are excluded from the balance sheet.

Profit or loss on the sale of such loans is recognized by the seller when the transaction is completed. The sale of toxic assets to AMCON is in exchange for zero-coupon bonds which are the bond consideration given to the bank in respect of takeover of certain margin related loan balances at a discount, in accordance with the provision of the AMCON act. These bonds are computed into the total long-term investments and appear under the assets as investment securities of the firm.

As such this research is in tandem with the findings of previous works such as Cimburek et al and Woo The stabilizing role of AMCON in the Nigerian banking system has strengthened the balance sheets of local banks and increased the earning prospect for the banking industry. Notwithstanding these opportunities, some major risks are seen occurring in the industry such as the losses that DMBs book from their bond portfolio investment which will as a result of drop in the price of bonds and increase in yields and the insecurity in Nigeria which is also a threat as this may affect the productive sector and scare investors both local and foreign.

Recent guidance from the Financial Accounting Standards Board FASB addressing some of the concerns about market-to-market and fair value accounting may provide incremental improvements, but is unlikely to dramatically restore balance sheets.

Confidence in our banking and financial system requires confidence in our financial institutions and the ongoing reporting of losses and write-down continuously hampers progress. As such a calculated change to the reporting of incremental profits will serve as a light at the end of the proverbial tunnel for the Nigerian Banking industry. CBN Annual Report, Also, a standard should be placed on the methods and criteria for giving out loans taking into consideration the causes of toxic assets and working out ways to avoid such.

In addition, a constant or reoccurring check monitoring the projects to be undertaken should be carried out into the affairs of DMBs in relation to loans in order to detect toxic assets prematurely and handle them appropriately.

Finally, a study may also be carried out to ascertain if the AMCON lifetime of 10 years is too long for planning purposes as the world changes substantially in such a long-life span. Most banking crises are over in a 5—6-year period.

As such a 5—6-year time span may therefore be the logical time to use for planning purposes and the time line to use for winding down toxic assets.

References Adeyemi B. Central Bank of Nigeria , Annual Report. Cimburek J,, Kollar M. Journal of securities law, regulation and compliance volume 2 number 4 April Conduct extensive Referencess audit b. Email: ibglobally gmail. The study focused on investigating the effect of multiple taxes, tax compliance cost and tax rates on the net profit margin of SMEs in Taraba State. The study was hinged on the business growth theory. The survey design was adopted for the study and a questionnaire was issued to the sampled SMEs operators out of which 89 were successfully returned.

The data were presented using descriptive statistics and diagnostic tests carried out using Breach Godfrey serial correlation test, skewness and kurtosis and Pearson correlation.

The ordinary least square regression OLS was used in testing the hypotheses. The findings of the study showed that multiple taxes have a significant effect on the performance of SMEs, tax compliance cost has a negative and insignificant effect on SMEs performance while tax rate has a positive and significant effect on SMEs performance in Taraba State. The study recommends among others that the tax burden on SMEs should be reduced by the government.

To browse Academia. Details and Demo: www. Algorithmic questions allow a group of students to work on the same problem with differing values. Students can also rework a problem with differing values for additional practice. MultiPart Problems and GoTutorials lead students through a series of steps, providing instant feedback along the way, to help them develop a logical, structured approach to problem solving.

Or, they can link directly to the online text to read about this concept before attempting the problem again-with or without the same values. Mustafa Hussain. Jalil La.

 
 

Accounting principles 8th edition exercises of pdf file free download – fvd

 

By using our site, you agree to our collection of information through the use of cookies. To learn more, view our Privacy Policy. To browse Academia. Managerial Accounting Basics. Explaining manufacturing and nonmanufacturing costs and how they are reported in the financial statements. Chapter 1. Log in with Facebook Log in with Google. Remember me on this computer. Enter the email address you signed up with and we’ll email you a reset link.

Need an account? Click here to sign up. Download Free PDF. Accounting Principles 8th Edition. Ellen Litwack. Explain the distinguishing features of managerial accounting.

Identify the three broad functions of management. Define the three classes of photo suite download for costs. Distinguish between product and period costs. Explain the difference between a merchandising and a manufacturing income statement. Indicate how cost of goods manufactured is determined. Explain the difference between a merchandising and a manufacturing balance sheet. Identify trends in managerial accounting. Managerial accounting applies to all types of businesses.

Chapter 1 2. Computing the cost of providing a service or manufacturing a product. Chapters 2, 3, and 4 3. Determining the behavior of costs and expenses as activity levels change and analyzing cost-volume-profit relationships within a company. Accumulating and presenting data for management decision making.

Chapter 7 5. Determining prices for external and internal transactions. Chapter 8 6. Assisting management in profit planning and formalizing these plans in the form of budgets. Providing a basis for controlling costs and expenses by comparing actual results with planned objectives and standard costs.

Chapters 10 and 11 8. Accumulating and presenting data for capital expenditure decisions. Is governed by generally accepted accounting principles. Places emphasis on special-purpose information. Pertains to the entity as a whole and is highly aggregated. Is limited to cost data. Page Solution on notes page SO 1 Explain the distinguishing features of managerial accounting. Managerial Accounting Basics Management Functions Planning Directing Controlling Maximize short-term Coordinate diverse Keeping activities on profit and market activities and human track share resources Determine whether Commit to Implement planned goals are met environmental objectives Decide changes protection and social Provide incentives to needed to get back programs motivate employees on track Add value to the Hire and train Увидеть больше use an informal business employees or formal system of Produce smooth- evaluations running operation Page SO 2 Identify the three broad functions exerckses management.

Managerial Accounting Basics Organizational Structure Illustration Organization charts ссылка на подробности the interrelationships of activities and the delegation of authority and responsibility within the company. Page SO 2 Identify the three broad functions of management. Many organizations have codes of business ethics.

Managerial Accounting Basics Business Ethics Creating Proper Incentives Systems and controls sometimes create incentives for managers to take unethical actions. Controls need to be effective and realistic. Managerial Accounting Basics По этому адресу Question The prinfiples of an organization performs several broad functions.

They are: a. Planning, directing, and selling. Directing, manufacturing, and controlling. Planning, manufacturing, and controlling. Planning, directing, and controlling. Жмите сюда Solution on notes page SO 2 Identify the three broad functions of management.

Managerial Accounting Basics Indicate whether читать больше following statements are true exercisds false. Managerial accountants have a single role within an False organization, collecting and reporting costs to management. Financial accounting reports are general-purpose and True intended for external users. True 3. Managerial accounting reports are special-purpose and issued as frequently as needed.

True 6. Top managers must certify that a company maintains an adequate system of internal controls. Managerial Cost Concepts Managers should ask questions such as the following.

What costs are involved in making a product or providing a service? If we decrease production volume, will costs decrease? What impact will automation have on total costs?

How can dowbload best control costs? Page SO 3 Define the three classes of manufacturing costs. Wccounting Cost Concepts Manufacturing Costs Manufacturing consists of activities and processes that convert raw materials into finished goods. Illustration Page SO 3 Define the three classes of manufacturing costs. Direct Materials Raw materials that can be physically and directly associated with the finished accounting principles 8th edition exercises of pdf file free download – fvd during the manufacturing process.

Manufacturing Costs Materials Indirect Materials Raw materials that cannot жмите easily accounting principles 8th edition exercises of pdf file free download – fvd with the finished product. Not physically part of the finished product or they are an insignificant part of finished product in terms of cost.

Considered part of manufacturing overhead. Перейти на страницу Costs Labor Direct Labor Work of factory employees that can be physically and directly associated with converting raw materials into finished goods. Indirect Labor Work of нажмите чтобы перейти employees that has no physical association with the finished product or for which it is impractical to trace costs to the goods produced.

Manufacturing Costs Manufacturing Overhead Costs that are indirectly associated with manufacturing the finished product. Includes all manufacturing costs except direct materials and direct labor. Also called factory overhead, indirect manufacturing costs, or burden. Manufacturing Costs Review Question Which of the following is not an element of manufacturing overhead? Page Solution on notes page SO 3 Frre the three classes of manufacturing costs.

Not an expense COGS until the goods are sold. Page SO 4 Distinguish between product and period costs. Non-manufacturing costs. Includes all selling and administrative expenses. Product Versus Period Edution A bicycle company has these costs: tires, salaries of employees who put tires on the wheels, factory building depreciation, wheel nuts, spokes, salary of factory manager, handlebars, and salaries of factory maintenance employees.

Classify each cost as direct materials, direct labor, or overhead. Manufacturing Costs in Financial Statements Manufacturing Costs Under a periodic inventory system, the income statements of a merchandiser and a manufacturer differ in the cost of goods sold section.

The cost of goods sold is a. Goods Available for Salec. Inventoryd. Total Manufacturing Costs — sum of direct material costs, direct labor costs, and manufacturing overhead in the current year. Illustration Page SO 6 Indicate how cost of goods manufactured is determined.

Manufacturing Costs in Financial Statements Balance Sheet Inventory accounts for a manufacturer Illustration The balance sheet for a merchandising company shows just one category of inventory. Pdg SO 7 Explain the difference between a merchandising and a manufacturing balance accounting principles 8th edition exercises of pdf file free download – fvd.

Manufacturing Costs in Financial Statements Balance Sheet Current assets sections of merchandising and manufacturing balance sheets Illustration Page SO 7 Explain the difference between a merchandising and a manufacturing balance sheet. Manufacturing Costs in Financial Statements Review Question Og cost of goods manufactured schedule dowwnload beginning and ending inventories for: a. Raw fres and work in process only b. Work in process only c. Raw materials only d.

Raw materials, work in accounting principles 8th edition exercises of pdf file free download – fvd, and finished goods Page Solution on SO 7 Explain the difference between a merchandising notes page and a manufacturing balance sheet.

 

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