Firm Attributes and Value of Pension Fund Administrators in Nigeria

Adekoya Oludare Michael; Nwaobia Appolos Nwabuisi; Siyanbola Tunji Trimisiu

doi:doi:10.11648/j.jfa.20221002.12

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Firm Attributes and Value of Pension Fund Administrators in Nigeria

Adekoya Oludare Michael, Nwaobia Appolos Nwabuisi, Siyanbola Tunji Trimisiu

Published in Journal of Finance and Accounting (Volume 10, Issue 2)

Received: 21 February 2022 Accepted: 12 March 2022 Published: 18 March 2022

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Abstract

Value creation is a key objective of every firm and this is applicable to Pension Fund Administrators (PFAs) who seek to remain competitive and achieve superior corporate performance by taking advantage of certain firm attributes. Studies have shown that value of PFAs can impact the financial health of a significant number of individuals during their retirement years if their Retirement Saving Account (RSA) funds are well managed. This objective is scarcely achieved following the increasing challenge faced by the pension fund industry in the dimensions of dearth of investment, poor investment decision by PFAs, restrictions and investment limits by the regulator and the hunt for yield for its RSA contributors amid an environment of low interest rates. Studies that examined the combined effect of firm attributes of firm age, size, contribution density, number of contributors, board size, board quality and branch network on the value of PFAs are lean. This study investigated the effect of firm attributes on Value of Pension Fund Administrators (net asset value per unit) in Nigeria. The study employed ex-post facto research design. Purposive sampling technique was used to select a sample of fifteen (15) from 22 pension fund administrators which have been in existence for the past ten years (2011-2020). Data for this study were extracted from the published annual reports and accounts of the sampled companies which were validated by certification of external auditors and National Pension Commission (PenCom). Data were analysed using descriptive and inferential (multiple regression) statistics at α = 0.05 level of significance. The study found that firm attributes jointly exerted significant impact on net asset value per unit of pension fund administrators (Adj.R² = 0.9298, F(6, 143) = 254.96, p < 0.05). The study concluded that firm attributes enhanced the value of pension fund administrators in Nigeria. It was recommended that pension fund managers should make stakeholders’ interest (contributors and shareholders) a priority and use the selected firm attributes to their advantage to drive performance and create value.

Published in	Journal of Finance and Accounting (Volume 10, Issue 2)
DOI	10.11648/j.jfa.20221002.12
Page(s)	96-106
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Assets Under Management, Firm Attributes, Firm Value, Net Asset Value, Pension Fund, Pension Fund Administrators, Value of Pension Fund Administrators

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APA Style

Adekoya Oludare Michael, Nwaobia Appolos Nwabuisi, Siyanbola Tunji Trimisiu. (2022). Firm Attributes and Value of Pension Fund Administrators in Nigeria. Journal of Finance and Accounting, 10(2), 96-106. https://doi.org/10.11648/j.jfa.20221002.12

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ACS Style

Adekoya Oludare Michael; Nwaobia Appolos Nwabuisi; Siyanbola Tunji Trimisiu. Firm Attributes and Value of Pension Fund Administrators in Nigeria. J. Finance Account. 2022, 10(2), 96-106. doi: 10.11648/j.jfa.20221002.12

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AMA Style

Adekoya Oludare Michael, Nwaobia Appolos Nwabuisi, Siyanbola Tunji Trimisiu. Firm Attributes and Value of Pension Fund Administrators in Nigeria. J Finance Account. 2022;10(2):96-106. doi: 10.11648/j.jfa.20221002.12

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@article{10.11648/j.jfa.20221002.12,
  author = {Adekoya Oludare Michael and Nwaobia Appolos Nwabuisi and Siyanbola Tunji Trimisiu},
  title = {Firm Attributes and Value of Pension Fund Administrators in Nigeria},
  journal = {Journal of Finance and Accounting},
  volume = {10},
  number = {2},
  pages = {96-106},
  doi = {10.11648/j.jfa.20221002.12},
  url = {https://doi.org/10.11648/j.jfa.20221002.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20221002.12},
  abstract = {Value creation is a key objective of every firm and this is applicable to Pension Fund Administrators (PFAs) who seek to remain competitive and achieve superior corporate performance by taking advantage of certain firm attributes. Studies have shown that value of PFAs can impact the financial health of a significant number of individuals during their retirement years if their Retirement Saving Account (RSA) funds are well managed. This objective is scarcely achieved following the increasing challenge faced by the pension fund industry in the dimensions of dearth of investment, poor investment decision by PFAs, restrictions and investment limits by the regulator and the hunt for yield for its RSA contributors amid an environment of low interest rates. Studies that examined the combined effect of firm attributes of firm age, size, contribution density, number of contributors, board size, board quality and branch network on the value of PFAs are lean. This study investigated the effect of firm attributes on Value of Pension Fund Administrators (net asset value per unit) in Nigeria. The study employed ex-post facto research design. Purposive sampling technique was used to select a sample of fifteen (15) from 22 pension fund administrators which have been in existence for the past ten years (2011-2020). Data for this study were extracted from the published annual reports and accounts of the sampled companies which were validated by certification of external auditors and National Pension Commission (PenCom). Data were analysed using descriptive and inferential (multiple regression) statistics at α = 0.05 level of significance. The study found that firm attributes jointly exerted significant impact on net asset value per unit of pension fund administrators (Adj.R2 = 0.9298, F(6, 143) = 254.96, p < 0.05). The study concluded that firm attributes enhanced the value of pension fund administrators in Nigeria. It was recommended that pension fund managers should make stakeholders’ interest (contributors and shareholders) a priority and use the selected firm attributes to their advantage to drive performance and create value.},
 year = {2022}
}

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TY  - JOUR
T1  - Firm Attributes and Value of Pension Fund Administrators in Nigeria
AU  - Adekoya Oludare Michael
AU  - Nwaobia Appolos Nwabuisi
AU  - Siyanbola Tunji Trimisiu
Y1  - 2022/03/18
PY  - 2022
N1  - https://doi.org/10.11648/j.jfa.20221002.12
DO  - 10.11648/j.jfa.20221002.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 96
EP  - 106
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20221002.12
AB  - Value creation is a key objective of every firm and this is applicable to Pension Fund Administrators (PFAs) who seek to remain competitive and achieve superior corporate performance by taking advantage of certain firm attributes. Studies have shown that value of PFAs can impact the financial health of a significant number of individuals during their retirement years if their Retirement Saving Account (RSA) funds are well managed. This objective is scarcely achieved following the increasing challenge faced by the pension fund industry in the dimensions of dearth of investment, poor investment decision by PFAs, restrictions and investment limits by the regulator and the hunt for yield for its RSA contributors amid an environment of low interest rates. Studies that examined the combined effect of firm attributes of firm age, size, contribution density, number of contributors, board size, board quality and branch network on the value of PFAs are lean. This study investigated the effect of firm attributes on Value of Pension Fund Administrators (net asset value per unit) in Nigeria. The study employed ex-post facto research design. Purposive sampling technique was used to select a sample of fifteen (15) from 22 pension fund administrators which have been in existence for the past ten years (2011-2020). Data for this study were extracted from the published annual reports and accounts of the sampled companies which were validated by certification of external auditors and National Pension Commission (PenCom). Data were analysed using descriptive and inferential (multiple regression) statistics at α = 0.05 level of significance. The study found that firm attributes jointly exerted significant impact on net asset value per unit of pension fund administrators (Adj.R2 = 0.9298, F(6, 143) = 254.96, p < 0.05). The study concluded that firm attributes enhanced the value of pension fund administrators in Nigeria. It was recommended that pension fund managers should make stakeholders’ interest (contributors and shareholders) a priority and use the selected firm attributes to their advantage to drive performance and create value.
VL  - 10
IS  - 2
ER  -

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Author Information

Adekoya Oludare Michael

Department of Accounting, School of Management Sciences, Babcock University, Ilisan-Remo, Nigeria
Nwaobia Appolos Nwabuisi

Department of Accounting, School of Management Sciences, Babcock University, Ilisan-Remo, Nigeria
Siyanbola Tunji Trimisiu

Department of Accounting, School of Management Sciences, Babcock University, Ilisan-Remo, Nigeria

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APA Style

Adekoya Oludare Michael, Nwaobia Appolos Nwabuisi, Siyanbola Tunji Trimisiu. (2022). Firm Attributes and Value of Pension Fund Administrators in Nigeria. Journal of Finance and Accounting, 10(2), 96-106. https://doi.org/10.11648/j.jfa.20221002.12

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ACS Style

Adekoya Oludare Michael; Nwaobia Appolos Nwabuisi; Siyanbola Tunji Trimisiu. Firm Attributes and Value of Pension Fund Administrators in Nigeria. J. Finance Account. 2022, 10(2), 96-106. doi: 10.11648/j.jfa.20221002.12

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AMA Style

Adekoya Oludare Michael, Nwaobia Appolos Nwabuisi, Siyanbola Tunji Trimisiu. Firm Attributes and Value of Pension Fund Administrators in Nigeria. J Finance Account. 2022;10(2):96-106. doi: 10.11648/j.jfa.20221002.12

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@article{10.11648/j.jfa.20221002.12,
  author = {Adekoya Oludare Michael and Nwaobia Appolos Nwabuisi and Siyanbola Tunji Trimisiu},
  title = {Firm Attributes and Value of Pension Fund Administrators in Nigeria},
  journal = {Journal of Finance and Accounting},
  volume = {10},
  number = {2},
  pages = {96-106},
  doi = {10.11648/j.jfa.20221002.12},
  url = {https://doi.org/10.11648/j.jfa.20221002.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20221002.12},
  abstract = {Value creation is a key objective of every firm and this is applicable to Pension Fund Administrators (PFAs) who seek to remain competitive and achieve superior corporate performance by taking advantage of certain firm attributes. Studies have shown that value of PFAs can impact the financial health of a significant number of individuals during their retirement years if their Retirement Saving Account (RSA) funds are well managed. This objective is scarcely achieved following the increasing challenge faced by the pension fund industry in the dimensions of dearth of investment, poor investment decision by PFAs, restrictions and investment limits by the regulator and the hunt for yield for its RSA contributors amid an environment of low interest rates. Studies that examined the combined effect of firm attributes of firm age, size, contribution density, number of contributors, board size, board quality and branch network on the value of PFAs are lean. This study investigated the effect of firm attributes on Value of Pension Fund Administrators (net asset value per unit) in Nigeria. The study employed ex-post facto research design. Purposive sampling technique was used to select a sample of fifteen (15) from 22 pension fund administrators which have been in existence for the past ten years (2011-2020). Data for this study were extracted from the published annual reports and accounts of the sampled companies which were validated by certification of external auditors and National Pension Commission (PenCom). Data were analysed using descriptive and inferential (multiple regression) statistics at α = 0.05 level of significance. The study found that firm attributes jointly exerted significant impact on net asset value per unit of pension fund administrators (Adj.R2 = 0.9298, F(6, 143) = 254.96, p < 0.05). The study concluded that firm attributes enhanced the value of pension fund administrators in Nigeria. It was recommended that pension fund managers should make stakeholders’ interest (contributors and shareholders) a priority and use the selected firm attributes to their advantage to drive performance and create value.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Firm Attributes and Value of Pension Fund Administrators in Nigeria
AU  - Adekoya Oludare Michael
AU  - Nwaobia Appolos Nwabuisi
AU  - Siyanbola Tunji Trimisiu
Y1  - 2022/03/18
PY  - 2022
N1  - https://doi.org/10.11648/j.jfa.20221002.12
DO  - 10.11648/j.jfa.20221002.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 96
EP  - 106
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20221002.12
AB  - Value creation is a key objective of every firm and this is applicable to Pension Fund Administrators (PFAs) who seek to remain competitive and achieve superior corporate performance by taking advantage of certain firm attributes. Studies have shown that value of PFAs can impact the financial health of a significant number of individuals during their retirement years if their Retirement Saving Account (RSA) funds are well managed. This objective is scarcely achieved following the increasing challenge faced by the pension fund industry in the dimensions of dearth of investment, poor investment decision by PFAs, restrictions and investment limits by the regulator and the hunt for yield for its RSA contributors amid an environment of low interest rates. Studies that examined the combined effect of firm attributes of firm age, size, contribution density, number of contributors, board size, board quality and branch network on the value of PFAs are lean. This study investigated the effect of firm attributes on Value of Pension Fund Administrators (net asset value per unit) in Nigeria. The study employed ex-post facto research design. Purposive sampling technique was used to select a sample of fifteen (15) from 22 pension fund administrators which have been in existence for the past ten years (2011-2020). Data for this study were extracted from the published annual reports and accounts of the sampled companies which were validated by certification of external auditors and National Pension Commission (PenCom). Data were analysed using descriptive and inferential (multiple regression) statistics at α = 0.05 level of significance. The study found that firm attributes jointly exerted significant impact on net asset value per unit of pension fund administrators (Adj.R2 = 0.9298, F(6, 143) = 254.96, p < 0.05). The study concluded that firm attributes enhanced the value of pension fund administrators in Nigeria. It was recommended that pension fund managers should make stakeholders’ interest (contributors and shareholders) a priority and use the selected firm attributes to their advantage to drive performance and create value.
VL  - 10
IS  - 2
ER  -

Copy | Download