CHAPTER ONE1.0 INTRODUCTION1.1 BACKGROUND OF THE STUDY Since the beginning of corporate form of business entity in Nigeria, the banking sector has been playing important role in promoting economic growth and development by way of providing liquidity and capital in form of loans to firms and private individuals, Izedonmi (2001) noted that banks help to allocate available resources by mobilizing funds from productive channels to finance investment activities in productive sectors and increase capital formation, they also promote financial investment activities by selling their financial securities to the public who in return will require mere performance to be reflected in their financial yearly report. The activity of monitoring banks in Nigeria to ensure that there financial statement are released when due are the Central Bank of Nigeria (CBN) and the Nigerian Accounting standard board (NASB) through the statement of Accounting standard (SAS) and the code of corporate governance which have set pressing issue on standard of financial reporting by banks. Although the formation, development, application and disclosure of these accounting policies and principles has not been fully upheld to as it could be that the policies adopted are not favorable. Accounting policies are specific accounting bases used by corporate firms which are appropriate to the circumstances of the business and suitable for presentation of its results and financial position through the use of fundamental accounting concept, conventions and principles to achieve its objective of a true and fair view of the financial statement since they are to be relied upon by stakeholders. The major accounting policies are in the area of consolidation, segment reporting, foreign currency conversion and translation, investment in subsidiary, depreciation, goodwill, sales of loan and security etc. Different techniques are used by different firm under the implementation of accounting policies. The policy making process involves a network of relationship among policies makers in different firms. The complexity of accounting policies can takes its on financial report, some times financial report can be based on conflicting policies resulting to criticism of such reports; there may be conflict in the implementation of the policies and disclosure discrepancies between policies and report. The quality of financial information is a function of both the quality of accounting standard and the regulatory enforcement or corporate application of the standards (Kothori and Hope 2003). So these policies should be formulated using the standard. It is on this note that the Nigeria Accounting Standard Board (NASB) develop the statements of accounting standards SAS that will guide banks and other corporate entity in the formation of sound and safety accounting policies for the efficiency of reporting in the financial statement. Despite the importance of financial performance of banks to investors and stakeholders there have been few study on the area so this study is attempt to fill the gap, that is to focus on the banking sector and study “the impact of their accounting policies on their financial performance.
1.2 STATEMENT OF PROBLEM Previous studies have been carried out concerning the accounting policies of the banks and the problem associated with this research are:
1.3 OBJECTIVE OF THE STUDY The objective of this research is to find out the impact of some selected areas of accounting policies on the financial performance of banks. Areas of study are:
1.4 RESEARCH QUESTION From the research objectives stated above the following research questions can be given.
1.5 RESEARCH HYPOTHESIS
The research statement of the following hypotheses have been developed
Hi: A conducive work environment has positive effect on employees productivity
Ho: A conducive work environment has no positive effect on workers productivity.
Hi: Provision of good environment is deemed to be the most potent among workers to enhance productivity.
Ho: Provision of good environment does not deemed to be the most potent among workers to enhance productivity.
Hi: Custom and laws encourages workers morale.
Ho: Customers and laws does not encourages workers morale.
Hi: The nature of work environment has positive effect on workers productivity
Ho: The nature of work environment has no positive effect on workers productivity.
1.6 SCOPE OF THE STUDY
This research work centers on those who are employed by organization to work for it. In other words, the study is X-raying all the workers in Unitedbank for Africa (UBA) as a special regard which is the research. This area will assist the researcher to carry out a thorough research and analysis in other to really ascertainthe effect of work environment on the productivity of workers or employee.
1.7 SIGNIFICANT OF THE STUDY
Many people in an organization try to attain a higher level safety or job security in their placeof work. And this study when completed should be of immense help to different organization and individuals. It will help to highlight the effect of work environment on the productivity of employees in UBA , so that the management will look into the problems with a view to make an improvement on its environment. It will enable the management to create a minimum standard of good working environment for workers to achieve optimum productivity. The study is intended to highlight management to create monetary incentive alone cannot motivate employees to better productivity without the provision of good environment under which they operate. Moreover, it will assist to uphold or testify the idea that good environment is very important and indispensable to growing needs of workers. It will also be beneficial to prospective students who will need some information contained in this work to guide their own research work which is related to the present study.
1.8 LIMITATION OF THE STUDY
A general setback to most research works are: office facilities, human resources and job security are the major constraints expected to limit the extend of a study of this type, since observation interviews and questionnaire shall be constitute, the basic data gathering. The methods shall have projected effects on perfectness of this research,not withstanding, the researcher shall do a detail work on the subject which would ensure attainment of the objective upon which this research work was originally provided.
1.9 DEFINITION OF MAJOR TERMS
Definition of terms is to be specifically, understand for clarity and easy understanding of applied meaning of such terms as used in the context of this research work taking into cognizance the prevailing circumstance.
a. LoadingBay:This are loading and unloading point for vehicles (http://wiki openttd.org)
b. Environment: The surroundings in which a person, animals or plant lives (Derek 1997
c. Morale: this is the capacity of a group’s member to maintain belief in an institution or goal particularly in the fall of opposition or hardship. Morale is often referenced by authority as a generic value judgment of the will power, obedience, and self discipline of a group tasked with performing duties assigned by a superior. According to Alexander H.Leighton , ‘ Morale is the capacity of a group of people to pull together persistently and consistently in pursuit of a common purpose
d. Job Security: This is the probability that an individual will keep his or her job; it has been found that people have more job security in times of expansion and less in time of recession. Also some laws (such as the Rights Acts 1964)
e. Productivity: Is a measure of the efficiency of production. Productivity is a ratio of production output to what is required to produce it (inputs.). Productivity is defined as a total output per unit of an input. These definitions are short but too general and insufficient to make the phenomenon productivity understandable a more detailed theory of productivity is needed, which defines and explains the phenomenon, productivity and makes it comprehensible in order to obtain a measurable form of productivity. The efficiency with which things are produced
f. Prospective: Literally means “looking forward” it can also be refer to an event that is likely or expected to happen in the future.
1.10 SUMMARY
The effect of work environment on the employees productivity is deem necessary for the productivity increment and high moral to work. The work environment has a far reaching effect on the morale of workers, but receive very little research attention specifically, this study is geared towards examining the various conditional factors of work environment ascertaining whether inadequacy of each of the various conditional factors can affect the productivity of workers. Base on the conclusion, work environment is improved such as neat ness, noiseless, proper arranged and ventilated environment.
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