European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals

Business Profitability

Competitor Cost Assessment and Profitability of Quoted Nigerian Manufacturing Firms: A Critical Regression (Published)

Competitor accounting involves exploring markets, formulating strategies, and establishing market patterns for sustained industry leadership. This study examined the effect of competitor cost assessment (component of competitor accounting) on the profitability (net profit margin and return on equity) of quoted manufacturing firms in Nigeria. An ex-post facto design was adopted, with a sample of 92 out of 120 firms, drawn using TaroYamene formula and random numbers table. Financial data of the firms for the period 2012-2016, published in the Nigerian Stock Exchange Fact Book, were collected and analysed using descriptive and inferential tools; aided by Statistical Package for Social Sciences (SPSS) version 22. The results revealed that competitor cost assessment significantly affects the net profit margin (firm average index = 19.63% > industry average of 5%) and the return on equity (firm average index = 20.02% > industry average of 5%). The inferential statistics are significant at 95% confidence level (D-W = 2.299, R2= 0.42, p-value = 0.00 < 0.05). The study, therefore, concludes that competitor cost assessment significantly affects the profitability of quoted manufacturing companies in Nigeria. Based on this conclusion, it is recommended that managers of the firms should ensure efficient competitor cost analysis for sustained cost leadership and enhanced financial performance. Also, a special unit anchored by professionals in the accounts and marketing departments of the firms should be charged with the responsibility of conducting continuous competitor accounting assessment, in line with financial reporting best practices, to strategically promote business growth and keep pace with trends in the industry.

Keywords: Business Profitability, competitor cost accounting, quoted manufacturing firms.

Assets Safeguard and Business Performance in Quoted Manufacturing Companies in Nigeria (Published)

The paper titled: Assets Safeguard and Business Performance in Quoted Manufacturing Companies in Nigeria empirically assessed the influence, safeguarding corporate assets exerts on business performance. The empirical referents in focus are efficiency, effectiveness and profitability. The research design adopted is the survey. Data was collected within a framework sample size of thirty-two (32) quoted manufacturing firms in Nigeria. Pearson product moment correlation and QSR Nvivo were adopted in analyzing the quantitative and qualitative data. The findings show that assets safeguard has positive and significant influence on business performance. The study conclude that safeguard of manufacturing firms assets enhances their performance through profitability operational effectiveness and resource utilization efficiency. It is therefore recommended that manufacturing firms should be conscious of their assets safeguard mechanism through proper identification and accountability of assets of all kinds to minimize wastage, losses and ownership conversion by persons of such tendencies.   

Keywords: Assets Safeguard, Business Profitability, Effectiveness, Efficiency

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