Corporate Overheads and Operational Performance of Brewing Firms in Nigeria (Published)
The study examined the effect of corporate overheard on the operational performance of firms in the Brewing Industry in Nigeria. The specific objectives of the study were to ascertain the effect of sales and marketing expenses, administrative expenses, and company income tax expenses on earnings per share of breweries in Nigeria. The study adopted an ex-post-facto research design, covering the period between 2015 and 2022. Secondary data were extracted from the annual reports and accounts of sampled breweries in Nigeria. Multiple regression techniques were used for test of hypotheses. The findings of the study indicate that sales and marketing expenses, administrative expenses, and company income tax expenses do not have a statistically significant effect on the earnings per share of breweries in Nigeria. These non-significant relationships suggest that variations in these expenses do not significantly impact the profitability and financial performance of breweries in terms of their earnings per share. These findings highlight the need for further exploration of other factors that may influence profitability in the brewing industry in Nigeria. The study therefore conclude that corporate overheads does not significantly affect operational performance of breweries in Nigeria. The implication of the finding is that there is a need for breweries in Nigeria to consider a broader range of factors beyond the studied expenses to enhance their profitability and operational performance. The study, therefore, recommends that breweries should consider incorporating additional financial performance indicators, such as return on assets, return on equity, and gross profit margin, to gain a comprehensive understanding of their financial performance and identify areas for improvement. In addition to financial indicators, breweries should focus on non-financial factors like product quality, customer satisfaction, brand reputation, and market share, as these can significantly impact profitability and overall competitiveness. Breweries should analyze all aspects of the value chain, including production, distribution, procurement, and overhead costs, to identify opportunities for cost optimization. Managing cost drivers effectively can improve cost efficiency and enhance financial performance.
Keywords: Earnings per share, Financial Performance, brewing industry, corporate overhead, cost optimization, operational performance
Queuing System and Performance of Automated Teller Machine of Access Bank Plc, Uyo (Published)
The focus of this study had been on Queuing System and Performance of Automated Teller Machine of Access Bank Plc, Uyo. The work was necessitated based on the cashless policy and the increasing waiting lines experienced by the various stakeholders in the Automated Teller Machine. The aim of the study was to determine the effect of customer arrival, service discipline and service mechanism has on the performance of Automated Teller Machine of Access bank in Uyo. Relevant literatures were reviewed and the methodology adopted was survey research design, a population of 1,326 which emanated from the service rate of a five- day study was used for the study, the data was analyzed using tables. The data were obtained through observation method. Both descriptive and inferential statistics were used to analyze collated data. These include: frequency, percentage, mean, rank, Pearson product Moment Correlation and Linear multiple regression. The finding of the study revealed that customer arrival have a significant positive impact on the financial performance of Access Bank in Uyo. The study further reveal that service discipline indeed enhances the market performance of Access in Uyo. The study also indicate that service mechanism have a significant positive impact on the shareholder return of Access Bank, Uyo. The study concluded that customer arrival, service discipline and service mechanism are the three major components of Queue System that have positive significant impacts on the performance of Automated Teller Machine ATM of Access Bank in Uyo. Based on the findings, it was recommended that ATM queuing system offer valuable insights for the banking sector, suggesting strategies for improving financial performance, market performance, and shareholder returns.
Keywords: Financial Performance, Queuing system, service discipline, service mechanism
An analysis of factors for increase in financial turnover gap between construction companies established during same time period in KSA (Published)
The purpose of this research is to explore the various management related factors influencing the construction companies of Saudi Arabia and try to determine if the corporate management team or the site management team has a significant effect on the overall performance and success of construction companies. The study has made use of quantitative research methods with deduction approach. This research is conducted by using web-based survey questionnaire targeted at the sample size of 400 professionals from all regions of Saudi Arabia including all demographic levels. As per the results, highest RII scorings of the success/failure factors related to the corporate management (Payments delay, Poor cost estimation, Weakness of the financial and technical capabilities of some contractors and Delays in decision making by management team) revealed the importance of corporate management issues for the survival of Saudi Arabian construction companies. The result analyses also revealed that the success/failure factors related to project management team were less supported by participants with the exception being the factor of ‘poor project management’.The results obtained from the research would provide insight to companies for better identification of issues that may be facing the organisation and therefore, helpful in formation of policies that may benefit the organisation.This is the first research which covers all of five major grading areas: Roads, Water and sanitation work, Buildings, Electrical work, and Mechanical work with grade I,II, III & IV classified contractors including all thirteen provinces of Saudi Arabia. The literature review revealed that none of previous research cover aforementioned grading areas and demography.
Keywords: Corporate Management, Financial Performance, Success/failure factors, construction companies, site management
Capital Structure and Financial Performance of Quoted Manufacturing Firms in Nigeria (Published)
There is a divide of view on the relationship between capital structure and corporate financial performance. This study explored the effects of capital structure on financial performance of quoted manufacturing firms in Nigeria. The study used panel least square multiple regression to examine secondary data gathered from the 14 sampled organizations’ financial statements from 2011 to 2020. The null hypothesis that there is no statistically significant link between total-debt-to-total-equity and return on assets of manufacturing entities in Nigeria was accepted. The study rejected the second hypothesis relating to long-term-debt -to-total-assets. The study recommended that management of manufacturing corporations that are active on the stock market should strive to increase their long-term-debt-to-total-assets so as to improve their business operations and by extension, their financial performance. The study established that there is a beneficial link between capital structure and financial performance of manufacturing companies.
Citation: Akinrinola, O.O., Tomori, O.G., Audu, S.I. (2023) Capital Structure and Financial Performance of Quoted Manufacturing Firms in Nigeria, International Journal of Business and Management Review, Vol.11, No. 2, pp.29-47
Keywords: Capital Structure, Financial Performance, Manufacturing Firms, Return on Assets
Corporate Governance and Organizational Performance: A Study of Selected Banks in Nigeria (Published)
An indebt study of the performance of Nigerian Banking sector is deplete with litany of woes and failures. This necessitated the need to examine the factors responsible for this sad scenario against the background of the role of corporate governance on organizational performance. The study adopted a combination of both descriptive design and ex-post facto research methodology; Secondary data were sought from published annual reports of selected Banks for the period under review (2014-2020), and was analyzed using descriptive statistics and ratio analysis. Hypotheses were tested by multiple regression and Pearson product moment correlation methods. The finding of the study revealed that there is a positive relationship between Audit Committee Size, Board Composition with performance of selected Banks, while Board Size and Board Meetings showed negative significant relationship with performance of selected Banks respectively. The study concluded with recommendations that Corporate Governance Mechanism and Code of Best practices contributed a good deal to the performance of Banks – that the managers of Selected Banks should adopt Corporate Governance principle and best practices as integral parts of managing banks for both effective and efficient service delivering, thus striking a balance between organization’s objective and the stakeholder’s interest.
Citation: Isidore Godwin Usendok (2022) Corporate Governance and Organizational Performance: A Study of Selected Banks in Nigeria, International Journal of Business and Management Review, Vol.10, No.4, pp.59-74
Keywords: Corporate Governance, Financial Performance, Stakeholders, corporate structure
Credit Management, Credit Policy and Financial Performance of Commercial Banks in Uganda (Published)
This study was carried out with the purpose of analyzing the effects of credit management on the financial performance of commercial banks in Uganda. Specifically, the study sought to establish whether there is a relationship between credit policy and performance, Capital Adequacy and performance and credit risk control and performance. In achieving the objectives assigned by the study, a causal research design was undertaken and that was facilitated by the use of secondary data which was obtained from published audited financial statements of commercial banks and the BOU annual supervision reports. The study used universal sampling techniques, where all banks licensed and operational in Uganda were selected, multiple regression was used. The findings indicated a significant relationship (r = 0.639) between credit management and the financial performance of commercial banks in Uganda. The coefficient of determination R² was 0;408 meaning that credit management indicators explain up to 40.8% of variations in the financial performance of commercial banks in Uganda. The results from the coefficients summary in the regression model indicate that the significance of coefficients of credit policy (LR), capital adequacy (CAR) and Credit Risk Control (NPL/TL) are -0.031, -0.555 and -1.005 respectively. It was therefore found that both the CAR and the NPL/TL are significant though have an impact at different significance i.e. capital adequacy and Credit Risk control have a greater impact compared to Credit policy (LR) on the financial performance of commercial banks in Uganda. It was established that there is no significant relationship between credit policy and performance of banks in Uganda, however, a significant relationship between the credit risk control, capital adequacy and the performance of commercial banks was established. It was recommended that should use a moderate credit policy as a stringent credit will undermine the financial performance. Moreover, commercial banks should seek to adequately control their credit risk by keeping lower their ratio of nonperforming loans which is the major determinant of commercial banks’ financial performance as shown in the study. The bank of Uganda should encourage banks in Uganda to use credit metrics model in controlling its risks
Keywords: Commercial Banks, Credit Management, Credit Policy, Financial Performance, Uganda
Effect of Bond Issuance on Financial Performance of Firms listed on Nairobi Securities Exchange (Published)
The bonds market in Kenya has experienced tremendous growth in the recent past. Firms listed on Nairobi Securities Exchange (NSE) have gone ahead to undertake secondary bond issues as they pursue their growth strategies. Looking at the financial performance (Return on Equity) of these firms that have undertaken secondary bond issues, there are declines at particular periods after these issues. Understanding the effect of bond issues on financial performance is important for the survival of firms. Studies on the relationship between debt and financial performance of firms have shown that debt has an effect on financial performance. This study went further to find out the effect of debt in form of bond issuances on listed firm financial performance as measured by return on equity. The study collected dated from all the six firms that had issued bonds in tranches or additional bonds within the period 2008 to 2017. Data was analyzed via regression to assess whether bonds issuance has any effect on the financial performance of firms listed on NSE. Results indicate that about 75.4 percent of variance in financial performance could be explained by bond issuance as characterized by bond price, bonds coupon rate, bond proportion, and bond yield to maturity. Bond proportion and bond yield to maturity were found to have a statistically significant effect on financial performance. The study concluded that bond issues affected financial performance of listed firms in Kenya. It was recommended that the listed firms ought to take into consideration the various aspects of bond issues in order to enhance their financial performance.
Keywords: Financial Performance, Nairobi Securities Exchange, Return on Equity, bond issuance, bond price, bond proportion, yield to maturity
Influence of Micro-Finance Non-Financial Services on Financial Performance of Small Enterprises in Kenya (Published)
Small Enterprises are now recognized globally as drivers of economic growth and development and it is agreed that the microfinance sector is a major backbone in the sustenance and survival of small enterprises. The study employed descriptive research design. A sample of 67 respondents was picked through stratified random sampling technique. Questionnaires through self-administration were used to collect data. Inferential data analysis was done. All the three null hypotheses were rejected. The results of the study indicated that record keeping on its own explained 22.4% of variability of financial performance of small enterprises in Kenya whereas credit management advisory and budgeting and control explained 35.7% and 22.9% respectively. The joint independent variables together explained 70.1% of the variability of financial performance. The study concluded that there is indeed a significant influence of record keeping, credit management advisory and budgeting and control on financial performance of small enterprises in Kenya. However, there are other factors that explain the variability of the financial performance in small businesses in Kenya that were not included in the model.
Keywords: Budgeting and Planning, Credit Management Advisory, Financial Performance, Record Keeping
The Influence of Capital Adequacy Ratio on the Financial Performance of Second-Tier Commercial Banks in Kenya (Published)
Performance of most mid-tier commercial banks in Kenya has been fluctuating over the past few years. Meanwhile, some of them continue to post impressive results as majority report losses and others merge in order to remain sustainable. This situation points to financial performance affecting the mid-tier commercial banks in Kenya. The government, through the Central Bank of Kenya, introduced prudential regulations aimed at bringing sanity in the banking industry. This move led to closure of Dubai Bank and Imperial Bank while Chase Bank went under statutory management awaiting new investors. From this, an investigation was done on how Central Bank regulations influenced financial performance of second-tier commercial banks in Kenya. Based on the study, this paper explores how capital adequacy ratio influences financial performance of commercial banks in Kenya. The study was purely quantitative research and, therefore, correlation research design and descriptive research designs were used. The study was conducted in 14 second tier commercial banks in Kenya. It collected financial data from 2013 to 2016, considering that the regulations came into effect in 2013 from CBK and commercial banks websites. The data was sourced from Central Bank of Kenya after getting permission and approval from National Commission for Science, Technology and Innovation (NACOSTI). Data collected was analysed using descriptive and inferential statistics. Multiple Regression Analysis was used to test the study research hypothesis. Findings were presented through tabulations and graphical illustrations. Computed correlation showed that capital adequacy ratio had significant strong positive relationship (p<0.05) with financial performance of mid-tier commercial banks. In conclusion, it was found that capital adequacy ratio is among the main predictors of mid-tier commercial banks’ financial performance. It was therefore recommended that CBK needs to regularly monitor commercial banks by ensuring that they publish their quarterly results to the public. The investment regulators in the country such as the Capital Markets Authority (CMA), Kenya Banker Association (KBA) and Central bank of Kenya can use these study findings to understand the bottom line impact of bank regulatory requirements and in understanding banks decision on to its customers.
Keywords: Capital Adequacy Ratio, Commercial Banks, Financial Performance, Influence, Kenya
Capital Structure Impact on Financial Performance of Sharia and Non-Sharia Complaint Companies of Pakistan Stock Exchange (Published)
For a firm to be profitable, it is necessary to create an optimal capital structure that contribute towards desired performance level. This study was conducted to explore the relationship between capital structure and financial performance of firms specifically with respect to shariah complaint and non shariah complaint companies. The analysis was conducted on panel data of 8 companies (3 shariah complaint and 5 non shariah complaint) listed under technology and communication sector of Pakistan Stock Exchange under the period 2009-2015. Financial Performance was the dependent variable measured by ROA and ROE while capital structure was independent variable measured by indicators, LTDR, STDR, SGR, NDTS and INSHOL. Multiple linear regression and correlation were used as statistical tools to run the model. On the basis key findings we concluded in Pakistan Shariah and non shariah companies have different pattrens of capital structure. We further concluded that capital structure effect the performance of firm in case of non-shariah but do not significantly affect performance of shariah complaint.
Keywords: Capital Structure, Financial Performance, Non- Sharia complaint, Pakistan, Return on Asset, Return on Equity, Sharia complaint, Technology and Communication