Effect of Management Techniques and Financial Performance of Listed Manufacturing Firms in Nigeria

Abstract

The business world is getting more and more competitive on a global scale, and companies are coming up with innovative, effective ways to manage their operations in order to keep operating expenses to a minimum and boost performance through higher profits. As a consequence of the aforementioned, this research looked at the financial performance and cost-management techniques of listed Nigerian manufacturing companies. In order to accomplish these goals, a longitudinal research design was used. Thirty (30) carefully chosen listed manufacturing companies that had continuously released their audited annual financial reports between 2008 and 2022 were included in the study. The data were analysed using the panel multiple regression technique with the aid of statistical tools (E-view 10). The results of the study indicated that the financial performance of listed Nigerian manufacturing firms was negatively and marginally impacted by prime cost and absorption costs. The study came to the conclusion that prime cost and absorption expenses had no appreciable impact on financial performance in the context of Nigerian listed manufacturing enterprises. This conclusion suggests that manufacturing companies look at their whole cost structure to find places where costs can be reduced without sacrificing product quality. This could entail renegotiating contracts with suppliers, putting cost-cutting initiatives in place, or looking into different sourcing tactics.