Employee Participation in Budgeting and Effective Budgetary Control a Tool for Enhancing Organizational Performance.

Organizational performance is a major issue of concern to stakeholders in any business. Stakeholders are of keen interest on the positive performance of the business enterprise they have interest in. Boosting performance however does not start during regular activities of the organization, but before the regular activities commence through budgeting and during the regular business activities of the organization towards the attainment of the organizational objectives. This research dealt with the impact of employee participation in budgeting as well as the adoption of effective budgetary control in the improvement of organizational performance of medium and large scale enterprises in Nigeria. The data used for this research was collected through the administration of research questionnaire to employees of medium and large scale enterprises in Nigeria. The research hypotheses were tested using regression analysis and correlation. At the end of the research, it was found out that employee participation and in budgeting as well as effective budgetary control are essential tools for the enhancement of organizational performance. The research therefore recommends that medium and large scale companies should adopt the bottom up budgeting system by allowing employees participate in budget formation, as well as the use of periodic budgetary control method

Financial Structure and the Profitability of Manufacturing Companies in Nigeria

Finance mix is a major factor that affects the liquidity and the going concern of a business enterprise. After an idea has been conceived by an entrepreneur, there is need to also analyse the capital required for startup and means of financing the project. A good combination of sources of finance is expected to boost the profitability of an organization, but if not properly mixed, could have a negative effect on the profitability of the organization. The main objective of the study is to evaluate the effects of financial structure on the profitability of manufacturing companies in Nigeria. This study employed the use of secondary data. The Spearman’s Rank correlation and regression techniques were used for analysis, using the STATA Package for a sample of 25 manufacturing companies quoted on the Nigerian Stock Exchange for the period 2008-2012. The study showed that equity has a significant positive relationship with the profitability of manufacturing companies in Nigeria. The study recommends that managers should place greater emphasis on the facilitation of equity capital and policy makers should encourage manufacturing companies by reducing the cost of debt

Corporate Governance Mechanisms and the Financial Performance of Companies in Nigeria

All business organizations have vision, mission and organisational objectives, which are geared towards improved performance and survival thus forming the driving force behind the decisions made by its management team. The organizational objectives of the company, however, is what deterimnes the type of structure the company puts in place in an attempt to achieve the set objectives. Corporate governance has been acliamed to be a major tool for enhancing corporate image, reduce missapropriation of fund, attract investors as well as improve the performance of the company. This study however examines the role of corporate governance mechanisms on the financial performance of listed companies in Nigeria. Using return on asset (ROA) as a proxy for financial performance, the weighted fixed effect regression method of analysis was used to determine the type of relationship that exists between the corporate governance variables and financial performance of Nigerian companies. The study found that there is a significant positive relationship between board composition and management ownership with financial performance of Nigerian companies. There is a significant negative relationship between audit committee size, block ownership and duality of chairman and ceo position with financial performance of Nigerian companies. This study therefore recommends that regulators of business entities in Nigeria should consider the corporate governance variables and their impact on the financial performance of companies listed in Nigeria as the businesses are major instruments for improving economic development and attracting foreign investment. Keywords: Financial Performance, Corporate Governance Mechanisms, Nigerian Companie

The role of competition on the pricing decision of an organisation and the attainment of the organisational objective

Pricing decision has been a crucial decision made by all business enterprises at all levels and has posed a great challenge for Small and Medium Enterprises in Nigeria. This research work treats the role of competition on the pricing decision of an organisation and the attainment of the Organisational Objective, a study of SMEs in Nigeria. The methodology adopted was the survey and empirical approach, with the administration of questionnaires to some SMEs in Nigeria, evaluating the effect competition has on pricing decision (change in product price) and its overall effect on the attainment of organizational objective (profitability). Primary and secondary sources were used in collecting data. It was discovered that competition plays a major role in pricing decision and that there is a relationship between pricing decision and the attainment of organizational objective. Recommendations were made for the close monitoring of SMEs and that SMEs should employ the service of price experts when making pricing decisions. KEY WORDS: competition, pricing decision, profitability, organisational objective JEL CLASSIFICATION: D40, L11, L5

Women Entrepreneurship in Nigeria: Policy Framework, Challenges and Remedies

Purpose – This paper evaluates the policy framework, challenges and remedies of women entrepreneurship in Nigeria. The paper reviewed policies on women empowerment from different administrations and past government in Nigeria. Design/methodology/approach – This study obtained primary data through the use of open ended questionnaire as an instrument administered to 570 female entrepreneurs currently engaged in businesses in Lagos, Ogun and Oyo States within South-West, Nigeria. A descriptive statistical analysis was used to calculate the frequency distribution of the responses from our respondents and analyze the data. Findings – The study revealed that although women entrepreneurs are gaining recognition in entrepreneurial activities, they are however, confronted with several challenges which include inadequacy of funds for start-up and expansion, lack of electricity /infrastructural facilities, unconducive business environment, customers dissatisfaction and complaints, high level of competition and lack of trust worthy personnel. The findings also revealed that Nigerian women entrepreneurs are particularly constrained by their weak financial base, lack of adequate business knowledge, inability to prepare business plan, family pressure and other socio- cultural hindrances. Research limitations/implications–Content analysis was used to analyze the data. Multivariate logistic regression analysis could not be used to analyze the data since the data was obtained through open ended questionnaire and interview. Practical implications – The results of the study showed that women entrepreneurs in Nigeria are prepared to encourage themselves to ensure that they are making satisfactory progress irrespective of the challenges they face in their respective businesses. Originality/Value – The study made original empirical contribution to the body of knowledge by obtaining first-hand information on the challenges women entrepreneurs face in Nigeria and the best ways to encourage other women to be serious with their business. Hence, the study among other things recommends that the government should endeavour to recognize the economic role of women entrepreneurs and give them special attention in terms of making resources and facilities available to them for their entrepreneurial activities. Keywords: Entrepreneurship Development, Women Entrepreneurs, Policy Framework, Challenges and Remedie

Accounting Numbers and Stock Prices in the Nigerian Stock Market

This research is motivated to study the extent to which accounting information summarizes stock prices in Nigerian stock market as an indicator of value relevance. Piece of accounting data is termed value relevant if it is significantly related to the dependent variable, which may be expressed by the stock price. The methods used for gauging information contents of various accounting numbers were Ordinary Least Squared (OLS), Random Effects Model (REM), and Fixed Effects Model (FEM). The findings show that there is a significant relationship between accounting information and share prices of companies listed on the Nigerian Stock Exchange. Dividends are the most widely used accounting information for investment decisions in Nigeria, followed by earnings and net book value. The study therefore recommends that the firms should improve the quality of earnings as manipulated earnings (of which dividends are sub-sets) have large effects on share prices. The paper also recommends that all companies listed on the Nigerian Stock Exchange should prepare Simplified Investor’s Summary Accounts (SISA) with emphasis on the most widely used accounting information along the required mandatory detailed financial statements to suit Nigerian peculiarities. The study’s findings and recommendations may be of use to National Standard Setters, preparers of accounting information, Nigerian Stock Exchange Regulators, investors and other emerging stock market. Keywords: Value Relevance, Accounting Information, Investors, Financial Statemen

Indigeneous Financing: an Effective Strategy for Achieving the Entrepreneurial Objectives of SSEs

This paper examines the effectiveness of Esusu scheme as a strategy for achieving the entrepreneurial objectives of SSEs using selected entrepreneurs in Ado-Odo Otta, Ogun State, Nigeria as a case study. The paper adopted an exploratory method of research design and empirical analysis. It reviews extensively literature on the subject and the results of the data analysis help us to draw conclusions and make recommendation. Structured questionnaire was used to collect data from sampled Small Scale Entrepreneurs who have been beneficiaries of the Esusu Scheme. The results reviewed that although most of the SSEs under our study are unorganized and not formally registered with the Nigerian Corporate Affairs Commission (CAC), the Esusu scheme has helped many of them to achieve their personal and business objectives. The study also identifies that lack of government involvement in the regulation of the scheme is a major challenge that affect the effectiveness of the scheme in Nigeria. Among others, the paper recommends the need for SSEs operators to be more organized, which will help create a platform to attract government intervention in terms of funding and regulation of the Esusu scheme in Nigeria. Keywords: Esusu Scheme, SSEs, Entrepreneurs and Financial Objective

Corporate Governance a tool for curbing earnings management practices in Nigeria: Preparer's perspective

Corporate governance, an end to a means and a means to an end has been said to be a major tool for ensuring transparency and accountability in the business environment. Adopting the stakeholders theory, we examine the role of corporate governance in restraining earnings management practices in Nigeria as perceived by the preparers of the report. The study employed the use of primary data gathered from the research questionnaire administered to 354 sampled preparers of financial reports in Nigeria. The Pearson Correlation Coefficient and the Ordinary Least Square (OLS) regression was used to evaluate the relationship between earnings management and corporate governance attributes as identified by the study. The preparers of financial reports in Nigeria admitted that with effective corporate governance mechanisms in place, earnings management practices will reduce to the bearest minimum in the country. This study therefore concludes that earnings management practices can be deterred with effective corporate governance practices in place. It is therefore recommended that regulators at all levels should ensure strict adherence to the contents of the code of corporate governance as published. Key Words: Earnings Management, Board Structure, Audit Committee Structure, Corporate Governanc

Employee participation in budgeting and budgetary control: A tool for enhancing organizational performance

Organizational performance is a major issue of concern to stakeholders in any business. Stakeholders are of keen interest on the positive performance of the business enterprise they have interest in. Boosting performance however does not start during regular activities of the organization, but before the regular activities commence through budgeting and during the regular business activities of the organization towards the attainment of the organizational objectives. This research dealt with the impact of employee participation in budgeting as well as the adoption of effective budgetary control in the improvement of organizational performance of medium and large scale enterprises in Nigeria. The data used for this research was collected through the administration of research questionnaire to employees of medium and large scale enterprises in Nigeria. The research hypotheses were tested using regression analysis and correlation. At the end of the research, it was found out that employee participation and in budgeting as well as effective budgetary control are essential tools for the enhancement of organizational performance. The research therefore recommends that medium and large scale companies should adopt the bottom up budgeting system by allowing employees participate in budget formation, as well as the use of periodic budgetary control method

Earnings Management and Board Structure: Evidence from Nigeria

The board structure of an organization gives an overview of the standard of such organization, which also influences its public image. This study attempts to evaluate the role board structure plays in curtailing earnings management practices in Nigerian companies. This study sampled the data of 137 quoted companies in Nigeria for a period of 8 years (2003-2010). Earnings management was measured using the magnitude of the discretionary accruals as estimated by the performance matched modified Jones model. The ordinary least squares (OLS) regression technique was used to measure the research model as well as the Pearson moment correlation coefficient. The study shows that there is a significant relationship between board structure and earnings management practices in Nigeria. The study shows that there is a negative significant relationship between board size, gender, and board composition with earnings management; also, there is a positive significant relationship between board meeting and earnings management practices in Nigeria. There is a positive nonsignificant relationship between the presence of a remuneration committee and the dualization of CEO and chairman positions with earnings management practices in Nigeria. This study recommends that regulators at all levels should enforce the preparation and publication of financial reports by companies operating in Nigeria. Keywords: earnings management, board composition, board size, gender equality, board meeting