Working Capital Management Firm Liquidity and Stock Market Seasonality: Evidence from Nigeria (Published)
This study examines the relationship between Working Capital Management Firm Liquidity and Stock Market Seasonality among quoted firms in Nigeria. Six hypotheses were formulated following the dependent variable of Stock Market Liquidity. The independent variables employed for this study include: Liquidity Ratio, Account Payable Day, Account Receivable Day, Inventory Day, Firm Leverage and Firm Size. This study is based on ex-post facto research design and employed a panel data set collected Fifty (50) non-financial companies over an eight year period ranging from 2011 to 2018 financial year. We analyzed the data set using descriptive statistics, correlation and Panel Ordinary Least Square Regression Analysis. Our finding lends credence to the efficient market theory which holds that share markets prices are unpredictable and as such cannot be forecasted. Specifically, the finding suggests that market liquidity cannot predict stock market returns irrespective of the season of the year. Hence, we carefully hold that the stock market in Nigeria is efficient due to its randomness and will rapidly respond to any information or anomalies presented to it. The study recommends among others that policy makers in emerging markets such as Nigeria should ease entry barriers for prospective firms so as to enhance liquidity. The study further recommends that, proper inventory management system should be put in place in order to avoid working capital mismanagement.
Capital Structure and Firm Performance Nexus in Nigeria: A Case Study of Aluminum Extrusion Company PLC (Published)
This study investigated the link between capital structure and firm performance in Nigeria using Aluminum Extrusion Company PLC (ALEX), a company listed under the Basic material sector of the Nigerian Stock Exchange as a case study. The study adopted return on capital employed as proxy for firm performance (response variable), while capital structure components such as debt to equity ratio, debt to capital employed ratio and equity to capital employed ratio were used as the explanatory variables. Secondary data were collected from the annual published financial reports of the company for the period 2009 to 2018. The study employ descriptive statistics and multiple regression technique based on the E- view 9.0 Software as the methods of data analysis. The results revealed that debt to equity ratio has significant positive effect on return on capital employed, debt to capital employed ratio has negative influence on return on capital employed and equity to capital employed ratio has no influence on return on capital employed. Overall, capital structure has no significant effect (at 5% level) on firm performance. Based on the findings, the study recommended among others that the company should finance her activities with retained earnings and use debt as the last option as this is in agreement with the perking Order theory; that the indirect effect of capital structure on firm performance be analyzed by future researchers and that the company managers are advised to be extremely conscious in the use of debt financing as an option in their capital mix up to the optimal limits, as debt to equity ratio provides positive effect though not significant on performance.
MODELING THE INDICES OF ORGANIZATIONAL AND MARKETING INNOVATIONS ADOPTED BY SMALL SCALE FLOUR AGRO- MARKETING FIRMS ABIA STATE, NIGERIA (Published)
A detailed analysis of the indices of organizational and marketing innovations has been examined in this study. The specific objectives duly analyzed were identification of the features of small scale flour marketing firms; analysis of the profitability and efficiency of the firms using income statement; ascertaining the determinants and indices of organizational, marketing and technological innovations. The technique of data collection was firstly a purposive sampling method to choose Aba and Umuahia Metropolis and small scale flour marketing firms and; secondly a random sampling selection technique was employed in selecting fifty specific firms for the study. The data elicited from sampling of fifty small scale flour marketing firms were analysed via descriptive statistics, income statement, probit and Ordinary Least Square Multiple regression analyses. The report from the results analyses showed that the significant indices of marketing innovation were price strategy, promotion strategy, distribution method, sales method, packaging and production strategies. On the other hand, significant indices of organizational innovation included work arrangement, quality management, motivation, use of promotion, product modification and employee schedule. The organizational innovation was highly significant than marketing innovation of small scale flour marketing firms in contributing towards enhancing the performance of small scale flour marketing firms. Thus, the organizational and marketing innovation indices analyzed in this work remained very significant and highly important tools for profitable marketing activity and in unlocking the marketing potentials of the firms and in encouraging competitive advantage over other firms that were indifferent about the strength of these organizational and marketing innovations. The study indicated that any small scale flour marketing firm that adopted for proper marketing and organizational innovations adapted successfully to emerging marketing challenges. Thus, it is recommended that small scale flour marketing firms should properly engage in organizational innovation involving work arrangement and effective employee work schedule which will contributing efficiently to better firm performance. Further, it is recommended that small scale flour marketing firms should include in their innovation portfolios price strategy, promotion strategy, distribution method, sales method, packaging, motivation, work arrangement, and product modification respectively which have the potentials to sustain the performance of the firms extensively.
ASSESSING THE EFFECT OF ORGANIZATIONAL AND MARKETING INNOVATIONS ON MEDIUM SCALE FOOD WHOLESALE MARKETING FIRM ABIA STATE, NIGERIA (Published)
The study assessed the effect of organizational and marketing innovations on selected medium scale food wholesale marketing firms in Abia State, Nigeria. The study focused on medium scale flour food wholesale marketing firms. The study employed a Yaro Yamen sample size estimation method to cull out 50 firms from the entire sample frame. These firms were randomly selected for the studies of various variables of interest. Data were gotten from respondents via questionnaire. The data analyses were carried out with descriptive statistics, income statement analysis, probit and multiple regression analyses. The study showed that the majority of flour food wholesale marketing firms in the study area were established between the periods of 6-10 years ago. The highest number of employee of the food wholesale marketing firms fall within the period of 11-20. The result also indicates that sole proprietorship were the highest ownership structure evidenced from the study. The greater number of the firms’ employee skills were semi-skilled. The firm’s major source of capital was gotten through equity source of finance. The dominant organization’s innovation strategies most adopted by the food wholesale firms were price strategy, product approaches, continuous and improvement aspect of innovation. The study however ensured a high quality management which confirmed a positive relationship between profitability and firms’ growth. This attests to a signal of efficiency in the firms’ management. The factors affecting organizational and marketing innovation strategies had significant relationships among the models respectively. Further, the effect of organizational and marketing innovation on medium scale flour food wholesale marketing firms performance and efficiency plausible as firm gross margin indicated sound profitability. Thus, there is the need for medium scale flour food wholesale marketing firms to employ the employ organizational and marketing innovation strategies complementarily in responding to the ever changing market needs of the food industry.