Tag Archives: Profitability

Profitability and Marketing Efficiency of Smoked Fish: An Empirical Evidence from Ondo State, Nigeria (Published)

The level of efficiency and profitability of the market and marketing functions are very important for sustainable marketing of agricultural products like fish. To ensure continuous availability of fish for human consumption, nutrition, and wellbeing, the Nigerian economy requires effective and efficient marketing systems. Fish marketing serves as a medium for bridging the gap between producers and consumers of fish. The study considers 80 fish marketers from Ondo state using purposive sampling technique. The data collected for the study were analysed using budgetary technique and shepherd efficiency model. The study revealed that fish marketing is profitable with gross margin of #38,101.36 and 15k as return on investment. The shepherd efficiency model revealed that fish marketing activities among fish marketers is highly efficient with efficiency value far higher (558.0%) than 100% deducing that an increase in the cost of performing marketing service (that is added time, form and place utility) by 100 percent will give a more than proportionate increase of 458.0 percent in the level of satisfaction derived from a kilogram of fish sold in the market. It was recommended that government should focus on policy that encourages farmers and young graduates in the business as it is noted for profitability, efficiency and a source of livelihood.


Keywords: Efficiency, Fish, Marketing, Profitability

Determinants of Survival of Listed Deposit Money Banks in Nigeria (Published)

In the business world, stakeholders are subject to several risks on investment including losing their venture. The existence of a healthy corporate structure is vital to the pursuit of the going concern objective of firms. This study investigates determinants of listed Deposit Money Banks’ (DMBs) survival in Nigeria. The sixteen listed DMBs in Nigeria as at December 2017 were used as the population and fifteen were sampled by applying a judgemental sampling technique. The study adopted descriptive and ex-post facto research design. The Emerging Market score (EM score) model was applied in the prediction of going concern status of sampled DMBs. The data used were obtained from the annual reports and accounts of the DMBs for 2007 to 2017 accounting periods. The data were analysed using Robust GLS Regression model. The study found that there is a positive and significant impact of liquidity, leverage, profitability, solvency and asset management on DMBs’ going concern (GC). This implies that, any increase in these determinants would lead to increase in GC of DMBs. With the adjusted r2 of 0.98 and F-value significance at 0.000 from the model used in the study, the study concludes that the independent variables in the EM score model are relevant in determining the GC of DMBs. It is highly recommended that DMBs should enhance their survival status (EM score of 5.48) by improving on their liquidity, profitability, solvency, leverage and asset management ratios to solidify their GC status.

Keywords: Asset Management, EMscore, Leverage, Liquidity, Profitability, Share Price, Solvency

Effect of Chief Executive Officer Duality on the Profitability of Money Deposit Banks (Published)

The purpose of this study is to determine the effect of chief executive officer duality on the profitability of money deposit banks. The research design adopted by this study is the quantitative approach. The population of interest for this study comprised the twenty-two deposit money banks listed on the Nigerian Stock Exchange (NSE) as at March (2016) for the period of sixteen years from 2000 to 2016. The study utilized only the secondary source of data. There exists a negative relationship between CEO duality and profitability. This further entails that for the sampled banks, CEO duality contributes negatively to the profitability of the selected money deposit banks in Nigeria. The coefficient of determination which measures the control power of the independent variable over the dependent variable was calculated with the instrument of adjusted R-Squared and it yielded 0.296170. This entails that the variations in profitability of the selected deposit money banks is not significantly influenced by CEO duality. Based on the findings, the study concludes that on the average, effect of chief executive officer duality has no significant effect on the profitability of money deposit banks. This finding reveals that dual role has no positive and significant influence and contribution towards profitability in money deposit banks. This should be thoroughly ascertained for it to be either suspended or significantly minimized.

Keywords: Chief executive officer, Duality, Profitability, money deposit banks

Analysis of Poultry Eggs Marketing In South-South Part of Nigeria. A Case Study of Ika South Local Government Area, Delta State, Nigeria (Published)

Poultry egg marketing is a common enterprise in Ika South Local Government Area, Delta State of Nigeria; but there are no documented research findings on the conduct of the market and profitability to authenticate the viability of this business. Thus, this study was targeted to analyze the performance of poultry egg marketing in Ika South Local Government Area, Delta State. The study was conducted in five purposively selected villages in Ika South L.G.A., Delta State. Twelve (12) respondents were then randomly selected from each of the five selected villages to give a total of sixty respondents. Descriptive statistics were used to analyze the socio-economic characteristics of the respondents, the profitability of poultry egg marketing was determined using gross profit margin analysis, net profit margin analysis and return on investment. Gini Coefficient was used to examine the market structure for poultry egg marketing. The results of the study showed that majority (40.00%) of the poultry egg marketers were within the age group of 30≥ 40 years, majority (71.70%) of the marketers were female, 50.00% were married, 35.00% had family size of 3 – 5 persons. 30.00% of them attained  tertiary level of education, 41.67% had marketing experience of 1-5 years, 53.33% had egg marketing as their primary occupation, 65.00% were none members of co-operative societies. The gross profit margin was N772,200 while the net profit margin was N747,500 per marketer per annum and return on investment was 0.29,  which showed that poultry egg marketing is profitable and viable in the study area.  Gini Coefficient of 0.3054 showed that there was a moderate inequality in the distribution of incomes among the marketers hence some level of perfect competition of the market structure. The major constraints militating against poultry egg marketing in the study area included: inadequate capital, poor transportation, price fluctuations and exorbitant price of poultry eggs. The study therefore recommended that credit granting institutions should be established, effective transportation system and good road networks should be constructed in the study area for easy transportation, price control mechanism should be established to avoid fluctuation of price within the marketing system and the activities of trade union should be minimized to reduce the exorbitant price of poultry eggs to consumers.

Keywords: Gini Coefficient, Market structure, Marketers, Nigeria, Poultry Eggs, Profitability

Ethical Compliance and Organizational Profitability of Telecommunication Companies in Nigeria (Published)

One of the industries in Nigeria economy that attracts much complains from her numerous customers in terms of ethical compliance is the telecommunication industry. This therefore prompts the curiosity to examine the impact of ethical compliance on organisational profitability in the Nigerian telecommunication companies. The study focuses on three ethical compliance variables which are integrity, customer value and fairness to customers while profitability was measured in terms of customers’ patronage and loyalty. The descriptive survey design was adopted and the study was guided by three research questions and three hypotheses. The population of the study comprised telecommunication subscribers in Akwa Ibom state and a sample of 384 respondents was estimated using Walpole’s sample size for infinite population formula. The selection of samples was done using convenience sampling. Ethical Compliance and Organisational Profitability Questionnaire (ECOPQ) developed by the researcher was used in data collection. The instrument was validated by experts and reliability of the instrument was established using Cronbach Alpha method of reliability testing and the reliability coefficient of 0.89 was obtained.  Data obtained were analysed using simple percentages and multiple linear regression and all hypotheses were tested at the 0.05 level of significance. To enhance data analysis, the study employed the use of Statistical Package for Social Science (SPSS version 22.0).  Result obtained shows significant positive impact of ethical compliance as measured by integrity, customers’ value and fairness on profitability in Telecommunication companies. It is therefore important that the management of Telecommunication companies pay more attention to the issue of ethical compliance as this will help improve their profitability.   

Keywords: Ethical Compliance, Profitability, Telecommunication Companies

Dynamic Analysis of Financial Statement Fraud on Profitability of Manufacturing Firms in Nigeria (Published)

The aim of this research study is to assess the impact of financial statement fraud on profitability of selected Nigerian manufacturing firms covering (2002-2016). The specific objectives focused on ascertaining the effect of variables of financial statement fraud on return on assets (ROA). To achieve these objective, descriptive research design was used for the study while secondary data was collected from the financial reports of the selected firms and website of Security and Exchange Commission. The Analysis of Covariance (ANCOVA) was used and STATA II econometric method was adopted in the analysis of the data. Beneish model was adopted in the analysis of the financial reports to create a dummy variable for the selected firms from 2002-2016 and validation of the parameters were ascertained using various statistical techniques such as t-test, co-efficient of determination (R2), F-statistics and Wald chi-square. Three hypotheses were formulated and tested using the t-statistics at 5% level of significance. The findings of the analysis revealed that there is a significant relationship between financial statement fraud and profitability in Nigerian manufacturing industry. It was found that increase in fictitious revenue in manufacturing industry would lead to low profitability. The implication of this is that increase in fictitious revenue would lead to decrease in performance. The study therefore recommended that pragmatic policy options need to be taken in the manufacturing industry to effectively manage fictitious revenue, in order to enhance manufacturing industry performance in the country and also financial statement fraud should be adequately inculcated into the internal control system of manufacturing firms for the effective running of the manufacturing industry in Nigeria.

Keywords: Beneish Model, Fictitious Revenue, Financial Statement, Fraud, Profitability

Impact of Liquidity Risk on Firm Specific Factors: A Case of Islamic Banks of Pakistan (Published)

The major objective of the study is to develop a model and to test the relationship among liquidity risk and firm performance through its facets.  The main facets of firm performance in the study are i-e profitability, firm size, leverage, share prices and earnings on assets. The present study mainly attempts to analyses qualitative, quantitative & contextual relationship of liquidity risk in Pakistan. Moreover, liquidity risk is less investigated in Pakistan and mainly regarding Islamic banking sector with respect to current data. Therefore, study is mainly investigated on the fourth pillar of significance i-e contextual significance. While, Islamic banking sector of Pakistan is investigated in current study. And the data is acquired from state bank of Pakistan database and through annual reports of the banks. Though, the study has supported past investigations results. Hence, the study has revealed key findings that will be fruitful for theorists, educationists and research scholars as well.

Keywords: Contextual study, Islamic banking, Leverage, Liquidity risk, Pakistan, Profitability, Return on Assets, bank size

Working Capital Management and Firm Profitability During and After the Economic Crisis among Malaysian Listed Companies (Published)

The main aim of this paper is to explore the working capital management components and examine their relationship with firm profitability among Malaysia listed companies during and after the global financial crisis of 2008-2009 and 2012-2013. Based on the descriptive results, Malaysian firms practice conservative working capital management techniques due to the fact that current ratio is high and debt ratio is low compared with prior studies.The multiple regression analysis on the 260 listed Bursa Malaysia companies shows a negative relationship between working capital management components (i.e. average collection period and average payment period) and firm profitability during and after the crisis periods. Moreover, cash conversion cycle negatively relates with firm profitability after the crisis. Inventory turnover days indicate a positive and significant relation with firm profitability during the crisis period. These findings suggest that Malaysian firms should try and collects cash from customers faster, pay bills as soon as possible and minimise the gap between initial investment and the time cash is collected from customers during both crisis and non-crisis periods. Nevertheless, management should maintain considerable level of stock to avoid shortage and supply interruption during the crisis

Keywords: Malaysia, Profitability, Working Capital Management

Process Control and Business Performance in Quoted Manufacturing Companies in Nigeria (Published)

This paper seeks to examine the influence of process control on business performance of quoted manufacturing companies in Nigeria. Survey research design was adopted. Three (3) tentative assertions, hypotheses were formulated. The sample size was thirty-two (32) quoted manufacturing companies in Nigeria. Pearson product moment correlation and QSR-Nvivo aided the quantitative and qualitative data analysis respectively. The study findings indicated that process control has very positive relationship with business performance. In conclusion, profitability, effectiveness and efficiency adoption as proxies of business performance has been proven to be largely a function of process control. The study recommends that manufacturing firms should increase the control measure in the work process to ensure conformity and avoidance of deviations, in order to achieve higher performance in their operations.

Keywords: Effectiveness, Efficiency, Process control, Profitability, Triangulation

Fraud Prevention and Business Performance in Quoted Manufacturing Companies in Nigeria (Published)

The study focused on Fraud prevention as a dimension of Audit function on Business Profitability, effectiveness and Efficiency as measures of performance. Primary and secondary data were collected, sample size was thirty (32) quoted manufacturing companies. Pearson Product Moment Correlation powered by Statistical package for social sciences and QSR-NVIVO software aided the data analysis. The study found that the influence of fraud prevention is more positive and very significant on business profitability, than on effectiveness and business efficiency, which appears to have weak influence in the quoted manufacturing companies in Nigeria. Conclusively, the more stringent fraud prevention measures tends to be the more businesses will achieve higher growth in terms of profitability. It is recommended that firms should improve on the fraud prevention mechanism to track all dubious tendencies to avoid being defrauded.

Keywords: Fraud Prevention, Operational Effectiveness and Efficiency, Profitability

Cost and Returns of Paddy Rice Production in Kaduna State (Published)

As a result of increasing population growth and urbanization, there is a high and increasing demand for rice, this necessitates the high attention for its production. This research was conducted to determine the profitability considering the cost and returns of paddy rice production in Chikun Local Government Area of Kaduna State. Data for the study were collected from 60 randomly selected paddy rice farmers using a well structured questionnaire and analyzed using the descriptive statistics, the gross margin and net income model. The result showed that 97% were male, 88% married and had an average household size of 10people. It was interesting to realize that all respondents had one form of education or the other and their average farm size was 15ha producing about 3.2tonnes of paddy per hectare. The average variable cost incurred per hectare was estimated to be $866.3 (N172,400) while the total cost of production was put at $1002 (N199,400) and a gross revenue of $1768.84 ( N352,000) was generated. Paddy rice production in the study area was estimated to have a gross profit $902.51 (N179,600) and a net returns of $766.83 (N152,600). The study however concluded that paddy rice production in the study area is a profitable enterprise and it also recommended that consistent government policies that would favour increase in paddy production, market information, extension service delivery, input subsidization and credit facilities be implemented.

Keywords: Costs, Kaduna, Paddy Rice, Production, Profitability, Returns

Effect of Weed Control Methods on Profitable Kenaf (Hibiscus Cannabinus) Production in Rainforest-Savanna Transition Agro-Ecology of Nigeria (Published)

A study was conducted at Institute of Agriculture Research and Training, Ibadan in 2015 and 2016 to investigate the effect and profitability of selected weed management methods on weeds, kenaf growth and yield. Ibadan is a rainforest-savanna transition agro-ecology. Seven treatments were applied, viz. weed-free control, weedy control, pre-emergence herbicide (metolachlor 1.44kg active ingredient/ hectare (a.i/ha) + hoe weeding at 4 weeks after planting (WAP), Citrullus lanatus (melon) cover + hoe weeding (4 WAP), sweet potato cover + hoe weeding (4 WAP), mulch cover (Panicum maximum) + hoe weeding (4 WAP) and two hoe weeding regimes at 4 and 8 WAP. Results showed that weed-free treatment had the tallest kenaf plant height, widest butt girth and greatest number of leaves in both years of trail. Dissimilarity to other treatments in plant height, butt girth, number of leaves, canopy cover, and core yield was found in weedy control which had the least value for these parameters throughout the study. However, butt girth was comparable across treatments applied except the weedy control. With the exception of weedy control and weed-free, other treatments had kenaf plants with similar canopy width which were significantly greater than that of weedy control and significantly less than that of weed-free treatment. Relative to weedy control, other weed management treatments had a significantly reduced weed dry weight and weediness. Kenaf plant height had significant positive correlation with butt girth, bast fibre, core fibre, canopy cover and weed control rate. However, weed biomass and weediness had significant negative correlation with kenaf traits measured. Partial budgeting analysis showed that Net income (NI) in bast fibre was highest in weed free (N3,608, 324.00/ha = US$12, 027.75/ha) and lowest net income (NI) was recorded in weedy control (N437, 098.25/ha = US$1, 456.99/ha).  

Keywords: Cover Crop, Kenaf Production, Profitability, Weed management

Bank Capital and Profitability: A Study of Selected Banks in Ghana (Published)

The study investigated the relationship between bank equity capital and profitability by sampling fourteen (14) banks, using the purposive sampling technique, out of the twentyeight (28) universal banks operating in Ghana at the time, with data covering an eleven- year period (2005-2015). The study adopted the panel data methodology to examine the effect of bank capital on profitability. The random-effects Generalised Least Square (GLS) regression was adopted as an estimation technique for the research.  The study revealed that equity capital is significantly and positively related to Net Interest Margin (NIM), and Return-on-Equity (ROE). Bank size is significantly and negatively related to ROE, and insignificantly inversely related to NIM. Regulated bank capital is a disincentive to inclusive financial intermediation in Ghana.

Keywords: Bank, Capital, Equity, Ghana, Profitability, Size

Determinants of Profitability in Commercial Banks Of Indonesia an Empirical Study (Published)

This study aims to determine the factors that affect the profitability of commercial banks in Indonesia. This research is a quantitative research using a sample six largest banks with total assets under ICMD. The banks included in the sample in this study is that Bank Mandiri (Persero) Tbk., Bank Rakyat Indonesia (Persero) Tbk., Bank Central Asia Tbk., Bank Negara Indonesia (Persero) Tbk., Bank Danamon Indonesia Tbk., and Bank Pan Indonesia Tbk. The research data in the form of panel data obtained from the annual financial statements of the bank. Techniques using multiple linear regression analysis. The results showed that the variables of liquidity of banks, non-performing loans and capital adequacy simultaneously affect the bank’s profitability. The partial effect of liquidity and non-performing loans significantly influence the profitability of banks. While the capital adequacy ratio of no significant impact on the profitability of commercial banks in Indonesia

Keywords: Liquidity, NPL, Profitability, capital adequacy

The Effect of Using Accounting Information Systems on the Quality of Accounting Information According to Users Perspective in Jordan (Published)

The main reason of this study is to examine the impact of Accounting information system on the on the quality of accounting information Design/methodology/approach – The study applies the quantitative method to collect the data by using structure questionnaire to extract the users opinions about how accounting information system effect the quality of accounting information, The researcher identified some criteria to understand the concept of “Accounting information system” and used qualitative characteristic (relevance, reliability, more comparability, understandability, consistency and neutrality) as a proxy to measure accounting information quality. Findings – The paper specify that all accounting information users believe the important role of accounting information system on the quality of accounting information and there is a strong effect between the two variables, which in turn have influence on users’ decisions, such as creditors, financial analysts and investors. Also the analysis result indicate the accounting information system have a significant influence on companies’ profitability, there is a strong relationship between the use of accounting information that resulted from accounting system and managerial efficiency, also the findings shows struggle of using accounting information, such as ownership cost, training cost and fighting renewal such as accounting systems.Practical implications – The results of the study have significant implications regarding users of financial statements. In particular, mangers and investors, the research validates that the importance of AIS in rationalizing the decision making. Originality/value – It is believed that there is no Jordanian study to date examining the impact of accounting information system on the quality of accounting information. Therefore, this study significantly contributes to the limited literature on the perceived the effect of accounting information system on quality of accounting information. Research limitations: The difficulty of using such studies depending on questionnaire in developing countries, such as Jordan, because they do not care about the results of the study.

Keywords: Accounting Information Quality, Accounting Information Systems, Decision- Making Process, Jordan, Profitability, Qualitative Characteristics

Profitability of Economic Stimulus Program (ESP) Fish Farming Adopters in Makueni County, Kenya (Published)

Fish farming in Kibwezi is a recent livelihood alternative that was propelled by government funding under the Economic Stimulus Programme (ESP) between 2009 and 2012.  This study evaluated the profitability and sustainability of fish farming in Kibwezi, Makueni County, Kenya using a sample size of 146 fish farmers. Fish production of finfish specifically Nile Tilapia (Oreochromisniloticus) and African Catfish (Clariasgariepinus) respectively were the species cultured. Twenty seven percent of farmers had an annual gross margin average of KES. 30,333.95 from a 300M2 fish pond with a gross margin ratio of 0.35. Net fish income was positive for 8.9 percent of farmers and averaged KES. 24,707.14. Farmers with a stocking density of 5fish/m2 and above serviced their total variable costs. Hatchery owners did better with 57.1 percent of them showing positive returns on both measures of gross margin and net fish income. Fingerlings, feeds and labour costs constituted 67% of total variable cost. Underweight of tilapia fish was a common problem among the sampled farmers. Adopters with the highest gross margins paid employees or committed themselves to pond management activities. Adopters made their own feeds. It is recommended that farmers be trained to make their own feeds

Keywords: Economic Stimulus Program (ESP), Kenya, Makueni County, Profitability, fish farming

The Influence of ATM Service Quality on Customer Satisfaction in the Banking Sector of Nigeria (Published)

The study investigates the influence of ATM service quality on customer satisfaction in the banking sector of Nigeria. The study adopts survey research in which questionnaires are accidentally administered on customers of four banks randomly selected for the study (First Bank of Nigeria Plc., United Bank for Africa Plc., Guarantee Trust Bank Plc. and Skye Bank Plc. at the ATMs terminals of the Banks during transactions. Multiple Regression Analysis, Descriptive Statistics of the Mean, Standard Deviation, Tables and Charts are the main tools of data analysis. Findings reveal that the higher the ATM service quality, the higher the level of satisfaction it provides. The study then concludes that ATM service quality determines customer satisfaction. Some recommendations are offered on the way forward

Keywords: ATMs, Customer Loyalty/Retention, Customer Satisfaction, Profitability, Service Quality

Analysis of Rice Profitability and Marketing Chain: The Case Study of Taluka Pano Akil District Sukkur Sindh Pakistan (Published)

The purpose of this study was to investigate rice profitability and marketing in taluka Pano Akil district Sukkur Sindh. This study was based on primary data, which was collected from rice farming in study area. Analysis was done by using statistical technique like means, comparison of means and frequency distribution etc. Results shows rice farmer’s on average per acre spent a total cost of production of Rs.41910.00, this included Rs.15200.00, Rs.2350.00, Rs.2900.00, Rs.7460.00, Rs.7400.00 and Rs.6600.00 on fixed cost, Land preparation, Seed and sowing, Farm inputs, Harvesting and threshing marketing costs respectively on capital inputs. Rice farmers on average per acre gross return of Rs.80200.00, Rs.70200.00 on rice grain, Rs.10000.00 on straw in taluka Pano Akil district Sukkur Sindh. The rice farmers on an average per acre earned during study, Rs.38290.00 on net income, Rs.80200.00 on gross income and Rs.41910.00 on total expenditure in taluka Pano Akil district Sukkur Sindh. Rice farmers on an average per acre gross income Rs.108400.00 and total expenditure is Rs.68310.00 in taluka Pano Akil district Sukkur  Sindh area therefore they availed input output ratio of 1: 1.58 from ricegrowing in the study area.  The selected rice farmers on a net income per acre earned Rs.38290.00and total expenditure Rs.41910.00 in taluka Pano Akil district Sukkur Sindh area th Rice is the staple food for more than half of the world’s population. In Asia, more than 80% of the people live on rice, and their primary food security is entirely dependent on the volume of rice produced in this part of the world. However, rice production increases are now lagging behind population growth. Overall, the total global rice is declining gradually even with the extensive use of the modern varieties such as high yielding and hybrid varieties.

Keywords: Cost-Benefit Ratio, Marketing Costs, Net Returns, Profitability, Rice

Working Capital Management Antecedents Impact on Firm Specific Factors: A Ten Year Review of Karachi Stock Exchange (Published)

The study aims of investigate relationship of working capital antecedents and profitability of the company. Seven variables are taken as proxy variable to measure working capital and its management. Population of the study is based on Karachi stock exchange listed companies. The sample of study is manufacturing sector of Pakistan. Thus, sample period contains on the ten years from (2005-2014). All variables have sound reliability and data is normally distributed. Therefore, correlation and regression analyses are applied. Hence, study revealed significant relationship of working capital management and profitability.

Keywords: Correlation, Normality, Normally Distributed, Profitability, Regression, Sample Period, Working capital.

Consumer Law and Challenging Business Environment (Published)

Consumer Law defines the parameter that helps to protect the consumers from unfair practices of sellers. In this regards, the law attempts to protect the consumers from unfair pricing and delivery of low quality products. Every country has a governing body the helps to protect the public by actively monitoring and evaluating the sellers’ activities. However, during the transition of saving the consumers, the law creates challenges for the businesses. It is evident from the research and its findings that consumer law affects a business in conflicting ways. A business needs to reform its operational practices as well as the pricing structure to ensure delivering superior quality products for an economical as well as competitive price. Adhering to consumer law practices, however, increases the costs of the business that creates multiple challenges in successful execution of the company’s strategic implications. Moreover, consumer law puts certain restrictions on business activities that adversely affect the business’s ability to market its products effectively.

Keywords: Consumer Law, Consumer Protection, Fair Trade Act, Gross margin, Marketing Restrictions, Price Equality, Profitability, marginal productivity