Financial constraints, as well as a lack of managerial skills, equipment and technology, regulatory concerns, access to international markets, and unfair competition, are all reasons that impede the development of SMEs. SMEs require advertising strategies to ensure their long-term viability and growth in an ever-changing and competitive business environment. In this study, more attention will be paid to the question and relevance of advertising as a form of promotion to improve profitability. 50 small and medium scale enterprises were selected from Uyo. The survey was carried out in major urban center which is Uyo. This area was chosen because the tempo of economic activities being carried out by SMEs to meet the demands of the consumers is very high. The data used for this study were majorly primary and these were obtained from the field through the use of questionnaire. From the data gotten, Cronbach alpha was then used to test for the validity, consistency as well as the reliability of the data-set. All the constructs or items had Cronbach’s Alpha above the minimum acceptable reliability coefficient between 0.5 to 0.9 and therefore exhibits good internal consistency. Following the results, it is observed that the effect of advertising on profitability of the selected SMEs in Uyo metropolis is positive and significant. From the findings of this study, we conclude that advertising can significantly improve profitability of SMEs in AkwaIbom State.
Citation: Aniebiet Etuk, and Emmanuel O. Emenyi (2022) Advertising and Profitability; Evidence from Selected SMES in Uyo, British Journal of Marketing Studies, Vol. 10, Issue 2, pp.1-12
Citation: Mohamed Aymen Ben Moussa, Adel Boubaker and Abdelmonem Naimi (2022) The Determinants of Bank Profitability: Case of Tunisia, International Journal of Business and Management Review, Vol.10, No.1, pp.44-56
Abstract: The purpose of this article is to examine the impact of selected internal and external factors on a bank’s profitability. The research investigates the impact of size; liquidity ; operating costs ; deposits ; credits ; GDP growth and inflation change of the profitability of sample of 11 banks in Tunisia for the period ( 2000…2018). The determinants were used to construct 2 models with ROA and ROE as a proxies and regression analysis using panel approach. It was found that size ; bank deposit ; operating costs ; liquidity ; economic growth have a significant impact on bank profitability measured by ( ROA and ROE).
The Effect of Efficiency and Liquidity on the Profitability of the Saudi Commercial Banks (Published)
This study aimed at finding the effect of efficiency and liquidity on the profitability of the Saudi Commercial Banks. The profitability as a dependent variable is measured by return on assets, return on equity, operating profit Ratio, net interest margin ratio and net interest income ratio. Meanwhile, the efficiency and liquidity as independent variable are measured by Cost to income, Loans to total assets, total customer deposits to total assets and Loans to deposits. The study sample included 12 banks for the period 2014 to 2020. A set of statistical tools and financial indicators were used to test the validity of hypotheses. The results indicated that first, second and fifth hypothesis were rejected and third and fourth were accepted. The study recommend that Saudi commercial banks should focus more on liquidity and follow appropriate policies to gain more profitability. Finally, more studies and research work are required in the same field.
Citation: Ahmad Mohammad Alamri and Ahmad Aref Almazari (2021) The Effect of Efficiency and Liquidity on the Profitability of the Saudi Commercial Banks, European Journal of Accounting, Auditing and Finance Research, Vol.9, No. 8, pp.1-13
The broad objective of this paper is to determine the type of relationship that exists between Six Sigma Manufacturing and Performance of brewing firms in South-South, Nigeria. Specifically, this study seeks to ascertain the type of relationship between quality input and profitability of brewing firms in South-South, Nigeria. The study was anchored on The Theory of Constraint (TOC) propounded by Goldraft (1984). Expost-facto research design was adopted for the study. Secondary data extracted from the annual financial reports of the three studied brewing firms (Guinness Nigeria Plc, Champion Brewery and International Brewery Plc.) were used for the study with regression analysis applied on the collected data. Results obtained from the test of the hypothesis revealed that a significant positive relationship exists between quality input and profitability since (F-statistic = 57.11217; R-squared = 0.815; P <.05). Based on the findings, the researchers concluded that there exists a strong significant positive relationship between Six Sigma Manufacturing and Performance of brewing firms in South-South, Nigeria.
Citation: Nnabuife, E and Ohue Paul Itua (2021) Six Sigma Manufacturing and Performance of Brewing Firms in South-South, Nigeria, European Journal of Business and Innovation Research, Vol.9, No.4, pp. 41-55
Power Supply Fluctuation and Sales Performance of Frozen Foods Business: A Study of Aba Metropolis Nigeria (Published)
One of the essential requirements for output growth in the frozen food business is adequate electricity supply. The electricity supply bane has brought about the acquisition of expensive power back up facilities in the form of plants, generators, and inverters to augment stable electricity supply. The study therefore, investigated power supply fluctuation and sales performance of frozen foods in Nigeria. In line with the objectives of the study, two hypotheses were formulated. The descriptive survey research design was adopted for the study. The population of the study comprised of twenty (20) frozen food firms in Aba with a sample size of sixty (60) respondents which was conveniently drawn from our population of interest. A structured questionnaire based on the five-point Likert scale was used in data collection. Frequency and percentages were used in analysing both the personal data of the respondents. While Kendall tau_b was employed in analyzing the hypotheses formulated. The findings revealed that a significant relationship exists between erratic power supply and profitability; alternative source of power supply and profitability. We therefore, recommended amongst others that, Government should encourage competition in the power sector, rather than the monopoly the electricity company is currently enjoying. They need to be proactive and embrace the renewable energy which would lead to decentralization of power supply, create more jobs, lead to lower costs, and cleaner environments.
Social Cost Accounting and Profitability of Glaxo Smith Kline Nigeria Plc. Listed On the NSE (Published)
This study examined the relationship between social cost accounting and profitability with a focus on GlaxoSmithKline Consumer Nigeria PLC in a case study. The study adopted employee benefits, incentives welfare and healthcare cost (EBI) and contribution to government revenue (CGR) as proxy for social cost accounting (the independent variables), while profit after tax (PAT) representing profitability was adopted as the dependent variable. Secondary data for the selected study variables were obtained through content analysis of the annual reports of GlaxoSmithKline for the period 2011 to 2018. The study employed descriptive statistics and multiple regression analysis based on the E-view 10 software as techniques for data analysis. The results revealed that all the independent variables had positive relationship with profit after tax, but only contribution to government revenue was significant at 5% level. The regression results also showed that the coefficient of determination (R-squared) value of approximately 0.94 indicating that 94% of changes in the dependent variable are accounted for by the combined effect of changes in the independent variables. The combined effect of variations of the explanatory variables significantly explained changes in the dependent variable with probability of F-statistic value of 0.000007 (at 5% level of significance). The study concluded that social cost accounting is significantly related to profitability. Based on the findings of the study it was recommended that the management of GlaxoSmithKline should continue to implement the social cost accounting policies already put in place as they provide a good social image for the company, and that would guarantee the long run success and survival of the company.
This study examined the effect of financial risks on performance of Deposit Money Banks DMBs) using the identified explanatory variables of financial risks, viz: Credit risks, Insolvency risks, Liquidity risks and Market risks covering a period of 12 years (2007- 2018). The methodology of the study makes use of ex-post facto research design. While the population of the study were nineteen deposit money banks, the study sample comprised ten (10) DMBs. The panel regression models estimated using Unobserved Effects Model (UEM), while the result of the Hausman test indicated between fixed effect model and random effect model at 5% inference. The study findings showed that Credit Risk was negative and statistically significant to deposit money banks’ performance [β = – 13.0495; Pval = 0.013]. The result also shows that Liquidity Risk is inversely and insignificantly related to banks’ profitability [β = – 0.156; Pval = 0.6703] and Insolvency Risk (INSRK) have negative signs that are statistically insignificant to banks profitability [β = – 0.016; Pval = 0.745]. Market Risk has insignificant and positive effect on Profitability (NPBIT) [β = 0.038; Pval = 0.5720] at 0.05 level. Also, Credit Risk (CR) was found to be negative and statistically significant at Economic Value Added [β = – 7.0789; Pval = 0.006]. On the contrary, the result also shows that Liquidity Risk (LIQR) [β = 0.0264; Pval = 0.961] and Market Risk [β = 0.0369; Pval = 0.747] have positive signs that are statistically insignificant to Economic Value Added. On its part, Credit Risk (CR) established a negative and significant effect on Return on Assets [β = – 0.9647; Pval = 0.0421]. Liquidity Risk [β = – 0.0018; Pval = 0.8471] and Insolvency Risk [β = 0.0008; Pval = 0.7719] have negative and positive signs that are statistically insignificant to Return on Assets. In relation to the findings of the study, the study recommended amongst others that it is fundamental for DMBs in Nigeria to practice scientific credit risk management, improve their efficacy in credit analysis and loan management to secure as much as possible their assets, and minimize the high incidence of non-performing loans and their negative effects on financial performance
This study examines the effect of liquidity management on financial performance of banks in Nigeria for the period 2010 to 2018. The study uses secondary data from five banks listed bank on the stock exchange in Nigeria. The proxies employ for liquidity management are; Liquidity ratio (LQR), Loan to deposit ratio (LDR), Cash reserve ratio (CRR) and deposit ratio (DR), while return on assets (ROA), return on equity (ROE) and return on net interest margin (NIM) are proxies for financial performance (Profitability). The study uses panel regression analysis in estimating the model and Hausman test while making a choice between fixed effect and random effect model. The study finds that liquidity ratio (LQR) have positive and significant effect on financial performance of DMB as measured by return on assets (ROA), return on equity (ROE) and net interest margin(NIM).It therefore recommends that banks in Nigeria should establish sound governance and risk management systems by developing strategies, policies for liquidity management that is well integrated into its risk management practices as well as establish a contingency funding plan to address any liquidity shortfall during periods of stress or emergency while ensuring that active monitoring liquidity funding needs to avert any liquidity challenge that could trigger crisis in the banks is promptly addressed.
Relationship between Total Quality Management Practices and Profitability: Case of Small Hotel Sector London (UK) (Published)
The rise of competition has inclined various small-scale businesses to incorporate a robust strategy in order to increase profitability. Therefore, in the contemporary enterprise sector, exceptional importance has been given to the concept of Total Quality Management by both local and multinational organisations, considering the associated benefits of continuous improvement, increased efficiency, and the overall efficacy of the organisation. Thus, the main aim of this study is to assess the impact of TQM implementation into small scale hotels in terms of financial growth (profitability); and to develop a comprehensive and feasible quality framework for managers to adopt the best TQM practices that enhance profitability through quality improvement and to achieve expected results. The researcher has applied quantitative method by recruiting 141 participants (managerial level) to achieve the overall aim and objectives of this study, Therefore, survey questionnaires by using Likert scale has been conducted leading towards descriptive, correlation and chi-square analysis of the data collected. The results showed that various TQM practices have positive impact on the profitability of small hotels, such as continuous improvement, quality improvement, role of top management, training and education, employee empowerment and technological innovation, Finally, this research makes an original contribution in the academic and practical field as it enhances the knowledge of TQM among the managers and quality practitioners. Besides presenting some recommendations for small hotels, the study also puts some suggestions for future research in this area with limitations.
Liquidity and profitability are two important variables in the banking industry. In this article, we studied. The impact of liquidity on bank profitability in the Tunisian context. We used a sample of 18 banks over the period (2000…2017). We employ 2 models of panel static in the empirical research. We found that (liquid assets / total assets) and (total credits / total deposits) have a positive and significant impact on return on assets (ROA) whereas (current assets / current liabilities) have not significant impact on ROA. Also, we found that (liquid assets / total assets), and (total credits / total deposits) have a negative and significant impact on ROE (return on equity). Whereas (current assets / current liabilities) have not significant impact on ROE.
Analysis of cassava production in Akpabuyo Local Government Area: An econometric investigation using farm-level data (Published)
The study analyzed the economics of cassava production in Akpabuyo LGA of Cross River State. Multistage random sampling technique was used to select a sample size of 75 respondents for the study using a validated structured questionnaire. Data analysis was carried out using descriptive statistics, budgetary method and regression analysis. Findings revealed that farm size, labour, the quantity of fertilizer, and gender were the significant factors affecting cassava production in the study area. The coefficients of elasticity showed that a 10% increase in capital, labour, number of bundles and quantity of fertilizer would lead to 0.06, 0.84, 0.03 and 0.85% increase respectively in cassava production while that of farm size will lead to -0.64% decline in cassava production. Total Cost (TC) per hectare of N35,990.4 was incurred in cassava production and a net farm income (NFI) of N39,957.6 was earned and return on naira invested was N2.11. Unfavourable government policies, sparse marketing outlets, inadequate capital, high cost of inputs, insufficient farmland, high cost of transportation and lack of extension services were the severe constraint faced by cassava farmers in the study area. Extension agents should be mobilized and sent to the study area to educate the farmers on the innovation practices available for cassava farming to encourage its production.
This study examined the effects of financial innovation on the profitability of deposit money banks in Nigeria. the general purpose of the study was to examine the effect of financial innovation on the profitability while the specific objectives was to examine the effect of automated teller machine, electronic fund transfer, internet banking, mobile banking and investment on information communication technology on return on equity of deposit money banks. The study formulated four hypotheses and used panel data regression to analyze the secondary data extracted from the annual reports and accounts of the fourteen firms for the period 2009 to 2017. Return on equity was the dependent variables while automated teller machine, electronic fund transfer, internet banking, mobile banking and investment on information communication technology on return were the independent variables. Findings of the study revealed that automated teller machine and electronic fund transfer have negative relationship with return on equity while internet banking, mobile banking and investment on information communication technology have positive relationship with return on equity. The study recommends that deposit money banks should adopt financial innovations, deposit money banks invest in technological innovations and banks should transform banking service by adapting to mobile banking and agency banking so that not only to providing jobs but also increase market share.
This study investigated the influence of corporate governance on profitability of quoted oil and gas companies in Nigeria. The ex post facto research design was adopted for the study. The population of the study was made up of the twelve (12) oil and gas companies listed on the Nigerian stock exchange between 2010 and 2018. Ten (10) listed oil and gas companies in Nigeria constituted the sample size for this study. Data required for the study were extracted from the audited financial statements of the quoted oil and gas companies that constituted the sample of this study and analysis of data was carried out using descriptive statistics. Multiple regression and correlation statistics were used in testing the hypothesis postulated. The investigation revealed that a significant positive linear relationship exists between corporate governance and profitability of quoted oil and gas companies in Nigeria and that board independence, board size and board meetings accounts for 3.2 percent, 21.9 percent and 2.8 percent respectively of the profitability of quoted oil and gas companies in Nigeria. The results of the study further revealed that audit committee independence, audit committee meetings and audit committee competence accounts for 1.6 percent, 6.8 percent and 14.3 percent respectively of the profitability of quoted oil and gas companies while external auditor independence, shareholders’ involvement and ownership concentration accounts for 1.2 percent, 23.6 percent and 0.2 percent respectively of the profitability of quoted oil and gas companies in Nigeria. Based on the findings of the study, it is concluded that corporate governance has a moderate influence (52.3 percent) on profitability of quoted oil and gas companies in Nigeria. One of the recommendations made was that quoted oil and gas companies in Nigeria should continually appraise their corporate governance system with a view to determine whether the system is functioning as expected so that corrective actions can be taken to address any deficiency in the system and such appraisal should be done annually.
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.
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.
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.
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.
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.
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.
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.