Tag Archives: Profitability

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

Production Planning and Profitability of Selected Manufacturing Firms in Nigeria. (Published)

This research focuses on Production Planning and Profitability. A study of Flour Mill of Nigeria Plc, Dangote Flour Mill Plc, and Honeywell Flour Mill Plc was adopted. Production Planning is important in providing better and more economic goods to customers at lower investment. Inventory shortage as a result of stock out and unexpected increase in demand, supply challenge associated with inadequate capacity installation of machines, poor technology, poor capacity utilization, inability to meet budgetary target as a result of change in demand and supply variable and poor demand forecasting are established as the problem of this study. In view of the problem identified, the objectives of this study are to examine the effect of inventory shortage on turnover, to examine the problems of value added by supply chain on profitability and to ascertain the influence of budget on investment of selected manufacturing firms in Nigeria. This work is anchored on the Economic Theory of Production and Rational Economic Man Theory. Data collected for this research were based on Secondary information. Data obtained were analyzed using Ordinary Least Square (OLS) technique by the use of time series. The finding of this study shows that the estimated coefficient of the constant term is statistically significant at better than 0.1 per cent for Dangote Flour Mill Plc and Honeywell Flour Mill Plc and statistically significant at 0.6 per cent for Flour Mill of Nigeria Plc. This implies that increase in turnover (sales) lead to subsequent increase in inventory which in turn increases level of production. The increase in turnover subsequently increases profitability in Dangote Flour Mill Plc and Honeywell Flour Mill Plc. This study concludes that increase in turnover, profitability and budget are vital sources of facilitating growth in flour milling firms in Nigeria. The study recommends that flour millers should integrate their supply chain management operations efficiently to enhances their sales and profitability and also adopt the supply chain strategy/models that were developed in this study to align with their operations and target customers

Keywords: Capacity Utilisation and Budgetary Target, Production Planning, Profitability

Entrepreneurial Orientation Dimensions and Profitability Nexus: Evidence from Micro Enterprises in the Retail Sector in a Developing Country (Published)

This study examined the relationship between entrepreneurial orientation dimensions (proactivity, risk-taking and innovation) and profitability of micro enterprises in the retail sector in a developing country. The data for the study were obtained from micro enterprise owners who operate retail businesses in Madina-Accra in Ghana. The study adopted a cross-sectional survey design, and employed quantitative technique in the collection and analysis of the data. The researchers used convenient and purposive sampling techniques to select 110 research participants for the study. The study employed descriptive statistics, Pearson’s correlation and hierarchical regression to analyse the data. The study found a significant positive effect of proactiveness and risk-taking on profitability of micro enterprises that operate in the retail sector in Ghana. However, no relationship was found between entrepreneurial innovativeness and profitability. The implications of these findings and recommendations for research, practice and practice were also discussed.

Keywords: Developing Country, Entrepreneurial Orientation, Micro Enterprises, Profitability, Retail Sector

Stimulants of Profitability of Non-Bank Financial Institutions: Evidence from Bangladesh (Published)

Financial institutions both Bank and Non-Bank play a significant role in the economy of a country. Like other developing countries Beside the Banking industry necessarily of Non-Bank financial institutions cannot overlook in Bangladesh. This study inspects the profitability of firms in the Non-Banking Financial Institutions (NBFIs) diligence of Bangladesh. Financial Enactment of a financial organization fundamentally depends on its some key financial factors. Specially operating efficiency is main inducing factor which is designed through operating income. Besides it capital Structure combination of equity and liability, term deposit, total asset considerably affect the profitability of any NBFI company. In addition operating expense also upsets the profitability though that is not statistically significant. Different Statistical procedures such as correlation matrix, multiple regressions have been used to determine the associations between variables. And before doing regression analysis normality distribution test has been accomplished by One-Sample Kolmogorov- Smirnov Test. This research is an effort to find out the statistically significant key stimulants variable and their level of impact over net profit.

Keywords: Capital Structure, Financial Performance, Non-Bank Financial Institutions (NBFI), Operating efficiencies, Profitability

Assessing the Impact of Liquidity and Profitability Ratios on Growth of Profits in Pharmaceutical Firms in Nigeri (Published)

This paper assesses the impact of liquidity and profitability ratios on growth of profits in Pharmaceutical firms in Nigeria. Eight ratios: acid test, current ratio, net working Capital. Return on assets, returns on capital employed, returns on equity, gross profit ratio and net profit ratio were regressed against the dependent variable growth of profit. Haussmann test was conducted to choose between Fixed Effect and Random Effects model. Results justified the use of Fixed Effect model. Test results indicate significant contributions of all the variables to profit growth of pharmaceutical companies in Nigeria implying that continued improvement in the variables can lead to increases in growth of profit by the Pharmaceutical firms.

Keywords: Growth of Profit, Liquidity, Profitability, Return on Assets, Return on Capital Employed, Return on Equity, Working capital.

Profitability in the Red Meat Industry on the Ghanaian Livestock Market: Evidence from a Publically-Owned Red Meat Facility (Published)

We examined the profitability of a publically owned enterprise in Kumasi-Ghana. Specifically, the study sought to; determine the costs and returns, associated with operations, assess the factors that affect the profitability, and identify the challenges faced by management in their operations. Non-probability purposive sampling was used to select the study area. Structured interviews were used as primary data whereas a 10-year financial statement was the secondary data source. The result showed a positive profitability index of 0.88 and operation ratio of 0.93 although the gross margin analysis produced an operating loss (π) of (GHȻ (37,331)) given a TAC of GHȻ 4,409,972, TVC of GHȻ 10,148,464, TR of GHȻ 14,059,680, and a GM of GHȻ 4,372,644. The regression model confirmed that factors that affect the profitability of abattoir enterprise are influenced by eight factors namely; Salaries/Wages, Electricity/Water, Plant repair/maintenance, plant/market consumables, cleaning detergents, pension contribution, depreciation expense and packaging/labelling at r=0.86.

Keywords: Gross Margin Model, Mean Score Model, Multiple Regression, Non-Probability Purposive Sampling, Profitability, Red-Meat Industry

Effects of the Implementation of Good Corporate Governance on Profitability (Published)

The Indonesian Institute for Corporate Governance (IICG) always conducts research about the proper application of corporate governance every year, especially in public companies in Indonesia’s Stock Exchange. Basically, Good Corporate Governance is the procedure of company management in running their goals that result in optimal profitability or profit for the investors. In theory, the application of good corporate governance will increase the profitability of a company. But in reality, it is necessary to conduct research on the issue. Some problem identifications that arise are the questions about the implementation of good corporate governance, the level of profitability (return on assets) and how much the implementation of Good Corporate Governance affects the profitability (return on assets). This study involved 9 companies which participated in The Indonesian Institute for Corporate Governance (IICG) research. For this study, the authors used quantitative research method to test the hypothesis that has been set. The variables correlation is causal or causal associative. The statistical test measurement used to determine the effects is simple regression. The statistical tool to measure the effect of the used measurement scale is ratio and interval. Based on the research conducted by the author, the result that is obtained is the implementation of CGPI that is measured through CGPI increased and decreased, although in general it increased. Meanwhile profitability that is measured through average ROA increased. Based on the result of hypothesis testing, the implementation level of Good Corporate Governance has a positive effect on the sampled company’s profitability (return on assets). The effect is 19.8%.

Keywords: Corporate Governance, Profitability

Working Capital Management and Profitability: Evidence from the Cement Industry in Bangladesh (Published)

Cement Industry plays a vital role in the socio-economic development of Bangladesh. Profitability of this industry is highly related with the efficient working capital management, but the profitability of this industry is not satisfactory. This study is designed to show the profitability and working capital position of Cement industries, correlation between them and whether the profitability is affected by Working Capital Management. Ratio Analysis, Correlation Matrix and Regression Analysis have been used to show Profitability. Working Capital position, correlation between them and the impact of Working Capital on Profitability respectively. For the source of data the author mainly relied on Annual Reports and official records. It is observed from the study that profitability and Working Capital Management position of the Cement industry are not satisfactory.The study reveals that correlation exist between Working Capital Management and Profitability. The study also brings to fore that Working Capital Management has a positive impact on Profitability.

Keywords: Cement Industry, Efficiency, Profitability, Working Capital Management

Impact Of Company Income Taxation On The Profitability Of Companies In Nigeria: A Study Of Nigerian Breweries. (Published)

This study ascertains the impact of taxation on the profitability of companies in Nigeria. The study used secondary sources of data and a time series econometric technique with an error correction model tested the variables most likely to impact on profitability of companies in Nigeria. The study revealed that the level of company tax has significant effect on the profitability, that company income tax (CIT) has significant effect on profitability. We conclude that the positive and significant relation between the profitability and the taxation explanatory variables indicates that policy measures to expand tax revenue through more effective tax administration will impact positively on growing the company’s profitability. It is therefore recommended that Government should expand the tax yield through improved tax system administration. This is because of the positive danger of over-reliance on crude oil export receipts to drive the economy. There should be more improve in the effectiveness of taxation by ensuring proper and equitable tax assessment and timely collection.

Keywords: Breweries, Economy, Income, Profitability, Tax

Economic Analysis of Vegetable (Telfairia Occidentalis Hook F.) Production among Farming Households in Ibiono Ibom Local Government Area of Akwa Ibom State, Nigeria. (Published)

The study analysed the production of Telfairia occidentalis among farming households in Ibiono Ibom Local Government Area of Akwa Ibom State. Data for the study were obtained from 90 vegetable farmers (Telfairia occidentalis) farmers in the area using a 2 – stage sampling procedure and analysed using descriptive statistics, multiple regression and budgeting technique. Results showed that 66.7 percent of the respondents were aged between 31 – 50 years; 72.2 percent were married; 53.3 percent had farming experience of about 9 years and 53.3 percent had household sizes of about 6 – 10 persons. The result of multiple regression showed that age, farming experience, cost of fertilizer and the cost of Telfairia occidentalis seeds were factors that affect vegetable (Telfairia occidentalis) production in the study area. The cost and returns analysis indicated that the fixed cost constituted 79.68 percent of the total cost of vegetable, while variable cost constituted 20.32 percent. On the average a farmer in the study area incurred a total cost of N30,857.74 in the production of Telfairia occidentalis and had a total revenue of N44,005.55 giving a net income of N13,147.81 per farmer. The profitability ratios RRI%, RRVC% and OR were found to be 42.6, 309.71 and 0.14 respectively, indicating that vegetable production was profitable in the area.

Keywords: Fixed cost, Fluted Pumpkin, Profitability, Return on Investment, Variable cost


The crux of the study was to examine the impact of human resource accounting on the profitability of Access Bank of Nigeria Plc, from 2003 to 2012. Using the ordinary least square analytical technique, secondary data from Access Bank of Nigeria Plc were obtained. Findings revealed that there is a positive relationship between the indicators of human resource cost (training cost, development cost and number of staff) and the profit of the organization (Access Bank Plc). It was also discovered that there was a significant relationship between training cost, development cost and the profit of the bank. However, the number of staff does not have a significant effect on profit of the bank. Nonetheless, organizational performance is dependent upon the performance of the individuals that make up the organization. That is, organization does not exist in a vacuum; there are people (employees) who may work together towards achieving its goal. It was therefore recommended inter alia that; organization should enhance the retention of education and training on staff so as to avert wastage of knowledgeable investment. Also, accounting standard board should incorporate their accounting standard for the valuation and disclosure of human resource accounting.

Keywords: Development costs, Human Resource Accounting, Profitability, Staff training costs, number of staff


This study examines the effects of working capital management on the profitability of Deposit Money Banks (DMBs) quoted on the Nigerian Stock Exchange for single period of year 2013. The paper adopts Returns on Equity (ROE) and Returns on Assets (ROA) as dependent variables for profitability while Current ratio (CRR), Profit before taxation to current liabilities (PCL), Operating cash flow to current liabilities (OCL) and Cash balance to total liabilities (CTL) are proxies for working capital and as well independent variables. The annual account and report of all the eleven banks quoted on the Nigerian Stock exchange as at 2013 served as the sources of data, regression was used to determine the relationship between the dependent and the independent variables, and the study finds that significant and positive relationship exist between the working capital management and the profitability of the DMBs in Nigeria. The findings indicate that the two profitability proxies are positively affected by all the elements of working capital management. The paper noted variety of components of working capital and profitability; this therefore means that banks are to ensure that appropriate management of working capital is essential for achieving its objective of maximizing the profitability.

Keywords: Deposit Money Banks, Profitability, Working Capital Management


Indonesia’s banking sector is expected to improve the performance management productivity positive direction (in other words the emphasis on earnings quality and performance should be improved), and making it into the (Association of Southeast Asia Nations) ASEAN free market in 2020 and became the largest bank in ASEAN.The aim of this study are to determine the factors that affect income smoothing on the National Private Commercial Foreign Exchange Banks that listed in Indonesia Stock Exchange (IDX). Variables used in this study are the firm size, profitability and financial leverage. Eckel Index (1981) was used to measure income smoothing, where net profit after tax as income smoothing object.The sample was taken by random sampling of 10 private foreign exchange national banks that listed in Indonesia Stock Exchange (IDX) during the years 1/1/2009 to 31/12/2013 with a sub-sample of 50 financial reports. Testing is done through panel data analysis technique with simultaneous test (F test) and partial test (t test) was used to identify factors that affect income smoothing.The results showed that income smoothing is done by most of the National Private Commercial Foreign Exchange Bank which listed on the Indonesia Stock Exchange (IDX). The test results result are variable size of the company, profitability and financial leverage simultaneously significant effect on income smoothing. Partial test results are that the variable size of the company, profitability and leverage financial has effect on income smoothing.

Keywords: : Company Size, Financial Leverage, Profitability, smoothing earnings


The research of this study is to define the objectivity of merger and acquisition impact in pre and post scenario of the event. The study has played with two parts, the first part of the study implement regression model with the help of accounting ratios of profitability and long term financial position ratios with score of bankruptcy. The second part of the study just analyzes the pre and post financial ratios and its trend over the period of time. The time period taken for the selected company PTCL is from 2003 to 2009, which covers the event. The results of first part of the study has shown that profitability and long term financial position of the company is producing a strong positive impact on the firm score of bankruptcy. The second part of financial ratio has seen that after acquisition the profitability of has declined significantly and it has affected the score of the bankruptcy i.e. Z-Score. The overall long term financial position is neither improved nor declined. It has shown a constant trend over the period of time in which the data is taken. It has been conclude that performance of PTCL has not improved over the period of time

Keywords: Acquisition, Bankruptcy, Long Term Financial Position, Merger, PTCL, Profitability, Regression, Z Score


Due to the immense contribution of commercial banks to the economic development in Nigeria, this research investigate the impact of macroeconomic variables on profitability of banks in Nigeria from 1990-2013. Pooled Ordinary least method is used to determine the effect of three major factors; gross domestic product (GDP), interest rate (INTR) and inflation (INFR) on return on equity (ROE) which proxies’ profitability. The findings from the empirical point of view show a positive relationship of gross domestic product (GDP) with return on equity (ROE). Interest rate and inflation rate have a negative relationship with return on equity (ROE). Gross domestic product have a significant positive effect on Return on equity(ROE) while interest rate have a significant negative effect on return on equity(ROE) but inflation is not significant at all levels of significance.

Keywords: Commercial Banks in Nigeria, Macroeconomic Variable, Profitability


Receivable management is an important fact of financial management. Their accurate monitoring and proper management are also important dimensions in organization. This study examines the impact of receivables management on profitability of food and beverages manufacturing companies in Nigeria. The variables include, accounts receivable, debt and sales growth. Secondary sources of data were used for the period 2000-2011. The hypotheses were analyzed using the multiple regression analytical tools. The findings show that accounts receivable had negative and non-significant relationship with profitability, while debt had positive but non-significant relationship with profitability of food and beverages manufacturing companies in Nigeria. Finally, sales growth also had positive and non-significant relationship with profitability.

Keywords: Generalized Multiple Regression, Profitability, Receivables Management


This study focuses on the effect of strategic marketing of financial services on organization performance. The primary purpose of this study is to focus on the relationship between marketing strategies and banks performance. The research design adopted for this study was survey research design in which a sample was selected at random amongst the population of the study and used as respondents for the study. Questionnaires were used as an instrument of primary data collection. Stratified random sampling was used to select the sample. Simple percentages and frequency distributions together with Spearman’s rank correlation coefficient were used to analyze the data. The result of this study reveals that there is a significant positive relationship between the financial marketing services and profitability of First Bank of Nigeria Plc. Therefore, it is recommended that Banks should remove the communication gap that currently exists between the banks and their customers as most customers are not aware of the services rendered by their banks. Information can be provided through brochures, pamphlets, circular, adverts etc. The banks should devise ways of making it easy for customers to obtain information from banks.

Keywords: Financial Services, Marketing, Organization, Performance, Profitability, Strategic