EFFECT OF MANAGEMENT EFFICIENCY ON PROFITABILITY OF FOODS AND BEVERAGE MANUFACTURING FIRMS IN NIGERIA.

Abstract: The study empirically investigated the effect of management efficiency on profitability of foods and beverage manufacturing firms in Nigeria from 2010 to 2019. Specifically, the study: (i). Explored the effect of inventory turnover on return on assets of foods and beverage manufacturing firms in Nigeria. (ii) Examined the effect of account receivable turnover on return on assets of foods and beverage manufacturing firms in Nigeria. (iii) Evaluated the effect of total assets turnover on return on assets of foods and beverage manufacturing firms in Nigeria. The study targeted fifteen (15) foods and beverage manufacturing firms listed on the Nigeria Stock Exchange during the period, out of which eight (8) were selected using a simple random sampling method. Annual time series data obtained from the account and financial statements of the selected firms were used. Thus, the study was an ex-post facto research. Descriptive statistics, panel data regression analysis, correlation analysis and t-statistics were the main statistical tools of analysis adopted for the study. Overall result suggests that the independent variables, namely, inventory turnover, account receivable turnover and total assets turnover are the major factors influencing return on assets of foods and beverage manufacturing firms in Nigeria during the period. Specific results indicate that inventory turnover and total assets turnover positively and significantly affect return on assets of the firms while account receivable turnover positively, but insignificantly affect return on assets of the firms during the period.

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