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VOL. 10, ISSUE 5 (2024)
Organizational efficiency dynamics and financial performance of manufacturing companies in Nigeria
Authors
Onyinye M Eneh, Arinze E Anaege, Iheanyi O Anyahara
Abstract
This study examines the impact of management
efficiency, human capital efficiency, and tax payment efficiency on the
financial performance of manufacturing firms in Nigeria. The data used for this
research were obtained from 38 manufacturing companies listed with the Nigerian
Exchange Group (NGX) for the period of 2014-2023. The descriptive statistics
and panel data analyses with both fixed and random effects models will be used
for data analysis in this study. The descriptive statistics showed
heterogeneous conditions among the firms in the sample. Model selection was
guided by the use of the Hausman test which showed no significant difference
between the fixed effects and random effects. However, in this paper, fixed
effects have been chosen because of possible autocorrelation and firm-specific
differences. The correlation test showed no multicollinearity issue. The
results indicate that management efficiency negatively influences financial
performance, while human capital efficiency positively affects it. However, tax
payment efficiency does not significantly affect financial performance. The
findings highlight the need for improving efficiencies in order to enhance the
financial performance of manufacturing firms in Nigeria. It also adds to the
literature that looks into how operational efficiency and resource utilization
are considered relevant to firm performance and offers guidelines that help a
firm give more priority to management and human capital investment to ensure
better financial outcomes.
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Pages:46-53
How to cite this article:
Onyinye M Eneh, Arinze E Anaege, Iheanyi O Anyahara "Organizational efficiency dynamics and financial performance of manufacturing companies in Nigeria". International Journal of Commerce and Management Research, Vol 10, Issue 5, 2024, Pages 46-53
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