Budgeting Processes and the Performance of Food and Beverages Manufacturing Companies in Nigeria

Budgeting Processes and the Performance of Food and Beverages Manufacturing Companies in Nigeria

Author by Dr. Jacob Ademola Osundina

Language: English

Abstract

This study focuses on the determination of the relationship between budgeting processes which are measured by; planning, communication, implementation, participation, control and organizational performance which are predicted by dividend per share, earnings per share, net asset per share and return on investment of food and beverages manufacturing companies as well as ascertaining the effect of budgeting processes on the performance of the industry. Data were collected through the survey of 99 managers comprising top level and middle level managers of five different food and beverages manufacturing companies randomly selected from Lagos State, Nigeria. Pearson Product Moment Correlation Coefficient was used to determine the level of association between budgeting processes and organizational performance and it was discovered that there was a significant relationship between planning, communication, implementation, control and performance indicators whereas there was no significant relationship between participation and performance indicators. Multiple regression analysis was used to determine the effect of budgeting processes on the performance of the industry. The results of regression analysis show that budgeting processes has a significant effect on dividend per share and net asset per share and no significant effect on earnings per share and return on investment. F-test and P-value were used to test the significance at α = 0.05. It is however recommended that, food and beverages manufacturing companies in Nigeria should intensify efforts in following budgeting processes as it improves performance of food and beverages manufacturing companies in Nigeria in terms of shareholders wealth and put in place budget manual for monitoring and control of the process.


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