Effective financial reporting. Tools toward quality decision making in manufacturing industry

Effective financial reporting. Tools toward quality decision making in manufacturing industry

Author by Dr. Tunji Siyanbola

Journal/Publisher: Ppcss International Journal Series

Volume/Edition: 2

Language: English

Pages: 77 - 100

Abstract

This study, effective financial reporting - tool toward quality decision making in manufacturing industry, was carried out to ascertain the role effective financial reporting can play in arriving at accurate authentic decision making in manufacturing companies.  A survey research design was adopted in which 50 workers of selected manufacturing companies were used and data were collected using questionnaire.  Four research hypotheses were raised and tested; while the demographic information of the respondents were analysed using simple percentage, the hypotheses were tested using chi-square at a significant level of 5%.  The testing of the hypotheses revealed that: accurate financial reporting can reveal how accumulated capital have been put into use in the companies; effective financial reporting has great impact on accuracy and reliability of decision making process in manufacturing companies; the reported collapse in business cannot be totally attributed to poor quality of their financial reporting system as some were due to non-adherence to relevant corporate governance amongst others.  Based on the findings, it was recommended that companies should always adhere to corporate governance relating to their business.  Management should always review and evaluate the financial control systems to arrest any loophole that can lead to total extinction and regular meeting should be held with staff in charge of finance section so as to disseminate useful information about the company and also elicit feedback that may help in improving the quality of financial reporting as well as the financial situation of the company. 


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