Application of Responsibility Accounting to Productivity Evaluation in the Nigeria Quoted Companies.

Application of Responsibility Accounting to Productivity Evaluation in the Nigeria Quoted Companies.

Author by Dr. Samuel Olaoye

Journal/Publisher: Journal Of Advance Research In Business Management And Accounting

Volume/Edition: 4

Language: English

Pages: 1 - 24

Abstract

The study was designed to identify measure of performance that is related to shareholders wealth and that managers can directly observe and can see the influence of their actions in their responsibilities. The primary objective of business is to maximize the shareholders wealth. The measurement of firm’ s productivity is a good indicator to assess the realization of this objective. The responsibility to achieve this goal however lies heavily in the hands of managers which has become a major challenge in profit oriented organizations. It has been observed that responsibility accounting application to evaluate productivity is missing in Nigerian quoted companies, while in some it is not well instituted and administered. The research work adopted an ex-post facto research design, with a focus on the quoted Nigerian quoted companies as at 31st December 2016.A sample size of 53 companies was selected by using a combination of stratified and purposive sampling techniques. Productivity was proxied by earnings per share while Responsibility accounting was proxied by cost of sales, operating cost, net income and Return on Asset. Descriptive and inferential statistics were used for data analyses. The data collected were analyzed using specified regression models with the aid of E-View statistical package. The findings showed that responsibility accounting variables of cost of sales, operating cost, net income and return on assets have positive and significant impact on earnings per share with p values of t statistics < 0 prob.F=0.000,R2>


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