Budgeting Processes and the Performance of Food and Beverages Manufacturing Companies in Nigeria
Authors:
KEMISOLA OSUNDINA
Publication Type: Journal article
Journal:
ISSN Number:
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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.