IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 10 2023
DOI: https://doi.org/10.56201/jafm.v9.no10.2023.pg51.60

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Inflation Accounting and Organizational Performance

Dr. Ihenyen Confidence Joel, Tantua Bralayefa (PhD)

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Abstract

This study examined inflation accounting on organizational performance in Nigeria. Data for this study in regards to interest rate, exchange rate and consumer price index on organizations performance in Nigeria. Data were sourced from the Central Bank of Nigeria from five selected quoted firms in Nigeria including are Vital Foam, Intra Motors Plc, Nestle Nigeria Plc, Beco Petroleum Products Plc and Cutix Plc between 2010-2022 on Interest Rate (INR), Exchange Rate (EXCHN) and Consumer Price Indux (CPI)) for the period of the study and analyzed using the Ordinary Least Square (OLS). From teh analysis, it shows that that interest rate have significant impact on organizational performance, exchange rate has significant impact on organizational performance, and consumer price index has a substantial influence on the performance of organizations. From the analysis, the study recommends that It is important for organizations to closely monitor interest rates, as they can have a direct impact on the cost of borrowing and the availability of financing options. Higher interest rates can increase borrowing costs and reduce access to capital, impacting organizational performance

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References:

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Armstrong, M. (2012). Armstrong’s handbook of performance management: An evidence-
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Belkaoui, A. R. (1992). Accounting theory. Cengage Learning.
Bernstein, A., Joshi, M.& Ziegler, A. (2017). Inflation accounting and firm performance:
Evidence from emerging economies. Journal of International Accounting, Auditing and
Taxation, 31, 20-34.

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