IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 1 2024
DOI: https://doi.org/10.56201/jafm.v10.no1.2024.pg1.17

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Cost Control and Reduction, Management and Financial Performance of Listed Manufacturing Firms in Nigeria

Adeniyi Lateef Temitope

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Abstract

The purpose of this study was to investigate the relationship between cost management and the financial success of particular Nigerian manufacturing enterprises. The study focused on how these firms' earnings after taxes were impacted by selling and distribution expenses as well as administrative costs. The study used secondary data acquired from the annual financial reports of ten sample organizations between 2011 and 2020. Descriptive statistics, correlation analysis, and panel regression techniques such pooled OLS, random effect estimation, and fixed effect estimation were used to evaluate the data. The Hausman test and post-estimation tests were also used to evaluate the models that were taken into consideration for the study. The findings revealed that while administrative costs had an insignificantly negative influence on the tested firms' earnings after tax, selling and distribution costs had an insignificantly positive impact. The study led to the conclusion that cost control has both positive and negative effects on the financial performance of manufacturing firms in Nigeria, especially when measured in terms of profit after tax. Based on the results of the study, manufacturing organizations are urged to manage administrative. Any attempt to improve a specific financial performance measure through cost control may have unfavorable effects on other measures. In order to avoid situations where one measure of financial performance may be triggered at the expense of another, manufacturing

keywords:

Selling and distribution costs, administrative costs, cost control, manufacturing

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