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. 2 2024
DOI: https://doi.org/10.56201/jafm.v10.no2.2024.pg102.115

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Management Control Systems and Financial Performance of Non- Profit Organizations in Nigeria: An Empirical Investigation

AYORINDE, Florence Mojisola, SAMUEL, Samson Ojeme PhD, FCA, AKINOLA, Akinwumi Olusegun PhD

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Abstract

This paper investigated the influence of management control systems on the financial performance of non-profit organizations operating in the Nigeria. The article was established on agency and contingency theories. Secondary data were collected from the annual accounts and reports of ten selected non-profit organizations (NPOs) in Nigeria from 2013 to 2022. Multiple regression models, including pooled least squares, fixed effects, and random effects, were employed for data analysis, accompanied by descriptive statistics. The findings indicated that fundraising costs exhibit a negative and statistically insignificant effect on financial performance. Conversely, the regularity of management meetings demonstrated a positive and statistically significant effect on financial performance, while effective control of program expenses showed a positive and statistically significant effect on the financial performance of non-profit organizations in Nigeria. In conclusion, this study revealed that management control systems have varying impacts on the financial performance of non-profit organizations in Nigeria. It is advisable for their executive teams to prioritize the establishment of robust management control systems. This will not only strengthen their organization's financial performance but also amplify their societal impact.

keywords:

Financial performance, management control systems, non-profit organizations

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References:

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Adeyemi, D. O., & Yusuf, A. B. (2019). Management Control Practices and Financial Performance
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Ajibolade, S. O., & Afolabi, J. (2019). The impact of budgeting and budgetary control on the
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