IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 10 NO. 7 2024
DOI: 10.56201/ijssmr.v10.no7.2024.pg59.75

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Strategic Financial Management Techniques and Wealth Creation of Listed Manufacturing Firms in Nigeria

Samuel Sunday Charlie (PhD, CNA), Dr. Augustine A. Udonsek, CNA, ACTI

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Abstract

Strategic financial management has the potential to achieve the wealth creation expectation of a company or an organization. This study was carried out to examine the relationship between strategic financial management techniques and wealth creation of listed manufacturing companies in Nigeria. Ex-post facto research was employed for this study and a sample size of 10 randomly selected listed manufacturing firms were used. The data used for this study were gotten from secondary data, from audited annual reports of these firms for 5 years (2019-2023). Multiple regression analysis and descriptive statistics were used to analyse the data obtained. The findings revealed that debt finance had positive and insignificant effect on return on equity, Dividend payout had negative relationship with return on equity, working capital revealed a negative and significant relationship with return on equity, and the total asset turnover had a negative significant effect on return equity of the manufacturing sector. It was concluded that Strategic Financial management techniques jointly had significant effect on return with F statistics of 0.00 as all the proxies of the independent variables are jointly responsible for 0.46% changes in ROE. It was recommended that the management of the manufacturing sector should consider other factors outside the financial management practices that impacted return on equity to improve their performance so as to attract more investors to their sector. Also, the manufacturing sector should look critically at those financial management techniques (debt finance, dividend payout, working capital, and total asset turnover) that impact return on equity negatively.

keywords:

Strategic Financial Management, Wealth Creation, Manufacturing Firms

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