Budgeting Practices and Corporate Performance of Listed Manufacturing Companies in Rivers State, Nigeria

Jonah Ngbomowa Moses PhD

doi:10.56201/jafm.vol.11.no12.2025.pg331.345

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Budgeting Practices and Corporate Performance of Listed Manufacturing Companies in Rivers State, Nigeria

Jonah Ngbomowa Moses PhD

Abstract

This study examined the effect of budgeting practices on corporate performance among listed manufacturing companies in Rivers State, Nigeria. Specifically, it investigated how budget participation, budgetary control, and budget planning influence two key dimensions of corporate performance: profitability and market value. The research was motivated by persistent concerns over inefficient budget implementation and declining performance levels in the Nigerian manufacturing sector. A survey research design was adopted, and structured questionnaires based on a 5-point Likert scale were distributed to financial managers, accountants, and budget officers in selected firms. A total of 86 valid responses were analysed using descriptive statistics, Pearson correlation, and multiple regression techniques. Findings revealed that all three budgeting practices significantly and positively affect corporate performance, with budget planning exhibiting the strongest predictive power. Budget participation and budgetary control were also found to be strong contributors to profitability and market value. The regression analysis confirmed that budgeting practices jointly explained a significant proportion of the variance in corporate performance metrics. The study concludes that participatory, well-controlled, and strategically aligned budgeting systems are essential tools for enhancing financial sustainability and market competitiveness in the manufacturing sector. It is recommended that firms institutionalize participatory budgeting frameworks, enforce rigorous budgetary controls, and adopt forward-looking planning practices that align with strategic goals. The study contributes to the empirical understanding of financial management in Nigerian manufacturing firms and offers practical insights for improving performance through enhanced budgeting processes.

Keywords

Budgeting practicesbudget participationbudgetary controlbudget planningprofitabilitymarket valuecorporate performance

References

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Budgeting Practices and Corporate Performance of Listed Manufacturing Companies in Rivers State, Nigeria

Abstract

Keywords

References

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