Financial Controls and Profitability of Quoted Companies: Panel Data Study from Nigeria

Briggs; Alasin Captain PhD

doi:10.56201/ijbfr.vol.12.no3.2026.pg33.47

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Financial Controls and Profitability of Quoted Companies: Panel Data Study from Nigeria

Briggs, Alasin Captain PhD

Abstract

Financial control function has become an issue of paramount concern for every firm that strives to achieve profitability, growth and survival in a dynamic business environment. This study examined the effect of financial control on the financial performance of quoted manufacturing firms in Nigeria. Panel data were sourced from financial statement of the quoted food and beverage manufacturing firms from 2015 to 2024. Return on equity and return on assets were modeled as the function of inventory control and budgetary control. Panel data ordinary least square was used as data analysis methods. R-square, regression coefficient, F-statistic and probability was used to determine the extent to which accounting control affect financial performance of the quoted food and beverage manufacturing firms. The study found that 45.9 percent variation in the return on equity of the quoted food and beverage manufacturing firms were explained by accounting control. The results of the fixed effect model proved that inventory control and financial control have but effect on return on equity while cost control have negative effect on return on equity of the quoted firms within the periods of the study. 75.2 percent variation in the return on assets was explained by accounting control. The results of the fixed effect model proved that inventory control have negative effect on return on assets while budgetary control have positive effect on return on assets of the quoted firms. The study recommends that management of the quoted firms should formulate proactive measure to manage direct and indirect cost of production and administration for positive effect on return on equity. Inventory management strategies of the firms should be advanced and policies to increase in inventory utilization should be formulated for better performance and the effect on return on equity. Effective financial control practices should encourage and management should discourage financial control mechanism that affect negatively return on equity of the quoted food and beverage manufacturing. That management should discourage undue expansion that increases operating cost without correspondence increase in profitability of the quoted firms.

Keywords

Financial ControlInventory ControlBudget Control ProfitabilityQuoted CompaniesPanel Data Study.

References

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Financial Controls and Profitability of Quoted Companies: Panel Data Study from Nigeria

Abstract

Keywords

References

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