Impact of Financial Control Mechanisms on Profitability Performance: A Case of Manufacturing Firms in Nigeria
Dr. Abbas Umar Ibrahim* , Abu Martins Mustapha
Citation : Abbas Umar Ibrahim*, Abu Martins Mustapha, Impact of Financial Control Mechanisms on Profitability Performance: A Case of Manufacturing Firms in Nigeria International Journal of Managerial Studies and Research 2019 , 7(3) : 1-10.
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 is because a quality financial control system is essentially a hallmark for efficiency and effectiveness in operations which snowball to superior performances. This study investigated the impact of financial control mechanisms on the profitability performance of Nigerian manufacturing firms and seeks to suggest valuable recommendations which can improve better performances in the sector. The study population was 275 and a sample size of 125 drawn from the population using simple random sampling technique. Data were collected by means of questionnaire (101 returned out of 125 distributed) which was analyzed using SPSS. Descriptive and inferential statistical techniques were adopted using Pearson's Product Moment Correlation to establish the significance of the relationship between the variables and the single t-test to test the other hypotheses. Findings revealed a significant positive relationship between financial control mechanisms and firms� profitability performance. It was recommended that manufacturing firms should continuously improve on their of application financial control techniques through the selection of suitable and consistent control mechanisms.