Corporate Management and Financial Performance of Multinational Companies in Nigeria

Corporate Management and Financial Performance of Multinational Companies in Nigeria

Abstract: The study investigated the effect of corporate management on the financial performance of multinational companies in Nigeria. Specifically, it looked at the effect of conversion circle, acid test ratio, and current ratio on profit after tax of multinational companies in Nigeria. The study used an ex post facto research design and Secondary data from the annual reports of eight selected sampled companies covering the period 2006-2020 were collected. Data collected was analysed using descriptive statistics like table and percentage, with inferential statistics such as regression analysis and correlation analysis. The study revealed that cash conversion cycle, acid test ratio and current ratio exerted a positive effect on profit after tax with coefficients of 0.01008 (p = 0.384 > 0.05), 0.0218 (p = 0.0807 > 0.05) and 0.1407 (p = 0.069 > 0.05) respectively. It was concluded that corporate management has a significant positive influence on the financial performance of multinational oil and gas companies in Nigeria. According to the above conclusion of the study, it is recommended that managers of oil and gas companies in Nigeria should maintain a high level of cash conversion circle acid test ratio and current ratio for the firm’s performance since it affects financial performance.

AMJD Volume. 11, Issue 2 (2022)

Contributor(s)

Keywords

Download Full-text (PDF)

Corporate Management and Financial Performance of Multinational Companies in Nigeria