0704-883-0675     |      dataprojectng@gmail.com

IMPACT OF MACRO ECONOMICS VARIABLES ON FIRMS’ PERFORMANCE IN NIGERIA

  • Project Research
  • 1-5 Chapters
  • Abstract : Available
  • Table of Content: Available
  • Reference Style: APA
  • Recommended for : Student Researchers
  • NGN 3000

ABSTRACT

Nigeria  has experienced vibrant activity relating to the acquisition of local firms by Private enterprises (PE) and the size of PE transactions. Some notable PE firms are well known and are listed on the NSE. PE as its name suggests, is very reclusive, private and confidential in nature; and the exact information about financial deals are difficult to ascertain. The research objective was to establish the effect of macroeconomic variables on firms’ performance in Nigeria. The variables selected were those that were perceived by the researcher and supported by previous empirical studies, to have the highest effect on financial performance of firms as measured by Return on investment (ROI). These are inflation rate, GDP growth rate, bank interest rates, exchange rate and systematic risks. ROI was taken to be the dependent variable while inflation, GDP growth rate, interest rates, exchange rate and systematic risk were taken to be the independent or predictor variables. The study also considered an error term as a representative of other non key variables which had not been included in the model. The study period ranged from 2005 to 2012 within every quarter of a year, therefore consisting of 32 observations. The data was analyzed using SPSS version 11 for Windows. Multivariate regression model was employed in the study. To further ensure the model’s significance and goodness of fit, an F test and Analysis of Variance (ANOVA) were used. Out of the private enterprises (PE) firms sampled, the study established that PE firms’ in Nigeria ROI was heavily influenced by the selected macroeconomic variables with GDP having the largest influence and systematic risk having the least impact. The computed R2 was established to be of 0.728 which shows there is a positive and strong correlation between the selected macroeconomic variables and ROI. 72.80% of ROI is influenced by the selected variables while 18.2% shows ROI affected by other variables not included in the regression, more specifically the error term. The study also established positive correlation between the dependent and independent variables albeit to varying degrees. Gross domestic product, inflation and banks interest rates in that respective order were established to be the macroeconomic factors that had the greatest positive effect on PE firms’ financial performance while exchange rate showed a negative relationship albeit to a small extent. Hence, these macro economic variables should be carefully be considered by all stakeholders in the PE industry. Therefore this study proves, lends credence and confirms the researcher’s theory that the financial performance of PE firms is affected by fundamental macroeconomic factors such as GDP, inflation, currency exchange rate, interest rates and market risk. In summary, the aforementioned macroeconomic should be closely monitored and taken to account by PE funds and firms managers since they have an effect on the overall financial performance of PE firms.




FIND OTHER RELATED TOPICS


Related Project Materials

IMPACT OF BREATH AWAY PROGRAMME CROSS RIVER TELEVISION PROGRAMME AS RELATED TO CHILDREN’S SOCIAL BEHAVIOURAL PROBLEMS.

Background of the study

This chapter gives us an introduction to the research „‟Impact of Breath away (CRBC TV) as related to child...

Read more
GOVERNMENT EXPENDITURE AND AGRICULTURAL PRODUCTION IN NIGERIA (1970 – 2010)

ABSTRACT

This research work critically focused on the roles of government expenditure in the agricultural production in...

Read more
EFFECT OF COMPUTER-AIDED INSTRUCTION ON STUDENTS’ ACADEMIC PERFORMANCE IN FINANCIAL ACCOUNTING IN FEDERAL COLLEGES OF EDUCATION, NORHT-WEST GEOPOLITICAL ZONE, NIGERIA

ABSTRACT

This study was conducted on the effects of computer-aided instruction on students‟ academic performance in financial accounting...

Read more
THE ROLE OF EARLY CHILDHOOD EDUCATION IN DEVELOPING CULTURAL AWARENESS

Abstract: This research examines the role of early childhood education (ECE) in fostering cultural awareness...

Read more
E LEARNING AND ECONOMICS EDUCATION IN NIGERIA. A CASE STUDY OF OSUN STATE COLLEGE OF EDUCATION ILA ORANGUN

CHAPTER ONE

INTRODUCTION

Background of the study

Electronic l...

Read more
THE IMPACT OF CROSS-SELLING AND UPSELLING TECHNIQUES ON SALES REVENUE

THE IMPACT OF CROSS-SELLING AND UPSELLING TECHNIQUES ON SALES REVENUE

This study exami...

Read more
AN ANALYSIS OF NIGERIA – CAMEROON RELATIONS (1990 – 2007)

ABSTRACT

The major significance of this study is that it will examine and highlight Nigeria – Cameroon Relations...

Read more
THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON THE EFFICIENT MANAGEMENT IN PUBLIC ENTERPRISE

ABSTRACT

This project focuses on “the Impact of Information and Communication Technology and the Efficiency of Man...

Read more
PROBLEMS AND SOLUTIONS OF PROPERTY MANAGEMENT IN NIGERIA

Abstract

Property management is a vital aspect of real estate profession. To a non-professional estate...

Read more
PHARMACOECONOMIC ANALYSIS OF HIV/AIDS MANAGEMENT AT MURTALA MUHAMMAD SPECIALIST HOSPITAL, KANO, NIGERIA

ABSTRACT

The HIV/AIDS pandemic has resulted in mortality surge and life expectancy drop throughout the world. Developing countries are mo...

Read more
Share this page with your friends




whatsapp