Financial Management Practices and Performance of Small and Medium Scale Poultry Industry in Ogun State, Nigeria

Adegbie Festus Folajinmi; Alawode Olufemi Peter

doi:doi:10.11648/j.jfa.20200802.15

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Financial Management Practices and Performance of Small and Medium Scale Poultry Industry in Ogun State, Nigeria

Adegbie Festus Folajinmi, Alawode Olufemi Peter

Published in Journal of Finance and Accounting (Volume 8, Issue 2)

Received: 13 March 2020 Accepted: 30 March 2020 Published: 14 May 2020

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Abstract

Small and Medium-Sized Enterprises (SMEs) and the Agricultural sector is a combination that constitute a recognisable driving force for the development of an economy and the contribution of this sector cannot in any way be over-looked by any developing country particularly one that is struggling to diversify from petrol-carbon revenue and generate employment. The efficiency or otherwise of applicable financial management practices combined with the peculiarity and uncertainty of the business environment can make or mar the success of such SMEs operating in the poultry industry and this is the focus of this study. The study employed survey design. The study population comprised Poultry farmers in 162 farms as registered with the Poultry Association of Nigeria-Ogun State Chapter with the total of 200 farm managers, excluding farm attendants and other non-managerial staff. The Cochran formula was used to obtain a sample size of 150. The owners/managers of these Poultry farms were selected through a multi-stage sampling technique which involves the stratified, proportionate, and simple random sampling method. The instrument validity was established through scrutiny and evaluation by the research supervisors and experts in the study area, and reliability was determined via Cronbach’s alpha coefficient computed from pilot study responses. By the use of instrument codes, responses were processed into quantitative data for descriptive and empirical analysis. The analysis revealed that all proxies of financial management practices such as annual budget process, capital structure management and working capital management have a significant positive effect on profitability of poultry industry (Adjusted R²= 0.258, F-statistics = 9.407.: p= 0.000<0.05). Thus, the study concluded that financial management practices proxies, of profitability, cash solvency and economic value added, has a significant positive effect on the performance of poultry industry in Ogun State, Nigeria.

Published in	Journal of Finance and Accounting (Volume 8, Issue 2)
DOI	10.11648/j.jfa.20200802.15
Page(s)	90-106
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Poultry Industry, Annual Budget Process, Capital Structure Management, Liquidity, Profitability, Working Capital Management

References

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APA Style

Adegbie Festus Folajinmi, Alawode Olufemi Peter. (2020). Financial Management Practices and Performance of Small and Medium Scale Poultry Industry in Ogun State, Nigeria. Journal of Finance and Accounting, 8(2), 90-106. https://doi.org/10.11648/j.jfa.20200802.15

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Adegbie Festus Folajinmi; Alawode Olufemi Peter. Financial Management Practices and Performance of Small and Medium Scale Poultry Industry in Ogun State, Nigeria. J. Finance Account. 2020, 8(2), 90-106. doi: 10.11648/j.jfa.20200802.15

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AMA Style

Adegbie Festus Folajinmi, Alawode Olufemi Peter. Financial Management Practices and Performance of Small and Medium Scale Poultry Industry in Ogun State, Nigeria. J Finance Account. 2020;8(2):90-106. doi: 10.11648/j.jfa.20200802.15

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@article{10.11648/j.jfa.20200802.15,
  author = {Adegbie Festus Folajinmi and Alawode Olufemi Peter},
  title = {Financial Management Practices and Performance of Small and Medium Scale Poultry Industry in Ogun State, Nigeria},
  journal = {Journal of Finance and Accounting},
  volume = {8},
  number = {2},
  pages = {90-106},
  doi = {10.11648/j.jfa.20200802.15},
  url = {https://doi.org/10.11648/j.jfa.20200802.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20200802.15},
  abstract = {Small and Medium-Sized Enterprises (SMEs) and the Agricultural sector is a combination that constitute a recognisable driving force for the development of an economy and the contribution of this sector cannot in any way be over-looked by any developing country particularly one that is struggling to diversify from petrol-carbon revenue and generate employment. The efficiency or otherwise of applicable financial management practices combined with the peculiarity and uncertainty of the business environment can make or mar the success of such SMEs operating in the poultry industry and this is the focus of this study. The study employed survey design. The study population comprised Poultry farmers in 162 farms as registered with the Poultry Association of Nigeria-Ogun State Chapter with the total of 200 farm managers, excluding farm attendants and other non-managerial staff. The Cochran formula was used to obtain a sample size of 150. The owners/managers of these Poultry farms were selected through a multi-stage sampling technique which involves the stratified, proportionate, and simple random sampling method. The instrument validity was established through scrutiny and evaluation by the research supervisors and experts in the study area, and reliability was determined via Cronbach’s alpha coefficient computed from pilot study responses. By the use of instrument codes, responses were processed into quantitative data for descriptive and empirical analysis. The analysis revealed that all proxies of financial management practices such as annual budget process, capital structure management and working capital management have a significant positive effect on profitability of poultry industry (Adjusted R2= 0.258, F-statistics = 9.407.: p= 0.000<0.05). Thus, the study concluded that financial management practices proxies, of profitability, cash solvency and economic value added, has a significant positive effect on the performance of poultry industry in Ogun State, Nigeria.},
 year = {2020}
}

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TY  - JOUR
T1  - Financial Management Practices and Performance of Small and Medium Scale Poultry Industry in Ogun State, Nigeria
AU  - Adegbie Festus Folajinmi
AU  - Alawode Olufemi Peter
Y1  - 2020/05/14
PY  - 2020
N1  - https://doi.org/10.11648/j.jfa.20200802.15
DO  - 10.11648/j.jfa.20200802.15
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 90
EP  - 106
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20200802.15
AB  - Small and Medium-Sized Enterprises (SMEs) and the Agricultural sector is a combination that constitute a recognisable driving force for the development of an economy and the contribution of this sector cannot in any way be over-looked by any developing country particularly one that is struggling to diversify from petrol-carbon revenue and generate employment. The efficiency or otherwise of applicable financial management practices combined with the peculiarity and uncertainty of the business environment can make or mar the success of such SMEs operating in the poultry industry and this is the focus of this study. The study employed survey design. The study population comprised Poultry farmers in 162 farms as registered with the Poultry Association of Nigeria-Ogun State Chapter with the total of 200 farm managers, excluding farm attendants and other non-managerial staff. The Cochran formula was used to obtain a sample size of 150. The owners/managers of these Poultry farms were selected through a multi-stage sampling technique which involves the stratified, proportionate, and simple random sampling method. The instrument validity was established through scrutiny and evaluation by the research supervisors and experts in the study area, and reliability was determined via Cronbach’s alpha coefficient computed from pilot study responses. By the use of instrument codes, responses were processed into quantitative data for descriptive and empirical analysis. The analysis revealed that all proxies of financial management practices such as annual budget process, capital structure management and working capital management have a significant positive effect on profitability of poultry industry (Adjusted R2= 0.258, F-statistics = 9.407.: p= 0.000<0.05). Thus, the study concluded that financial management practices proxies, of profitability, cash solvency and economic value added, has a significant positive effect on the performance of poultry industry in Ogun State, Nigeria.
VL  - 8
IS  - 2
ER  -

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Author Information

Adegbie Festus Folajinmi

Department of Accounting, Babcock University, Ilishan-Remo, Nigeria
Alawode Olufemi Peter

Department of Accounting, Babcock University, Ilishan-Remo, Nigeria

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Adegbie Festus Folajinmi, Alawode Olufemi Peter. (2020). Financial Management Practices and Performance of Small and Medium Scale Poultry Industry in Ogun State, Nigeria. Journal of Finance and Accounting, 8(2), 90-106. https://doi.org/10.11648/j.jfa.20200802.15

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ACS Style

Adegbie Festus Folajinmi; Alawode Olufemi Peter. Financial Management Practices and Performance of Small and Medium Scale Poultry Industry in Ogun State, Nigeria. J. Finance Account. 2020, 8(2), 90-106. doi: 10.11648/j.jfa.20200802.15

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AMA Style

Adegbie Festus Folajinmi, Alawode Olufemi Peter. Financial Management Practices and Performance of Small and Medium Scale Poultry Industry in Ogun State, Nigeria. J Finance Account. 2020;8(2):90-106. doi: 10.11648/j.jfa.20200802.15

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@article{10.11648/j.jfa.20200802.15,
  author = {Adegbie Festus Folajinmi and Alawode Olufemi Peter},
  title = {Financial Management Practices and Performance of Small and Medium Scale Poultry Industry in Ogun State, Nigeria},
  journal = {Journal of Finance and Accounting},
  volume = {8},
  number = {2},
  pages = {90-106},
  doi = {10.11648/j.jfa.20200802.15},
  url = {https://doi.org/10.11648/j.jfa.20200802.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20200802.15},
  abstract = {Small and Medium-Sized Enterprises (SMEs) and the Agricultural sector is a combination that constitute a recognisable driving force for the development of an economy and the contribution of this sector cannot in any way be over-looked by any developing country particularly one that is struggling to diversify from petrol-carbon revenue and generate employment. The efficiency or otherwise of applicable financial management practices combined with the peculiarity and uncertainty of the business environment can make or mar the success of such SMEs operating in the poultry industry and this is the focus of this study. The study employed survey design. The study population comprised Poultry farmers in 162 farms as registered with the Poultry Association of Nigeria-Ogun State Chapter with the total of 200 farm managers, excluding farm attendants and other non-managerial staff. The Cochran formula was used to obtain a sample size of 150. The owners/managers of these Poultry farms were selected through a multi-stage sampling technique which involves the stratified, proportionate, and simple random sampling method. The instrument validity was established through scrutiny and evaluation by the research supervisors and experts in the study area, and reliability was determined via Cronbach’s alpha coefficient computed from pilot study responses. By the use of instrument codes, responses were processed into quantitative data for descriptive and empirical analysis. The analysis revealed that all proxies of financial management practices such as annual budget process, capital structure management and working capital management have a significant positive effect on profitability of poultry industry (Adjusted R2= 0.258, F-statistics = 9.407.: p= 0.000<0.05). Thus, the study concluded that financial management practices proxies, of profitability, cash solvency and economic value added, has a significant positive effect on the performance of poultry industry in Ogun State, Nigeria.},
 year = {2020}
}

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TY  - JOUR
T1  - Financial Management Practices and Performance of Small and Medium Scale Poultry Industry in Ogun State, Nigeria
AU  - Adegbie Festus Folajinmi
AU  - Alawode Olufemi Peter
Y1  - 2020/05/14
PY  - 2020
N1  - https://doi.org/10.11648/j.jfa.20200802.15
DO  - 10.11648/j.jfa.20200802.15
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 90
EP  - 106
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20200802.15
AB  - Small and Medium-Sized Enterprises (SMEs) and the Agricultural sector is a combination that constitute a recognisable driving force for the development of an economy and the contribution of this sector cannot in any way be over-looked by any developing country particularly one that is struggling to diversify from petrol-carbon revenue and generate employment. The efficiency or otherwise of applicable financial management practices combined with the peculiarity and uncertainty of the business environment can make or mar the success of such SMEs operating in the poultry industry and this is the focus of this study. The study employed survey design. The study population comprised Poultry farmers in 162 farms as registered with the Poultry Association of Nigeria-Ogun State Chapter with the total of 200 farm managers, excluding farm attendants and other non-managerial staff. The Cochran formula was used to obtain a sample size of 150. The owners/managers of these Poultry farms were selected through a multi-stage sampling technique which involves the stratified, proportionate, and simple random sampling method. The instrument validity was established through scrutiny and evaluation by the research supervisors and experts in the study area, and reliability was determined via Cronbach’s alpha coefficient computed from pilot study responses. By the use of instrument codes, responses were processed into quantitative data for descriptive and empirical analysis. The analysis revealed that all proxies of financial management practices such as annual budget process, capital structure management and working capital management have a significant positive effect on profitability of poultry industry (Adjusted R2= 0.258, F-statistics = 9.407.: p= 0.000<0.05). Thus, the study concluded that financial management practices proxies, of profitability, cash solvency and economic value added, has a significant positive effect on the performance of poultry industry in Ogun State, Nigeria.
VL  - 8
IS  - 2
ER  -

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