ACCOUNT RECEIVABLE AND PROFITABILITY OF QUOTED CONSUMER GOODS FIRMS IN NIGERIA
Abstract
ABSTRACT
ThisstudyexaminestheroleofaccountinginformationinguidinginvestmentdecisionswithinNigeria’sagro-alliedsector.Theresearchspecificallyinvestigateshowthestatementoffinancialposition(balancesheet),thestatementofcashflows,andtheincomestatementinfluencetheinvestmentchoicesoffirmmanagersandinvestors.Secondarydatawerecollectedfromtheannualreportsofthreemajorlistedagro-alliedcompanies(DangoteGroup,BUAGroup,andIndoramaPLC)overaten-yearperiod(2013–2022).Theanalysiscombinesdescriptivestatisticswithregressiontechniquestotestthestrengthandsignificanceofeachfinancialstatementasapredictorofinvestmentdecision-making.Thefindingsrevealthatthestatementoffinancialpositionhasasignificanteffectoninvestmentdecisions,accountingforroughly54%oftheexplainedvariance.Bycontrast,boththecashflowandincomestatementsexhibitonlymarginal,statisticallyinsignificantimpacts(explainingabout2–6%ofvarianceeach).Forexample,theregressioncoefficientforthebalance-sheetvariableissignificantandnegative(B=-0.714,p0.05)andincome(B=0.210,p>0.05)werenotsignificant,suggestingnodiscernibleeffectoninvestmentoutcomes.TheseresultsimplythatintheNigerianagro-alliedindustry,balance-sheethealthisaprimarydriverofinvestmentchoice,whileshort-termprofitabilityandliquidityplaysecondaryroles.Furtherresearchisencouragedtoexplorewhycertainfinancialindicatorsdominateinvestmentdecisionsinthiscontextandwhethersimilarpatternsexistinothersectors.
Keywords: AccountingInformation,Agro-alliedFirms;CorporateFinance,FinancialStatements,InvestmentDecision-making,Nigeria
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