VALUE FOR MONEY AUDIT AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS MANUFACTURING FIRMS IN NIGERIA

Abstract

This study determined the value for money audit and financial performance of listed consumer goods manufacturing firms in Nigeria. The specific objective of the study was to determine whether efficiency and effectiveness value for money audit relate with net profit margin of listed consumer goods manufacturing firms in Nigeria. This study is anchored on agency theory. The research design used in this study was descriptive survey and ex-post facto research. The target population of this study consists of all the twenty (22) listed consumer goods manufacturing firm from the Nigerian Exchange Group formally known as Nigerian Stock Exchange, but the accessible population consist of fifteen (15) listed consumer goods manufacturing firms as sample size of the study for the purpose of secondary data collection while five out of the fifteen 15 consumer goods manufacturing firms that have branches in Rivers State with a total of hundred and ninety-four (194) respondents was used as primary data collection which was sample to one hundred and thirty-one (131) using Taro Yamen’s formula. The study employed primary data source of questionnaires and it was administered to the respondents. The study utilized Descriptive Statistics, Spearman Correlation Coefficient and Ordinary Least Square Regression method with the aid of SPSS v 20. The findings showed that, there is a positive and significant relationship between efficiency value for money audit and net profit margin of financial performance. Also, there is a positive and significant relationship between effectiveness value for money audit and net profit margin of listed consumer goods manufacturing firms in Nigeria.  Based on the findings, this study concluded that value for money audit had  significant relationship with financial performance of listed consumer goods manufacturing firms in Nigeria. The study recommended that, firms should critically examine efficiency and effectiveness value for money auditing in order to avoid wastage in cost control.