BUDGETARY CONTROL SYSTEM AND FINANCIL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGRIA.

Abstract

Budget implementation and control has always been a difficult task and its achievement has been a mirage in recent years in Nigeria. The inclusion of mostly non-professionals in budget committee members have posed problem in budget preparation, monitory control in the entire budget cycle. Hence, it becomes imperative for the study to examine the effect of budgetary control system and financial performance of manufacturing firms in Nigeria. Given this, two objectives and hypotheses were raised as guide to the study. The study also used financial accessibility theory and efficiency structure theory as its theoretical framework. The cross sectional survey design was used, with sample size of 60 using convenient, quota and snowballing sampling techniques. Both primary and secondary sources were used and as such spearman rank correlation co-efficient were used for data analysis.  The findings revealed that budgetary control system has major effects on the performance of firms in Rivers State. It equally shows that prudent expenditure retirement has significant influence on the performance of workers in manufacturing firms. Thus, the study concluded and recommended that management of manufacturing firms should put in place an effective budgetary control system which will enable them conduct their duties in an efficient manner and again, managers should also set up supplementary budgeting centers as well as employ more budget officers and provide budget manual so as to advance on their budgetary control.