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2022-09-27
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Copyright (c) 2022 Tajudeen T Lawal PhD., Ajala, Olayimika A PhD, Prof J O Adewoye, M O Oladejo PhD
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
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Assessing The Determinant Factors Of Inventory Management Practice On Financial Performance Of Paint Manufacturing Companies: A Panel Evidence From Nigeria
Tajudeen T Lawal PhD.
Corresponding Author, Federal Polytechnic, School of Business & Management Studies, Department of Banking & Finance, Ede-Nigeria.
Ajala, Olayimika A PhD
Ladoke Akintola University of Technology, Faculty of Management Sciences, Department of Accounting, Ogbomosho-Nigeria,
Prof J O Adewoye
Ladoke Akintola University of Technology, Faculty of Management Sciences, Department of Accounting, Ogbomosho-Nigeria,
M O Oladejo PhD
Ladoke Akintola University of Technology, Faculty of Management Sciences, Department of Accounting, Ogbomosho-Nigeria,
Keywords: Inventory, Financial performance, Foreign exchange/forex market, Fluctuations.
Abstract
The study evaluates the determinant factors of inventory management practices on the financial performance of listed Paint manufacturing companies in Nigeria. Inventory management practice remains a vital part of a manufacturing concern to be more competitive, hence its efficient and sound management cannot be under estimated. Relevant theories were reviewed in this study for a sound theoretical and empirical foundation. The study population consists of 9 (Nine) listed manufacturing companies in Lagos state of Nigeria, registered with LCCI and NSE as at 2019 for a period of 12 years (2008-2019). Data was collected through primary and secondary sources which was subjected to diagnostic tests. Both descriptive and inferential statistics were used to analyze the panel data through OLS regression method. The overall result of the study indicates that the determinant factors of inventory management are: cost of raw materials, forex rate fluctuations, staff, repair and maintenance, technology and storage costs were more pronounced and significant in the sampled firms of the study. The study therefore recommends that government should help stabilize the forex market to curb fluctuations which act as a major barrier to effective inventory management in Nigeria.