Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)


Appraisal of capital budgeting techniques and performance of manufacturing firms in Nigeria

Author(s): Onuorah, A.C

Capital budgeting decisions is one of the most tasking managerial decisions taken in manufacturing firms and has been a very topical issue in the sustenance of existing firms and emerging firms in the world. This study basically appraised how capital budgeting techniques have affected the performance of manufacturing firms in Nigeria. The study adopted the crosssectional design using a mixture of primary and secondary data. The research questions were collapsed into the questionnaire. On the whole, while a total of 76 questionnaires were administered, 72 were returned representing the entire population. The performance measures were analyzed for a seven year period (2011-2017). The study found that changes in the existing risk of a firm, utilizing good capital budgeting method and firm size will go a long way in positively affecting the specified performance measure. Also, capital intensity had a direct relationship with the specified performance measure of manufacturing industries in Nigeria. Following the findings, the study calls for the adoption from different quarters and suggests that they could affect performance positively.