Life Cycle Costing and Firms Performance: Evidences from Quoted Financial Institutions in Nigeria
Author(s)
Madu Ikemefuna , Sunday Alewo Omale , ATTAH Eleojo Vincent ,
Download Full PDF Pages: 57-66 | Views: 155 | Downloads: 57 | DOI: 10.5281/zenodo.8224249
Abstract
Life cycle cost methods informs the management if the entire cost to be incurred on a product or project can be fully recovered and at when due with a substantial profit to be realized. Objectively, the study determines the effect of return on investment (ROI) on the performance of listed companies in Nigeria. An ex-post factor research design was used while the population consists of all the fifty-three (53) companies in the financial sectors quoted on the Nigerian Stock Exchange for eight (8) years period from 2013-2020. The sample size comprises of 27 companies in the financial sector which comprises of Banking and Insurance that are quoted on the Nigerian Stock Exchange. The study employed Robust Fixed Effect Regression Model because it’s effective in the estimation of panel data after conducting some diagnostic tests. The finding is in line with the priori expectation of the researcher and also with the Miller and Modigliani Based on the assumption of a perfect capital market. It concludes and recommends that Management of companies should have a policy for adequate return on equity to attract more investments from the equity investors into the firms.
Keywords
Financial Institution, Life cycle costing and Return on investment.
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