Effect of Backflush Accounting on Financial Performance of Quoted Food and Beverage Firms in Nigeria

EPH - International Journal of Medical and Health Science, Vol. 2(3), p. 58-80, March 2017

23 Pages Posted: 12 Jun 2017

See all articles by Nestor Amahalu

Nestor Amahalu

Nnamdi Azikiwe University - Department of Accountancy

Chike Nweze

Nnamdi Azikiwe University - Department of Accountancy

Obi Chinyere

University of Nigeria Enugu Campus

Date Written: March 31, 2017

Abstract

The aim of this study is to determine the effect of backflush accounting on financial performance with particular reference to food and beverage firms. This study therefore, examines the effect of Backflush accounting on financial performance of food and beverage firms quoted on Nigeria Stock Exchange from 2010 to 31st December 2015. The research design employed in this study is the ex-post facto research. An ex-post facto research determines the cause-effect relationship among variables. Only secondary data was used in this study. Three hypotheses were formulated and tested in the course of this study. The Statistical tools used to test the hypotheses were coefficient of correlation and ordinary least square regression with the aid of STATA 13 statistical software. The study revealed that backflush accounting has a positive and statistically significant effect on ROA, ROE, and EPS of food and beverage firms quoted on the floor of Nigerian Stock Exchange at 5% level of significance. The researchers recommend among others that manufacturing firms should try to enforce the use of emerging new trends in management accounting practice even though it might not be cost effective in terms of staff training and cost of acquiring the technology, but the benefits outweighs the costs in the long run.

Keywords: Backflush Accounting, Financial Performance, Just-in-Time

JEL Classification: M40, M51, L22, L25

Suggested Citation

Amahalu, Nestor and Nweze, Chike and Obi, Juliet, Effect of Backflush Accounting on Financial Performance of Quoted Food and Beverage Firms in Nigeria (March 31, 2017). EPH - International Journal of Medical and Health Science, Vol. 2(3), p. 58-80, March 2017. Available at SSRN: https://ssrn.com/abstract=2976445

Nestor Amahalu (Contact Author)

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria
+2348063393668 (Phone)

Chike Nweze

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

Juliet Obi

University of Nigeria Enugu Campus ( email )

Department of Accountancy
Box 15540, Enugu
Enugu, NC Enugu 234
Nigeria

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