Conventional Accounting Model and Financial Performance of Foods and Beverages Manufacturing Firms in Nigeria

Abstract

This study assesses the relationship between conventional accounting model and financial performance of food and beverage firms in Nigeria. Four specific objectives were formulated to determine the extent to which conventional accounting model influences financial performance of food and beverage firms in Nigeria. Research questions and hypothesis were also formulated, and to test the hypotheses a sample of twenty-eight (28) food and beverage firms were selected in Rivers State using Pearson correlation method. The study applied cross sectional survey design and made use of primary data sourced. The analysis of the test shows that there is a positive and significant relationship between conventional accounting model and return on asset of food and beverage manufacturing firms in Nigeria. It revealed a positive and significant relationship between conventional accounting model and return on capital employed of food and beverage manufacturing firms in Nigeria. Hence the study concluded that conventional accounting model plays a significant positive role in improving the financial performance of food and beverage manufacturing firms in Nigeria. The study recommends that food and beverage manufacturing firms should continue to adopt conventional accounting model as an important tool for sustaining overall efforts to remain cost competitive while meeting standards and specifications demanded by customers. And also, management of the food and beverage manufacturing firms should make use of these various human resource techniques because they will aid them regardless of whether the ongoing business is in peril or is distressed, which will then have an impact on the profits per share, return on asset, and return on capital employed, three factors that are of the utmost importance.