ProjectClue.com We're Ready, Call Us

(+234) 07030248044

Project Topic:

IMPACT OF MACROECONOMICS VARIABLES ON FIRMS’ PERFORMANCE IN NIGERIA

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 81 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   159 people found this useful

Project Department:

ACCOUNTING UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

CHAPTER ONE

INTRODUCTION
BACKGROUND TO THE STUDY
Every company operates within the internal and external environments of business.  The internal environments are within a firm such that the prevailing factors are most times very subject to the control of the managers.  The external environment has to do with the larger business environments in which a firm operates; and the factors therein are not subject to the control of the managers.  The factors in the external environment not subject to the control of a manager generally can be regarded as macro economic factors or variables.
The corporate managers cannot control the macro economic variables but the government can control them through several policies.  Thus, like all experts, the government in order to do a good job of managing the economy, will have to study, analyze and understand the major variables that affect or determine the current behavior of the macro-economy.  Examples of the macro-economic variables that affect the economy and firms majorly include exchange rate, foreign direct investment, inflation rate, interest rate, money supply, etc.  The management of these variables is usually done through fiscal and monetary policy by the government and her agencies e.g. the Central Bank.
Another macro economic variable that may impact on firms’ performance is exchange rate.  Firms’ financials are presented in terms of the home currency.  Exchange rate increases or decreases the value in home currency of revenues and cost incurred in foreign currency.  According to Lars (2003), exchange rate increases or decreases earnings in home currency share of total costs.  In other words, exchange rate increases or decreases earnings in home currency before interest costs.  Against this backdrop, the study examines the impact of macro economic variables on corporate performance in Nigeria.

STATEMENT OF RESEARCH PROBLEM
Researches on the relationship between macro economic variables and firm’s performance have been on going in advanced countries of the world with little or no research in developing countries of the world such as Nigeria.  It is this existing gap that informed the rationale behind this study.  In the light of the above, the following research questions are raised:
What is the effect of inflation rate on corporate performance in Nigeria?
What is the relationship between exchange rate and corporate performance in Nigeria?
How does interest rate affect corporate performance in Nigeria?
Is there a relationship between money supply and the performance of corporate organizations in Nigeria?

OBJECTIVES OF THE STUDY
The general objective of the study is to evaluate the impact of macro economic variables on corporate performance in Nigeria. However, the specific objectives are stated as follows:
To ascertain the effect of inflation rate on corporate performance in Nigeria.
To find out if there is a significant relationship between exchange rate and corporate performance.
To determine how interest rate affect corporate performance in Nigeria.
To examine the relationship between money supply and the performance of corporate organizations in Nigeria.

RESEARCH HYPOTHESES
In order to validate the relationship between macro economic variables and corporate performance in this study, the following alternative hypotheses are specified:
H1:  Exchange rate influences corporate performance.
H2:  There is a relationship between inflation rate and corporate performance.
H3: Foreign direct investment influence corporate performance in Nigeria.
H4: There is a relationship between money supply and the performance of corporate organizations in Nigeria.
H5: Interest rate affect corporate performance in Nigeria.

1.5 SCOPE OF THE STUDY
This study examines the effects of macro-economic variables on corporate performance in Nigeria.  The time period the study covers is 2002 to 2011. In other words, the study is a time series one. The sample size is sixteen quoted firms which are listed on the floor of the Nigerian Stock Exchange.

SIGNIFICANCE OF THE STUDY
This study is expected to be relevant to a number of persons and institutions in Nigeria.  First, the Federal Government of Nigeria will find the outcome of this study useful in terms of making decisions relating to the macro economic environment; in other words, it will help the government to regulate the interest rate, inflation rate, exchange rate and others with a view to achieving macro economic stability so as to assist the companies operating in Nigeria.  The Central Bank of Nigeria definitely will find the study very much useful in terms of devising good monetary policy so as to enhance company’s performance and foreign investors into the Nigeria economy.
Similarly, future researchers will find the study useful in terms of reference materials on a similar subject matter as this.

LIMITATIONS OF THE STUDY
The limitations of this study include data constraint, inadequate research materials extensively dealing on the subject matter in Nigeria.  The sample size also limits the study due to time factor and its practicality.  Similarly, there is also the problem of generalizing the outcome of the study to other non-manufacturing firms in Nigeria in terms of how macro economic variables may have affected their performance.

Get the complete project »

Instant Share On Social Media:

OTHER SIMILAR ACCOUNTING PROJECTS AND MATERIALS

AN APPRAISAL OF THE IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF ACCESS BANK)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Secondary data, Data Analysis,Abstract  ::   2542 engagements

CHAPTER TWO REVIEW OF RELATED LITERATURE Electronic banking in Nigeria has overtime been viewed by many especially economists as having a lot of implications on the economy of Nigeria and especially...Continue reading »

A CRITICAL ANALYSIS OF THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 75 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   2292 engagements

ABSTRACT The study was carried out to analyse how an organization performs making use of the financial statements with First Bank of Nigeria Plc serving as the case study. the study disclosed that th...Continue reading »

AN EVALUATION OF THE PERFORMANCE OF NIGERIAN STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIA ( A CASE STUDY OF NIGERIAN STOCK EXCHANGE)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 78 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1025 engagements

HISTORICAL BACKGROUND OF THE NIGERIA STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIAN. The nigeria stock excahnge denoted by NSE is a government establishment where stocks are traded on a daill...Continue reading »

APPLICATION OF BUDGETS AND BUDGETARY CONTROL MEASURES IN A NON-PROFIT ORGANIZATION: A CASE STUDY OF APOSTOLIC CHURCH, DELTA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 76 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1214 engagements

2.1 CONCEPTUAL FRAMEWORK A budget is can be defined by accountants as “a planned outcome to be generated and for the expenditure to ensure during that period and the capital to be employed to a...Continue reading »

ASSESSING BOOK-KEEPING PRACTICES OF SMALL AND MEDIUM SCALE ENTERPRISES IN CALABAR LOCAL GOVERNMENT AREA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 69 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1026 engagements

ABSTRACT The economy of Nigeria cannot function properly or thrive without the micro, small and medium scale enterprises (SMEs). These small scale enterprises cannot function properly if they are not ...Continue reading »

ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES (A CASE STUDY OF UNION ASSURANCE COMPANY, UYO)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 86 ::   Attributes: Questionnaire, Data Analysis  ::   677 engagements

THE CONCEPT OF RISK Risk has been the subject of study by different scholars over the years with several meaning and definitions. But the most accepted definitions are that of J.E Banister and P.A Baw...Continue reading »

What are looking for today?

WHAT OUR CUSTOMERS ARE SAYING:
  • 1. Taleeb from Kwara state polytechnic said "I like all topics on this website but anytime i wrote topic to my project supervisor he used to ask where is the case study and case study is not written there . thanks ................".
    Rating: Very Good
  • 2. Donald from ui said "i thank you guys for the good work...i never believe that there are still some Nigerians that are trustworthy until i stumbled upon projectclue. excellent job. great write up. weldone Glory keep up the good job. nice voice.,...i will always recommend projectclue to any Nigerian researchers...God bless.".
    Rating: Very Good
  • 3. Abdoulrasheed Tapheeda from Taraba State University,Jalingo said "The Project Clue owe me a Tribute Respect, because of the nature of their work and delivery system. I recommend this site for any undergraduate due to the quality and fast delivery system of their work. Thanks".
    Rating: Excellent
  • 4. Sam Seyil from Federal Uni Agric. Markudi said "I had a wonderful experience using ProjectClue, they delivered not only on time, but the content had good quality. I recommend ProjectClue for any project research work.".
    Rating: Excellent
  • 5. Eval, Effa A. from University of Calabar (Unical) said "It was a wonderful experience using projectClue, it really helped me in carrying out a Term paper research NGP.".
    Rating: Good
  • 6. Abimbola Bisola from Obafemi Awolowo University said "Thanks a million times for giving me a quality research project. not only have i defended i was commended by my supervisor. You guys are the best; Project clue".
    Rating: Very Good

Leave a comment: