Abstract
The study examined determinants of
profitability of multi-national companies in Nigeria. The study specifically
examined the effect of accounts payables, export sales, account receivables and
asset growth on the return on asset of multi-national companies in Nigeria.
Data for the study were sourced from annual reports and accounts of the sampled
multi-national companies in Nigeria. Data collected were analysed using
multiple regression analysis, result of the analysis shows that account
receivables (ACR) of the sampled firms positively and significantly affect Net
income (NI) of multi-national companies in Nigeria. This finding implies that
as ACR increases, NI of the firms also increase and vice versa. That export
sales (EXPS) of the selected firms positively and significantly affect net
income (NI) of multi-national companies in Nigeria. It was also observed that
accounts payables (ACP) of the sampled firms positively, but insignificantly
affect Net income (NI) of multi-national companies in Nigeria. The study also shows that assets growth (AGT)
of the selected firms negatively and insignificantly affect Net income (NI) of
multi-national companies in Nigeria. Based on the findings, the study
recommends among others that knowing
fully well that account receivables significantly affect Return on Asset of
multi-national companies in Nigeria, there is need for multinational firms to
improve their productivity so as to boost their receivables as well as their
return on assets. There is need for multinational firm to get involved in
exportation of their products and services in other to increase export sales
and also boost return on asset. Multinational firms should ensure that they pay
all the necessary payments needed for the effective operations in other to increase
performance as well as total returns. There urgent need for multinational firms
operating in Nigeria to invest heavily on asset for optimum services as well as
increase productivity.
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