FINANCIAL PLANNING AND FIRMS’ FINANCIAL PERFORMANCE OF SELECTED BEVERAGE MANUFACTURING FIRMS IN NIGERIA

Abstract

This study examined financial planning and financial performance of selected beveragemanufacturing firms in Nigeria. The study objective was to investigate the relationshipbetween financial planning (cash inflows and cash outflows) and financial performance(Return on Equity and Return on Investment) of selected beverage manufacturing firms inNigeria. The study adopted ex-post facto research design. The study population was fourbeverage manufacturing firms in Nigeria Stock Exchange, between 2014 and 2019. Thestatistical tool used in ¡lie study was thee least square regression analysis to establish theeffect of the independent variables on the dependent variables. The analysis of data revealed,among other things, that cash inflows and cash outflows have positive and significantrelationship with return on equity, while cash inflows and cash outflows have negative andsignificant relationship with return on investment. The study concluded that cash inflows andoutflows have strong impact on return on equity as against cash inflows and cash outflowsthat do not impact on return on investment positively. It was however, recommended thatmore areas of investment (cash outlay,) should be delved into given its significant impact on cash outflows on return on Equity of shareholders of the firms studied. On the other hand, there should be an enhancement of (the cash inflows ¡n ¡he firms studied since it has a strong impact on return on equity, which is a welcome development that requires sustainabilityamong others.