AN EMPIRICAL ASSESSMENT OF PERFORMANCE OF FIRMS IN THE NIGERIAN CEMENT INDUSTRY
AN EMPIRICAL ASSESSMENT OF PERFORMANCE OF FIRMS IN THE NIGERIAN CEMENT INDUSTRY
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Date
2004-06
Authors
IORSUE, Benjamin Awen
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Abstract
ABSTRACT
This study focuses on the performance assessment of cement companies in Nigeria.
To achieve this objective four cement companies that are quoted on the Nigerian
Stock Exchange are selected for a detailed performance analysis. They are Ashaka
Cement Plc, Benue Cement Company Plc, Cement Company of Northern Nigeria Plc
and West African Portland Cement Company Plc. The problem of this study stems
from the perceived trend of the Nigerian capital market. Despite its indispensable role
in the nation’s existence the cement industry in Nigeria has not been able to attract
much needed investment. It is therefore pertinent to find out whether the cement
companies are performing to the extent of meeting the expectations of the various
stakeholders in Nigeria. The assessment is carried out through the application of the
known financial risk indices with a view to highlighting the efficiency of the various
aspects of the operation of the selected cement companies. To this end, Osaze’s
version of the Discriminant Analysis Models which is more relevant to the situation
of the developing countries like Nigeria is used to assess the selected cement
companies in this study. The historical method of research is adopted for the study
and the main source of data is the cement company’s financial statements covering
the ten-year period (1993 – 2002). It was found out that the cement industry in
Nigeria has not shown a performance attractive enough to induce investors. The
industry obviously needs the injection of fresh capital but, much more, the
introduction of better management methods. Parts of the recommendations are that;
the government should assist the cement companies to be operating at full capacity
instead of allowing the importation of foreign products.
Description
DEPARTMENT OF ACCOUNTING
FACULTY OF ADMINISTRATION
AHMADU BELLO UNIVERSITY
ZARIA
Keywords
EMPIRICAL ASSESSMENT,, PERFORMANCE OF FIRMS,, NIGERIAN CEMENT INDUSTRY