COMPETITOR FOCUSED ACCOUNTING AND FINANCIAL PERFORMANCE IN SELECTED LISTED MANUFACTURING FIRMS

Author: Chiekezie Njideka Rita
Department: Accountancy
Affiliation: Nnamdi Azikiwe University Awka

This study examined the application of Competitor Focused Accounting (CFA) methods in selected manufacturing firms listed on the Nigeria Stock exchange in order to establish if it has any direct link with financial performance. Specifically, the study determined the relationship between the competitor focused accounting methods and financial performance, it evaluated the impact of the CFA methods on financial performance and examined if there is any significant difference in the financial performance of full adopters, partial adopters and non adopters of CFA methods. To achieve this, six (6) research questions and five (5) hypotheses were formulated to guide the study. The population of this study comprised all manufacturing companies listed in the Nigerian Stock Exchange and published in the factbook of 2011/2012. A total of eighty-three (83) of such companies were identified. A sample size of sixty-nine (69) companies was drawn from the population using Yamane (1964) method and the sample technique adopted is the stratified random sampling method. Four officers from each of the companies were purposively selected from the sixty-nine companies. They are the Chief executives, Chief Accountants, Marketing Directors and Chief Planners/ Analyst/Controllers. This gave a total of two hundred and seventy six (276) respondents for the study. However, fifty- six (56) companies with a total of two hundred and twenty four (224) respondents who responded for the study were used for analysis. The data for this study were collected through the primary and secondary sources. The primary source instrument was a structured questionnaire while the secondary data were obtained from the financial statements as contained in the Annual Reports of companies under study. The data generated for this study were presented and analyzed using tables, frequencies, bar charts, histogram, percentages and mean scores. The hypotheses were tested using Pearson’s Correlation, Multiple Regression, Analysis of Variance (ANOVA) and Post-hoc Scheffe test. The result of the study revealed among others; that competitor cost assessment, competitor position monitoring and competitor financial statement performance appraisal all demonstrate significant positive relationship with financial performance; that competitor focused accounting has a positive impact on financial performance and that non-adopters, partial adopters and full adopters of competitor focused accounting methods differ significantly in their financial performance. Based on the findings, the researcher recommended that firms should embrace and apply the methods of CFA as a complete package so as to enhance financial performance.

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