Research Article

Operational Cost Control and Financial Performance of Conglomerate Firms in Nigeria

Korolo Emmnuel Omolaye1*
1 Department of Accounting, Federal University Otuoke Bayelsa State, Nigeria
* Corresponding author: koroloemmanuel@yahoo.com
Published: Jul, 2025
Pages: 132-150

Abstract

This study examines the relationship between operational cost control and financial performance. The specific objectives are to examine the extent to which production cost, administrative cost, and selling and distribution costs affect the financial performance of conglomerate firms in Nigeria, using net profit margin as a measure of financial performance of manufacturing. The ex-post facto research design was used, which involves the use of secondary data extracted from the annual report of the five (5) conglomerates for the relevant years under consideration (2018-2023). The panel least squares regression techniques were employed to examine the implicit relationship between the variables. The study found a significant effect on production cost and selling and distribution cost. The study also finds a positive, insignificant effect on financial performance. Based on the findings, the study therefore concludes that there is a positive significant relationship between operational cost control and the financial performance of consummate firms in Nigeria. The study therefore recommends that firms should invest in technologies that streamline operations, improve management practices, and enhance employee productivity. Therefore, continuous monitoring and analysis of production costs should be conducted to identify areas for improvement.

Keywords

Cost Control Production Administrative and Financial

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How to Cite

Omolaye, K. E. (2025). Operational Cost Control and Financial Performance of Conglomerate Firms in Nigeria. Management Sciences Horizon Journal, 1(1), 132-150.

K. E. Omolaye, "Operational Cost Control and Financial Performance of Conglomerate Firms in Nigeria," Management Sciences Horizon Journal, vol. 1, no. 1, pp. 132-150, July 2025.

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