study examined the effects of performance evaluation through the analysis of
financial statement on investment decision, using Longman Nigeria Plc as the
case study. Based on the set objectives of the study, structured questionnaire
consisting of eighteen (18) close-ended questions and one (1) open-ended
questions were developed and administered on one hundred (100) respondents of
the aforementioned company, but a total of ninety-four (94) questionnaires were
completely filled and returned. Hence, the study employed primary and secondary
data (i.e. questionnaire method, interview method, and data sourced from
established publications). Data collected were analysed with the aid of
chi-square statistical technique. Findings from the study shows that
Performance Evaluation should be in line with achieving Corporate Objectives
and moreover, analyses of financial analysis has helped in identifying the weakness
in company’s operation. The study recommended that management should ensure
that performance evaluation in line with corporate objectives.
TABLE OF CONTENTS
CHAPTER ONE INTRODUCTION
1.1 Background to the Study
1.2 History of the company
1.3 Statement of the Problem
1.4 Objectives of the Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Significance of study
1.8 Scope and Limitation of the Study
1.10 Limitations of the Research Method
1.11 Definition of Terms
CHAPTER TWO: LITERATURE REVIEW
2.2 Effectiveness and Efficiency
2.3 Objectives of Performance Evaluation
2.4 Inter-Firm Evaluation
2.5 Inter-Temporal Evaluation
2.6 Industrial Average Evaluation
2.7 Other Aspects of Performance Evaluation
2.8 The Financial Statements
2.9 Financial Statement Analysis
2.10 Ratio Analysis
Alternative means of Analysis Financial Statements
CHAPTER THREE: RESEARCH METHODOLOGY
3.2 Research Design
3.3 The Study Area
The Study population
3.5 Sample and Sampling Technique
Pilot Study: Validity and Reliability
3.8 Method of Data Analysis
3.9 Reason for using Chi-square method
CHAPTER FOUR: DATA ANALYSIS AND
4.1 Background Information
4.2 Research Question
4.3 Test of Hypothesis
CHAPTER FIVE: SUMMARY, CONCLUSION AND
5.4 Suggestions for Further Studies
TO THE STUDY
analysis involves the assessment of a firm's past, present and anticipated
future financial condition. The objective is to identify any weakness in the
firm's financial health that could lead to the future problems and to determine
any strength that the fine might capitalize upon.
need for financial accounting statement is becoming increasingly indispensable.
This is due to the increased complexity of the economy and the massive growth
of corporate organization.
OF THE COMPANY
Nigeria was incorporated on the 10'' August, 1961 as a subsidiary of Longman
group Ltd. A renowned British Publishing Company founded in 1724. Although,
Longman, Green and Company, as this company was then known had since 1947 had a
representation in Nigeria, it had operated as a mere trading out post of the
U.K. parent company concentrating on the importation and distribution of
education books produced primarily for the British school system.
study of the progress of Longman Nigeria Plc. over the past thirty-three years
has shown various successful project that have had powerful influence on the
direction and development of publishing industry and indeed education in
Nigeria. The blue-print of Longman's text development and list building
strategies are largely attributable to its crop of pioneer employees.
OF THE PROBLEM
to which the company is able to influence its overall performance.
Ability to meet its financial obligation in
form of dividends to investors.
Inability to meet debt payment on due dates
by having sufficient cash available.
OF THE STUDY
objective of this study is to:
Assess the performance of organizations
(with particular reference to Longman Nig. Plc.), in order to ascertain its
level of performance.
To see to what extent investors' decision
are influenced by the analysis of the company's performance.
Finally interpret and advices where
necessary on appropriate actions to take in order to improve the performance of
ratios give the previous year's performance and average performance in the
industry meaningful comparison of a firm's financial data at different points
in time and with other firms. It provides the basis for answering some relevant
questions concerning the well-being of the firm.
How liquid is the firm?
Is management generating sufficient profit
from the firm's assets?
How does the firm's management finance its
Is the common stakeholders recovering
sufficient returns on their investment?
executives must know that the effectiveness with which accounting information
satisfies the organization's wider goals depends on to relevance, time lines
and accuracy and the way it is used by member of the organization.
Ho: Performance evaluation should be in line
with achieving corporate objectives
Hi: Performance evaluation should not be in
line with achieving corporate objectives
research will be useful to management of up and coming companies. It is aimed
at helping organizations in their bid to improve growth and to allow more
investing public. Significantly, this study will be of benefit in the following
The study will guide the company in its
future planning and growth formation
It will also guide the company to more
purposeful areas investment.
AND LIMITATION OF THE STUDY
scope of this study will be based manually on the financial statements of
Longman Nigeria Plc. as presented in its annual reports which would be used to
evaluate its performance. The scope of the research shall cover a period of four
years. The balance sheet and income statement contained in the annual reports
shall be analyzed using ratios to highlight the company's operating performance.
research will be limited to the publishing industry to which Longman belongs.
This research would also be limited to the performance of Longman Nigeria Plc
in relation to that of its competitors; care would be taken not to delve into
inter-firm comparison but the general performance of the company. The personnel
function, administrative and such other functions not financially oriented will
not be dealt with.
METHOD OF DATA COLLECTION
researcher made use of primary and secondary data as supported with the aid of Annual Reports of the company
(Longman Nigeria Plc.) and that of its competitors in the publishing industry.
OF THE RESEARCH METHOD
main tool of this research was the annual reports of the companies under review
and the use of ratio analysis to interpret the information contained in the
reports. Hence, the primary data is also used to elicit information for the
reference to the Annual reports, the information contained therein were arrived
at, in line with the historical cost concept, they are not perfect indicators
of future and may not represent the presents the naira worth.
This refers to the evaluation of the operating performance of the company. Thus
it refers to the evaluation of the profitability and efficiency of its
This is the collective name for the items in the company's annual report i.e.
balance sheet and income statement. Those statements represent the final output
of the accounting process.
This is the comparison of relationship between two items for a useful
interpretation of financial statements.
this is profit in relation to investment that generated it.
This refers to Longman Nigeria. Plc
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