ABSTRACT

The  aim  of  this  research  project   is   to  evaluate  the  impact  of  effective financial management   on  business  performance.   Guinness  Nigeria  Plcwas used   as a  case study.  Presentation  and  critical  analysis  of different   views and    opinion   of  writers   and  authors   as  generally   devoted   review  some existing   literature   on financial   management    secondary  data  was  used  as the   method   of  data  collection  through   the  sample  of  10 years  financial statement    of  Guinness  Nigeria  Pie   spanning  from   2005-2014   which  has

been     audited   and  confirmed   accurate   and  then   posted  to  mternet.  In hypothesis  testing  multiple  regression was used. From the findings it  as found   out that component of financial  management of debt turn over, debt equity.  Stock turnover  and acid test ratio has no effect on the performance of a  business enterprise. From the findings  it as recommended that;  the various financial  management component  should  be effectively  used or applied  in the management of business enterprises and that active financial manager  should be employed who must know the best way to combine the component of financial  management  with other items in the financial statement.  Good   incentives should be given to financial managers as   a motivation to effectively apply or use these financial management tools or components. The financial performance of the these enterprises cannot be assessed  without  to reports of these financial statement. Therefore these business   enterprise should be required to  submit their  audited accounts regularly  to the  legislative   or any other authority  it may be accountable to this  will  go  a   long  way  to  ensure that  these components of  financial management are effectively used. 

TABLE OF CONTENTS

 Title page                                                                                                       i

Declaration                                                                                                           ii 

Certification                                                                                                         iii 

Dedication                                                                                                       iv

 Acknowledgment                                                                                           ·v 

Table  of Contents                                                                                          vi 

List  of Tables                                                                                                  vii 

List  of Hypothesis                                                                                          viii 

Abstract                                                                                                           xi

CHAPTER  ONE

INTRODUCTION

LO  Background  of the Study                                                                    1

1.1     Statement  of Problems                                                                       4

1.2    Objectives-of  the  Study                                                                        6'

1.3    Research Questions                                                                             6 

1.4 Statement  of Hypothesis

1.5 Significant  of the Study

1.6 Scope of the study

l.7 Limitation  of the study 10

1.8 Definition  of Terms 11

CHAPTER TWO

Review  of Related Literature

2.1 Conceptual  Framework  of Financial Management Practices and

the Performance  of Business Enterprises 15

2.2 The Need for  Financial Management 16

2.2.4 The Nature of Financial Management 17

2.3 Function of Financial Management 18

2.3.1 Financial   Decision 19

2.3.2 Investment   Decision 19

2.3.3 Divided   Decision .       19

2.3.4 Liquidity  Decision  · · 20

2.4 The Goal of the Firm Maximization  of Profit 20

2.4.1 Profit  Maximization    Versus Wealth  Maximization 22

2.4.2 Maximization  of Sales 23

2.4.3 Minimize Risk 24

2.4.4 Maximization   of Share Price 24

2.4.5 Social Goal 25

2.5 The Environment  for Financial Management 25

2.6 Importance  of Finance 27

2.6.1 Functions of the Financial Manager 28

2.6.2 Risk  and Return  Trade  off Framework   of Financial Management

2.6.3 Financial    Perception   of Financial    Management 34

2.6.4 Changing  Role of Financial Management 35

2.7 Working  Capital  of a Business Enterprise 37

2.7.1 Gross Working  Capital 37.

2.7.2 Net Working  Capital 38

2.8 Capital  Structure  of Business Enterprise 38

2.9 Financial Planning and  Strategy 39

 2.9.1 Financial/ Accounting  Ratios 42

2.9.2 Classificat ion   of Accounting  Ratio 40

CHAPTER THREE

3. Research Methodology

3.1 Research Design 42

3.2 Population   of the Study 43

3.3 Sample/Sampling    Techniques 43

3.4 Data Collection and Procedure 43

3.5 Validity  and reliability   of the  Instrument 44

3.6 Data Analysis Technique 44

CHAPTER FOUR

4.0 Data Presentation  and Analysis 46 ,

1t .  1 Data Presentation 46

CHAPTER FIVE

5.0 Summary  of Findings Conclusion and Recommendation

5.1 Summary   of Findings 56

5.2 Conclusion 57

5.3 Recommendations 59

References

Appendix