Authors :
Uwah, Uwem Etim; Akinninyi, Patrick Edet
Volume/Issue :
Volume 5 - 2020, Issue 3 - March
Google Scholar :
https://goo.gl/DF9R4u
Scribd :
https://bit.ly/2TIPxfm
Abstract :
This study considered how the future value
of listed manufacturing companies in Nigeria can be
enhanced through optimal capital commitment in
research and development (R&D); to achieve economic
value added (EVA). It was considered that when
adequate research is not done before capital investment,
the appraisal techniques are not sufficient to support
the capital project. This becomes a major problem to
the Nigerian manufacturing companies. The study
adopted the quantitative panel methodology of the
expost facto and correlational research design, where
secondary data were extracted from the Nigerian Stock
Exchange fact books for the period, 2010 – 2016. Eighty
three (83) manufacturing companies listed in the Stock
Exchange during this period were taken as the
population of the study. The sample size was 69. The
study answered three research questions and tested
three hypotheses at 0.05 level of significance. Multiple
and simple regression analyses were used on the data
collected, to find the relationship between the
independent and dependent variables for the seven
years. The findings revealed that research and
development (R&D) had a significant relationship with
economic value added (EVA). Based on the findings and
conclusion, it was recommended that management of
manufacturing companies should ensure that more of
research and development is embarked on by
manufacturing companies since it will enhance
profitability, expansion and technological development.
Keywords :
Capital Commitment, Research and Development, Listed Manufacturing Companies, Economic Value Added.
This study considered how the future value
of listed manufacturing companies in Nigeria can be
enhanced through optimal capital commitment in
research and development (R&D); to achieve economic
value added (EVA). It was considered that when
adequate research is not done before capital investment,
the appraisal techniques are not sufficient to support
the capital project. This becomes a major problem to
the Nigerian manufacturing companies. The study
adopted the quantitative panel methodology of the
expost facto and correlational research design, where
secondary data were extracted from the Nigerian Stock
Exchange fact books for the period, 2010 – 2016. Eighty
three (83) manufacturing companies listed in the Stock
Exchange during this period were taken as the
population of the study. The sample size was 69. The
study answered three research questions and tested
three hypotheses at 0.05 level of significance. Multiple
and simple regression analyses were used on the data
collected, to find the relationship between the
independent and dependent variables for the seven
years. The findings revealed that research and
development (R&D) had a significant relationship with
economic value added (EVA). Based on the findings and
conclusion, it was recommended that management of
manufacturing companies should ensure that more of
research and development is embarked on by
manufacturing companies since it will enhance
profitability, expansion and technological development.
Keywords :
Capital Commitment, Research and Development, Listed Manufacturing Companies, Economic Value Added.
