LEAN ACCOUNTING PRACTICES AND FINANCIAL PERFORMANCE OF LISTED CONSUMER FOOD PRODUCTS MANUFACTURING COMPANIES IN NIGERIA

Abstract

To remain in business and improve financial performance, companies must change their structure to meet customers’ demands with higher quality lower price as well as short delivery time, and also companies have to meet the expectations for instant orders, and with more variety of products. Thus, the study examined lean accounting practices and financial performance of listed consumer food products manufacturing companies in Nigeria. The specific objectives evaluated the relationship between just-in-time costing and return on equity of listed consumer food products manufacturing companies in Nigeria, also examined the relationship between value stream mapping and return on equity of listed consumer food products manufacturing companies in Nigeria, and determined the moderating influence of firm size in the relationship between lean accounting practices and financial performance of listed consumer food products manufacturing companies in Nigeria. The study adopted triangulation and correlational research design. The target population for the study is nine (9) listed consumer food products manufacturing companies on the floor of the Nigerian Stock Exchange (NSE) as at 31 August 2021.  The unit of respondent of the study were three hundred and thirty-six (336) knowledgeable and competent staff within the production, marketing and finance departments of the nine (9) listed consumer goods manufacturing companies. The sample size was therefore determined by using the Taro-Yame sampling techniques to be 183. The instrument of the study is triangulation (primary data and secondary data). The formulated research questions were analyzed with descriptive statistics. The hypotheses were tested using the multiple regression analysis with the aid of E-view (10). The findings of the study were that: there is significant relationship between just-in-time costing (JITC) and return on equity (ROE) of listed consumer food products manufacturing companies in Nigeria. Meanwhile, there is an insignificant relationship between value stream mapping (VSMC) and return on equity (ROE) of listed consumer food products manufacturing companies in Nigeria. And There is significant influence of the firm size on the relationship between lean accounting practices and financial performance of listed consumer food products manufacturing companies in Nigeria. The study recommends that; Just-in-time costing (JITC) inventory system should be used by management in order not to run at loss and not to incurring further costs on staff training in other lean accounting knowledge. Also, that organizations should take the first step to train familiarize, inform and enhance the staff skills on how to improve the organizational performance through value stream mapping system.