Impact of Economic Meltdown on Performance of Manufacturing Companies in Nigeria

Abstract

The study is about impact of economic meltdown on performance of manufacturing companies in Nigeria. It is based on secondary data obtained from annual financial report and central bank of Nigeria statistical bulletin of 2015. The variables considered by the study are economic meltdown and performance of manufacturing companies which were represented by gross domestic product, return on equity and return on asset. The statistical analysis for this study was done using multiple regression analysis, and the hypotheses for the study were tested at a significance level of 5%. The findings of the study shows that there is a significance positive relationship between gross domestic product, return on equity and return on asset, and this was shown statistically in the result of the regression analysis which confirms that the  (. P=0.002 < 0.05 and F=12.735 > 0.05), Also, the findings of the study demonstrated that (P=0.001 < 0.05 and F =21.221 > 0.05). Hence, the Null hypothesis is rejected, which confirmed that a positive relationship exist between gross domestic product and return on asset. Based on this findings the study recommend that stakeholders in quoted companies should ask their managers questions immediately they find out that there is instability in the statistics of the organization’s return on the asset and return on equity of their companies.

Keywords: Meltdown, Manufacturing companies, gross domestic product, unemployment