EFFECT OF MANAGEMENT CONTROL ON THE PROFITABILITY OF EMENITE LTD.

OMAKA, GRACE UZOAMAKA (2026) EFFECT OF MANAGEMENT CONTROL ON THE PROFITABILITY OF EMENITE LTD. Other thesis, GODFREY OKOYE UNIVERSITY, ENUGU.

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Abstract

This study examined the effect of management control on the Return on Assets (ROA) of Emenite Limited, a leading fibre cement products manufacturer in Emene, Enugu State, Nigeria. Three dimensions of management control were investigated as independent variables: budgetary control, responsibility accounting, and internal control system strength. The study was anchored on Contingency Theory (Otley, 2016), with Agency Theory (Jensen & Meckling, 1976) and Stewardship Theory (Davis et al, 1997) as supporting theoretical frameworks. A descriptive survey research design was adopted, and primary data were collected through a structured questionnaire administered to 43 management-level employees of Emenite Limited in May 2026, representing a response rate of 82.7%. Data were analysed using descriptive statistics, Pearson correlation analysis, and Ordinary Least Squares (OLS) regression in EViews 10.0, with qualitative responses subjected to Braun and Clarke’s six-phase thematic analysis. The findings revealed that budgetary control had a significant positive effect on ROA (β = 0.293, t = 4.579, p < 0.001), leading to the rejection of the first null hypothesis. Responsibility accounting did not have a significant positive effect on ROA (β = −0.355, p = 0.268), and the second null hypothesis was not rejected. Internal control system strength had a significant positive effect on ROA and was the strongest predictor in the model (β = 0.833, t = 3.361, p = 0.002), leading to the rejection of the third null hypothesis. The three variables collectively explained 51.4% of the variance in financial performance (R² = 0.514, F = 13.755, p < 0.001). The study recommends that Emenite Limited: (i) institutionalise flexible budgeting to strengthen the budgetary control–ROA relationship; (ii) introduce a structured responsibility centre performance incentive scheme to unlock the motivational potential of responsibility accounting; and (iii) strengthen risk assessment and information communication to deepen the contribution of internal control system strength to Return on Assets

Item Type:	Thesis (Other)
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Faculty of Management and Social Sciences
Depositing User:	CHIBUEZE EZE
Date Deposited:	03 Aug 2026 09:54
Last Modified:	03 Aug 2026 09:54
URI:	http://eprints.gouni.edu.ng/id/eprint/6125

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