Nigerian Journal of Banking and Financial Issues (NJBFI)

IMPACT OF FINANCIAL PLANNING ON FIRM PERFORMANCE IN NIGERIA

Abstract

The study examined the impact of financial planning on firm performance in Nigeria between 2009 and 2023. The major motivation for the study was the emphasis placed on financial planning in literature which most times has been capture by questionnaires and individual opinions. In the light of this necessity, the study which considered ten (10) firms selected at random used return on asset as the dependent variable and used debt to asset ratio, debt to equity ratio, earnings per share and dividend per share as independent variables. The study employed the classical Panel regression technique inclusive of panel ordinary least squares and Pedroni panel co-integration techniques for analysis. Thus, it was reported that financial planning has a positive impact on firm performance while it also has a cointegrating relationship with firm performance with more credence given to asset management, debt management and shareholders’ wealth maximisation. Hence, it was recommended that in the course of financial planning, attention should be given to asset management, debt management and shareholders’ wealth maximization.