Sustainable Drivers of Financial Success in Nigeria’s Non-Financial Sector: A Managerial Perspective
This study examines the determinants of financial performance from a managerial perspective capturing managerial outcomes such as managerial hubris, meetings, risk and compensation. This study utilises the ex post facto methodology. Using a panel ordinary least square regression, the findings demons...
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| Published in: | International review of management and marketing Vol. 14; no. 6; pp. 433 - 442 |
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| Main Authors: | , |
| Format: | Journal Article |
| Language: | English |
| Published: |
Mersin
EconJournals
31-10-2024
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| Subjects: | |
| Online Access: | Get full text |
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| Summary: | This study examines the determinants of financial performance from a managerial perspective capturing managerial outcomes such as managerial hubris, meetings, risk and compensation. This study utilises the ex post facto methodology. Using a panel ordinary least square regression, the findings demonstrate that a higher frequency of board meetings has a detrimental effect on financial performance, resulting in a 3% decline for each additional meeting. This is a result of an abundance of meetings, mental exhaustion from making too many decisions, and excessive control over tasks and processes. Managerial remuneration has a negative influence on financial performance, resulting in a 21% decline for each unit increase. Nevertheless, despite a substantial 83% decline in performance, management hubris does not have a meaningful impact on financial outcomes. Finally, exercising careful and wise decision-making while taking risks promotes the development of new ideas and the capacity to adjust to new circumstances, resulting in a significant 29% growth. The study's findings indicate that implementing strategic risk management may improve financial performance. This suggests that pay should be in line with long-term goals and that fostering a culture of transparent communication and efficient governance is crucial for minimising adverse effects and fostering sustainable growth outcomes. |
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| ISSN: | 2146-4405 2146-4405 |
| DOI: | 10.32479/irmm.17376 |