THE EFFECT OF FINANCIAL POLICY ON PROFITABILITY AND GROWTH IN MANUFACTURING INDUSTRY (A CASE STUDY OF SONA BREWERIES COMPANY PLC)
ABSTRACT
The
research work is set out to investigate how financial policy contributes to the
profitability and growth in manufacturing concerns.
The
parameters for this are acquisition of company’s assets to generate the needed
turn – over plugging back of profit for expansion, dividend payment to the
success of a company and having good financial policy one sources of the
capital to bring about overall profit for the company’s growth. The above
mentioned are using Z statistic for the null and alternative hypotheses.
This
can be attested by the fact that good decision on asset acquisition plugging
backing of profit dividend pay out and cheap sources of capital will enhance
profitability of a company which incidentally brings about its growth.
TABLE OF CONTENTS
Title Pages i
Certification ii
Dedication
iii
Acknowledgement iv
Abstract vi
Table of Contents vii
CHAPTER ONE: INTRODUCTION 1
1.1
Background
of the Study 1
1.2
Statement
of the Problems
1
1.3
Objectives
of the Study 2
1.4
Significance
of the Study
3
1.5
Research
Questions/Hypothesis
3
1.6
Research
Methodology 4
1.7
Scope
and Limitations of the Study
4
CHAPTER TWO: LITERATURE REVIEW
2.1
Conceptual
Explanations 5
2.2
Designing
Company Strategy 6
2.3
Establishing
Policy 7
2.4 Defining
Major Policy 9
2.4.1 Marketing
Policy – Pricing 11
2.4.2 Marketing
Mix Policy 14
2.4.3 Research
and Development Policy 17
2.4.4 Production
and Purchasing Policy 18
2.4.5 Personnel
and Industries Relation Policy 21
2..4.6 Financial Policy 23
2.5 Allocation
Capital Policy 24
2.6 Hurdle
Rate of Return Policy 24
2.7 Capital
Budgeting Policy 25
2.8 Investment
Mix Policy 26
2.9 Leasing
Versus Purchase of Fixed Assets 26
2.10 Financial
Policy on Current Asset 27
CHAPTER THREEL: RESEARCH METHODOLOGY
3.1
Research
Instruments 31
3.2
Restatement
of Research Question 34
3.3
Research
Hypothesis 34
3.4
Description
of the Population and Sample of the Study 35
3.5
Sources
of Data Collection 37
3.6 Method
of Data Analysis and Description of Tools Analysis 38
CHAPTER
FOUR: DATA ANALYSIS, INTERPRETATION AND DISCUSSION OF FINDINGS
4.1
Analysis
of Data 40
4.2
Analysis
of the Test Instrument 41
4.3
Hypothesis
Testing 44
4.4
Preliminary
Findings 49
4.5
Hypothesis
Testing for Ingredient of Effect of
Financial
Policy 52
4.6 Discussion of Findings 58
CHPATER FIVE: SUMMARY, CONCLUSION, AND RECOMMENDATIONS
5.1
Summary 60
5.2
Conclusion 61
5.3
Recommendations 62
Bibliography 63
Appendix (Questionnaire) 65
