Zero-Based and Financial Budgetary Control System as Predictors of Financial Performance of Manufacturing Companies in South-West, Nigeria

The study focused on zero-based and financial budgetary control system as predictors of financial performance of manufacturing companies in South-West, Nigeria. Two research questions guided the study and two null hypotheses were tested. Correlational survey research design was adopted for the study. The population comprised 44,082 budgetary control personnel in 18,666 manufacturing companies in South-West Nigeria. Proportionate stratified random sampling technique was used to select a sample size of 4409. The instrument for data collection was a structured questionnaire. The instrument was validated by three experts. Cronbach alpha method was used to obtained the reliability co-efficient for internal consistency and the values obtained were 0.89 and 0.93, with an overall co-efficient value of 0.91. Simple regression analysis was used to answer the research questions as well to test the null hypotheses. The findings of the study revealed that zero-based budgetary control is a strong predictor of financial performance of manufacturing companies in South-West, Nigeria while financial budgetary is a moderate predictor of financial performance of manufacturing companies. The findings further revealed that zero-based budgetary control and financial budgetary control significantly predict financial performance of manufacturing companies in South-West, Nigeria based on budgetary control personnel years of work experience. The study concluded that zero-based and financial budgetary control system is a strong and moderate predictors of financial performance of manufacturing companies in South-West, Nigeria. It was recommended among others that institutions of learning where business/accounting education is offered should make conscious effort to formulate policies that will impact positively on knowledge and training on budgetary control systems. This is to enable students fit in properly in the work place after graduation.