LEAN ACCOUNTING PRACTICES AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING COMPANIES IN NIGERIA

Abstract

Good financial performance determines the good health, going concern and motivating factor for stakeholders in business organisations. Evidence from literature showed that manufacturing companies listed in Nigeria are suffering from business growth and sustainability because of poor financial performance. Research has shown that manufacturing companies listed in Nigeria have not embraced the practice of lean accounting for business transformation.  The study adopted ex post facto research design in investigating the relationship between lean accounting practices and financial performance of listed manufacturing companies in Nigeria. The study employed secondary data collected from the financial statements of the companies under investigation for the period of twelve (12) years from 2013 to 2024. The data were analyzed using panel least squares (PLS) regression technique. This was carried out with the aid of the E-view 10.0 software and Excel package. Findings from the study showed that just-in-time costing has a negative and significant relationship with financial performance while inventory turnover ratio has a positive and significant relationship with financial performance of listed manufacturing companies in Nigeria. Thus, the study concluded that just-in-time costing and inventory turnover ratio are good predictors of financial performance in Nigeria. Based on these findings, this study recommended that attempt should be made to conduct a comparative analysis of Nigeria and other countries like America, Asia, Europe, and the UK. Firm are advised to prioritize qualitative implementation and dynamic inventory management to optimize efficiency,