Abstract
The efficiency of asset management for various reasons has been the focus of companies, managers and investors doing building and construction business in Nigeria. The main objective of this study was to ascertain the effect of asset management efficiency on corporate performance of building and construction companies in Nigeria. To accomplish the main objective three specific objectives were formulated. These include examining the effects of asset turnover, inventory turnover and working capital turnover on profit after tax (proxy for performance). The study adopted the ex-post facto research design and secondary data were collected on the independent and dependent variables for ten (12) years, i.e. 2006-2017. The data were analyzed using simple regression method and it was found that net asset turnover and working capital turnover did not have significant effect on performance of building and construction companies in Nigeria. On the other hand, inventory turnover had significant effect on corporate performance of building and construction companies of Nigeria. It was recommended that management of building and construction companies should among other things adopt modern techniques of asset management that would translate asset turnover to corporate performance.
Highlights
Background of the Study The Building and Construction sector is very crucial in any nation’s social and economic development
Objectives of the Study The broad objective of this study is to ascertain the effect of asset management efficiency on corporate performance of building and construction companies in Nigeria
The building and construction sector is an economically viable sector that needs all attention to make it contribute to economic development of Nigeria
Summary
Background of the Study The Building and Construction sector is very crucial in any nation’s social and economic development. Apart from the sector’s potential with respect to employment generation, the various activities undertaken in the building and construction sector are very germane (or relevant) to fostering effective sectoral linkages and enhancing, as well as sustaining economic development. Efforts at ensuring sound and sustainable national and economic development cannot ignore the importance of infrastructural development (transportation-road, rail, air, and sea modes), industrial development (construction of industrial parks and factories), as well as construction of institutional buildings and provision of accommodation with respect to construction of various types of buildings, among others. In the view of Adeagbo (2014), these are areas where the building and construction sector is indispensable.
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