The main purpose of conducting this research is to ex ray the
effect of dividend announcement on security prices in order to determine
whether the Nigeria capital market is efficient and at what form of its
efficiency. Many searchers have attempted to determine the efficiency
from of Nigeria capital market. Empirical results observed from their research
has tended to suggest that the efficiency from of Nigeria capital market
is weak and others, in the semi- strong form. However very jew have attempted
to analyze the effect of dividend announcement do have impact on stock
priles. This observation to the best of my knowledge have not been reasonable
or scientifically studied in Nigeria.
Considering the jact that Nigeria capital market. Is under
development assessing relevant information was discover pain staking there were
no easy reliable published data on divided announcement as it is prevent
in other advanced economic like USA limited period of time and unavailability
of appropriate research facilities contribute their quota as hindrance to
this research work.
But base on the jew available relevant data, decision was made to
address this research work on a small sample size and upon securities on the
first tier market so that to give dividend announcement in information starting
from the ones previously announced. This information will affect the
stock prices spontaneously. And at the this research will equally lends
credence to the observation that Nigeria capital market is efficient in the
semi strong form.
TABLE OF CONTENT
Chapter 1: Introduction
1.1 Background of the Problem
1.2 Statement of the Problem
1.3 Objectives of the Research
1.4 Research Questions
1.5 Statement of Hypothesis
1.6 Scope of the study and Its Delimitation
1.7 Organization of the Report
Chapter 2: Literature
2.1 Evolution of the Nigeria Capital Market.
2.2 Major Participation’s in the Nigerian Capital
2.2.1 The Central Bank of Nigeria
2.2.2 Development Finance Institutions
2.2.3 Issuing Houses
2.2.4 Stockbroking firms
2.2.5 Securities and Exchange Commission
2.2.6 Stock Exchange
2.2.7 Share Registrars
2.2.8 Commercial Banks
2.2.9 Insurance companies and Pensims / Provident funds
2.3.1 Forms of Dividend
2.3.2 Factors influencing Dividend Policy
2.3.3 Stability of Dividend
2.3.4 Relationship between Dividend and Share prices
2.3.5 Information content of Dividends
2.3.6 Random Walk Theory of Share Price Movements
2.3.7 Random Walk and an Efficient Stock Market
2.3.8 Varying Degrees Efficiency
2.3.9 Week form Tests or Weak form of Efficiency
form Tests and semi-strong Efficiency
form Tests and Strong Form Efficiency
of Efficient Market Hypothesis
Studies of Capital Market Efficiency in Nigeria
Announcement and Capital Market Efficiency.
Chapter 3: Research Methodology
3.1 research Design
3.2 Sources of Primary & Secondary Data
3.3 Population & Sample
3.4 Data Collection Techniques
3.5 Data Analysis Technique
3.6 Hypothesis Test Statistic
3.7 Limitation of Research Methodology
Chapter 4: Analysis and
Presentation of Data.
4.1 Presentation of Primary Data
4.2 Analysis and Presentation of Data According to
4.3 Analysis and Presentation of Data According to
5.1 Summary of Findings
5.4 Suggested Research Work
The desire of every national producer is to minimize the resource
invested to achieve a desired objective thus at any point in time he should be
devising ways of minimizing the cost of achieving the desired benefit.
This situation is equally relevant to organization of any kind
whether profit oriented on nonprofit oriented and therefore make it imperative
for every organization especially the profit oriented ones not to stop at
controlling the use of resources to conform with established standards but should
also make spirited attempts to continuously minimize cost without
impairing the quality of their products. The need for manufacturing
companies to be conscious of the above need has been magnified by the fact that
Nigeria economy is experiencing an era of astonishing rate of inflation
despicable how exchange rate requiring reports of grossly low capity
utilization and the inter play of some other very powerful extraneous variable
which makes the business environment very inclement. These are the cries of
mangers. Sectioning through the streets of industry and commerce saying Nigeria
is passing through a difficult period, everything possible must be done to
every one in position to do so , to assist the economy in making a quick
recovery. One way of heading these glariot calls by mergers
off companies is the adoption of cost minimization strategy aimed at improving
1.1 STATEMENT OF
Some companies embark on cost minimization strategies with full awareness of
the benefit obtainable therefrom and therefore give a strong recognition
and support to such strategies. They strive ass much as possible to
carryout their operations or project at the minimal costs. Therefor we
they adopt and implement several strategies or techniques of minimizing
or reducing their cost of operation and or production. This study will
endeavor to find solution to the enumerated problem below as well as others.
(1) Does LBN minimize cost of production or operation
(2) How are cost minimization effected?
(3) What are the strategies or techniques used
for cost minimization?
(4) Is cost minimization a viable means of enhancing
the performance of manufacturing firm?
(5) What are the problem encountered in minimizing
cost and ways minimizing the impact of such problem or possible
(6) How effective are the strategies adopted
1.2 RESEARCH QUESTION
To accomplish the objective enumerated above answers are hopefully
going to be provide to the following question.
(i) Does LBN has know cost minimization
strategies apart from the generally accepted cost minimization techniques?
(ii) Does the level of employees motivation related
to the effectiveness of cost minimization strategy?
(iii) Are the strategies effective?
(iv) What are the problem associated with cost
(v) What measures do they adopt to reduce the impact
of the problem identified (iv) above?
(vi) What other alternative measure do they adopt?
1.3 HYPOTHESIS FORMULATION
In order to made conclusion and recommendation the following
hypothesis will be tested.
(i) There is no significant difference in material
costs before and after embarking on cost minimization stately.
(ii) There is no significant difference in labour
cost before and after embarking on cost minimization strategy.
(iii) There is no significant difference in overhead
cost before and after embarking on cost minimization strategy.
1.4 STATEMENT OF PURPOSE
It is a know fact that there are many cost minimization strategies
available for adoption by firm and industries. Over the years authorities on
costing matters have published dissertation on means and ways of minimizing
cost of production or sand operation in manufacturing industries. Theses
have subsequently been recognized by the management of the various
enterprise. But the question is how many of these firm put these strategies and
techniques into practice?
This study therefore will evaluate some of the existing cost
minimization strategies and techniques (if any) as at effects the lever brothers
Nigeria (LBN) Plc, the extent of their implementation how effective they are
whether they are achieving the goals for which they are adopted as well as
analysis their cost benefit to justify their acceance an important and
veritable cost monition tools.
1.5 SIGNIFICANCE OF THE STUDY
The finding are recommendation of this study will, no doubt be of
immense importance to the management of lever brothers Nigeria (LBN) Plc and
will equally go long way to guiding similar firms in the manufacturing
industries on the proper cost minimization strategies they should adopt that
will be appropriate their daily activities, new mangers and prospective mangers
should equally be acquainted with not just the cost minimization
strategies already familiar with but also one suggested by more
experienced mangers which may not be found in textbook.
1.6 SCOPE AND LIMIATION
For the purpose of this study emphasis will be solely placed on
level brother Nigeria (LBN) Plc this is influenced by the fact that LBN is
the longest surviving manufacturing grants in Nigeria having been
operation since 1923.
It was a general consensus that it was against management policy
to give out internal document to any outsider for any reason unless under
special circumstances. Therefore, the analysis will be made based on the
questionnaire result fact gathered during interview and discussions as well as
personnel observation made during the work.
Finally we are equally limited financially such that we may not
cover major network (4) manufacturing sites for its operation spread across the
country (Nigeria) we will therefore be concentrate its manufacturing sites at
Aba Abia state and the commercial lactation at port Harcourt River state.
1.7 ORIGIN AND HISTORY OF LEVER BROTHERS NIGERIA PLC.
Lever brothers Nigeria Plc (Rc 113) is the longest surviving
manufacturing outfit in Nigeria. The company was incorporated as a private
company in 1923 to manufacturing soaps based on local palm oil. Over the years
the company diversifies and expandedits operation to the production and
marketing of personal wash product mainly toilet soaps, non soapy
detergents foods and personal predicts including toothpaste, body creams lotion
body care hair product. In particular and through selective acquisition
the company has strengthened its froth in foods and personal products
through its merger with Lipton Nigeria Limited in 1988 and lately in 1995
through a merger with unilever Nigeria Limited which a merger with unlived
Nigeria Limited which effectively transferred to LBN the stewards business
following the recent acquisition of seaward and in order to ensure sustained
focus in management the company now has four manufacturing sites for its
operations from the original sites viz, Apapa , the primes and largest
site, produces soaps such as sunlight they , Oxbare Luk, Breeze, ife
buoy, and Astral and some personal product mainly tooth past and Vaseline
range. The second site Abia is devoted to the production of non- soapy detergent
powders and bars. Here, the company makes such popular bran as omo Rin, and ox
powder. The third and of the plants. Commission in 1983 is the utra modern
foods factory in Agbare where the company production Royco , Blue Band,
plant, lree, lop and Beaden, among others and of course the fourth the organ
site where popular personal products brands like elide, pears, and lotus
etc. are produced. It is intended that the company shall consolidate all the
personal products production including tooth. Paste, ponds and Vaseline range
at this site ultimately,
The company is fully committed to backward integration and
self sufficiency and has made considerable progess in its effort towards local
souring sad development of raw materials, the tea plantation on the man bill
plateau underscores the company unrelenting derive for self sufficiency . the
first crop of the end of 1991 and processing factory for the tea leaves has
been COMPLETED ON SIT. THE COMPANY HAS ALSO BUTT AT LARGE PLAM KARNEL WILL AT
ITS Aba factory to improve supply vegetable oil essential raw material in
soap and edible production. It is also making investment in oil plam plantation
in order to improve its local sourcing. Lever brothers Nigeria plc rang of
quality products is distributed sad sold at uniform prices all over the country
through an established and tested distribution network using appointed
distributors, supervised by a well trained sales forces.
The company has direct staff strength of about 2,250 employees in
its four manufacturing sites and various distribution points throughout the
country of this numbers only five are expatriates. These reflect the extents to
which the company has gone at training and developing management
resources? the objective is to bring in expertrvites who willing and able
to work in Nigeria and who will contribute help and train Nigerians. They
(expatriate) give LBN and international favour and are in exchange for the
company mangers working overseas to obtain international experience.
Expatriates are therefore brought into meet the company specific needs. The
company also provides indirect employment for over six thousand people.
Lever brothers Nigeria Plc has been decanted to the production of
top quality brands for Nigeria for over seventy years
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