FINANCIAL MANAGEMENT IN GOVERNMENT OWNED COMPANIES IN ENUGU STATE. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
CHAPTER ONE
INTRODUCTION
1.1 STATEMENT OF THE PROBLEM AND PURPOSE OF THE STUDY
The statement of the problem is to carryout an investigation into the field of financial management practice in government owned companies, with particular reference to Nigeria limited and also highlight the financial problem facing these companies in this problem the main purpose of this study is to:
- To identify and examine some factors that militate against successful financial management of government owned companies
- To find out why those problem have been difficult to solve and make recommendation and suggestion on how they should be solved.
- Explore other areas which in the writers opinion are relevant for effective management of funds.
- To recommend generally and specifically the study of financial management.
1.2 RATIONALE OF THE STUDY
Financial management vary necessary according to the nature of the enterprise concerned, once the corporation objective have been defined, the examination of the whole business structure and the related financial need as follows:
The goal and objective of financial management is to maximize the shareholder wealth by this view they should formulating the firms objective in terms of the share holder interesting the main base of financial market is implemented. That mean the firms with better performance will have higher stock price and additional funds can be commonly pressure the aims of financial management is the maximization of the firms value (i.e. profit maximization relative to investment).
To obtain these, some unprofitable short run may be required
Financial management objective of the company is to maximize its value to their share holders.
1.3 SIGNIFICANCE OF THE STUDY
Financial management is very important for the achievement of the firms goal and objective. Because it help the financial manager to carry out their effective project financial management in government owned companies help to see how the field of financial management will contribute to a better improvement of the study of finance, there by minimizing the result of our investment and divided decision by companies.
It helping the finance manger for decision making by planning for futuristic event that may occur for day to day business activities.
1.4 BACKGROUND OF THE STUDY
Nigeria limited, an economic parastatals was incorporated in may 1962 under ordinary company law as a partnership between the form Nigeria government and said machine. The supplied plant to the company and managed the affair until the war broke out in 1967 is only indigenous gas producing company in Nigeria.
After the war in 1970, the company was reactivated and started production on 1st April 1975. between 1983 and 1984 there was cram shaft broke down which resulted in the stoppage of production. The company received #733.000 from the state government which was later converted into their share and also as loan.
Leave a Reply
You must be logged in to post a comment.