Management Accounting Techniques and Firm Performance of Major Construction Companies in Nigeria


  • Chinomso Asikogu The Catholic University of Eastern Africa
  • Esther Nkatha M`Ithiria The Catholic University of Eastern Africa
  • John Kebaso Omurwa The Catholic University of Eastern Africa



To remain competitive, construction companies must continually improve and one way is by use of the right MATs. The adoption of MATs can help organizations to improve their financial performance continually and consequently overall national economic development. This study investigated influence of management accounting techniques on the firm performance of construction companies in Nigeria. The objectives were, to assess firm performance level of construction companies in Nigeria, to examine the influence of activity-based costing (ABC), strategic analysis, and budgeting practices on firm performance. The study used quantitative research design while the target population was all the 35 major construction firms. The sample size was 13 companies. The research used questionnaire to gather data from 170 managers. The study used descriptive statistics and inferential analysis. The study found that ABC, strategic analysis, and budgeting practices had positive relationship with firm performance. The study concludes that the companies employed ABC to improve firm performance. The study concludes that most companies used both internal and external analysis to improve performance. The study concludes that many companies failed to involve all departments during budgeting. The study recommends that companies should increase resources to complete projects within stipulated time frame. The study recommends that the policies should be enhanced by conducting researches and regular evaluation to improve business environment for the realization of improved performance of the construction companies.  

Key words: Management Accounting Techniques, Activity-Based Costing, Firm Performance, Strategic Analysis, and Budgeting Practices

Author Biographies

Chinomso Asikogu, The Catholic University of Eastern Africa

MBA Student, The Catholic University of Eastern Africa

Esther Nkatha M`Ithiria, The Catholic University of Eastern Africa

Lecturer, Department of Accounting and Finance, School of Business, The Catholic University of Eastern Africa-Kenya

John Kebaso Omurwa, The Catholic University of Eastern Africa

Lecturer, Department of Accounting and Finance, School of Business, The Catholic University of Eastern Africa-Kenya


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How to Cite

Asikogu, C., M`Ithiria, E. N., & Omurwa, J. K. (2021). Management Accounting Techniques and Firm Performance of Major Construction Companies in Nigeria. Journal of Finance and Accounting, 5(3), 73–93.