Assessing the Effect of Operational Costs on the Earnings of Construction/Real Estate Firms in Nigeria
- Post by: deqe
- December 17, 2022
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ABSTRACT
This study examined the effect of operational costs on earnings of construction and real estate firms in Nigeria. The specific objectives of the study are to: Appraise the effect of registrars’ fee on earnings per share of construction and real estate firms in Nigeria. Investigate the effect of property maintenance expenses on earnings per share of construction and real estate firms in Nigeria. Examine the effect of legal fee/charges on earnings per share of construction and real estate firms in Nigeria. A sample of 3 firms was selected from 9 construction/real estate firms quoted on the Nigeria Stock Exchange during the period of 2013 to 2019. Cross sectional data were obtained from the annual report and financial statements of the firms and analyzed using Ordinary Least Square Regression Analysis. Result of analysis suggest that the effect of each of the three independent variables, (registrars fee, property maintenance fee and legal fees/charges) on the dependent variable (earnings per share) is positive and statistically significant. On the strength of these findings the study recommends that construction/real estate firms in Nigeria should ensure that all properties acquired are registered with Land Registry to properly secure ownership of the property. This is to prevent any possible loss resulting from improper acquisition. It is also recommended that the firms should ensure that properties are maintained as and when due. Regular maintenance of properties will prolong the lives of the assets and this will in turn ensure regularly and uninterrupted earnings for the firms. It was finally recommended that the firms should ensure that all legal fees and charges relating to property acquisition, development, leasing or sales be settled promptly. This is to avoid possible litigation and loss of property through improper acquisition.
Keywords: Operational Costs; Earnings of Construction; Property Maintenance Expenses
Authorship
Odoh, Stanley Ifeanyi1, Prof. Inyiama Oliver Ikechukwu2, Prof. Chike E. Nwoha3
https://doi.org/10.5281/zenodo.7450495 | FULL PDF