Full Project-SOURCES AND MANAGEMENT OF LOCAL GOVERNMENT REVENUE IN NIGERIA A CASE STUDY OF KWALI AREA COUNCIL FCT ABUJA

Click here to Get this Complete Project Chapter 1-5

CHAPTER ONE
INTRODUCTION
1.1     Background to the Study
According to Jensen (2006), an agency relationship is a contract under which one or more persons (principal) engages another person (the agent) to perform some services on their behalf which involves delegating some decision-making authority to the agent. The cornerstone of agency theory is the assumption that the interests of principals and agent diverge.
According to agency theory, the principal can limit divergence from his/her interest by establishing appropriate incentives for the agent, and by increasing monitoring costs designed to limit opportunistic action by the agent. Agency theory suggests that the firm can be viewed as a nexus of contracts (loosely defined) between the resource holders. Agency relationship arises whenever one or more individuals hire one or more individuals called agent to perform some services and then delegate decision making authorities to the agent.
The primary agency relationships in business are those:
1.       between stockholders and managers; and
2.       between debt holders and stockholders.These relationships are not necessarily harmonious; indeed, agency theory is concerned with agency conflict or conflict of interest between agent and principal and this has implication for among other things, corporate governance and business ethics. When agency theory occur, it also tends to give rise to agency costs, which are expenses incurred in order to sustain an effective agency relationship (e.g., offering management performance bonuses to encourage managers to act in the shareholder’s interests). Anderson and Macie (2006) said there will be continual diverging interests between the principal and the agent, unless an effort is made in order to align these interests.
According to Ilaboya (2008), two of the contents of financial statements required by CAMA 2004 to be prepared by company directors, provided each for the interest of the shareholders (principal) and that of the management/employees.The profit and loss account shows the level of profit of a firm and is in line with the shareholders’ profit maximization interest, while the value added statement which shows the wealth created and how it is distributed to all stakeholders, shows the portion of the wealth created that goes to the management/employee the (the agent) as well as treat the agent as a team member in the wealth creation process.The primary focus of this study is on how the various reward systems especially the financial reward systems helps to resolve the conflicts between the principal and agent without compromising the accounting policies, standards (accounting standards) and regulations.
1.2     Statement of Problem
Divergence of interest between firm owners and the management cannot result to the achievement of the primary objectives and goals of any business organizations which is profit maximization. This is because the synergy required and the strategic fit will be lacking in a firm operating under conflicts of interests. Therefore, efforts must be made to reconcile the interests of the agent and his principal. So, while the principal would be fine with profit maximization, the agent would want the best possible reward system for his efforts.
1.3     Research Questions
In view of the above, one would want to find answers to the following questions;
1.       What is the relationship between fixed compensation for the employee and firm’s profitability?
2.       Is there any relationship between commissions based reward and firm’s profitability?
3.       Is there any relationship between profit sharing in addiction to fixed compensation and firm’s profitability?
4.       What is the relationship between year end performance bonus and firm’s profitability?
1.4     Objective of the Study
The objective of the study includes the following:
1.       To find out if there is a relationship between fixed compensation for the employees and the firm’s profitability.
2.       To find out if there is a relationship between commission based rewards and firm’s profitability.
3.       To find out if there is a relationship between profit sharing in addition to fixed compensation and firm’s profitability.
4.       To find out if there is a relationship between end of year performance bonus and firm’s profitability.
1.5     Statement of Hypothesis
The following research hypotheses will aid this study.
Hypothesis OneHO:    There is no relationship between fixed compensation and firm’s profitability.
HI:    There is a relationship between fixed compensation and firm’s profitability.
Hypothesis TwoHO:    There is no relationship between commission based reward and firm’s profitability.
HI:    There is a relationship between commission based reward and firm’s profitability.
Hypothesis ThreeHO:    There is no relationship between profit sharing in addition to fixed compensation and firm’s profitability.
HI:    There is a relationship between profit sharing in addition to fixed compensation and firm’s profitability.
Hypothesis FourHO:    There is no relationship between end of year performance bonus and firm’s performance.
HI:    There is a relationship between end of year performance bonus and firm’s profitability.
1.6     Significance of the Study
The followings are the significance of the study.
1.       To add to the current body of knowledge in the area of agency theory and accounting choice.
2.       It is also hoped that this study will broaden the knowledge of the students of accounting.
3.       Furthermore, this research work will assist resource owners by enlightening them on more of how to use various financial reward systems to motivate agents for better efforts leading to maximum performance and maximization of firm’s profit.
4.       Finally, it is hoped that this research work will be a guide and research material to students who wish to carry out similar research in the future.
1.7     Scope of the Study
The scope of this study is limited to some selected non-financial firms listed on the floor of the Nigerian stock exchange.This study is aimed at surveying the nature and effects of financial reward systems available for firms on the profitability of the firms and how it can be used to reduce the principal-agent problems in business organizations.
1.8     Limitations of the Study
The major limitation of this study is the short time frame used to execute this project in addition to the fact that the research work has to be done alongside the normal academic work. In addition to this, dearth of literature and the paucity of current and up to date research materials and information in my vicinity. Thus, the literature review was more of materials from journals, internet amongst others which are difficult to come by and even more difficult to analyse than textbooks. However, not all the information required could be found from available records.
1.9     Definition of Terms
1.       The Agent: This refers to the management/employee who utilizes shareholders’ resources to generate expected profit.
2.       The Principal: This refers to the shareholders/stockholders who own the business which the agent manages.
3.       Operating Income: This is defined as profit after tax.
4.       Fixed Compensation: This is defined as all financial rewards independent of performance which is fixed and constant every year irrespective of performance.
5.       Commission: This is defined as a reward system based on level of performance or certain percentage of sales.
6.       Profit Sharing: This is defined as the sharing of profit after tax with managements/employees.
7.       Performance Bonus: This is defined as the monetary reward given to employees after improved performances.

Get the Complete Project

This is a premium project material and the complete research project plus questionnaires and references can be gotten at an affordable rate of N3,000 for Nigerian clients and $8 for International clients.

Click here to Get this Complete Project Chapter 1-5

You can also check other Research Project here:

1, Accounting Research Project

2. Adult Education
3. Agricultural Science
4. Banking & Finance
5. Biblical Theology & CRS
6. Biblical Theology and CRS
7. Biology Education
8. Business Administration
9. Computer Engineering Project
10. Computer Science 2
11. Criminology Research Project
12. Early Childhood Education
13. Economic Education
14. Education Research Project
15. Educational Administration and Planning Research Project
16. English
17. English Education
18. Entrepreneurship
19. Environmental Sciences Research Project
20. Guidance and Counselling Research Project
21. History Education
22. Human Kinetics and Health Education
23. Management
24. Maritime and Transportation
25. Marketing
26. Marketing Research Project 2
27. Mass Communication
28. Mathematics Education
29. Medical Biochemistry Project
30. Organizational Behaviour
31. Other Projects
32. Political Science
33. Psychology
34. Public Administration
35. Public Health Research Project
36. More Research Project
37. Transportation Management
38. Nursing

Need a Project Writer for a Different Topic

• MSC PROJECT WRITING SERVICES
• MBA RESEARCH PROJECT WRITING SERVICES
• Research Project Writing Services in Lagos Nigeria (Professional Writers) -Law, MSc, MBA,PhD, Dissertations, Thesis, Assignment, Speech
• Masters Research Project Writer in Lagos Nigeria
• MBA Research Project Writer in Lagos Nigeria
• LOOKING FOR A WRITING SERVICES FOR AN URGENT ASSIGNMENTS OR PROJECT WORK
• PROFESSIONAL WRITING SERVICES IN LAGOS NIGERIA (TERM PAPER, SPEECH WRITING, ASSIGNMENT, THESES, DISSERTATIONS, RESEARCH PROPOSAL, PROJECT WRITING SERVICES etc)
• BUSINESS ADMINISTRATION RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• CONSULT A RESEARCH PROJECT WRITER IN LAGOS NIGERIA (PH.D, MBA, MSC, M.ED, BSC)
• MANAGEMENT RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• Education Research Project Writer in Lagos Nigeria
• Environmental Sciences Research Project Writer in Lagos Nigeria
• Guidance and Counselling Research Project Writer in Lagos Nigeria
• Human Kinetics and Health Education Project Writer in Lagos Nigeria
• Early Childhood Education Research Project Writer in Lagos Nigeria
• Christian Religious Studies(CRS) Research Project Writer in Lagos Nigeria
• Educational Administration and Planning Research Project Writer in Lagos Nigeria
• Political Science Research Project Writer in Lagos Nigeria
• Accounting Research Project Writer in Lagos Nigeria
• Economics Research Project Writer in Lagos Nigeria
• Management Research Project Writer in Lagos Nigeria
• Marketing Research Project Writer in Lagos Nigeria
• Public Administration Research Project Writer in Lagos Nigeria
• MBA Research Project Analysts
• In Need of MBA Research Project Writer in Nigeria
• MBA Dissertation Research Project Writer
• MBA Project writer
• EDUCATION DEPARTMENT PROJECT WRITING SERVICES
• BACHELOR OF SCIENCE (BSC) DEGREE PROJECT WRITING SERVICES(B.ED,B.A,B.SC)
• MASTER OF BUSINESS ADMINISTRATION (MBA) RESEARCH PROJECT WRITING SERVICES
• MASTER OF SCIENCE (MSC) RESEARCH PROJECT WRITING SERVICES
• POST GRADUATE RESEARCH PROJECT WRITER
• POST GRADUATE DIPLOMA (PGD) RESEARCH PROJECT WRITER
• MASTER RESEARCH PROJECT WRITER
• MASTER DEGREE RESEARCH PROJECT WRITING SERVICES
• POSTGRADUATE RESEARCH PROJECT WRITING SERVICES
• MASTERS RESEARCH PROJECT WRITING SERVICES
• RESEARCH PROJECT WRITER
• EXPERT IN RESEARCH PROJECT/THESIS/DISSERTATION WRITING SERVICES IN LAGOS NIGERIA
• HIRE A PROFESSIONAL BSC/HND RESEARCH PROJECT WRITER
• HIRE A PROFESSIONAL MBA/MSC RESEARCH PROJECT WRITER
• HIRE A PROFESSIONAL THESIS WRITER IN LAGOS NIGERIA
• SC/M.SC/MBA/PGD RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• Master Degree Research Project Specialist/Writer in Lagos, Nigeria
• Hire A Research Project Writer in Lagos Nigeria
• Research Project Specialist in Lagos, Nigeria

• Education