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Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

Email: contact@americaserial.com 
Official Journal of America Serial Publication 
 

American Research Journal of Economics, Finance and Management 
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1 | P a g e  

EFFECT OF COST OF SALES ON SHAREHOLDERS RETURN OF 

NIGERIAN COMPANIES 
 

Giwa Luka and Dibua Ekene C. 
Department of Accountancy Paul University, Awka 

E-mail: lukagiwa6@gmail.com, dibuaekene@gmail.com 

DOI: https://doi.org/10.5281/zenodo.15829607 

 

Abstract: This study determined the effect of cost of sales on shareholders return of Nigerian 

companies from 2014 to 2024. Ex Post Facto research design was employed for the study. Data 

were extracted from the annual reports and accounts on the twenty samples companies in Nigeria. 

The hypothesis was tested with regression analysis via e-view 9.0. The study found that cost of sales 

has a positive and significant effect on shareholders return of Nigerian companies. Based on the 

finding, the study recommended that the production and supply chain directors of companies in 

Nigeria should priorities strategic investments in raw material sourcing, inventory control systems, 

and production efficiency technologies.  

Keywords:  Cost of sales, shareholders return and Firm liquidity. 

 

Introduction  

The idea of cost structure is rooted in the broader framework of strategic control and monetary 

overall performance optimization (Rounaghi, Jarrar & Dana, 2021). It requires corporations to adopt 

a value-based totally control method, wherein choices regarding resource allocation, technique 

development, and operational restructuring are made in alignment with the firm’s strategic dreams 

and shareholder interests. Within the Nigerian manufacturing context, fee pressures have endured to 

mount due to macroeconomic instability, high inflation, power value burden, and infrastructural 

bottlenecks (Adesina & Tiamiyu, 2025). These factors have necessitated the need for firms to pursue 

price-green strategies which could beautify overall performance and ensure lengthy-time period 

survival. At the same time as several firms in Nigeria have initiated numerous fee containment 

packages, the quantity to which such strategic fee control efforts translate into stepped forward 

shareholder wealth stays a vital vicinity of inquiry. Adibeli and Amahalu (2023) submitted that 

shareholder wealth maximization remains the ultimate intention of any income-orientated 

corporation and is often measured through indicators consisting of percentage price appreciation, 

dividend payout, return on fairness, and income in keeping with proportion. 

However, the linkage among price structure and shareholder wealth maximization is complex and 

multifaceted, requiring empirical exploration. The structure of firm-level cost can have giant 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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2 | P a g e  

implications for shareholder wealth maximization in several methods. Firstly, value discount 

enhances net profitability via lowering overhead and manufacturing expenses (Roomi, 2024), thereby 

growing the earnings available for distribution to shareholders in the form of dividends or retained 

earnings. Secondly, effective price reduction strategies can improve a firm’s running efficiency, 

thereby enhancing its competitive positioning and allowing it to offer higher fee propositions within 

the market (Thapayom, 2021). This can lead to increased market share, better sales and stepped 

forward monetary performance, which in turn positively influences investor self-belief and 

proportion charge overall performance. Thirdly, managing the fee structure enables resource 

reallocation in the direction of high-price projects and innovation-pushed investments that 

contribute to lengthy-term growth and shareholder value. Moreover, firms that demonstrate prudent 

price management are frequently perceived as financially disciplined and strategically centered, 

attributes which might be extraordinarily valued with the aid of buyers and capital market 

contributors (Rounaghi, Jarrar & Dana, 2021). 

However, the linkage between cost structure and shareholder wealth maximization is complex and 

multifaceted, requiring empirical exploration. The structure of firm-level cost can have significant 

implications for shareholder wealth maximization in several ways. Firstly, cost reduction enhances 

net profitability by reducing overhead and production expenses (Roomi, 2024), thereby increasing 

the earnings available for distribution to shareholders in the form of dividends or retained earnings. 

Secondly, effective cost reduction strategies can improve a firm’s operating efficiency, thereby 

enhancing its competitive positioning and enabling it to offer better value propositions in the 

marketplace (Thapayom, 2021). This can lead to increased market share, higher sales revenue, and 

improved financial performance, which in turn positively influences investor confidence and share 

price performance. Thirdly, managing the cost structure facilitates resource reallocation towards 

high-value projects and innovation-driven investments that contribute to long-term growth and 

shareholder value. Moreover, firms that demonstrate prudent cost management are often perceived 

as financially disciplined and strategically focused, attributes that are highly valued by investors and 

capital market participants (Rounaghi, Jarrar & Dana, 2021). Meanwhile, to the best of the 

researcher’s knowledge, there is a limited study on consumer goods firms in Nigeria. The study 

therefore, sought to ascertain the effect of cost of sales on the shareholder return of consumer goods 

firms in Nigeria. 

Review of related literature  

Moreover, cost structure serves as an essential determinant of corporate selection-making. It affects 

strategic picks which includes product pricing, resource allocation, expansion, outsourcing, and even 

the pursuit of economies of scale (Held et al., 2021). A company's ability to manipulate its fee 

structure can directly have an effect on its economic consequences and ability to maximize 

shareholder wealth. on this regard, value structure isn't a passive file of costs; it's far an lively tool 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

Email: contact@americaserial.com 
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3 | P a g e  

through which companies can control profitability, hold competitive advantage, and align operational 

activities with monetary goals (Awotomilusi, Isaiah, Esther & Yomi, 2022). 

Cost structure also plays a vital role in financial reporting and performance evaluation. Investors, 

shareholders, and financial analysts scrutinize a company's cost structure to understand the 

sustainability of its profit margins, the resilience of its business model, and the efficiency of its 

management practices (Ayoola & Odusina, 2023; Zhu, Chen & Cheng, 2023). The transparency and 

rational organization of costs help stakeholders assess whether a company is strategically positioned 

for growth or vulnerable to financial stress. Hence, in the context of shareholder wealth 

maximization, cost structure becomes not just a technical accounting concept but a strategic 

foundation that underpins the creation of long-term value for owners of the firm. 

Cost of Sales 

The cost of sales, also referred to as the cost of goods sold (COGS), represents the direct expenses 

associated with producing or acquiring the products that a company sells during a specific period 

(Adesina & Tiamiyu, 2025). It encompasses all the costs directly tied to the creation of goods or 

services that a company offers to its customers, such as raw materials, labor costs, and manufacturing 

expenses (Fadare & Adegbie, 2020). The cost of sales is a critical financial metric for businesses, as it 

directly influences the profitability of a company by determining how much it costs to generate 

revenue through product sales. In essence, it is the amount spent on the production or procurement 

of goods that are then sold to generate income (Kelwig, 2022). 

Cost of sales is an important factor in determining a corporation’s gross income, that's calculated by 

way of subtracting the cost of income from general sales (Fernando, 2024; Aggreh, Abiahu, & Nworie, 

2023). This parent offers hints into the performance and profitability of a agency's core commercial 

enterprise operations. It allows traders, analysts, and bosses check how properly the corporation is 

controlling manufacturing expenses and dealing with its supply chain. A enterprise with excessive 

manufacturing cost relative to sales may additionally need to reevaluate its pricing approach, 

manufacturing techniques, or supplier relationships. Conversely, a corporation with low cost of sales 

relative to its sales is normally extra green at converting raw substances and hard work into finished 

products, resulting in higher profitability. The calculation of cost of sales can vary depending on the 

type of business. For manufacturing companies, it typically includes direct labor, raw materials 

(Fadjarenie, Rachmadani & Tarmidi, 2024), and manufacturing overhead. In retail, it reflects the 

costs associated with purchasing goods for resale, including the wholesale price and transportation 

costs. For service-based businesses, the cost of sales might include labor costs directly tied to service 

delivery. Understanding the cost of sales is crucial not only for assessing operational efficiency but 

also for setting the appropriate sales price to ensure profitability. Companies that can effectively 

control and reduce their cost of sales can potentially increase their profit margins and improve their 

financial performance. 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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Shareholder Wealth Maximization 

Shareholder wealth maximization is a monetary management precept that announces that the 

primary goal of an employer is to growth the wealth of its shareholders (Akintunde, NwabuisI & 

Oyeyemi, 2021). This goal is typically pursued by way of maximizing the value of the organisation’s 

inventory, which in turn increases the fee of the shareholders’ investments (Adibeli & Amahalu, 

2023). The idea is grounded inside the belief that the fulfillment of a enterprise ought to be measured 

by its capacity to offer the best possible return on investment for its shareholders, thereby ensuring 

their monetary wellness. Shareholder wealth maximization takes into consideration not most 

effective the cutting-edge profitability of the corporation however additionally its future boom 

potential, which immediately affects the lengthy-time period cost of the inventory (Nwaobia & Ajayi, 

2020). 

Empirical Review 

Temitope (2024) ascertained the link between cost management and the financial performance of 

selected manufacturing firms in Nigeria from 2011 to 2020. The analysis employed descriptive 

statistics, correlation analysis, and panel regression techniques, including pooled OLS, random 

effects, and fixed effects estimation. The study also applied the Hausman test and post-estimation 

procedures to validate the models. Findings indicated that administrative costs had an insignificant 

negative impact on earnings after tax, whereas selling and distribution expenses had an insignificant 

positive effect. Ayeni-Agbaje, Ogundipe, and Bamidele (2024) determined the impact of cost 

reduction techniques on the productivity of listed manufacturing firms in Nigeria. The sample 

consisted of 179 listed manufacturing firms on the Nigerian Exchange Group as of May 30, 2023, with 

20 firms purposively selected. Descriptive and inferential analyses were employed, including 

regression techniques and diagnostic tests. The findings revealed that waste reduction had a 

significant and positive effect on productivity, with a coefficient value of 120, while inventory 

management also showed a significant positive effect on productivity with a coefficient value of 

154.965. Nwokeabia, Uguru, and Chukwu (2023) determined the impact of cost control on the 

corporate performance of listed brewery firms in Nigeria, using data from 2011 to 2021. Using 

regression analysis, the researchers found that material costs and overhead costs had a positive and 

significant impact on corporate performance, while labor costs had a positive but insignificant effect. 

Omah (2023) ascertained the effect of cost reduction strategies and the performance of 

manufacturing firms in Nigeria. The Spearman Rank Order correlation was employed to evaluate 

relationships among the study variables. Findings revealed significant correlations between value 

analysis and profit before tax, value analysis and return on assets, value engineering and profit before 

tax, and value engineering and return on assets. Robinson and Umo (2023) determined the effect 

between cost management strategies and profitability in quoted cement manufacturing firms in 

Nigeria, using an ex-post-facto design. The study analyzed data from three quoted cement firms over 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

Email: contact@americaserial.com 
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5 | P a g e  

a 10-year period (2013–2022). The findings from the regression analysis indicated that throughput 

costing, life-cycle costing, target costing, and activity-based costing all had a positive relationship 

with return on equity, with activity-based costing showing the strongest correlation. The study 

concluded that these costing strategies positively impacted profitability, although throughput costing 

was weakly and insignificantly related. Isiaka, Jimoh, Orebiyi, and Adenekan (2022) analyzed the 

impact of cost control strategies on the survival of the Nigerian manufacturing sector. The study used 

panel data from annual reports of five selected manufacturing firms over five years (2015-2019). The 

independent variables included finance costs, salaries and wages, and sales costs, while return on 

assets was used as a proxy for firm performance. The study found indicated that finance costs and 

cost of goods sold did not significantly influence firm performance, whereas salaries and wages had a 

significant impact. Awotomilusi, Isaiah, Esther, and Yomi (2022) ascertained the effect of cost 

structure on the financial performance of manufacturing firms listed on the Nigerian Exchange 

Group. The study focused on seven industrial goods manufacturing companies, analyzing financial 

statements from 2011 to 2020. An ex-post facto research design was used, and data were analyzed 

using regression and correlation techniques. The study revealed showed that staff cost structure had a 

significant negative impact on financial performance. Adamu (2022) explored the impact of cost on 

organizational profitability, using Grand Cereals and Oil Mills Limited in Nigeria as a case study. Data 

analysis was conducted using simple correlation and Analysis of Variance (ANOVA). Findings 

revealed a negative relationship between production costs and profitability, a positive correlation 

between sales and profitability, and a negative correlation between VAT and profitability. The study 

emphasized the importance of cost control, highlighting that businesses with well-structured cost 

management systems are more likely to achieve their profit targets. Sekyi (2022) evaluated the effect 

of cost control on the growth of manufacturing firms in Ghana, considering pricing strategy as a 

moderating factor. The study analyzed panel data from 2012 to 2021 using Levene’s test and a two-

step system dynamic General Method of Moments (GMM) model. Results indicated no statistically 

significant difference in cost control levels among listed manufacturing firms. Regression analysis 

showed that cost control dimensions significantly influence firm growth. The study concluded that 

pricing strategy significantly moderates the relationship between cost control and firm growth, 

measured through total sales rather than return on equity. Umelo, Ibanichuka, and Ignatius (2021) 

conducted a study on the relationship between strategic management accounting practices and return 

on equity among publicly listed manufacturing firms in Nigeria. Ordinary least squares estimation, 

fixed effects, and random effects models. The study revealed that 50.6% of the variation in return on 

equity was explained by changes in strategic management accounting practices. The results further 

showed that target costing had a negative and insignificant effect on return on equity, while 

absorption costing had a positive and significant impact. Conversely, activity-based costing was found 

to have a negative but significant effect on return on equity. Adigbole, Adebayo and Osemene (2020) 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

Email: contact@americaserial.com 
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6 | P a g e  

examined the effect of strategic cost management practices on the performance of Nigerian 

manufacturing firms. The study employed a survey research design to collect primary data, which was 

analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. Results 

indicated that strategic cost management practices have a positive impact on organizational 

performance. Mamidu and Akinola (2019) ascertained the effect of cost control on performance of 

manufacturing agencies in Nigeria. Statistics were acquired from annual reports and relevant 

literatures among other. Records were tested the usage of the ordinary Least square Linear 

Regression version. The result indicates that Shareholders' budget definitely relate to profitability and 

large at 5 percentage and that the full Asset also undoubtedly relate to profitability at 5 percent degree 

of importance. This examine suggests that cost control in production businesses have a great effect on 

earnings generated from production Operations. Ezejiofor, Nwakoby and Okoye (2015) determined 

the effect of cost management on corporate operating performance in Nigerian manufacturing 

companies. Data were obtained from five years Annual accounts and reports of five (5) food 

production companies. Simple Regression Analysis was employed via SPSS version 20.0 in testing the 

hypotheses. The study revealed that there is a significant effect between cost management, operating 

profit and earnings per share in Nigerian corporate firms. Olalekan and Tajudeen (2015) analyzed the 

effect of cost control on the survival of firms in Nigeria, survey descriptive research design was 

deployed in the study. Questionnaires were administered to 30 staff of Nigerian Bottling Company Plc 

(Jos Plant) at random. Percentage analysis was used to analyze the data. The finding shows that cost 

control affect profitability of firms.  

Methodology 

This study employed the ex-post facto research design. Ex-post facto design is particularly useful 

when researching the effect of past events on present outcomes, especially the events already 

occurred and cannot be manipulated. The population of this study consists of all the consumer goods 

firms on the Nigerian Exchange Group (NGX). As of December 31, 2024, there were 20 consumer 

goods firms in Nigeria. Sample sizes of 15 manufacturing firms were selected from a population of 20 

firms using a purposive sampling technique.  

Method of Data Collection 

The data for this study were collected through secondary sources, specifically from the publicly 

available financial statements and reports of the selected consumer goods firms on the NGX from 

2014 to 2024. Data were extracted from the annual reports and financial statements filed by the firms 

with the NGX.  

Model Specification 

The research adapted the model of Ben-Caleb, Otekunrin, Rasak, Adewara, Oladipo and Eshua (2019) 

as follows: 

CTNO = α0 + α1CMC+α2CLC+α3CAO+α4CFS+µ  - - - - i 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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7 | P a g e  

Where;  

CTNO: changes In turnover  

CMC: changes in material costs  

CAO: changes in administrative overheads  

CFS: changes in factory overheads 

α0 = Constant 

α1-3 = Coefficients 

µ = Error term 

The study modified the regression model as follows; 

SHRit = α0 + β1COSit + β2CSMit + β3SCit + β4ACit + μit  

Where: 

SHRit = Shareholder return for firm i in period t. 

COSit = Cost of sales for firm i in period t. 

μit = Error term for firm i in period t. 

α0 = Constant. 

β1 = Coefficients of the independent variables. 

Method of Data Analysis 

The study employed both descriptive and inferential statistics. Descriptive statistics, such as 

measures of central tendency and dispersion, provided hints into the overall characteristics of the 

dataset. The analysis was conducted using a Least Squares regression model, which enabled the 

researcher to assess the effect of cost structure variables on shareholder return.  

Decision Rule 

The null hypothesis is rejected if the p-value for the t-test is less than 0.05, indicating that there is a 

significant effect of the independent variables on shareholder return. Conversely, if the p-value is 

greater than 0.05, the null hypothesis is accepted, suggesting no significant effect. 

Data Analysis 

Table 1: Descriptive Statistics 

 SHR COS01 LIQ 

 Mean -0.023636  7.536364  0.650755 

 Median -0.020000  7.470000  0.743516 

 Maximum  0.600000  8.050000  1.532516 

 Minimum -0.550000  7.280000  0.073989 

 Std. Dev.  0.402871  0.219955  0.513169 

 Skewness  0.197677  1.117849  0.232259 

 Kurtosis  1.764738  3.374064  1.739396 

 Jarque-Bera  2.312992  7.065115  2.481736 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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8 | P a g e  

 Probability  0.314587  0.029230  0.289133 

 Sum -0.780000  248.7000  21.47493 

 Sum Sq. 

Dev.  5.193764  1.548164  8.426953 

 Observations  33  33  33 

Source: E-views 9.0 Output (2025) 

From table 1, the descriptive statistics shows that the mean of shareholders return (SHR) of the 

sampled companies in Nigeria is -0.023; the maximum of 0.600 with a minimum of -0.550 and 

standard deviation of 0.403. The mean of cost of sales (COS) from the sampled observations is 7.536; 

the standard deviation value is 0.218; a maximum observation of 8.050 with a minimum value of 

7.280. The firm liquidity (LIQ) has mean value of 0.651, a standard deviation of 0.513; maximum 

value of 1.533 with a minimum value of 0.074. Skewness is the measure of how much the probability 

distribution of a random variable diverges from the normal distribution.  Table 1 sketches that the 

probability distribution for SHR = 0.315; COS =0.029; LIQ= 0.289 are positive and statistically 

significant at 0.05. From Table above, the Jarque-Bera (JB) which test for normality or the existence 

of outlier or extreme values among the variables shows that all our variables are normally distributed 

and not skewed distribution, significant at 5% level and the result could be generalized.  

Test of Hypothesis 

Ho1: Cost of sales has no significant effect on shareholders return of consumer goods firms in Nigeria. 

Table 2: Regression Analysis between SHR, COS and LIQ 

Dependent Variable: SHR   

Method: Panel Least Squares   

Date: 07/02/25   Time: 20:26   

Sample: 2014 2024   

Periods included: 11   

Cross-sections included: 3   

Total panel (balanced) observations: 33  

     
     

Variable 

Coefficien

t Std. Error t-Statistic Prob.   

     
     

C 

-

8.785589 2.196658 -3.999525 0.0004 

COS 1.171557 0.295803 3.960600 0.0004 

LIQ 

-

0.103453 0.126787 -0.815960 0.4210 

     
     

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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R-squared 0.355667 

    Mean dependent 

var 

-

0.02363

6 

Adjusted R-

squared 0.312712     S.D. dependent var 

0.40287

1 

S.E. of regression 0.333992 

    Akaike info 

criterion 0.731107 

Sum squared resid 3.346513     Schwarz criterion 

0.86715

3 

Log likelihood 

-

9.063257 

    Hannan-Quinn 

criter. 

0.77688

2 

F-statistic 8.279892     Durbin-Watson stat 

2.49742

3 

Prob(F-statistic) 0.001370    

     
     Source: E-View 9.0 

In table 2, the regression analysis was conducted to test the effect between shareholders return (SHR) 

and cost of sales (COS). Adjusted R squared is coefficient of determination which tells us the variation 

in the dependent variable due to changes in the independent variable. From the result, the value of 

adjusted R squared was 0.31, an indication that there was variation of 31% on shareholders return 

due to changes in cost of sales. This implies that only 31% changes in shareholders return of the firms 

could be accounted for by independent variable, COS and control variable, LIQ, while 69% was 

explained by unknown variables that were not included in the model. 

The Durbin-Watson Statistic of 2.50 advocates that the model contain serial correlation. The F-

statistic of the regression is equal to 8.280 and the associated F-statistical probability is equal to 

0.001, suggests that cost of sales has statistically significant effect on shareholders return of the 

companies in Nigeria, so the alternative hypothesis was accepted and the null hypothesis was 

rejected.  

The probability of the slope coefficients indicate that; P-value =0.000<0.05). The co-efficient value 

of; β1= 1.171557; t = 3.960, implies that cost of sales independent is positively affect shareholders 

return and also statistically significant at 5%. 

Since the P-value of 0.000 is less than the critical value of 5% (0.05), then, it would be upheld that 

cost of sale has significant effect on shareholders return of Nigerian consumer goods firms at 5% level 

of significance. 

 

 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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Discussion of Findings 

The finding that cost of sales has a positive and significant effect on shareholder return among 

companies in Nigeria. In the companies, an increase in cost of sales often reflects greater production, 

which, if managed competently, increased profitability. Empirically, this finding is partially supported 

and partially contradicted by past research. Nwokeabia, Uguru and Chukwu (2023) revealed that 

material costs (a component of cost of sales) have a positive impact on corporate performance. In 

contrast, Oyedokun, Tomomewo and Owolabi (2019) reported a negative relationship between raw 

material costs and profit.  

Conclusion and Recommendations 

This study determined the effect of cost of sales on shareholders return of Nigerian companies from 

2014 to 2024. Data were extracted from the annual reports and accounts on the twenty samples 

companies in Nigeria. The hypothesis was tested with regression analysis via e-view 9.0. The study 

found that cost of sales has a positive and significant effect on shareholders return of Nigerian 

companies. The evidence that certain value features such as cost of sales, impact shareholder return 

shows that strategic investments in those regions may be regarded not simply as operational 

outflows, however as enablers of future economic gains. 

Based on the finding, the study recommended that the production and supply chain directors of 

companies in Nigeria should priorities strategic investments in raw material sourcing, inventory 

control systems, and production efficiency technologies. to optimize cost of sales but also sustain the 

observed positive contribution of cost of sales to shareholder return. 

References 

Adamu, D. K. (2022). The Effects of Cost on the Profitability of an Organization (A Case of Grand 
Cereals and Oil Mills Limited, Nigeria). African Scholars Journal of Business Dev. and 
Management Res., 27(7). 

Adesina, O. D., & Tiamiyu, T. A. (2025). Empirical analysis of cost management and profitability of 
manufacturing companies in Nigeria. Journal of Economics, Finance and Management 
Studies, 8(2), 1397-1415. https://doi.org/10.47191/jefms/v8-i2-60 

Adibeli, P.C. & Amahalu, N.N. (2023). Debt Financing and Shareholders Wealth Creation of Quoted 
Manufacturing Firms in Nigeria, Journal of Global Accounting, 9(2), 70 – 112. 

Adigbole, E. A., Adebayo, A. O., & Osemene, O. F. (2020). Strategic Cost Management Practices And 
Organizational Performance: A Study Of Manufacturing Firms In Nigeria. Global Journal of 
Accounting & Finance (GJAF), 4(1). 

Aggreh, M., Abiahu, M. C., & Nworie, G. O. (2023). Cost reduction and financial performance of listed 
consumer goods firms in Nigeria. Journal of Banking, 11(1), 1-38. 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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Akintunde, A., NwabuisI, N. A., & Oyeyemi, O. G. (2021). Financing decision and shareholders’ 
wealth maximisation of Nigeria listed companies. Imo State University Business & Finance 
Journal, 12(1), 18. 

Awotomilusi, N. S., Isaiah, O. O., Esther, I. O., & Yomi, A. T. (2022). Cost Structure and Financial 
Performance of Quoted Industrial Goods Manufacturing Companies in Nigeria. International 
Journal of Management, Accounting & Economics, 9(11). 

Ayeni-Agbaje, R. A., Ogundipe, F. B., & Bamidele, V. O. (2024). Cost reduction techniques and the 
productivity of listed manufacturing firms in Nigeria. International Journal of Social 
Sciences and Management Research, 10(11), 340-355. 

Ayoola, J. T., & Odusina, A. O. (2023). A Capital Structure & Cost Efficiency in Selected Listed 
Financial Firms in Nigeria. Economy, Business and Development: An International 
Journal, 4(1), 19-35. 

Ben-Caleb, E., Otekunrin, A. O., Rasak, B., Adewara, S. O., Oladipo, O. A., & Eshua, R. (2019). Cost 
reduction strategies and the growth of selected manufacturing companies in 
Nigeria. International Journal of Mechanical Engineering and Technology (IJMET), 10(3), 
305-312. 

Ezejiofor, R. A., Nwakoby, N. P., & Okoye, J. F. N. (2015). Analysis of cost management on 
performance of corporate firms in Nigeria. Scholars Journal of Economics, Business and 
Management, 2(12), 1137-1142. 

Fadare, T. V., & Adegbie, F. F. (2020). Cost management and financial performance of consumer 
goods companies quoted in Nigeria. International Journal of Scientific and Research 
Publications, 10(8), 82–90. https://doi.org/10.29322/IJSRP.10.08.2020.p10413 

Fernando, J. (2024, May 22). Cost of goods sold (COGS) explained with methods to calculate it. 
Investopedia. https://www.investopedia.com/terms/c/cogs.asp 

Held, P. J., Bragg-Gresham, J. L., Peters, T. G., McCormick, F., Chertow, G., Vaughan, W. P., & 
Roberts, J. P. (2021). Cost structures of US organ procurement 
organizations. Transplantation, 105(12), 2612-2619. 

Kelwig, D. (2022, March 8). Cost of sales: Definition, formula, and ways to lower it. Zendesk. 
https://www.zendesk.com/blog/5-ways-to-reduce-cost-of-sales/# 

Nwaobia, A. N., & Ajayi, A. (2020). Financial reporting quality and shareholders’ wealth 
maximization: Evidence from listed companies in Nigeria. European Journal of Accounting, 
Auditing and Finance Research, 8(6), 1–14. 

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https://doi.org/10.29322/IJSRP.10.08.2020.p10413
https://www.investopedia.com/terms/c/cogs.asp
https://www.zendesk.com/blog/5-ways-to-reduce-cost-of-sales/


American Research Journal of Economics, Finance and Management 
Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

Email: contact@americaserial.com 
Official Journal of America Serial Publication 
 

American Research Journal of Economics, Finance and Management 
https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 

12 | P a g e  

Nwokeabia, I. A., Uguru, L. C., & Chukwu, U. C. (2023). Effect of cost control on corporate 
performance: Evidence from selected listed brewery firms in Nigeria. Journal of Accounting 
and Financial Management, 9(5), 77. 

Omah, P. C. (2023). Cost reduction strategies and performance of manufacturing companies in 
Nigeria. BW Academic Journal, 18-18. 

Oyedokun, G. E., Tomomewo, A. O., & Owolabi, S. A. (2019). Cost control and profitability of selected 
manufacturing companies in Nigeria. Journal of Accounting and Strategic Finance, 2(1), 14-
33. 

Roomi, M. A. (2024). Strategic Cost Management in a Competitive Landscape: Optimizing Costs, 
Driving Value, and Achieving Sustainable Advantage. Research Studies of Business, 2(01), 
10-19. 

Rounaghi, M. M., Jarrar, H., & Dana, L. P. (2021). Implementation of strategic cost management in 
manufacturing companies: overcoming costs stickiness and increasing corporate 
sustainability. Future Business Journal, 7, 1-8. 

Sekyi, S. K. (2022). Cost Control and Growth of Listed Manufacturing Firms in Ghana: the 
Moderating Role of Pricing Strategy (Doctoral dissertation, University of Cape Coast). 

Temitope, A. L. (2024). Cost control and reduction, management and financial performance of listed 
manufacturing firms in Nigeria. Journal of Accounting and Financial Management, 10(1), 1–
17. 

Thapayom, A. (2021). Strategic Cost Management as a Valuable Approach for Achieving 
Organizational Sustainability: Evidence from Industrial Businesses in Rayong. Journal of 
Accounting Profession, 17(53), 98-125. 

Umelo, N. D., Ibanichuka, E. A. L., & Ignatius, U. (2021). Strategic Management Accounting Practices 
and Return on Equity of Quoted Manufacturing Firms in Nigeria. International Journal of 
Business & Law Research, 9(4), 120-130. 

 

 

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