Abstract

Over the years, the issue of how developing country’s firms decide between the use of debt and equity as source of finance had been a challenge in emerging market and the new patterns of internal and external financing that have evolved in the global market as an entity. The main statistical tool employed in this work is Pearson’s correlation techniques which will be used to establish the relationship between earning price per share and corporate performance. A sample size of 14 was drawn using random sampling techniques. In the research question three hypotheses formulated. The study used Pearson’s correlation method in testing the hypotheses formulated. The study reveals that there is positive relationship between the retained earnings of firms and their EPS; firm’s optimal debt ratio is determined by trade off between gains of borrowing, holding the firms assets and investment plan is constant, Based on the findings the study recommends: that company should endeavour to desist from employing non professionals like chemist, biologist etc and also government should put in place measure to guarantee  economic and political stability.

TABLE OF CONTENTS

Title Page                                                                 i

        Certification                                                             ii

        Dedication                                                               iii

        Acknowledgements                                                  iv

        Abstract                                                                   v

        Table of Contents                                                    

        Chapter One: Introduction                                      1

1. Background to the Study                                         3
2. Statement of Problem                                              4
3. Research Questions                                                 8
4. Objectives of the Study                                            8
5. Statement of Hypotheses                                         9
6. Significance of the Study                                         10
7. Scope of the Study                                                   11
8. Limitations of the Study                                         13
9. Definitions of Terms                                                13

Chapter Two: Review of Related Literature                      15

1. Introduction                                                             15
2. Conceptual Explanations                                                17
3. Theoretical Framework                                            21
4. Recent Theories on Optimal Capital Structure         39
5. Review of Empirical Studies                                    43

Chapter Three: Research Method and Design                 49

1. Introduction                                                             49
2. Research Design                                                      49
3. Description of Population of the Study                    50
4. Sample Size                                                             50
5. Sampling Technique                                                        50
6. Sources of Data Collection                                       50
7. Method of Data Presentation                                   51
8. Method of Data Analysis                                          51

Chapter Four: Data Presentation, Analysis            

and Interpretation                                                            53

1. Introduction                                                             53
2. Presentation of Data                                                        54
3. Data Analysis                                                           54
4. Hypothesis Testing                                                  63

Chapter Five: Summary of Findings, Conclusion

and Recommendations                                                  69

1. Introduction                                                           69
2. Summary of Findings                                            69
3. Conclusion                                                            70
4. Recommendations                                                 71

References                                                             73

Appendices                                                            77                             

CHAPTER ONE

INTRODUCTION

Background to the Study

The term advertising appears to be well known to every person across all profession consumers and even buyers aspire to know advertising as much as the advertisers. All aspects of business have advertising implication. As it is very imperative for a course of action on the part of the owner of a business, who is just starting or expanding existing ones to make a careful study of how to get the products or services across to the ultimate consumers. To assure that product will sell itself due to its high quality or measures to the buyer or consumer is wrong. 

Modern business has specifically responding to the need for proper communication by responding to the need for proper advertising.

One should not fail to mention that small business management occupies a vital and higher percentage of the economy development of a nation. This is why small scale business management should be given its pride of place and guide with al seriousness to achieve its desire greatness. The competitive nature of business operating in the same industry calls for the need for advertisement to ensure its survival in the same line of industry.

However, the survival of a small business management therefore depends on how well the management of such business can discover the need for necessity of advertising.

The case study of Mr. Biggs which find itself in the fast food business can only secure a better edge among her place as there are competitions in the business.

The corporate goals or objectives of the institution under study are to justify the owners investment from the profit after tax. Therefore the whole essence of this research work is to help managers and other interest individual to find a place in their organization that is completely responsible for advertising.  

1. Statement of Problem

Over the years business fails to grow and survive due to lack of poor advertising techniques adopted by enterprises.

Advertising management is a crucial issue in a global business due to the complexity of current business environment. These are set out plans and programmes in order to achieve the set of organizational objectives and goals. Advertising require to find in order to design an effective advertising methods which will have a wider coverage in order to reach out to existing customers and potential customers of  the business product or services.

The researcher is of the view to carryout an investigation to find out the constraint of advertising including the growth and survival of enterprise in Nigeria. However preferred solution and solution and recommendation will be made available at the end of this study.

Research Questions

This research work will attempt to provide answers to the following questions:

1. What is the effect of advertising on the total demand for Mr. Biggs products?
2. How does advertising influence the business cycle?
3. Does advertising widen consumer choice for the product of the firm?
4. Does advertising increase sales?
5. Does advertising facilitate the achievement of goals and objective of small scale business management?
6. Does advertising help to inform and create awareness? 

Objectives of Study

This research is aimed at achieving the following objectives:

1. To determine if advertising has any significant effect on the total demand for Mr. Biggs products.
2. To examine if advertising has any influence on the business cycle.
3. To know if advertising has any widen effect on consumer choice for the product of the firm.
4. To examine if advertising has any significant effect in increasing sales.
5. To examine if advertising has any significant effect in facilitating the achievement of goals and objective of small scale business management.
6. To examine if advertising help to inform and create awareness.

Statement of Hypotheses

With regard to the above, central research question arising from the statements of the problem and the objective of the study, leads to the researcher to the formulation of the following hypothesis. The negative assertion is called the alternative hypothesis (Ho) while the positive assertion is called the null hypothesis (HI).

Hypothesis One

Ho:  Advertising does not facilitate the achievement of goals and objectives of small scale business management.

HI:    Advertising does facilitate the achievement of goals and objectives of small scale business management. 

Hypothesis Two

Ho:  Advertising does not increase sales and profitability.

HI:    Advertising does increase sales and profitability.

Hypothesis Three

Ho:  Advertising does not inform and create awareness.

HI:    Advertising does inform and create awareness.

Significance of the Study

The objective of this research study is to examine the problem being faced by small scale business of Mr. Biggs enterprise as a result of not having good economic (e.g. market economic) and to suggest good solution to these problems. If this objectives are met, it follows that this work will at the end contribute significantly to the importance of advertising in small scale business management.

This study attempts to produce information to bridge the information needs of the potential and actual investors. Therefore, the following categories will benefit immensely from the findings.

1. Potential Investor: It will serve as a guide in determining the value of the business that would finally have an influence on their investment decision.
2. Management: It would expose them to improve practices as well as help to know the importance of advertising in small scale business.
3. Public: It will enlighten the public on the need for advertising in small scale business management. It will also benefit the public in the area of providing relevant information for the future researchers.

Scope of the Study

This study is restricted to the relevance of advertising in the management of small scale business in Nigeria a case study of Mr. Biggs. Due to time and cost constraints the entire Mr. Biggs in Nigeria can not be used for this study. Hence, a sample size of 3 (three) one in Auchi and two in Benin (i.e. one in Sapele Road and one in Ugbowo Road).

The date was obtained using a cross section of Mr. Biggs fast food restaurant in Edo State for the period of 2009 – 2013. 

Limitations of the Study

1. Outstanding constraint is the unwillingness on the part of the respondent to give correct and convincing information about their business.
2. Generalization of result may not be correct since the study was limited to advertising in small scale business enterprise with special emphasis on Mr. Biggs which does constantly represent the performance of all the small scale enterprise in the country.
3. The smallness of the sample size is also a constraint to this research project.

1. Definition of Terms      

1. Advertising: This is the purpose to promote the image of a corporation rather than the sale of a product or service, also called institutional advertising is also use to create public awareness of a corporation or to improve its reputation in the market place. (Brovee, 1992).
2. Small Scale Business: The federal government small scale industry development plan of 1980 defined a small scale business in Nigeria as any manufacturing process or services industry with a capital not exceeding N150,000 in manufacturing and equipment alone.
3. Management: Involves ensuring that work activities are completed with highest degree of efficiency and effectives by those responsible for carrying out the responsibilities.
4. Promotion: The element of the marketing mix that include all forms of marketing communication. It is the ingredients used to inform an persuade the market regarding companies product the market regarding companies product.
5. Organization: A project, a business of a person or group of persons. A company making and selling things.
6. Consumer: This is a person or group of persons who are the final users of products or services generated within a social system.
7. Marketing: This is the process of communicating the value of a product or services to customer for the purpose of selling the product or services. It is a critical business function for attracting customer.