CHAPTER 3 AND 4: MANAGEMENT CONTROL SYSTEMS IN SMALL AND MEDIUM SCALE BUSINESS



CHAPTER THREE
METHODOLOGY
This chapter provides an explanation on the manner and procedure of data gathering, data analysis which form the basis of the next chapter.

3.1 Research Design
The research design used in this research work is the survey design. This design is considered most appropriate as the study involves examining the population which in this case is the small and medium scale enterprises (SMEs) in Abi and collecting representative data from samples and analyzing them for results which answers the research questions.

3.2       Population Of Study
As mentioned above, the population of study is the small and medium scale enterprises in Abi Local Government Area of Cross River State. It therefore means that the study area is Abi Local Government Area.
3.3       Sampling Design
In order to decide on the sampling techniques to adopt, a listing exercise of all SMEs in the local government Area was conducted. The list was further categorized into two namely SMEs with and those without Agency relationship. A random sampling using the ballot system was taken from each category of SMEs after a sample size of 50 percent was decided on for each category. That is 50 percent of the SMEs with Agency relationship (which is 10 from the 20 recorded) and 50 percent of the SMEs without Agency relationship (which is 15 from the 30 recorded).
In each of the category, numbers were assigned to the SMEs and the required number of sample was selected. The ones selected in each category were served questionnaires which were successfully retired for analysis.
3.4       Survey Instrument
As stated above, the questionnaire instrument was used.
Questionnaires were served to the ten (10) and fifteen (150) selected
SMEs in each category.
3.5 Method of Analysis
The descriptive statistical analysis method was used to analyse the data obtained from the first section or part of the questionnaire. This analysis was base on the averages and percentages of the responses derived from the instrument. The analysis was used to answer the four research questions raised as presented in the next chapter.
3.6 Testing of the Hypotheses
In the testing the hypotheses raised in this study, the parametric statistics using the student t-test will be used. The formula used is given as;
Tcal      =          M1       -           M2
                        (N1-1) (S1)2 + (N2 -1)(S2)2   1   +  1
                                    N1  +  N2  - 2              N1      N2
 Where           M1                   =          Mean of the first sample
                        M2                   =          Mean of the second sample
                        N1                    =          Sample size of the first sample
                        N2                    =          Sample size of the second sample
                        S12                   =          Variance of first sample
                        S22                   =          variance of second sample
                        tcal                          =          The calculated value of t
Significance level    =          table value of t obtained from 1 – table
Degree of freedom    =         N1 +  N2  - 2
Decision:       Reject Null Hypothesis (H0) if
                        Tcal > ta,D.F
Conclusion
The relevant conclusion is drawn whether the null (H0) hypotheses is to be rejected to accepted.          

CHAPTER FOUR
FINDINGS
4.0             Introduction
4.1       Implication of Agency Relationship on effective segregation of duties    
In this chapter, data generated from the respondents were presented and analyzed. The researchers have adopted a composite presentation of the question to make the presentation more concise and comprehensive. In order to qualify the responses more appropriately, the researcher employed such statistical tools as frequency tables: percentages, parametric and student t-test as mentioned in chapter three.
            The researcher used the last part of this chapter to test the hypotheses formulated in chapter one of this work.
            The student t-test was employed in this respect. The result of the test formed the bases of either rejecting or accepting the preconceived noted of the variable being tested (hypothesis).
  

Table 1:   Implication of Agency relationship on effective segregation of
      duties
RESPONDENTS
S/N
YES
%
No
%
5
6
60
4
40
6
8
80
2
20
7
8
80
2
20
8
9
90
1
10
9
9
90
1
10
Total
40
400
10
100
Average
8
80
2
20
Source: computed from questionnaire results, 2012. 
The above table reveals that an average of 8 representing 80 percent of the SMEs in the category being investigated are of the opinion that Agency relationship has increased the practice of segregation of duties which enhances the productivity of their organization or business. 2 or 20 percent of them opined that agency relationship has not improved the segregation of duties in their organization or business.




Table 2:  Agency relationship on physical security
RESPONDENTS
S/N
Yes
%
No
%
10
8
80  x  80
10
2
20
11
7
70
3
30
12
9
90
1
10
Total
24
240
6
60
Average
8
80
2
20






Source: computed from questionnaire results, 2012.
A close look at the table revealed that out of the ten (10) SMEs where Agency theory is practiced. An average of 8 representing 80 percent opined that Agency relationship has positively impacted on the physical security of their organization or Business. 2 or 20 percent were however of the opinion that agency relationship has impacted negatively on the physical security of their organization or business.






Table 3: Implication of Agency relationship on documentation and record keeping.
RESPONDENTS
S/N
Yes
Yes
No
%
13
9
90
1
10
14
9
90
1
10
15
6
60
4
40
16
8
80
2
20
Total
32
320
8
80
Average
8
80
2
20
Source: computed from questionnaire results, 2012.
The table reveals that an average of 8 or 80 percent of the SMEs in Abi LGA have adequate documentation and record keeping. It also shows that only 2 or 20 percent do not have adequate documentations or record keeping practice.
4.2       Testing of Hypotheses: In this section, Three (3) Null Hypotheses (H0) will be tested against three (3) alternatives Hypotheses (H1) to ascertain whether there is a significant effect of Agency relationship on the operations of small and medium Enterprises (SMEs) in Abi LGA of Cross River State.


Table 4: Implication of Agency Relationship on Management Override.
RESPONDENTS
S/N
YES
%
No
%
17
7
70
3
30
18
8
80
2
20
19
7
70
3
30
20
8
80
2
20
Total
30
300
10
100
Average
7.5(8)
75(80)
2.5(2)
25(20)
Source: computed from questionnaire results, 2012.
Here about 8 or 80 percent were of the opinion that Agency relationship has impacted positively on the management system even as management override has greatly reduced. The table also revealed that only 2 or 30 percent of the SMEs in Abi LGA opined that Agency relationship has no positive impact on management override.




TABLE 5: AVERAGE SALES OF SMES WITH AGENCY RELATIONSHIP AGAINST SALES OF THOSE WITHOUT AGENCY RELATIONSHIP
S/NO
SALES OF SMES WITH AGENCY RELATIONSHIP(X)
SALES OF SMES WITHOUT AGENCY RELATIONSHIP (Y)
1
551
355
2
473
340
3
502
376
4
551
389
5
535
358
6
562
411
7
528
333
8
521
322
9
562
414
10
543
379
Source: computed from questionnaire results, 2012.   

4.2.1 Ho1:      Testing the hypothesis that Agency relationship does not have any significant effect on the operations (sales) of SMEs in Abi Local Government Area of Cross River State at 0.05 significance Level.
X
Y
(x-x)
(x-x)2
(y-y)
(y-y)2
55.1
35.5
1.8
3.24
-1.6
2.56
47.3
34.0
-6.0
36.0
-3.1
9.61
50.2
37.6
-3.1
9.61
0.5
0.25
55.1
38.9
1.8
3.24
1.8
3.24
53.5
35.8
0.2
0.04
-1.3
1.69
56.2
41.1
2.9
8.41
4.0
16.0
52.8
33.3
-0.5
0.25
-3.8
14.44
52.1
32.2
-1.2
1.44
-4.9
24.01
56.2
41.4
2.9
8.41
4.3
18.49
54.3
37.9
1.0
1.0
0.8
0.64

39.9


1.8
3.24

36.5


-0.6
0.36

42.6


5.5
30.25

36.0


-1.1
1.21

34.8


-2.3
5.29
∑X=532.8
∑y=556.5

∑d2x=71.64

∑d2y=131.28
Nx = 10
Ny =15




X=53.3
y =37.1





S2x      =∑(dx)2              =          71.63              =          7.164
                 N                              10     


Decision: the t-calculated is -15.76 at degrees of freedom 23 and at 0.05 level of significance, from t-critical obtained from the t-distribution table in appendix.. is 1.71.

Conclusion:  The calculated t-value is found to be -15.76 as the effect of Agency relationship on the sales of SMEs in Abi Local Government Area of Cross River State. Thus, the t- calculated value is not significant since it is less than the critical t-value of 1.71 given the 23 degrees of freedom and at 0.05 level of significance.
            This implies that the null hypothesis will be accepted which means that Agency relationship does not affect the operations (sales) of SMEs in Abi LGA of Cross River State.

4.2       HO2:   Testing the hypothesis that Agency relationship does not have any significant effect on the expenditure volume of SMEs in Abi LGA, of Cross River State at 0.05 significance level.
TABLE 6:     AVERAGE TOTAL EXPENDITURE OF SMEs WITH AGENCY RELATIONSHIP AGAINST TOTAL EXPENDITURE of those without AGENCY RELATIONSHIP
S/NO
TOTAL EXPENDITURE OF SMES WITH AGENCY RELATIONSHIP(X)
TOTAL EXPENDITURE OF SMES WITHOUT AGENCY RELATIONSHIP(Y)
1
388
164
2
335
165
3
366
155
4
388
146
5
398
136
6
400
158
7
339
140
8
340
139
9
400
159
10
344
134
Source: computed from questionnaire results, 2012.

X
Y
(x-x)
(x-x)2
(y-y)
(y-y)2
38.8
16.4
1.8
3.24
-1.9
3.61
33.5
16.5
-3.5
12.25
-1.8
3.24
36.6
15.5
-0.4
0.16
-2.8
7.84
38.8
14.6
1.8
3.24
-3.7
13.69
39.8
13.6
2.8
7.84
-4.7
22.09
40.0
15.8
3.0
9.0
-2.5
6.25
33.9
14.0
-3.1
9.61
-4.3
18.49
40.0
13.9
-3.0
9.0
-4.4
19.36
34.4
15.9
3.0
9.0
-2.4
5.76

13.4
-2.6
6.76
-4.9
24.01

24.3


6.0
36.0

24.5


6.2
38.44

30.3


12.0
144.0

24.0


5.7
32.49

21.8


3.5
12.25
∑X=369.8
∑y=274.5

∑d2x=70.1

∑d2y=387.52
Nx = 10
Ny =15




X=37
y =18.3











S2x =   ∑(dx)2 =          70.1                =          7.01
                 N                              10     
S2y =  ∑(dy)2  =          387.52            =          25.83
              N                                  15    

37.18.3                                     =                    -18.7
                         (9)(7.01) + (14)(25.83) .     1    1     (63.09 +361.62) (0.1+0.0667)  
                                   23                                    10  15              23

Decision:  The t-calculated is 10.66 at degrees of freedom 23 and at 0.05 level of significance, from t-critical obtained from the t- distribution table in appendix … is 1.71.
Conclusion: The calculated t-value is found to be 10.66 as the effect of Agency relationship on the expenditure volume of SMEs in ABI LGA of Cross River State. Thus, the t-calculated value is significant since it is greater  than the critical t-value of 1.71 given the 23 degree of freedom and at 0.05 level of significance.
            This implies that the null hypothesis is rejected in favour of the alternative hypothesis. This shows that Agency relationship significantly affect the volume of expenditure of SMEs in Abi LGA of Cross River State.
TABLE 7:     AVERAGE NET INCOME OF SMEs OF SMEs WITH AGENCY RELATIONSHIP AGAINST NET INCOME OF THOSE WITHOUT AGENCY RELATIONSHIP
S/No
TOTAL NET INCOME OF SMEs WITH AGENCY RELATIONSHIP(X)
TOTAL NET INCOME  OF SMEs WITHOUT AGENCY RELATIONSHIP(Y)
1            
163
164
2
138
165
3
137
155
4
162
146
5
136
136
6
162
158
7
190
140
8
181
139
9
162
159
10
199
134
Source: computed from questionnaire results, 2012.

4.2.3 Ho3:      Testing the hypothesis that Agency relationship does not have any significant effect on the net income of SMEs in Abi LGA of river at 0.05 level of significance.
X
Y
(x-x)
(x-x)2
(y-y)
(y-y)2
16.3
16.4
0
0
2.4
5.76
13.8
16.5
-2.5
6.25
2.5
6.25
13.7
15.5
-2.6
6.76
1.5
2.25
16.2
14.6
-0.1
0.01
0.6
0.36
13.6
13.6
-2.7
72.9
-0.4
0.16
16.2
15.8
-0.1
0.01
1.8
3.24
19.0
14.0
2.7
7.29
0
0
18.1
13.9
1.8
3.24
-0.1
0.01
16.2
15.9
-.01
0.01
1.9
3.61
19.9
13.4
3.6
12.96
-0.6
0.36

11.6


-2.4
5.76

12.0


-2.0
4.0

12.3


-1.7
2.89

12.0


-2.0
4.0

13.0


-1.0
1.0
∑X=163
∑y=210.5

∑d2x=109.43

∑d2y=39.65
Nx = 10
Ny =15




X=16.3
y =14











S2x      =∑(dx)2              =          109.43            =         10.943
                 N                              10     

S2y =  ∑(dy)2              =          39.65              =          2.642
               N                                            15     

=              2.3                          
            0.990959       =          2.321

Decision: The t-calculated is 2.321 at degrees of freedom 23 and at 0.05 level of significance, from t-critical obtained from the t-distribution table in appendix… is 1.71.

Conclusion: The calculated t-value is found to be 2.2321 as the effect of Agency relationship on the Net income of SMEs in Abi LGA of Cross River State. Thus, the t-calculated value is significant since it is greater than the critical t-value of 1.71 given the 23 degrees of freedom and at 0.05 level of significance.
            This implies that the null hypothesis is rejected which means that Agency relationship significantly affect the net income of SMEs in Abi LGA of Cross River State.
CHAPTER FIVE
DISCUSSION
5.1       INTRODUCTION
            This chapter discusses the major findings of the study.  
5.2       DISCUSSION OF FINDINGS                                         
·                    Inadequate small and medium scale enterprises exist in Abi Local Government Area of Cross River State. The situation in Abi is a reflection of what obtains in the entire state. The study revealed that most SMEs in Abi were merely sole properties for business that needs funding to survive in order to contribute to the state Economic growth.
·                    Agency relationship do not exist in most SMES in Abi Local Government Area and by extension Cross River State. The study indicated that Agency relationship exist in bigger SMEs and Public Limited Companies.
·                    Agency relationship does not affect the sales volume of SMEs in Abi Local Government Area as sales increase depend on many other factors which agency relationship does not influence.
·                    Agency relationship has significant effect on the expenditure volume of SMEs as show in the test of hypothesis result.
·                    Agency relationship has significant effect on the net income of SMEs in Abi Local Government Area.
·                    Agency relationship reduces the incidence of management override in SMEs in Abi Local Government Area.
·                    Agency relationship promotes segregation of duties in SMES as shown in the Abi Local Government case study.
·                    Agency relationship enhances documentation and record keeping among SMEs in Abi Local Government Area.
·                    Agency relationship increases the physical security of SMEs in Abi Local Government Area.

CHAPTER SIX
SUMMARY, CONCLUSION AND RECOMMENDATION
6.1       SUMMARY
In the course of the introductory analysis (chapter one), it was observed that an agent, is someone who brings another person called the principal into contractual relationship with third parties. An agent is a person who is given the authority by the principal to enter into a contract on his behalf.
            Therefore, agency theory provides the framework for discussing the relationship that exists between the various interest groups in an organization. It views the firm as a composite unite consisting of separate group advocates it own interest and ensures it stands at an advantageous position in relation to the firm. The theory brings out a clear exposition of the actions of some managers who are not in shareholders and maximization objective is therefore pursued.
Unfortunately the agent who suppose to uphold the principle of fiduciary duty, a duty which includes the avoidance of conflict of interest and not to take secret profit, secret reward or secret commission or a bride, now revel in self interest pursuer putting in place management that services most a time the self interest that seem to be their paramount objectives as against the over all objectives of the firm. Thereby having goal divergent as against goal congruence.
            A principal is the person who employs another person called, agent to act on his behalf.
Management in all business and organization activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. The managerial function of controlling is the measurement and correction of the performance of activities of subordinate in order to make sure that all levels of objectives and the plan devised to action them  are being accomplished.
            As a result of these observation and experiences the author of this project has undertaken this research to find out how, agency relationships can impact positively on the management control system so as to ensure shareholders wealth maximization. Thus, these studies very carefully pained out the similarities and more importantly the differences between previous researches and the current study.
            The instrument employed for the data collection were questionnaires. The respondents included SMEs with and those without agency relationship. Based on the analysis made at end of each table chapter 4, the researcher summarizes that majority of small and medium scale business are without agency relationship in Abi L. G. A of Cross River State. The result of collaborate assertion that there is a significant effect of agency relationship on the operations of small and medium scale business in Abi L. G. A of Cross River State. Again, it was established that agency relationship has impacted positively on management system even as management override has greatly reduced. The result of table 4-4 attested to this.                         

6.2       CONCLUSION
The study of the implication of agency relationship on the operations of SMEs have been quite revealing. It clearly points out that Agency relationship is critical in maximizing business gains in particular and cooperate administration in general. Although the study is limited to small and medium scale enterprises, it can produce an amazing result if conducted on cooperate organizations both in the cooperate business world and in government.

6.3       RECOMMENDATIONS
The following recommendations are found necessary for government, Business Organizations and researchers.
(i)        Government should evolve deliberate policies to develop small and medium scale enterprises as they constitute the bedrock of micro economic development in the state.
(ii)       Government should promote accent to credit for SMEs through continuous funding of the bank of industries (BOI).
(iii)     A tax regime that favours SMES should be put in place as a matter of urgency to arrest the imminent collapse of SMEs in the State.
(vi)      Agency theory approach to business management should be embraced by all corporate business especially those registered in the corporate Affairs Commission.

6.4       RECOMMENDED AREAS FOR FURTHER RESEARCH
This research was limited to small and Medium Scale Enterprises. I therefore recommend that interested researchers wishing to investigate the implication of Agency theory should consider Public Limited Companies (PLC) for an expanded knowledge.


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APPENDIX ONE
LISTING FRAME OF SMEs IN ABI LGA
1.         Goddy Group of Enterprise Akpoha, Ekuneilu
2.         Morgan Nig, Ekuneku Market Square
3.         Philip’s Multipurpose ventures, Ekuneku market Square
4.         Ify Ify MG, , Ekuneku-BE
5.         Bongo’s Rice Mills, Ekuneku Market Square
6.         Eka Elvis restaurant, Ekuneku Market Square
7.         Yenoir multipurpose Nig. Egboronyi
8.         Ben’s medicine stores, Ahbara
9.         Madam Lawrence ventures, Ngarabe
10.       Eja and Son’s, Anong, Ekureku
11.       Esebonu De Great, Itigidi
12.       Madam Grace computer centre, Itigi
13.       Eko and son’s Farm, Egboronu,
14.       KHA Ebong Inn, Adadama
15.       Sis scholastically pharmaceutical, Ekureku
16.       De young shall grow, Adadma
17.       Innocent Egbe Pharmacy, Adadama
18.       Iwasam business centre, Imabana
19.       Chop alone Nig. Imabana
20.       Enya King Nigeria                -           Imabana
21.       Eka Awara Eating place      -           Imabana
22.       Maryland Guest House       -           EDIBA
23.       Ekabua Ventures                  -           Ediba
24.       Osim General merchandise, usumutong
25.       J.J. Egwu Bookshop, Ebom
26.       King Joe electrical company, Usumutong
27.       All weather restaurant and Bar, Egboronyi
28.       Prince Michael unlimited, Egboronyi
29.       Fidel Wood work, Egboronyi
30.       Never mind business centre, Agbara
31.       Vincent transport, Ngarabe
32.       Esege and sons, Itigidi
33.       Madam blessing stores, Itigidi
34.       Ziyemogo Industrialist, Ekureku-Be
35.       Abonir the King Ent., Anong
36.       Queen’s Mother Restaurant, Igbo Imabana
37.       Chief Igiri’s business centre, Ebom
38.       Chinyere Beautiful Gate, Itigidi
39.       Etowa The best, Adadama
40.       Christy Edu. Beauty Saloon, Adadama
41.       Enerst the place to be, Igonigoni
42.       Ovie’s centre, Afafanyi
43.       Ogozi Bassey’s Stores, usumutong
44.       Egbe Osam Electrocals, Bazoine
45.       Helen’s Boutique, Lipalewa
46.       St. Michaels Tailoring service, Itigeve
47.       The young Buildders, Emminekpo
48.       De Strong Iron Benders, Anong
49.       All is well Medical centre,  Mbaleke
50.       No supporter Transport, Egboronyi

APPENDIX TWO
From the responses received from the questionnaire, it was observed that the SMES have Agency relationship in operation.
S/N
NAME OF SMEs
RESPONSE ABOUT THE OPERATION OF AGENCY RELATIONSHIP (Y/N)
1
Goddy Group Of Ent
No
2
MORGAN Nig.
No
3
Philip’s multipurpose
No
4
Ify Nig Ent.
No
5
Bongo’s Rice mill
Yes
6
Eka Elvis Restaurant
No
7
Yenoir multipurpose
Yes
8
Ben’s medicine stores
No
9
Madam Lawrence ventures
No
10
Eja and son’s
Yes
11
Eseboru De great
Yes
12
Madam grace computer
No
13
Eko and son’s farm
Yes
14
Icha Ebong inn
No
15
Sis. Scholastically pharmacy
No
16
De young shall grow
No
17
Innocent Egbe pharmacy
No
18
Iwasam Business centre
No
19
Chop alone Nig.
Yes
20
Enya King Nigeria
Yes
21
Eka awara eating place
No
22
Maryland enest home
Yes
23
Ekabua ventures
Yes
24
Osim General merchandize
Yes
25
J.J. Egwu bookshop
No
26
King Joe Electrical company
No
27
All wather restaurant
No
28
Princ Michael unlimited
Yes
29
Fidel wood work
No
30
Never amind business centre
No
31
Vincent transport
Yes
32
Esege and son
Yes
33
Madam blessing store
No
34
Ziyemogo industrialist
Yes
35
Abonor the King Ent
Yes
36
Queen’s mother restaurant
No
37
Chief Igiri’s Business centre
Yes
38
Chinyere Beautiful Gate
No
39
Etowa the Best

40
Christy Edu Beauty Saloon

41
Ernest the place of Be

42
Ovie’s Centre

43
Ogozi Bassey’s stores

44
Egbe Osam Electrical

45
Helen’s Boutique

46
St Michaes tailoring service

47
The Young Builders

48
De strong Iron benders

49
All is well medical centre

50
No supporter transport



APPENDIX THREE
S/NO
NAME OF SMEs
1
Bongo’s Rice mill
2
Yenior multipurpose
3
Eja and son’
4
Esebonu de great
5
Eko and son’s farm
6
Chop alone Nigeria
7
Enya king Nigeria
8
Mary Land Guest house
9
Ekabna ventures
10
Osim General merchandize
11
Prince Michael unlimited
12
Vincent transport
13
Esege and son
14
Iyemogo industrialist
15
Abonor the king Ent.
16
Chief Igiri’s business centre
17
Etowa the best
18
Ovie’s centre
19
Egbe Osam Electrical
20
No supporter transport



APPENDIX FOUR
LISTING OF SMES WITHOUT AGENCY RELATIONSHIP
S/NO
NAME OF SMEs
1
Goody Groups Of Enterprises
2
Morgan Nigeria
3
Philip’s multipurpose
4
Ify Nigeria enterprises
5
Eka Elvis restaurant
6
 Ben’s medicine stores
7
Madam Lawrence ventures
8
Madam Grace computer centre
9
Icha Ebong Inn
10
Sis. Scholastically pharmaceutical
11
De young shall grow
12
Innocent Egbe pharmacy
13
Iwasam business centre
14
Eka Awara eating place
15
J.J. Egwu Bookshop
16
King Joe electrical company
17
All weather restaurant
18
Fidel wood work
19
Never mind business centre
20
Madam Blessing store
21
Queen’s mother restaurant
22
Chinyere Beautiful gate
23
Christy Edu Beauty Saloon
24
Enerst the place to be
25
Ogozi Bassey’s stores
26
Helen’s boutique
27
St. Michael Tailoring service
28
The Young builders
29
De strong iron Benders
30
All is well medical centre



SECTION B:            TRANSACTION RECORD FOR THE PAST SIX 9(6)
YEARS 2005-2010
Year
1
Total sales
N2
Total expenditure
N3
Net income(N)
4 = 2 - 3
2005



2006



2007



2008



2009



2010



Appendix six
TRANSACTION RECORD OF SELECTED SMEs WITHOUT AGENCY
RELATIONSHIP (Y1  - Y10)
Total sales (N1000)
Total exp (N1000)
Net income (N1000)
S/N
1
2
3
4
5
6
1
2
3
4
5
6
1
2
3
4
5
6
Y1
200
312
330
385
415
490
80
150
170
200
250
300
120
162
160
165
165
190
Y2
265
296
300
389
390
400
125
150
150
200
210
215
140
146
150
189
180
185
Y3
203
302
345
412
489
505
103
152
200
224
300
350
100
150
145
188
189
155
Y4
265
250
318
454
500
545
125
130
209
300
315
380
140
120
109
154
185
165
Y5
215
300
311
380
455
488
105
165
180
210
285
390
110
135
131
170
170
98
Y6
213
395
320
400
515
625
108
275
200
205
305
425
105
120
120
195
210
200
Y7
215
230
308
350
412
480
130
158
178
180
212
300
85
72
130
170
200
180
Y8
125
300
348
345
400
415
60
158
200
205
220
255
65
142
148
140
180
160
Y9
300
310
350
497
425
600
150
155
200
308
300
415
150
155
150
189
125
185
Y10
326
316
330
405
415
480
206
248
270
265
215
265
120
70
60
140
200
215
Y11
290
302
319
400
412
430
200
150
200
290
300
318
90
152
119
110
112
112
Y12
301
314
331
385
427
430
198
202
212
240
300
318
103
112
119
145
127
112
Y13
420
381
415
429
450
462
300
281
300
318
300
320
120
100
115
111
150
142
Y14
260
318
343
413
400
426
110
200
219
300
295
315
150
118
124
113
105
111
Y15
218
300
324
400
428
418
110
152
165
274
300
309
108
148
159
126
128
109


CHAPTER THREE
METHODOLOGY
This chapter provides an explanation on the manner and procedure of data gathering, data analysis which form the basis of the next chapter.

3.1 Research Design
The research design used in this research work is the survey design. This design is considered most appropriate as the study involves examining the population which in this case is the small and medium scale enterprises (SMEs) in Abi and collecting representative data from samples and analyzing them for results which answers the research questions.
3.2       Population Of Study
As mentioned above, the population of study is the small and medium scale enterprises in Abi Local Government Area of Cross River State. It therefore means that the study area is Abi Local Government Area.
3.3       Sampling Design
In order to decide on the sampling techniques to adopt, a listing exercise of all SMEs in the local government Area was conducted. The list was further categorized into two namely SMEs with and those without Agency relationship. A random sampling using the ballot system was taken from each category of SMEs after a sample size of 50 percent was decided on for each category. That is 50 percent of the SMEs with Agency relationship (which is 10 from the 20 recorded) and 50 percent of the SMEs without Agency relationship (which is 15 from the 30 recorded).
In each of the category, numbers were assigned to the SMEs and the required number of sample was selected. The ones selected in each category were served questionnaires which were successfully retired for analysis.
3.4       Survey Instrument
As stated above, the questionnaire instrument was used.
Questionnaires were served to the ten (10) and fifteen (150) selected
SMEs in each category.
3.5 Method of Analysis
The descriptive statistical analysis method was used to analyse the data obtained from the first section or part of the questionnaire. This analysis was base on the averages and percentages of the responses derived from the instrument. The analysis was used to answer the four research questions raised as presented in the next chapter.
3.6 Testing of the Hypotheses
In the testing the hypotheses raised in this study, the parametric statistics using the student t-test will be used. The formula used is given as;
Tcal      =          M1       -           M2
                        (N1-1) (S1)2 + (N2 -1)(S2)2   1   +  1
                                    N1  +  N2  - 2              N1      N2
 Where           M1                   =          Mean of the first sample
                        M2                   =          Mean of the second sample
                        N1                    =          Sample size of the first sample
                        N2                    =          Sample size of the second sample
                        S12                   =          Variance of first sample
                        S22                   =          variance of second sample
                        tcal                          =          The calculated value of t
Significance level    =          table value of t obtained from 1 – table
Degree of freedom    =         N1 +  N2  - 2
Decision:       Reject Null Hypothesis (H0) if
                        Tcal > ta,D.F
Conclusion
The relevant conclusion is drawn whether the null (H0) hypotheses is to be rejected to accepted.          

CHAPTER FOUR
FINDINGS
4.0             Introduction
4.1       Implication of Agency Relationship on effective segregation of duties    
In this chapter, data generated from the respondents were presented and analyzed. The researchers have adopted a composite presentation of the question to make the presentation more concise and comprehensive. In order to qualify the responses more appropriately, the researcher employed such statistical tools as frequency tables: percentages, parametric and student t-test as mentioned in chapter three.
            The researcher used the last part of this chapter to test the hypotheses formulated in chapter one of this work.
            The student t-test was employed in this respect. The result of the test formed the bases of either rejecting or accepting the preconceived noted of the variable being tested (hypothesis).
  

Table 1:   Implication of Agency relationship on effective segregation of
      duties
RESPONDENTS
S/N
YES
%
No
%
5
6
60
4
40
6
8
80
2
20
7
8
80
2
20
8
9
90
1
10
9
9
90
1
10
Total
40
400
10
100
Average
8
80
2
20
Source: computed from questionnaire results, 2012. 
The above table reveals that an average of 8 representing 80 percent of the SMEs in the category being investigated are of the opinion that Agency relationship has increased the practice of segregation of duties which enhances the productivity of their organization or business. 2 or 20 percent of them opined that agency relationship has not improved the segregation of duties in their organization or business.




Table 2:  Agency relationship on physical security
RESPONDENTS
S/N
Yes
%
No
%
10
8
80  x  80
10
2
20
11
7
70
3
30
12
9
90
1
10
Total
24
240
6
60
Average
8
80
2
20






Source: computed from questionnaire results, 2012.
A close look at the table revealed that out of the ten (10) SMEs where Agency theory is practiced. An average of 8 representing 80 percent opined that Agency relationship has positively impacted on the physical security of their organization or Business. 2 or 20 percent were however of the opinion that agency relationship has impacted negatively on the physical security of their organization or business.






Table 3: Implication of Agency relationship on documentation and record keeping.
RESPONDENTS
S/N
Yes
Yes
No
%
13
9
90
1
10
14
9
90
1
10
15
6
60
4
40
16
8
80
2
20
Total
32
320
8
80
Average
8
80
2
20
Source: computed from questionnaire results, 2012.
The table reveals that an average of 8 or 80 percent of the SMEs in Abi LGA have adequate documentation and record keeping. It also shows that only 2 or 20 percent do not have adequate documentations or record keeping practice.
4.2       Testing of Hypotheses: In this section, Three (3) Null Hypotheses (H0) will be tested against three (3) alternatives Hypotheses (H1) to ascertain whether there is a significant effect of Agency relationship on the operations of small and medium Enterprises (SMEs) in Abi LGA of Cross River State.


Table 4: Implication of Agency Relationship on Management Override.
RESPONDENTS
S/N
YES
%
No
%
17
7
70
3
30
18
8
80
2
20
19
7
70
3
30
20
8
80
2
20
Total
30
300
10
100
Average
7.5(8)
75(80)
2.5(2)
25(20)
Source: computed from questionnaire results, 2012.
Here about 8 or 80 percent were of the opinion that Agency relationship has impacted positively on the management system even as management override has greatly reduced. The table also revealed that only 2 or 30 percent of the SMEs in Abi LGA opined that Agency relationship has no positive impact on management override.




TABLE 5: AVERAGE SALES OF SMES WITH AGENCY RELATIONSHIP AGAINST SALES OF THOSE WITHOUT AGENCY RELATIONSHIP
S/NO
SALES OF SMES WITH AGENCY RELATIONSHIP(X)
SALES OF SMES WITHOUT AGENCY RELATIONSHIP (Y)
1
551
355
2
473
340
3
502
376
4
551
389
5
535
358
6
562
411
7
528
333
8
521
322
9
562
414
10
543
379
Source: computed from questionnaire results, 2012.   

4.2.1 Ho1:      Testing the hypothesis that Agency relationship does not have any significant effect on the operations (sales) of SMEs in Abi Local Government Area of Cross River State at 0.05 significance Level.
X
Y
(x-x)
(x-x)2
(y-y)
(y-y)2
55.1
35.5
1.8
3.24
-1.6
2.56
47.3
34.0
-6.0
36.0
-3.1
9.61
50.2
37.6
-3.1
9.61
0.5
0.25
55.1
38.9
1.8
3.24
1.8
3.24
53.5
35.8
0.2
0.04
-1.3
1.69
56.2
41.1
2.9
8.41
4.0
16.0
52.8
33.3
-0.5
0.25
-3.8
14.44
52.1
32.2
-1.2
1.44
-4.9
24.01
56.2
41.4
2.9
8.41
4.3
18.49
54.3
37.9
1.0
1.0
0.8
0.64

39.9


1.8
3.24

36.5


-0.6
0.36

42.6


5.5
30.25

36.0


-1.1
1.21

34.8


-2.3
5.29
∑X=532.8
∑y=556.5

∑d2x=71.64

∑d2y=131.28
Nx = 10
Ny =15




X=53.3
y =37.1





S2x      =∑(dx)2              =          71.63              =          7.164
                 N                              10     


Decision: the t-calculated is -15.76 at degrees of freedom 23 and at 0.05 level of significance, from t-critical obtained from the t-distribution table in appendix.. is 1.71.

Conclusion:  The calculated t-value is found to be -15.76 as the effect of Agency relationship on the sales of SMEs in Abi Local Government Area of Cross River State. Thus, the t- calculated value is not significant since it is less than the critical t-value of 1.71 given the 23 degrees of freedom and at 0.05 level of significance.
            This implies that the null hypothesis will be accepted which means that Agency relationship does not affect the operations (sales) of SMEs in Abi LGA of Cross River State.

4.2       HO2:   Testing the hypothesis that Agency relationship does not have any significant effect on the expenditure volume of SMEs in Abi LGA, of Cross River State at 0.05 significance level.
TABLE 6:     AVERAGE TOTAL EXPENDITURE OF SMEs WITH AGENCY RELATIONSHIP AGAINST TOTAL EXPENDITURE of those without AGENCY RELATIONSHIP
S/NO
TOTAL EXPENDITURE OF SMES WITH AGENCY RELATIONSHIP(X)
TOTAL EXPENDITURE OF SMES WITHOUT AGENCY RELATIONSHIP(Y)
1
388
164
2
335
165
3
366
155
4
388
146
5
398
136
6
400
158
7
339
140
8
340
139
9
400
159
10
344
134
Source: computed from questionnaire results, 2012.

X
Y
(x-x)
(x-x)2
(y-y)
(y-y)2
38.8
16.4
1.8
3.24
-1.9
3.61
33.5
16.5
-3.5
12.25
-1.8
3.24
36.6
15.5
-0.4
0.16
-2.8
7.84
38.8
14.6
1.8
3.24
-3.7
13.69
39.8
13.6
2.8
7.84
-4.7
22.09
40.0
15.8
3.0
9.0
-2.5
6.25
33.9
14.0
-3.1
9.61
-4.3
18.49
40.0
13.9
-3.0
9.0
-4.4
19.36
34.4
15.9
3.0
9.0
-2.4
5.76

13.4
-2.6
6.76
-4.9
24.01

24.3


6.0
36.0

24.5


6.2
38.44

30.3


12.0
144.0

24.0


5.7
32.49

21.8


3.5
12.25
∑X=369.8
∑y=274.5

∑d2x=70.1

∑d2y=387.52
Nx = 10
Ny =15




X=37
y =18.3











S2x =   ∑(dx)2 =          70.1                =          7.01
                 N                              10     
S2y =  ∑(dy)2  =          387.52            =          25.83
              N                                  15    

37.18.3                                     =                    -18.7
                         (9)(7.01) + (14)(25.83) .     1    1     (63.09 +361.62) (0.1+0.0667)  
                                   23                                    10  15              23

Decision:  The t-calculated is 10.66 at degrees of freedom 23 and at 0.05 level of significance, from t-critical obtained from the t- distribution table in appendix … is 1.71.
Conclusion: The calculated t-value is found to be 10.66 as the effect of Agency relationship on the expenditure volume of SMEs in ABI LGA of Cross River State. Thus, the t-calculated value is significant since it is greater  than the critical t-value of 1.71 given the 23 degree of freedom and at 0.05 level of significance.
            This implies that the null hypothesis is rejected in favour of the alternative hypothesis. This shows that Agency relationship significantly affect the volume of expenditure of SMEs in Abi LGA of Cross River State.
TABLE 7:     AVERAGE NET INCOME OF SMEs OF SMEs WITH AGENCY RELATIONSHIP AGAINST NET INCOME OF THOSE WITHOUT AGENCY RELATIONSHIP
S/No
TOTAL NET INCOME OF SMEs WITH AGENCY RELATIONSHIP(X)
TOTAL NET INCOME  OF SMEs WITHOUT AGENCY RELATIONSHIP(Y)
1            
163
164
2
138
165
3
137
155
4
162
146
5
136
136
6
162
158
7
190
140
8
181
139
9
162
159
10
199
134
Source: computed from questionnaire results, 2012.

4.2.3 Ho3:      Testing the hypothesis that Agency relationship does not have any significant effect on the net income of SMEs in Abi LGA of river at 0.05 level of significance.
X
Y
(x-x)
(x-x)2
(y-y)
(y-y)2
16.3
16.4
0
0
2.4
5.76
13.8
16.5
-2.5
6.25
2.5
6.25
13.7
15.5
-2.6
6.76
1.5
2.25
16.2
14.6
-0.1
0.01
0.6
0.36
13.6
13.6
-2.7
72.9
-0.4
0.16
16.2
15.8
-0.1
0.01
1.8
3.24
19.0
14.0
2.7
7.29
0
0
18.1
13.9
1.8
3.24
-0.1
0.01
16.2
15.9
-.01
0.01
1.9
3.61
19.9
13.4
3.6
12.96
-0.6
0.36

11.6


-2.4
5.76

12.0


-2.0
4.0

12.3


-1.7
2.89

12.0


-2.0
4.0

13.0


-1.0
1.0
∑X=163
∑y=210.5

∑d2x=109.43

∑d2y=39.65
Nx = 10
Ny =15




X=16.3
y =14











S2x      =∑(dx)2              =          109.43            =         10.943
                 N                              10     

S2y =  ∑(dy)2              =          39.65              =          2.642
               N                                            15     

=              2.3                          
            0.990959       =          2.321

Decision: The t-calculated is 2.321 at degrees of freedom 23 and at 0.05 level of significance, from t-critical obtained from the t-distribution table in appendix… is 1.71.

Conclusion: The calculated t-value is found to be 2.2321 as the effect of Agency relationship on the Net income of SMEs in Abi LGA of Cross River State. Thus, the t-calculated value is significant since it is greater than the critical t-value of 1.71 given the 23 degrees of freedom and at 0.05 level of significance.
            This implies that the null hypothesis is rejected which means that Agency relationship significantly affect the net income of SMEs in Abi LGA of Cross River State.
CHAPTER FIVE
DISCUSSION
5.1       INTRODUCTION
            This chapter discusses the major findings of the study.  
5.2       DISCUSSION OF FINDINGS                                         
·                    Inadequate small and medium scale enterprises exist in Abi Local Government Area of Cross River State. The situation in Abi is a reflection of what obtains in the entire state. The study revealed that most SMEs in Abi were merely sole properties for business that needs funding to survive in order to contribute to the state Economic growth.
·                    Agency relationship do not exist in most SMES in Abi Local Government Area and by extension Cross River State. The study indicated that Agency relationship exist in bigger SMEs and Public Limited Companies.
·                    Agency relationship does not affect the sales volume of SMEs in Abi Local Government Area as sales increase depend on many other factors which agency relationship does not influence.
·                    Agency relationship has significant effect on the expenditure volume of SMEs as show in the test of hypothesis result.
·                    Agency relationship has significant effect on the net income of SMEs in Abi Local Government Area.
·                    Agency relationship reduces the incidence of management override in SMEs in Abi Local Government Area.
·                    Agency relationship promotes segregation of duties in SMES as shown in the Abi Local Government case study.
·                    Agency relationship enhances documentation and record keeping among SMEs in Abi Local Government Area.
·                    Agency relationship increases the physical security of SMEs in Abi Local Government Area.

CHAPTER SIX
SUMMARY, CONCLUSION AND RECOMMENDATION
6.1       SUMMARY
In the course of the introductory analysis (chapter one), it was observed that an agent, is someone who brings another person called the principal into contractual relationship with third parties. An agent is a person who is given the authority by the principal to enter into a contract on his behalf.
            Therefore, agency theory provides the framework for discussing the relationship that exists between the various interest groups in an organization. It views the firm as a composite unite consisting of separate group advocates it own interest and ensures it stands at an advantageous position in relation to the firm. The theory brings out a clear exposition of the actions of some managers who are not in shareholders and maximization objective is therefore pursued.
Unfortunately the agent who suppose to uphold the principle of fiduciary duty, a duty which includes the avoidance of conflict of interest and not to take secret profit, secret reward or secret commission or a bride, now revel in self interest pursuer putting in place management that services most a time the self interest that seem to be their paramount objectives as against the over all objectives of the firm. Thereby having goal divergent as against goal congruence.
            A principal is the person who employs another person called, agent to act on his behalf.
Management in all business and organization activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. The managerial function of controlling is the measurement and correction of the performance of activities of subordinate in order to make sure that all levels of objectives and the plan devised to action them  are being accomplished.
            As a result of these observation and experiences the author of this project has undertaken this research to find out how, agency relationships can impact positively on the management control system so as to ensure shareholders wealth maximization. Thus, these studies very carefully pained out the similarities and more importantly the differences between previous researches and the current study.
            The instrument employed for the data collection were questionnaires. The respondents included SMEs with and those without agency relationship. Based on the analysis made at end of each table chapter 4, the researcher summarizes that majority of small and medium scale business are without agency relationship in Abi L. G. A of Cross River State. The result of collaborate assertion that there is a significant effect of agency relationship on the operations of small and medium scale business in Abi L. G. A of Cross River State. Again, it was established that agency relationship has impacted positively on management system even as management override has greatly reduced. The result of table 4-4 attested to this.                         

6.2       CONCLUSION
The study of the implication of agency relationship on the operations of SMEs have been quite revealing. It clearly points out that Agency relationship is critical in maximizing business gains in particular and cooperate administration in general. Although the study is limited to small and medium scale enterprises, it can produce an amazing result if conducted on cooperate organizations both in the cooperate business world and in government.

6.3       RECOMMENDATIONS
The following recommendations are found necessary for government, Business Organizations and researchers.
(i)        Government should evolve deliberate policies to develop small and medium scale enterprises as they constitute the bedrock of micro economic development in the state.
(ii)       Government should promote accent to credit for SMEs through continuous funding of the bank of industries (BOI).
(iii)     A tax regime that favours SMES should be put in place as a matter of urgency to arrest the imminent collapse of SMEs in the State.
(vi)      Agency theory approach to business management should be embraced by all corporate business especially those registered in the corporate Affairs Commission.

6.4       RECOMMENDED AREAS FOR FURTHER RESEARCH
This research was limited to small and Medium Scale Enterprises. I therefore recommend that interested researchers wishing to investigate the implication of Agency theory should consider Public Limited Companies (PLC) for an expanded knowledge.


REFERENCES
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APPENDIX ONE
LISTING FRAME OF SMEs IN ABI LGA
1.         Goddy Group of Enterprise Akpoha, Ekuneilu
2.         Morgan Nig, Ekuneku Market Square
3.         Philip’s Multipurpose ventures, Ekuneku market Square
4.         Ify Ify MG, , Ekuneku-BE
5.         Bongo’s Rice Mills, Ekuneku Market Square
6.         Eka Elvis restaurant, Ekuneku Market Square
7.         Yenoir multipurpose Nig. Egboronyi
8.         Ben’s medicine stores, Ahbara
9.         Madam Lawrence ventures, Ngarabe
10.       Eja and Son’s, Anong, Ekureku
11.       Esebonu De Great, Itigidi
12.       Madam Grace computer centre, Itigi
13.       Eko and son’s Farm, Egboronu,
14.       KHA Ebong Inn, Adadama
15.       Sis scholastically pharmaceutical, Ekureku
16.       De young shall grow, Adadma
17.       Innocent Egbe Pharmacy, Adadama
18.       Iwasam business centre, Imabana
19.       Chop alone Nig. Imabana
20.       Enya King Nigeria                -           Imabana
21.       Eka Awara Eating place      -           Imabana
22.       Maryland Guest House       -           EDIBA
23.       Ekabua Ventures                  -           Ediba
24.       Osim General merchandise, usumutong
25.       J.J. Egwu Bookshop, Ebom
26.       King Joe electrical company, Usumutong
27.       All weather restaurant and Bar, Egboronyi
28.       Prince Michael unlimited, Egboronyi
29.       Fidel Wood work, Egboronyi
30.       Never mind business centre, Agbara
31.       Vincent transport, Ngarabe
32.       Esege and sons, Itigidi
33.       Madam blessing stores, Itigidi
34.       Ziyemogo Industrialist, Ekureku-Be
35.       Abonir the King Ent., Anong
36.       Queen’s Mother Restaurant, Igbo Imabana
37.       Chief Igiri’s business centre, Ebom
38.       Chinyere Beautiful Gate, Itigidi
39.       Etowa The best, Adadama
40.       Christy Edu. Beauty Saloon, Adadama
41.       Enerst the place to be, Igonigoni
42.       Ovie’s centre, Afafanyi
43.       Ogozi Bassey’s Stores, usumutong
44.       Egbe Osam Electrocals, Bazoine
45.       Helen’s Boutique, Lipalewa
46.       St. Michaels Tailoring service, Itigeve
47.       The young Buildders, Emminekpo
48.       De Strong Iron Benders, Anong
49.       All is well Medical centre,  Mbaleke
50.       No supporter Transport, Egboronyi

APPENDIX TWO
From the responses received from the questionnaire, it was observed that the SMES have Agency relationship in operation.
S/N
NAME OF SMEs
RESPONSE ABOUT THE OPERATION OF AGENCY RELATIONSHIP (Y/N)
1
Goddy Group Of Ent
No
2
MORGAN Nig.
No
3
Philip’s multipurpose
No
4
Ify Nig Ent.
No
5
Bongo’s Rice mill
Yes
6
Eka Elvis Restaurant
No
7
Yenoir multipurpose
Yes
8
Ben’s medicine stores
No
9
Madam Lawrence ventures
No
10
Eja and son’s
Yes
11
Eseboru De great
Yes
12
Madam grace computer
No
13
Eko and son’s farm
Yes
14
Icha Ebong inn
No
15
Sis. Scholastically pharmacy
No
16
De young shall grow
No
17
Innocent Egbe pharmacy
No
18
Iwasam Business centre
No
19
Chop alone Nig.
Yes
20
Enya King Nigeria
Yes
21
Eka awara eating place
No
22
Maryland enest home
Yes
23
Ekabua ventures
Yes
24
Osim General merchandize
Yes
25
J.J. Egwu bookshop
No
26
King Joe Electrical company
No
27
All wather restaurant
No
28
Princ Michael unlimited
Yes
29
Fidel wood work
No
30
Never amind business centre
No
31
Vincent transport
Yes
32
Esege and son
Yes
33
Madam blessing store
No
34
Ziyemogo industrialist
Yes
35
Abonor the King Ent
Yes
36
Queen’s mother restaurant
No
37
Chief Igiri’s Business centre
Yes
38
Chinyere Beautiful Gate
No
39
Etowa the Best

40
Christy Edu Beauty Saloon

41
Ernest the place of Be

42
Ovie’s Centre

43
Ogozi Bassey’s stores

44
Egbe Osam Electrical

45
Helen’s Boutique

46
St Michaes tailoring service

47
The Young Builders

48
De strong Iron benders

49
All is well medical centre

50
No supporter transport



APPENDIX THREE
S/NO
NAME OF SMEs
1
Bongo’s Rice mill
2
Yenior multipurpose
3
Eja and son’
4
Esebonu de great
5
Eko and son’s farm
6
Chop alone Nigeria
7
Enya king Nigeria
8
Mary Land Guest house
9
Ekabna ventures
10
Osim General merchandize
11
Prince Michael unlimited
12
Vincent transport
13
Esege and son
14
Iyemogo industrialist
15
Abonor the king Ent.
16
Chief Igiri’s business centre
17
Etowa the best
18
Ovie’s centre
19
Egbe Osam Electrical
20
No supporter transport



APPENDIX FOUR
LISTING OF SMES WITHOUT AGENCY RELATIONSHIP
S/NO
NAME OF SMEs
1
Goody Groups Of Enterprises
2
Morgan Nigeria
3
Philip’s multipurpose
4
Ify Nigeria enterprises
5
Eka Elvis restaurant
6
 Ben’s medicine stores
7
Madam Lawrence ventures
8
Madam Grace computer centre
9
Icha Ebong Inn
10
Sis. Scholastically pharmaceutical
11
De young shall grow
12
Innocent Egbe pharmacy
13
Iwasam business centre
14
Eka Awara eating place
15
J.J. Egwu Bookshop
16
King Joe electrical company
17
All weather restaurant
18
Fidel wood work
19
Never mind business centre
20
Madam Blessing store
21
Queen’s mother restaurant
22
Chinyere Beautiful gate
23
Christy Edu Beauty Saloon
24
Enerst the place to be
25
Ogozi Bassey’s stores
26
Helen’s boutique
27
St. Michael Tailoring service
28
The Young builders
29
De strong iron Benders
30
All is well medical centre



SECTION B:            TRANSACTION RECORD FOR THE PAST SIX 9(6)
YEARS 2005-2010
Year
1
Total sales
N2
Total expenditure
N3
Net income(N)
4 = 2 - 3
2005



2006



2007



2008



2009



2010



Appendix six
TRANSACTION RECORD OF SELECTED SMEs WITHOUT AGENCY
RELATIONSHIP (Y1  - Y10)
Total sales (N1000)
Total exp (N1000)
Net income (N1000)
S/N
1
2
3
4
5
6
1
2
3
4
5
6
1
2
3
4
5
6
Y1
200
312
330
385
415
490
80
150
170
200
250
300
120
162
160
165
165
190
Y2
265
296
300
389
390
400
125
150
150
200
210
215
140
146
150
189
180
185
Y3
203
302
345
412
489
505
103
152
200
224
300
350
100
150
145
188
189
155
Y4
265
250
318
454
500
545
125
130
209
300
315
380
140
120
109
154
185
165
Y5
215
300
311
380
455
488
105
165
180
210
285
390
110
135
131
170
170
98
Y6
213
395
320
400
515
625
108
275
200
205
305
425
105
120
120
195
210
200
Y7
215
230
308
350
412
480
130
158
178
180
212
300
85
72
130
170
200
180
Y8
125
300
348
345
400
415
60
158
200
205
220
255
65
142
148
140
180
160
Y9
300
310
350
497
425
600
150
155
200
308
300
415
150
155
150
189
125
185
Y10
326
316
330
405
415
480
206
248
270
265
215
265
120
70
60
140
200
215
Y11
290
302
319
400
412
430
200
150
200
290
300
318
90
152
119
110
112
112
Y12
301
314
331
385
427
430
198
202
212
240
300
318
103
112
119