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.. 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.
Table One: Listing Frame
of SMEs In Abi L.G.A
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
Sources: Survey data 2012
Table 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
|
Yes
|
40
|
Christy
Edu Beauty Saloon
|
No
|
41
|
Ernest
the place of Be
|
No
|
42
|
Ovie’s
Centre
|
Yes
|
43
|
Ogozi
Bassey’s stores
|
No
|
44
|
Egbe
Osam Electrical
|
Yes
|
45
|
Helen’s
Boutique
|
No
|
46
|
St
Michaes tailoring service
|
No
|
47
|
The
Young Builders
|
No
|
48
|
De
strong Iron benders
|
No
|
49
|
All
is well medical centre
|
No
|
50
|
No
supporter transport
|
Yes
|
Source:
survey data 2012
Table Three:
Listing of SMEs with Agency Relationship
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
|
Source: Survey data 2012
Table 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
|
Source:
survey data 2012
Table Five: Transaction Record of SMEs with Agency
Relationship
(X1 –X10)
Total Sales (N’000)
|
Total Exp. (N’000)
|
Net Income (N’000)
|
||||||||||||||||
S/N
|
1
|
2
|
3
|
4
|
5
|
6
|
1
|
2
|
3
|
4
|
5
|
6
|
1
|
2
|
3
|
4
|
5
|
6
|
X1
|
432
|
505
|
542
|
580
|
615
|
630
|
212
|
300
|
407
|
389
|
519
|
498
|
220
|
205
|
135
|
191
|
961
|
132
|
X2
|
381
|
407
|
435
|
509
|
525
|
580
|
199
|
286
|
301
|
389
|
411
|
421
|
182
|
121
|
134
|
120
|
114
|
159
|
X3
|
393
|
400
|
451
|
520
|
600
|
650
|
243
|
287
|
304
|
376
|
485
|
498
|
150
|
113
|
147
|
144
|
115
|
152
|
X4
|
415
|
470
|
505
|
617
|
624
|
672
|
300
|
317
|
389
|
427
|
416
|
980
|
115
|
153
|
116
|
190
|
208
|
192
|
X5
|
421
|
518
|
498
|
515
|
625
|
630
|
311
|
406
|
377
|
399
|
416
|
481
|
110
|
112
|
121
|
116
|
209
|
149
|
X6
|
383
|
430
|
519
|
534
|
705
|
802
|
216
|
268
|
325
|
360
|
568
|
665
|
167
|
162
|
194
|
174
|
137
|
137
|
X7
|
406
|
426
|
489
|
567
|
591
|
690
|
205
|
254
|
300
|
387
|
410
|
475
|
201
|
172
|
189
|
180
|
181
|
215
|
X8
|
324
|
472
|
518
|
560
|
602
|
651
|
189
|
278
|
314
|
342
|
491
|
425
|
135
|
194
|
204
|
218
|
111
|
226
|
X9
|
412
|
454
|
504
|
617
|
670
|
712
|
265
|
309
|
315
|
485
|
490
|
535
|
147
|
145
|
189
|
132
|
180
|
177
|
X10
|
516
|
537
|
498
|
521
|
555
|
630
|
307
|
400
|
230
|
316
|
327
|
481
|
209
|
137
|
268
|
205
|
228
|
149
|
Source: Survey data 2012
Table six: Transaction Record
of Selected SMEs without Agency
Relationship (Y1 - Y10)
Total sales (N’000)
|
Total exp (N’000)
|
Net income (N’000)
|
||||||||||||||||
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
|
Source: Survey data 2012
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.
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 was 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 7: 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 8: 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
9: 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 elationship(X)
|
Total Expenditure of SMEs without Agency elationship(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
|
|
|
|
|
|
|
|
|
|
|
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
But
t
= x - y
(NOTE: FIND THE FORMULA)
Substituting the values
accordingly
t = 16.3 - 14 = 2.3 2.3
SQUARE (9)(7.01)
+ (14)(25.83) 1 + 1 [98.487+37.002][0.1667] = 0.982
23 10
15 23
=
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.
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.