Investment Management Practices And Growth Of Public Enterprises In Enugu State, Nigeria, 2006-2011

ABSTRACT

This study was on investment management practices and growth of public enterprises in Enugu state,

Nigeria. The objective of this thesis was to identify investment management practices employed in

public enterprises in Enugu State; and explain how the adoption of appropriate investment

management practices promoted the growth of the enterprises. The purpose of this study was to

analyse any observed growth of public enterprises in Enugu State in terms of the extent to which they

employed proper investment management practices. In the course of this study, we adopted a survey

research method. Three methods of data gathering namely; documents, questionnaire and oral

interviews were used. Hence, primary and secondary data were used to analyse the data. In applying

purposive sampling technique, responses from a total of 20 respondents were analysed. Mean score

statistics and single classification analysis of variance (ANOVA) were employed to analyse the data.

The data were presented in tables, bar chart, pie chart and graphs. Research revealed that the extent to

which: capital budgeting decision practices were applied in public enterprises in Enugu state was low

in ENTRACO, low in IKH, average in ESMC and high in NLR; control practices were adopted in

public enterprises in Enugu State was average in ENTRACO, average in IKH, high in ESMC and high

in NLR; and employees of public enterprises were motivated was low in ENTRACO, low in IKH,

average in ESMC and high in NLR. Consequently, auxiliary enterprises in ENTRACO was 0, in IKH

was 0, in ESMC was 1 and in NLR were 3. Internal rate of return in: ENTRACO was 19.8%, IKH was

10.2%, ESMC was 33.9% and NLR was 34.2%. ANOVA revealed that the application of appropriate

investment management practices in public enterprises in Enugu State influences their growth. This

analysis was in agreement with our empirical findings. Based on our findings, we recommended that

public enterprises should adopt; internal rate of return technique to ascertain the internal rate of returns

on investments; reappraisal of investment to determine whether value for money was being obtained

from any level of investment; and sponsoring of employees for studies on project initiation so as to

equip the employees with the skill of initiating investments.