Abstract

This paper examines the diminishing use of univariate analysis in investment and other managerial decisions in Nigeria. It aims at determining the extent new generation managers use financial ratios for corporate decisions, reasons for declining use of ratios, understand the current resorts and effects of these diminishing use on corporate well-being over the last five years. Twenty corporate bodies were surveyed and two hundred questionnaires were administered to three segments of respondents comprising of “chief executives and senior managements, accounting/finance officers and outside corporate stakeholders”. It was discovered that the use of financial ratios in many managerial and other investment decisions are significantly diminished in Nigeria, a country with huge international financial interests and impacts. We also found that there are no significant managerial resorts but there exists significant effect of diminishing use of univariate discriminant analysis on the corporate well-being for the last five years. We recommend that the research be carried out on a national scale to enable more accurate generalizations.

Key words: Discriminant analysis, financial ratios and managerial decisions.