FIRM CHARACTERISTICS AND FINANCIAL PERFORMANCE: EVIDENCE FROM LISTED CONSUMER GOODS COMPANIES IN NIGERIA
Keywords:
Firm characteristics, Financial performance, Consumer goods, Nigeria, NGXAbstract
This study investigates firm-specific characteristics affecting the financial performance of listed consumer goods companies in Nigeria. The research design used in this study was the ex-post facto research design. The study samples sixteen (16) consumer goods companies listed in the Nigerian Exchange Group (NGX) as of December 2022. Secondary data was obtained from the annual reports of the selected listed consumer goods companies for the period of six years (2017–2022). Descriptive, correlation, and panel multiple regression were utilized for data analysis using STATA 14 analytical software. The study found that firm size has a positive and significant impact on the financial performance of consumer goods companies proxied by ROA. The study also found that financial leverage and the age of a firm have a negative and significant impact on the financial performance of consumer goods companies. However, the study recommends that consumer goods companies in Nigeria should not rely on their age, size, and reputation alone. They should rather devise new means of penetrating the market through diversification.