MODERATING EFFECT OF PROFITABILITY ON THE RELATIONSHIP BETWEEN FIRM STRUCTURAL ATTRIBUTES AND MARKET SHARE PRICE OF QUOTED CONSUMER GOODS FIRMS IN NIGERIA

Abstract

This research examined the moderating effect of profitability on the relationship between firm
structural attributes and market share price of quoted consumer goods firms in Nigeria from the
year 2012 to 2021. 14 consumer goods firms were selected purposefully for this study using a casual
research design. Firm size, asset tangibility and leverage were used to proxy firm structural
attributes. Descriptive statistics and panel regression analysis were used as the study data
estimation tool. The outcome of this study revealed that only leverage was found to have a
significant impact on market share price with t-stat and p-val. (5.85, 0.000), FRZ and ATA were
found to have no significant effect on MSP. Also, profitability was discovered to have a positive
moderating effect on the relationship between FRZ, ATA, LER and MSP, as evidenced by t-stat and
p-val. (3.15, 9.05, 3.75) and (0.000, 0.000, 0.000), respectively. The conclusion drawn from this
study is that POF has a positive moderating effect on the relationship between firm
structural attributes (FRZ, ATA, and LER) and the market share price of listed Nigerian consumer
goods firms. The study recommends that companies aim to increase their profitability
and asset tangibility level to be able to enhance investors’ confidence and positively influence
market share price. The firm should also boost its financial stability by ensuring that the level of
leverage absorbed into the firm is not too high.