Firm Characteristics and Performance of Quoted Non-Financial Firms in Nigeria

J. A. Okewale, O. W. Kehinde, G.O. Salami & J. A. Akindele

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Abstract

The success and longevity of a firm largely depend on its performance and competitiveness. The proficiency and profitability of non-financial corporations in Nigeria may be governed by the interplay between internal and external features. Firm attributes are thus issues whose foundation is linked to management decisions in pursuit of firm stability. This research established that liquidity, firm size, leverage, growth rate, board composition, institutional shareholding and profitability are vital factors that should be considered. Utilizing an ex-post facto research approach based on secondary data, this enquiry focused on 104 listed non-financial companies, from which 30 companies were purposively adopted. The sample period spanned the years 2014 to 2023, and information used in the analysis was collected from the organisations’ yearly financial disclosures. The dataset was explored through summary statistics, correlation analysis, and inferential statistical methods. The inferential statistics was carried out by employing the panel multiple regression method. Random effect model was selected as the optimal estimation technique for the panel data and was utilized to explore the model specified to achieve the objectives. The analysis showed that firm size had a positive but statistically insignificant influence on financial performance. Leverage had positive and significant impact on financial performance. Also, there was insignificant negative effect of firm age on the performance. The investigation further established that liquidity had a positive and significant effect on corporate performance. This implied that these factors were likely to exert a greater influence as the firms further expanded their operational activities in the future. It was suggested that firms should not depend solely on their market presence or years of operation but adopt innovative strategies aimed at increasing market share, such as entering new geographical marketplaces and expanding their product and service offerings.

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