CORPORATE ATTRIBUTES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

This paper works on the connection between corporate characteristics and financial performance of the listed industrial goods companies in Nigeria. Based on the panel data of the firm size, firm growth, and firm leverage on financial performance (in terms of earnings per share, ROA and ROE) during a period of ten years (2015-2024) of industrial goods companies listed on the Nigerian Exchange Group (NGX), the study examines the effects of firm size, firm growth, and firm leverage on the financial performance of firms. The research utilizes the panel regression analysis that uses the fixed effects estimation after the Hausman test and Breusch-Pagan test are carried out to arrive at the required model specification. The results indicate that the firm size and firm growth have strong negative impacts on financial performance, but firm leverage has a mixed result according to the performance measure applied. In particular, firm size (natural logarithm of total assets) has a significant and positive correlation with ROA ( 0.234, p < 0.05) and EPS ( 0.189, p < 0.05). The firm growth (in terms of percentage change in sales) has a strong positive correlation with all performance measures (ROA = 0.312, p < 0.01; ROE = 0.287, p < 0.01; EPS: = 0.256, p < 0.05). The leverage of the firm (debt-asset ratio) is positively, yet insignificantly, related to ROE ( 0.142, p < 0.10) but has no significant relationship with ROA. The paper finds that corporate attributes play a significant role in financial performance, and growth of the firm is the most predictable. To maximize shareholder value, the management must consider maximizing firm size by undertaking strategic expansion, pursuing sustainable growth perspective and moderately maintain leverage levels. The results have a contribution to both the stewardship theory and the signaling theory whereby the results show that successful management of resources and strategic signaling by growth initiatives has a positive effect on the performance of firms in the industries sector of industrial goods in Nigeria

0 19 Dec, 2025

pg: 17

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