FIRM-SPECIFIC CHARACTERISTCS AND FINANCIAL PERFORMANCE OF LISTED AGRICULTURAL COMPANIES IN NIGERIA
Journal Title: Gusau Journal of Accounting and Finance - Year 2022, Vol 3, Issue 1
Abstract
The contribution of listed agricultural firms to market development and economic growth has been consistently low in recent years. This could be traced partly to low profitability of agricultural firms in the country which is a function of several firm-specific factors. The study therefore examined the firm-specific factors that influence financial performance of listed agricultural firms in Nigeria. Data were collected from annual reports of the five (5) listed firms in the sector for eleven years from 2010 to 2020. The data were analysed with static panel data regression approach. The results indicate that asset maturity, dividend payout and liquidity have positive and significant effects on return on asset while firm size has significantly negative effect on the return on asset of the firms at 5% level of significance. The study concluded that that the listed agricultural firms utilised their assets and manage their liquidity efficiently. There is however, some scale inefficiencies in the firms because, the finding of negative relationship between firm size and return on asset indicates that larger the companies become the lower the financial performance. It is therefore recommended that the managements of agricultural companies in Nigeria should ensure that the firms are not overcapitalised in terms of investment in assets in order to boost both the scale efficiency and profitability of the firms.
Authors and Affiliations
Abdulrazaq T. Jimoh, John A. Attah
Keywords
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