Abstract
This study empirically investigated the effect of macroeconomic variables on financial performance in Nigeria healthcare sector. It spanned for the period of 2008-2018 and utilized annual time series secondary data extracted from annual reports and financial statements of the selected firms. Ex-post facto research design was adopted while analytical techniques employed were descriptive statistics, fully modified ordinary least squares panel regression and Pearson correlation analysis. Findings revealed that changes in macroeconomic indices play significant roles on the financial position of Healthcare manufacturing firms in Nigeria. Particularly, result showed that exchange rate, interest rate, external debt and trade openness have negative effect while inflation rate exert positive influence to financial position of Healthcare manufacturing firms in Nigeria. Among the selected macroeconomic variables, the effects of exchange rate and inflation rate were significant. Implication of the result is that unstable macroeconomy is harmful to healthy growth of Healthcare manufacturing firms in Nigeria. The study therefore recommended among other things that exchange rate should be monitored while economic policy measures aimed at controlling exchange rate in Nigeria should be established. High rate of interest should also be regulated and set to a rate favourable to the growth of Healthcare manufacturing companies in Nigeria. Federal government of Nigeria should work towards reducing their level of borrowing from foreign countries and as well reduce volume of trade openness for overall performance of manufacturing sector in Nigeria.
Highlights
1.1 Background to the StudyThe association between macroeconomic factors and organizational performance has piqued the interest of researchers studying this phenomenon
The result showed that exchange rate, interest rate, external debt and trade openness have a negative effect while inflation rate exerts a positive influence on the financial position of Healthcare manufacturing firms in Nigeria
The findings revealed that exchange rates and inflation rates had a positive effect on the Return on Assets (ROA) and Return on Equity (ROE) of the selected enterprises (ROE)
Summary
The association between macroeconomic factors and organizational performance has piqued the interest of researchers studying this phenomenon. Key macroeconomic variables such as the currency rate, interest rate, inflation, and gross domestic product are usually assumed to have an impact on an organization's performance. These are external factors that influence how things work on a daily basis. Important economic factors include the Consumer Price Index (CPI), Gross Domestic Product (GDP), unemployment, stock market index, corporate tax rate, and interest rates (World Bank Group, 2015; Broadstock, Shu and Xu, 2011)
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