Firm Characteristics and Financial Performance on Non-Financial Companies in Nigeria

Abstract

This study focused on examining the relationship between firm characteristics and financial performance in Nigeria. The research design adopted for this study is the correlational research design. A sample of ninety-one (91) non-financial publicly listed companies cutting across those in the manufacturing, construction, agriculture, healthcare, industrial goods, oil and gas and other services on the Nigerian Stock Exchange (NSE) for the years 2011 – 2015 were judgementally selected and the data were analysed using the Quartile regression technique. The study finds that firm characteristics mechanism such as firm size, growth opportunity and firm age all have a positive and significant relationship with financial performance, while firm leverage, capital intensity, and inventory intensity have a negative but significant effect on financial performance of non-financial quoted firms in Nigeria. The study recommends that based on the evidence that there is substantial heterogeneity between financial performance and most of the firm characteristics variables examined in this study across the financial performance distribution. This means that financial performance is not constant and firm characteristics variables are likely to change along the conditional firms financial performance distribution.