FIRM CHARACTERISTICS AND RETURN ON SHAREHOLDERS’ FUNDS: EVIDENCE FROM LISTED FAST CONSUMER MOVABLE GOODS COMPANIES IN NIGERIA

Abstract

Past research studies have established that corporate organizations are associated with certain characteristics which may have positive or negative impact on their performance. It is on this note that this research work aims to investigate impact of firm characteristics on performance of listed fast consumer movable goods companies in Nigeria from 2008 to 2019. Leverage, liquidity, operating expenses, growth rate, firm size and firm age are the variables used to capture firm characteristics. Return on shareholders’ funds used to capture performance of sampled companies. Secondary data collected from financial statements of sampled firms were used, while multiple regression analysis was engaged to analyze the data. Study’s results demonstrated that growth rate, firm size and firm age have positive and substantial influence, while liquidity had favorable but negligible influence on return on shareholders’ funds. Furthermore, leverage and operating expenses have negative impact on return on shareholders’ funds. The study recommends that sampled firms need to maintain the existing or further increase their liquidity, growth rate, firm size and firm age in order to sustain or increase their current return on shareholders’ funds.