Firms’ Characteristics and Asset Growth of Quoted Companies in Nigeria: An Analytical Approach

Abstract

Firm’s characteristics have not been a new spectacle in the business world. They have, of course, always been with us and no decent business entity entirely overlooks them. What is new is the preference of their ranking in different corporate agenda. Fascinatingly, this paper is an analytical examination of the influence of the firm’s characteristics on Asset Growth of Quoted companies in Nigeria: An Analytical Review. The central aim was to investigate how the profitability, leverage and revenue growth influence asset growth of the quoted companies on the Nigerian Stock Exchange. Whilst the firm’s characteristics were measured by profitability, leverage and revenue growth and asset growth was measured by the difference between prior year and current year of non-current asset. This study focused on Ex post facto sourcing of data from the annual financial reports of the relevant companies from 2008 to 2019 fiscal years. Besides, the generated data were analyzed using the descriptive and inferential statistics while the regression analysis model was adopted for estimating the test result. However, findings revealed an insignificant influence of firm characteristics (profitability, leverage and revenue growth) on asset growth quoted companies in Nigeria. The result, therefore, showed that firm’s characteristics insignificantly contribute to the asset growth of companies. It was recommended among others that companies should carefully monitor all elements that indicate assets growth and not merely focus on firm characteristics alone, since it does not completely isolate firms from the threats of asset growth issues. Nonetheless, Companies should compose their boards based on technical know-how, experience, and qualification rather than on gender categorization.