Good Firms Research Articles

Corporate governance disclosure and stock price among listed consumer goods firms in Nigeria

This research investigates the impact of corporate governance disclosure on stock price reaction of consumer goods firms listed on the Nigeria Stock Exchange (NSE). The study involved 16 consumer goods firms listed on the NSE. Secondary data for the study was collected from the annual reports of the sample companies, for the period 2014 to 2022. The panel data regression analysis, particularly the feasible generalized least square regression (FGLS) method was used because it has inbuilt mechanism to control for the existence of heteroskedasticity and accommodate non-normally distribution, which was discovered in the data. Data analysis revealed that the rate of corporate governance disclosure influences the stock prices of firms, even though profitability, leverage, firm size, and industry did not have any moderating effect on this relationship. These findings show that corporate governance disclosure is a very relevant factor in the decision making of investors in consumer goods firms, which makes it essential for these firms to build trust and display transparency by always disclosing their corporate governance practices in their annual reports, their websites, and other channels.

Exploring High and Low ESG Disclosure Thresholds: Impact on Corporate Value in Nigeria’s Industrial and Oil & Gas Sectors

This study explores the dynamic relationship between Environmental, Social, and Governance (ESG) disclosure and corporate value among listed Oil and Gas and Industrial Goods firms in Nigeria, covering the period from 2011 to 2022. Employing a nonlinear fixed-effect panel threshold regression model, the research evaluates the effects of high and low ESG disclosure regimes on corporate performance metrics, represented by Tobin’s Q and EBITDA. The findings reveal that high ESG disclosure regimes significantly enhance corporate value across both sectors, while low ESG regimes yield mixed results, particularly in the Oil and Gas sector. These results underscore the pivotal role of ESG practices in fostering sustainable corporate performance and align with signaling theory. This study contributes to the discourse on ESG strategies, offering actionable insights for policymakers, corporate leaders, and stakeholders aiming to optimize sustainability practices and financial outcomes.

Did ESG Affect the Financial Performance of North American Fast-Moving Consumer Goods Firms in the Second Period of the Kyoto Protocol?

Many agreements and protocols in the global framework call on industries and businesses to respond to threats related to climate change. New terminologies such as environmental, social, and governance (ESG) scores address this issue and responsibility. This study investigates the impact of sustainability (environment (ENV), social (SOC), governance (GOV), and ESG) on the financial performance of firms in the fast-moving consumer goods industry from 2013 to 2020, the second commitment period of the Kyoto Protocol (SCKP). The study sample covers 113 firms in the North American region (the USA and Canada did not participate in SCKP). The results showed that ESG is not an influencer of financial performance, while ENV and SOC components negatively affect financial performance. On the other hand, GOV is the most significant influencer that positively impacts financial performance. Based on these findings, ESG and its components are not conducive to promoting financial performance during the SCKP period. However, fast-moving consumer goods are ahead of other sectors in terms of sustainability disclosure. Moreover, the highest positive impact of GOV is attributed to the advanced system with rules, standards, and regulations that foster the better and more efficient governance of firms from developed countries.

Board Characteristics and Dividend Pay-Out Policy in Nigerian Consumer Good Firms

This study interrogates the interplay between board attributes and dividend payout policy amongst listed in Nigerian manufacturing firms. The research focuses on various board attributes, including board size, board independence, gender diversity, and board ownership, to determine their influence on the dividend decisions of firms. Using panel data from a sample of Nigerian manufacturing companies listed on the Nigerian Stock Exchange (NSE) from 2013 to 2022, the study employs multiple regression analysis to evaluate the effect of these variables on dividend per share. The results indicate that board independence positively influence dividend payouts, while board diversity and board ownership have negative non-significant effect on the criterion variable using t-statistics. These findings suggest that a well-structured board can enhance firm decision-making, leading to higher shareholder returns. The study recommends that policymakers and firm managers should consider the composition and governance of boards when devising strategies related to dividend payouts to optimize corporate performance and shareholder value.

Effect of Dividend per Share and Payout on Financial Performance of Listed Industrial Goods Firms in Nigeria

There have been many challenges experienced by firms in keeping up with optimal financial performance. Dividend policy is a prominent concern to investors and directs the perceptions of different classes of stakeholders on the profitability of a business. Growing debates on the subject matter has led to questions on how dividend policy affects the financial performance of firms. This study aims to assess the relationship between dividend per share, dividend payout and financial performance in the Nigerian industrial goods sector. The study is built on the ex post facto research design and as such it focuses on a twelve-year time scope which spans from 2012 to 2023. The study has a population of 13 listed industrial goods firms and the study selected a sample of 10 firms to get the most representative sample of the Nigerian industrial goods sector. The study employs the use of dividend per share ratio and dividend payout ratio as the proxies for measuring the two dividend policies. The study also employed the use of return on asset as the proxy for measuring financial performance with revenue serving as the control variable. The study found that dividend per share and dividend payout ratio was not statistically significant in affecting the return on asset of sample firms. The study concluded that dividend per share, dividend payout ratios were not significant in affecting the financial performance of sample firms. The study recommended increasing dividend payout rates and training relevant staff to help manage dividend policy. Keywords: Dividend Per Share, Dividend Payout, Return on Asset, Revenue, Industrial Goods Firms.

Effect of Community Development and Environmental Expenditure on Financial Performance of Listed Consumer Goods Firms in Nigeria

There has been diverse view regarding the nature of relationship between community development and environmental expenditure and financial performance of companies worldwide. This is due to different need of stakeholders and lack of clarity if company’s corporate social responsibility will affect their financial performance. This study investigates the effect of community development and environmental expenditure on financial performance of listed consumer goods firms in Nigeria over the period 2013 – 2023. The study adopts longitudinal panel research design and secondary data were collected from the company’s annual reports. The population of this study consists of 21 listed consumer goods firms with a sample size of seventeen (17) listed companies. The selection was made using purposive sampling technique. The independent variables are community development expenditure and environmental expenditure while dependent variable is financial performance proxied by Net Profit Margin. Firm Size used as a control variable. Also descriptive statistics, correlation and regression analyses were conducted with the aid of E-views 12. The result reveals that community development expenditure and environmental expenditure has significant and insignificant effect on net profit margin of listed consumer goods firms in Nigeria respectively. The study concludes that both community development expenditure and environmental expenditure have a positive impact on net profit margin of listed consumer goods firms in Nigeria. The study recommends that companies should improve on Corporate Social Responsibility activities and pay more attention to their environmental cost for sustenance of environment, thereby increasing their financial performance. Keywords: Community Development Expenditure, Environmental Expenditure, Net Profit Margin, Stakeholders Theory

Monetary Policy and The Financial Performance of Listed Consumer Goods Firms in Nigeria

This study assesses the impact of monetary policy on the financial performance of the listed consumer goods firms in Nigeria. The study uses the purposive sampling technique and elimination method to determine the considered listed consumer goods firms in Nigeria from 2012 to 2023 and analyzed the impact of monetary policy variables of interest rates and inflation rate on the financial performance of these firms, measured by earnings per share as the indicator. Regression analysis was used to analyze the data. The results specifically show that changes in interest rate have a positive significant influence on the financial performance of listed consumer goods firms while changes in inflation rate have no significant influence on the financial performance of listed consumer goods firms. The study recommends the implementation of interest rate policies by the monetary authority that will balance stability and economic growth knowing the positive impact on the financial performance of the consumer goods firms.

Environmental Sustainability Disclosure and Market Performance of Listed Consumer Goods Firms in Nigeria

This study aimed to examine the effect of environmental sustainability disclosure on the market performance of listed consumer goods firms in Nigeria. This study utilized ex-post facto research design. Data were gathered from the annual reports, sustainability disclosures, and financial databases of Nigerian consumer goods manufacturing firms listed on the Nigerian Exchange Group (NGX) as of December 31, 2023. The study encompassed a population of 21 listed consumer goods manufacturing firms in Nigeria. A census sampling technique was adopted, to investigate the entire population. The research covered a twelve-year period, from 2012 to 2023, to observe trends, patterns, and long-term impacts, enabling a robust analysis. This study employed descriptive statistics (mean, median, variance, standard deviation, skewness, and kurtosis) and inferential statistics (panel regression analysis, correlational analysis etc.) to conduct data analysis. This regression analysis conducted revealed that both environmental protections cost disclosure, and environmental research and development cost disclosure had positive and significant effect on the market performance of listed consumer goods firms in Nigeria. While environmental pollution cost disclosure had a negative but significant effect on market performance. Whereas environmental waste management control cost disclosure had positive and insignificant effect on market performance. The findings indicate that environmental cost disclosures play a significant role in shaping the market performance of consumer goods firms in Nigeria. Specifically, disclosures related to environmental protection and R&D have a positive impact, as they reflect a firm’s commitment to sustainability and innovation. It was recommended that firms should prioritize and continue to disclose their investments in environmental protection and R&D, as these are positively viewed by investors and enhance market performance.

Sustainable Supply Chain Management Practices and Financial Sustainability of Listed Consumer Goods Firm in Nigeria

Purpose: The significance of sustainable supply chain management practice to the financial sustainability necessitated this study which aimed to evaluate the effects of sustainable supply chain management practices on financial sustainability of listed consumer goods firms in Nigeria. In the course of the study, the primary objectives of the study were to determine the effect of supplier relationship management on the financial sustainability of listed consumer goods firms in Nigeria and to evaluate the effect of lean supply chain practices on the financial sustainability of listed consumer goods firms in Nigeria. Methodology: The population of this study comprised of all the twenty-one (21) listed consumer goods firms under Nigerian Exchange Group (NGX). The sample for this study comprised of forty (40) respondents selected from each of the three chosen consumer goods companies, totaling One hundred and twenty (120) respondents. The study adopted both purposive and stratified random sampling techniques. Primary data was collected through electronic questionnaires distributed via Google Forms. Descriptive statistical tools, including measures of central tendency such as mean, and measures of variability such as standard deviation, was employed for data analysis. Findings: The result of the analysis reveal that: (i) with the result of hypothesis one; the results revealed that F-statistics stands at 3.478 with a p-value < than 0.05 at 0.033. This implies that the positive effect of supplier relationship management on financial sustainability of listed consumer gods firms is significant. (ii) For hypotheses two, the results revealed that F-statistics stands at 3.133 with a p-value < than 0.05 at 0.04. This implies that the positive effect of lean supply chain practices on financial sustainability of listed consumer gods firms is significant. Originality/ Value: No research was found regarding the sustainable supply chain management practices and financial sustainability during the time period of 2024. Conclusion and Recommendations: The study concluded that sustainable supply chain management practices enhance financial sustainability of consumer goods firms in Nigeria. The study recommended that firms should prioritize building strong relationships with suppliers, integrate sustainability considerations into their operations, implement lean supply chain practices, strengthen internal controls to mitigate fraud risk, invest in employee training, foster collaboration and knowledge sharing, and regularly monitor and evaluate performance.

Relationship between corporate governance and intellectual capital: Evidence from Jordan

The objective of this study is to examine the relationship between corporate governance and intellectual capital within Jordanian manufacturing firms. This study used a sample of Jordanian manufacturing firms and applied regression analysis to test the effects of board size, executive director duality, percentage of independent directors, and ownership concentration on intelligence capital performance. Thus, 64 Jordanian listed manufacturing firms represent the study sample for the study period (2014–2022). The study employs advanced statistical methods to evaluate how these governance mechanisms affect intellectual capital, including human, structural, and relational capital. The study results indicate that the board size and CEO duality had no significant impact on intellectual capital performance. A positive significant determinant is the firm performance measured by earnings per share with a coefficient estimate of 6.331 at p-value <0.0. The significant positive effect of firm performance on intellectual capital performance indicates that financial health is an important driver of intellectual capital utilization. Good firms are likely to have more resources to invest in human capital, technology, and innovation, which are necessary components of intellectual capital. Future research should continue to explore these dynamics across different contexts to inform more effective governance and management practices.

Effect of exchange rate volatility on financial reporting of consumer goods firms in Nigeria (2019 – 2023)

This study examines the effect of exchange rate volatility (ERV) on financial reporting of consumer goods firms in Nigeria. Ex-post facto research design was adopted for this study. Data were sourced from the published annual reports of fourteen consumer goods firms listed on the Nigeria Exchange (NGX) and the Central Bank of Nigeria (CBN) Statistical Bulletin for the period 2019-2023. The analysis employed the Panel Error Correction-Generated Least Squares (EGLS) method, focusing on three key financial metrics: Earnings Per Share (EPS), Current Ratio, and Debt-to-Equity Ratio. The findings reveal that ERV has a significant positive effect on EPS. Conversely, a significant negative effect is observed on the current ratio. However, the effect on the debt-to-equity ratio is found to be insignificant, suggesting that ERV does not substantially influence capital structure decisions. The study recommends that firms should continue to develop and implement robust strategies to manage the impacts of ERV, such as hedging, strategic pricing, and cost control measures, to safeguard and potentially enhance their financial performance during periods of exchange rate fluctuations. Keywords: Exchange Rate Volatility, Financial Reporting, Earnings Per Share, Current Ratio, Debt-to-Equity Ratio, Consumer Goods Firms.

The Impact of Direct Taxes on the Financial Performance of Listed Consumer Goods Firms in Nigeria

The Impact of Direct Taxes on the Financial Performance of Listed Consumer Goods Firms in Nigeria

Non-Mandatory Information Disclosures and Shareholders Wealth Maximization of Listed Consumer Goods Firms in Nigeria

Non-Mandatory Information Disclosures and Shareholders Wealth Maximization of Listed Consumer Goods Firms in Nigeria

Indirect Taxes and the Financial Performance of Listed Consumer Goods Firms in Nigeria

Indirect Taxes and the Financial Performance of Listed Consumer Goods Firms in Nigeria

Audit Committee Characteristics and Financial Reporting Quality of Consumer Good Firms in Nigeria

The paper examined the impact of audit committee features on the reporting quality of consumer goods firms in Nigeria. The paper used an ex post facto design. Data were gathered from the audited annual reports of the target firms. By employing the Hausman test, the study used a fixed and random effect model. The F-statistic of 2.238984, p-value = 0.023456 < 0.05 alpha, suggests that audit team meetings, size and financial knowledge jointly have a substantial implication on the calibre of financial reporting. In light of the foregoing, the study suggested among others that firms should maintain an optimal size that balances efficiency with diverse expertise that is neither too small nor too large for thorough financial oversight.

Investigating the Adoption of Green Logistics Practices on Operational Sustainability in Fast-Moving Customer Goods in Lagos State, Nigeria

Statement of Problem: There is a growing debate on sustainability challenges among fast-moving consumer goods firms (FMCG). FMCG firms value efficiency and sustainability. Research shows that FMCG firms are unsustainable owing to inadequate green logistics practices. Many studies focused on non-FMCG companies and industrialised countries, not emerging ones. Methodology: The green logistics and operational sustainability of chosen FMCG firms in Lagos State, Nigeria, were examined. The study was survey-based. The study included 13,782 managers from eight publicly listed FMCG businesses in Lagos State, Nigeria. The Taro Yamane formula determined the 519 sample size. Basic random sampling was utilised. The questionnaire was standardised and validated. Constructs' Cronbach's alpha reliability coefficients ranged from 0.78 to 0.94. The response rate was 96.7%. The data were examined using descriptive and inferential statistics, including multiple and hierarchical regression. Findings: The findings revealed that green logistics practices had significant effect on the operational sustainability of selected FMCG firms in Lagos State, Nigeria (Adj.R2 = 0.02, F(5, 496) = 3.31, p < 0.05). The study concluded that green logistics practices promote operational sustainability of selected FMCG firms in Lagos State, Nigeria. Recommendations and Contribution to Knowledge: FMCG enterprises in Lagos State, Nigeria can integrate green logistics techniques into their sustainability plan to improve long-term sustainability. The research suggests that green logistics techniques may considerably enhance operational sustainability, making them essential to a firm's sustainability strategies.

Evaluating the Role of Green Logistics Practices on Financial Sustainability in Fast-Moving Customer Goods Firm in Lagos State, Nigeria

Evaluating the Role of Green Logistics Practices on Financial Sustainability in Fast-Moving Customer Goods Firm in Lagos State, Nigeria

Effect of Intellectual Capital on Financial Performance of Listed Consumer and Industrial Goods Companies in Nigeria

The study examined the effect of intellectual capital on the financial performance of listed consumer and industrial goods firms in Nigeria from 2013 to 2022. The population of the study consisted of thirty-two (32) listed consumer and industrial goods firms on the Nigeria Exchange Group, from which a sample twenty-six (26) firms was chosen using the purposive sampling technique. The study used secondary data that was taken from the companies'financial statements, and it employed a longitudinal panel research design. The results showed that capital employed by the listed consumer and industrial goods firms in Nigeria has a positive and significant effect on the financial performance. However, the study found that human capital has no significant effect on the financial performance of listed consumer and industrial goods firms, while structural capital has a negative but significant effect on the financial performance. The study recommends that listed consumer and industrial goods firms should strategically invest to optimize capital employed as this will improve the financial performance.

Enhancing Corporate Performance through Debt Financing: Evidence from Nigerian Consumer Goods Firms

Background: Consumer goods firms play a significant role in any economy, like other businesses, require a mix of financing methods to amplify their performance. Aim: The study examined enhancement of corporate performance of Nigerian Consumer Goods Firms through debt financing for a period of eleven (11) years from 2011 to 2022. Methods: The data obtained were estimated using descriptive statistics and panel regression model of fixed effect. Results: The study found a positive and significant impacts of long-term debt (β=0.469729, P=0.0311) and firms’ size (β=0.154547, P=0.0251) on the performance of Nigerian consumer goods firms’ but negative and significant impacts of loan quality (β=−0.037431, P=0.0241) and short-term debt (−0.023417, P=0.0124) on their performance. Recommendation: The study recommends financing through Long-term debt for businesses in Nigeria.

Developing artificial intelligence enabled Marketing 4.0 framework: an Industry 4.0 perspective

PurposeThe paper aims to analyze the potential of artificial intelligence (AI) in enhancing marketing capabilities for Indian fast-moving consumer goods (FMCG) firms, with appropriate emphasis on dynamic capabilities (DC). By integrating AI into their operations, companies can enhance diverse marketing practices, leading to improved efficiency and effectiveness. In addition, the study offers valuable insights and guidance for effectively implementing AI in marketing strategies.Design/methodology/approachIn-depth interviews of 26 seasoned professionals from various positions in the Indian FMCG sector were conducted for the study. A systematic approach of coding that includes open, axial and selective coding was made to recognize the themes that represent AI-enabled marketing practices. This approach ensured that the themes were precisely identified and comprehensively analyzed. Interviews followed by a rigorous coding process provide valuable insights into the practical implementation of AI-enabled marketing practices for the Indian FMCG industry.FindingsThe study’s results underscore the importance of AI in enhancing marketing practices for FMCG firms, particularly in four critical areas: personalization, consumer engagement, marketing automation and strategic goals. By adopting AI in these areas, Indian FMCG firms can significantly enhance their marketing capabilities, increasing efficiency, effectiveness and gaining a competitive advantage.Research limitations/implicationsThe study uses qualitative data analysis to explain how DC through AI technologies can enhance digital marketing practices for Indian FMCG organizations. Furthermore, the study provides valuable insights into how AI technologies can improve marketing capabilities and emphasizes the importance of DC. The study also proposes a framework for AI-enabled Marketing 4.0 that can guide FMCG firms seeking to leverage AI technologies to enhance their marketing practices.Originality/valueThis study outlines the potential for enhancing marketing practices by adapting AI in the Marketing 4.0 environment for Indian FMCG companies, highlighting the importance of DC in achieving this goal.