International Journal of Business and Finance Management Research
ISSN: 2053-1842
Vol. 8(2), pp. 25-32 March 2020

Firm characteristics and financial performance in quoted manufacturing companies in Nigeria

EFUNTADE, Alani Olusegun1* and AKINOLA, Akinwumi Olusegun2

1Procurement Unit, Office of the Vice Chancellor, Federal University, P. M. B. 373, Oye Ekiti, Nigeria.
2Department of Accounting, Achievers University, P. M. B. 1030, Owo, Nigeria.

*To whom correspondence should be addressed. E-mail:

Received 18 January, 2020; Received in revised form 18 February, 2020; Accepted 24 February, 2020.


Firm age, Firm size, Sales growth, Liquidity, Leverage Return on assets.

The aim of this study was to examine the impact of firm characteristics on the financial performance of quoted manufacturing firms in Nigeria. Descriptive and cross sectional research design were adopted to investigate the relationship between variables of firm characteristics and financial performance of quoted manufacturing firms in Nigeria over a period of 14 years. Secondary Data were obtained from annual reports of five selected quoted manufacturing firms. Panel least square regression model was used to test the formulated hypothesis. Findings showed that all the independent variables jointly and strongly have impact on the financial performance of manufacturing firms in Nigeria measured by return on assets. It was concluded the explanatory variables (Firm Age, Firm Size, Sales Growth, Liquidity and Leverage) were significantly associated with the dependent variable (Return on Asset). The Study then recommends that, the managements of manufacturing companies should find ways to improve and acquire the optimal utilization of their assets, while making maximum use of their resources during the production processes and distribution of finished products as this would help them in improving their profits.

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