Research Article

Effect of Firm Attributes on Financial Performance of Listed Manufacturing Firms in Nigeria

Jamilu Mohammed1*, Tijjani Ibrahim Bayero1
1 Department of Business Administration Kaduna State University
* Corresponding author: Jamilumohdfatika@gmail.com
Published: Jun, 2025
DOI: 10.67894/bjf.2025.xentgtzb
Pages: 65-80
Views: 14
Downloads: 2

Abstract

The study investigates the effect of Firm Attributes on the financial performance of listed manufacturing firms in Nigeria. Firm Attributes is a critical determinant of financial stability, and its management plays a crucial role in optimizing firm performance. The population of the study covered seven (7) Manufacturing Firms Listed on the Nigeria exchange as at 31st December 2023. It Covered the period of Twelve years (12) 2012-2023. The study employs key financial indicators such as Return on Assets (ROA), Liquidity (LIQ), Firm Size (FS), and Capital Adequacy (CA) to analyze their impact on financial performance. Secondary data from listed manufacturing firms were collected and analyzed using descriptive statistics, correlation analysis, regression models, robustness tests, and diagnostic tests. The findings reveal that liquidity (LIQ) does not significantly impact financial performance. This suggests that holding excessive liquidity does not necessarily enhance profitability, as firms may fail to invest their liquid assets effectively. Firm size (FS) has a significant negative effect on financial performance, indicating that larger firms experience declining profitability due to inefficiencies or increased operational costs. Meanwhile, Capital Adequacy (CA) does not exhibit a significant relationship with financial performance, implying that a higher proportion of capital does not necessarily translate into improved profitability. Based on these findings, the study provides important policy recommendations. Firms should adopt optimal liquidity management strategies by investing excess cash in productive ventures rather than accumulating excessive liquid assets. Asset utilization should be prioritized, ensuring efficient allocation rather than just increasing firm size. Policymakers should introduce incentives for firms to optimize their asset allocation and financial management practices, including tax relief and funding support for efficiency-driven initiatives. 

Keywords

Capital Adequacy Financial Performance Firms Attributes Firm Size liquidity

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How to Cite

Mohammed, J., & Bayero, T. I. (2025). Effect of Firm Attributes on Financial Performance of Listed Manufacturing Firms in Nigeria. Bayero University Journal of Finance, 2(1), 65-80. https://doi.org/10.67894/bjf.2025.xentgtzb

J. Mohammed, and T. I. Bayero, "Effect of Firm Attributes on Financial Performance of Listed Manufacturing Firms in Nigeria," Bayero University Journal of Finance, vol. 2, no. 1, pp. 65-80, June 2025. doi: 10.67894/bjf.2025.xentgtzb

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