Open AccessAssets mix and financial performance of listed consumer goods firms in nigeria
Author(s) -
Nangih Efeeloo,
Emeka Nwokeji N.A
Publication year - 2021
Publication title -
journal of management and science
Language(s) - English
Resource type - Journals
eISSN - 2250-1819
pISSN - 2249-1260
DOI - 10.26524/jms.11.6
Subject(s) - current asset , return on assets , business , asset (computer security) , intangible asset , fixed asset , finance , weighted average return on assets , book value , business operations , working capital , economics , production (economics) , marketing , microeconomics , profitability index , computer security , earnings , computer science
This study assessed the effect of asset mix on financial performance of selected consumer goods firms in Nigeria. The specific objectives of the study were to determine the effects of tangible non-current assets, current and intangible assets structures and returns on asset. Ex post facto research design was adopted and data obtained from the annual reports of the companies for a seven-year period from 2013 to 2019. Multiple regression analytical technique was employed in analyzing the data. The findings of the study revealed that the independent variables employed in the study explained about 13.7% of the variations in returns on asset. Specifically, both current and intangible assets have positive and significant effect with ROA at 5% level of significance. Noncurrent asset has positive but insignificant effect on ROA. Thus, the assets composition of a firm plays a critical role in the financial performance of that firm, although it explains only about 14% of the performance of the firm. It was therefore recommended that firms should increase their current and intangible assets, but should keep it at an optimum level that will ensure that maturing short-term business obligations are met.