FINANCIAL STRATEGIES AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS MANUFACTURING FIRMS IN NIGERIA

Abstract

ABSTRACT

This study evaluated the effect of financial strategies on financial performance of listed consumer goods manufacturing firms in Nigeria. Specifically, the study determine the effect of  sources of fund on return on assets, determine the effect of cost of funds on return on assets of listed consumer goods manufacturing firms in Nigeria. The study employed an ex-post facto research design. The population of the study was twenty one (21) consumer goods manufacturing companies listed on the floor of the Nigerian Exchange Group (NGX) as from (2014 -to- 2023). The method of data analysis was descriptive statistic, unit root test, diagnostic test and multiple regression of Panel Least Square (PLS) with the help of E-view 12. The study result indicated that there is a significant effect of sources of fund on return on assets, there is no significant effect of cost of funds on return on assets of listed consumer goods manufacturing firms in Nigeria. Therefore, the study generally concluded that there is significant effect of financial strategies on financial performance of listed consumer goods manufacturing firms in Nigeria for the time frame investigated. The study recommends amongst other that companies can finance themselves with sources of fund in term of debt and equity. By increasing the amount of debt capital and equity capital would improve its return on assets.