CHANGE IN INVESTMENTS ACTIVITIES AND FINANCIAL PERFORMANCE OF QUOTED NIGERIA MANUFACTURING COMPANIES

Abstract

This seminar paper examined the relationship between changes in investment activities and financial performance of quoted Nigerian manufacturing companies. The study specifically investigated how the purchase and sale of long-term assets and investments in financial securities influenced the net profit margin of these firms. Guided by a positivist research philosophy, the study adopted an ex post facto research design, utilizing secondary data from published annual reports and financial statements of five selected firms representing five key manufacturing sectors over the period 2020 to 2024. The firms included Dangote Cement Plc, BUA Cement Plc, Nestlé Nigeria Plc, Nigerian Breweries Plc, and PZ Cussons Plc. Data were analyzed using multiple regression techniques, descriptive statistics, correlation analysis, and diagnostic tests to ensure robustness, while shareholders’ equity was considered as a moderating factor. Findings revealed that changes in the purchase and sale of long-term assets significantly enhanced profitability, and investments in financial securities also positively influenced net profit margins. Based on these findings, the study recommended that managers prioritize strategic acquisition of productive assets, complement these investments with prudent financial securities, maintain strong equity positions, and continuously monitor investment decisions to improve operational efficiency and sustainable financial performance.