Comparative Analysis of Financial Mix and Financial Performance of Listed Firms in Nigeria

Abstract

This study compared the financial composition and financial performance of 15 Nigeria Exchange Group-listed consumer and industrial products corporations from 2013 to 2022. Panel data from annual reports and accounts of consumer and industrial goods firms was based on variables: financial mix was proxied by STDF, LTDF, TDF, DTEF, and INCR, and financial performance was proxied by ROA. Ex-Post Facto research was utilised to determine the current status of the phenomena and define ‘what exists’ with respect to variables or conditions in a context that fits the topic under study. This study design occurs after the event. E-VIEW (version 9.0) statistical tool was used to analyse panel data using descriptive statistics, correlation matrix, diagnostics tests, and regression analysis. STDF has a negative and significant effect on ROA of listed consumer goods firms while positive and insignificant on ROA of listed industrial goods firms in Nigeria; LTDF has a positive and significant effect on ROA of listed consumer goods firms while negative and insignificant on ROA of listed industrial goods firms; and TDF has a negative and insignificant effect. Financial mix has conflicting effects on Nigeria's listed consumer and industrial products sectors, according to the report. Therefore suggests that Nigerian consumer and industrial goods businesses apply STDF to short-term business proposals to maximise their impact on financial mix decisions, which effect ROA.

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