IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 2 2024
DOI: https://doi.org/10.56201/jafm.v10.no2.2024.pg133.150

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Internal Financial Indicators and the Profitability of Listed Consumer Goods Firms in Nigeria

Onuorah, A. C. (PhD; F, CIFIAN) & ONYAH, Fidelis

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Abstract

The study examined the impact of internal financial indicators on profitability of listed consumer goods firms in Nigeria between the periods of 2013-2022. The study made used of secondary sourced from the annual reports and accounts of the various consumer goods firms listed in Nigeria Exchange Group for the measures of internal financial indicators [Size (SZ), Age (AG), Liquidity (LQ), Leverage (LV), Sales Growth (SGT) and Operating Expenses (OEXP)] in relation to profitability proxied with Operating Profitability (OP). The study conducted descriptive statistics and correlation analysis, followed by the panel unit root test, and the Pedroni panel cointegration test. The nature of the link between the independent variables and the dependent variables were investigated using descriptive statistics, correlation analysis, the panel unit root test, and the Pedroni panel cointegration test. In light of the hypotheses that will develop for this study, the type of data analysis that was selected is the multiple regression analysis that was carried out with the use of the computer programme E-VIEW 9.0. The findings revealed that SZ, LQ, SGT and OEXP have significant relationship on OP of consumer goods firms listed in Nigeria Exchange Group while AG and LV does not. Finally, the study concluded that there is a significant relationship between internal financial indicators and the profitability of listed of consumer goods firms listed in Nigeria Exchange Group. Size of the firm has a significant impact of OP, thus, this

keywords:

Internal, Financial, Liquidity, Leverage, Operating, Expenses & Profitability

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References:

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Adebayo, S. I. & Onyeiwu, C. (2018). The determinants of profitabilityi of manufacturing firms
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Ahmed, Z., Naveed, A. & Usman, A. (2016). Determinants of performance: A case of life
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