IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 9 NO. 4 2024
DOI: 10.56201/ijefm.v9.no4.2024.pg56.74

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Impact of Current and Financial Asset Structure on Financial Performance of Levered Manufacturing Firms in Nigeria

Kornom-Gbaraba, Michael Eric (PhD, ACA), Olatunde Oladele (PhD, FCA) and Mr. Yusuf, Bashir Akanji Olalere (M.Sc Accountancy, FCA)

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Abstract

The research investigated the impact of financial and current asset structures on the corporate performance of Nigerian manufacturing companies that were listed during the fiscal years of 2018 and 2022. The study aimed to determine the impact of financial asset structure and the existing asset structure on the performance of high and low leveraged manufacturing enterprises in Nigeria. Panel data from financial statements of sampled firms was used in the study, which used an ex-post facto research approach. Ordinary least square regression analysis was used to examine the collected data. According to the study, the performance of high- and low-leveraged manufacturing enterprises is not significantly impacted by the current asset structure or financial asset structure at the five percent significance level. The study comes to the conclusion that while statistically insignificant, the present asset structure and financial asset structure of high- and low-leveraged manufacturing enterprises offered insights. Because the current asset structure has the potential to drive a company's performance, the study advises managers of low-leveraged firms to focus more on building it. It also suggests that when determining the optimal asset mix for corporate organizations, financial asset structure should be taken into account.

keywords:

Conceptual framework, business and finance, literature review, research process, theoretical framework

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