IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 11 NO. 1 2025
DOI: 10.56201/jafm.vol.11.no1.2025.pg92.111

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Firm Attributes and Systematic Risk of Listed Consumer and Industrial Goods Firms in Nigeria

Bridget U. Akwuobi, Nonye S. Agubata, Nkechi T. Offor

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Abstract

The main objective of the study was to examine the effect of firm attributes on systemic risk of listed consumer and industrial goods firms in Nigeria. The specific objective were to ascertain the effect of firm size and firm liquidity on the systemic risk of listed consumer and industrial goods firms in Nigeria. Ex-post facto research design was adopted in the study. The population comprised 44 listed manufacturing firms on the Nigerian exchange from which a sample size of 25 was purposively selected. The secondary data for the study were sourced from the annual reports of the firms over a twelve year period that spanned 2012 to 2023. Summary analysis of data was done using descriptive analysis, while the hypotheses were tested using Panel Estimated Generalized Least Squares. The findings revealed that: firm size has a significant negative effect on the systematic risk (? = -0.000632, p-value = 0.0000); liquidity has a significant positive effect on the systematic risk (? = 0.000178, p-value = 0.0029). In conclusion, while larger firms are better equipped to manage market fluctuations, firms with higher liquidity are more vulnerable to market volatility. It is recommended that business leaders and managers of large firms continue to invest in strategies that capitalize on their scale, such as diversifying operations, expanding into stable markets, and maintaining strong capital reserves, to further mitigate exposure to market-wide fluctuations and reduce systematic risk

keywords:

Firm Attributes, Systemic Risk, Firm Size, Firm Liquidity

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