Reputational Capital and Firms’ Performance: Of Listed Fast Moving Consumer Goods (FMCG) Companies in Nigeria
Abstract
This study aimed at discovering how Reputational Capital related with Turnover, Return on Assets, Earnings per Share as well as Gearing Ratio of Fast-Moving Consumer Goods companies listed in the Nigerian Exchange Group for the period 2016 to 2025. Reputational Capital was proxied with Research and Development (represented with Intangible Assets). Secondary data was used and the variables were converted into percentages and regressed using SPSS 27.0. Hypothesis One looked at the relationship between Turnover and Reputational Capital. The correlation coefficient (R) of 0.025 (2.5%) and the Adjusted R2 of (0.026); (2.6%) showed a weak positive relationship between the variables (R&D and Turnover) meaning that 2.6% of the changes in R & D was caused by Turnover while 97.4% was accounted for by other variables. The F critical was 4.0848 more than the F calculated of 0.023 and t critical value of 1.684 was more than the t calculated of 0.153 at 0.05 level of significance respectively. Hypothesis Two looked at the relationship of Reputational Capital with ROA. The correlation coefficient (R) was 0.24 (24%) with the Adjusted R2 of (0.033); 3.3% showing a weak positive relationship between the variables (R&D and ROA). With the F critical of 4.0848 being more than the F calculated of 2.326 and t critical value of 1.684 more than the t calculated of 1.525 at 0.05 level of significance respectively, it showed that the null hypothesis was accepted and the alternate rejected. Considering Hypothesis Three, the correlation coefficient (R) was 0.17 (17%) and the Adjusted R2 of (0.026); 2.6% revealing a weak positive relationship between the variables (R&D and EPS). This meant that 2.6% of the changes in R & D was caused by Earnings per Share while 97.4% was accounted for by other variables. With the F critical of 4.0848 being more than the F calculated of 0.012 and t critical value of 1.684 more than the t calculated of (0.108) at 0.05 level of significance respectively, the null hypothesis was accepted and the alternate rejected. This emphasizes that Reputational Capital had no significant positive relationship with Earnings per Share of fast-moving consumer goods companies in Nigeria for the period 2016 to 2025. For Hypothesis Four also, the correlation coefficient (R) 0.032; (3.2%) and Adjusted R2 of (0.025); 2.5% showing a weak positive relationship between the variables (R&D and Gearing Ratio). In the same vein, the F critical was 4.0848 more than the F calculated of 0.039 and t critical value of 1.684 more than the t calculated of (0.196) at 0.05 level of significance respectively. This implies that the null hypothesis was accepted and the alternate rejected. This emphasises there is no significant positive correlation between Gearing ratio and Reputational Capital of fast-moving consumer goods companies in Nigeria for the period 2016 to 2025. The study therefore concluded that Reputational Capital had no positive relationship with Turnover, ROA, EPS and Gearing Ratio of the companies during the period of the study. It then recommended that the companies should look inward outside Reputational Capital for the purpose of growing their Turnover, ROA, EPS and Gearing Ratio. JAFM JAFM
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