Impact of Firm Performance Characteristics on Share Price of listed Consumer Goods in Nigeria

Abstract

Firm characteristics refer to a wide range of attributes that define the structure, operations, and behavior of businesses across different industries. In Nigeria, the consumer goods sector operates under distinct conditions, facing challenges such as inad equate infrastructure, disruptions in supply chains, exchange rate volatility, regulatory instability, and evolving consumer preferences. Many existing studies provide only a broad perspective and fail to adequately address these sector -specific dynamics. Consequently, this study investigates the influence of firm characteristics on the share prices of listed consumer goods companies in Nigeria. The study adopts an ex post facto research design , utilizing secondary data obtained from the audited annual financial statements of consumer goods firms listed on the Nigeria Exchange Group (NGX) over a thirteen-year period (2011-2023). The population comprises twenty-one (21) listed consumer goods firm s as of December 2023, from which a sample of ten (10) firms were selected using purposive sampling. Data analysis was conducted using both descriptive and inferential statistical techniques. Descriptive statistics included minimum, maximum, mean, and standard deviation, while panel regression analysis was employed to test the study’s hypotheses and examine the effect of firm characteristics on share price. The results of the panel regression analysis indicate that two out of the four explanatory variables significantly explain variations in share price. These variables are Profit After Tax (p = 0.0495) and Return on Assets (p = 0.0002). The findings reveal a statistically significant relationship between firm performance characteristics and the share prices of listed consumer goods companies in Nigeria. Based on these results, the study recommends that firms in the sector should prioritize research and development activities to enhance innovation and competitiveness, which in turn may positively influence their market valuation.