ASSET STRUCTURE, FINANCING DECISIONS, AND SCALE EFFECTS AS DETERMINANTS OF FIRM PERFORMANCE IN EMERGING MARKETS: INSIGHTS FROM NIGERIAN CONSUMER GOODS FIRMS

Abstract

In developing nations like Nigeria, the output of businesses in the consumer products sector is crucial to industrialisation, job creation, and economic expansion. Using panel data on thirteen listed firms from 2000 to 2023, this study examines the effects of asset structure, external financing, and company size on return on assets (ROA) for consumer products companies in Nigeria. The findings indicate that while external financing has a negative impact on ROA, asset structure and business size have a beneficial impact. Leverage and sales growth sensitivity tests show that the results hold up well. The models' fit is justified by diagnostic testing after estimate, which reveals the lack of autocorrelation and heteroskedasticity. This work underscores the importance of prudent asset allocation, judicious financing choice, and size advantage in enhancing firm performance and provides practical guidance for managers, investors, and policymakers in developing countries.