ASSET MANAGEMENT ON FINANCIAL PERFORMANCE OF LISTED FIRMS IN NIGERIA.

Authors

  • AyewumiEzonfade Fredrick Department of Banking and Finance, Delta State University, Abraka
  • Prof. Ehiedu, Victor Chukwunweike Department of Banking and Finance, Delta State University, Abraka

Keywords:

Inventory, Receivables, Asset Management, Financial Performance, Listed Firms

Abstract

In order to achieve meaning outcome in any organization, the systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner is required. Hence, the study investigated asset management on financial performance of listed firms in Nigeria, focusing on the impact of inventory turnover (INTUR), receivables (RECEI) and asset turn over (ASTUR) while the performance of listed firms is proxy with return on asset. The population of the study comprises the ten (10) Industrial firms (BERGER; BETAGLASS; CAP Plc; CUTIX Plc; MEYER; NOTORE; TRIPPLEG; DANCEM; WAPCO & BUACEMENT) listed in the Nigeria Exchange Group. To ensure a representative sample, the study used a non-random sampling technique to select five (5) BERGER; BETAGLASS; CAP Plc; CUTIX Plc &DANCEM) of the listed firms which amount to 50% of the total. Data for the variables were obtained from the published annual financial reports of the listed firms. Utilizing a comprehensive panel dataset of five (5) listed industrial firms spanning 2018 through 2022 and applying regression analysis, the study found that RECEI stood significant while INTUR and ASSTU seem insignificant. The study concluded that the independent variables explained 43% to 50% performance of listed firm in Nigeria based on the adjusted R2 of 0.4305 and R2 of 0.5017. Likewise, the Prob (F-statistic) of 0.001860 showed that the regression model is significant. Based on these findings, we recommend firms to continue improving inventory management through better inventory tracking systems, adopting just-in-time inventory practices, and using demand forecasting tools can help reduce holding costs and potentially improve firm performance. Also, firms should focus on enhancing their receivables collection processes through tightening credit policies, offering discounts for early payments, and implementing more rigorous follow-up procedures. Likewise, Firms should consider strategic investments in productive assets and divest from underperforming or non-core assets

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Published

2024-07-31

How to Cite

AyewumiEzonfade, . F., & Ehiedu, V. C. (2024). ASSET MANAGEMENT ON FINANCIAL PERFORMANCE OF LISTED FIRMS IN NIGERIA. Advance Journal of Management, Accounting and Finance, 9(7), 136–153. Retrieved from https://aspjournals.org/ajmaf/index.php/ajmaf/article/view/107

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