FIRM GROWTH DETERMINANTS AND SUSTAINABLE GROWTH OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

Authors

  • Ofurum Christmas Darlinton Department of Accountancy, Alex Ekwueme, Federal University, Alike Ndulu, Nigeria
  • Henry Kenedunium Obi Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria

Keywords:

Firm characteristics, Dividend policy and Working capital

Abstract

The study examined the effect of firm characteristics on the sustainable growth of listed industrial manufacturing firms in Nigeria from 2011 to 2020. An Ex Post Facto research design was introduced for the study. The study used panel least squares regression before proceeding to check for inconsistencies with the basic assumptions of OLS regression. These diagnostic tests include the multicollinearity test and the heteroskedasticity test. The results of the study show that the dividend policy has a positive insignificant effect on the sustainable growth, and the working capital has a significant positive effect on the sustainable growth of the studied industrial production companies. The study concludes that only the working capital variable appears to have a significant impact on the sustainable growth of Nigerian industrial manufacturing firms. The dividend policy does not have a significant impact on the sustainable growth rate. Based on the results, it is recommended that the management of these industrial manufacturing companies support policies that encourage rapid conversion of inventory to cash to improve the company's growth. This can range from offering a cash chat to a customer to encourage a purchase.

Published

2023-11-08

How to Cite

Ofurum, . C. D., & Obi, H. K. . (2023). FIRM GROWTH DETERMINANTS AND SUSTAINABLE GROWTH OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. Advance Journal of Management, Accounting and Finance, 8(11), 1–15. Retrieved from https://aspjournals.org/ajmaf/index.php/ajmaf/article/view/73

Issue

Section

Articles