ASSESSING THE RELATIONSHIP BETWEEN ASSETS COMPOSITION AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Abstract

This study assessed the relationship between assets composition and financial performance of listed consumer goods firms in Nigeria. Specifically, it ascertained the effect of property, plant and equipment as well as intangible assets on the financial performance of consumer good firms in Nigeria. secondary data was used for data collection. The regression results showed that property, plant and equipment have positive and significant effect on the performance of quoted manufacturing companies in Nigeria Exchange Group and that intangible assets have positive but insignificantly effect on the performance of quoted manufacturing companies in Nigeria Exchange Group. The study concluded that the recent economic instability couple with the desire for wealth maximization has led management of most company to explore better ways to invest scarce resource in other to achieve the organizational goals. It was recommended that that management of manufacturing companies in the Nigeria should formulate policy that will enhance their investment in property plant and equipment as this will increase the performance of their companies and enable them achieve shareholders wealth maximization objective. Besides, management of manufacturing companies in their effort to enhance the performance of manufacturing companies should increase the level of intangible assets, which will positively enhance its effect on the performance of their firms.