The Relationship Between Firm Characteristics and the Performance of Listed Non-Financial Listed Firms in Nigeria

ABSTRACT The study examined the relationship between firm characteristics and performance of listed nonfinancial listed firms in Nigeria. The specific objectives are to examine how various measures of firm attributes (firm size, board structure, ownership structure & capital structure) affects the performance of listed firms in Nigeria. Data was sourced from published financial statements of 66 listed nonfinancial firms in Nigeria. The study covered a period of 10 years ranging from 2013 – 2022. The study analyzed the data collated using descriptive and inferential statistical tools and the hypotheses were tested using the robust regression analysis. The study shows that firm size has significant relationship with firm performance while board structure, ownership structure and capital structure have no significant relationship with firm performance. The study recommended, firms are advised to adopt more flexible capital management strategies that allow for rapid adjustment to market conditions and investment opportunities. This could include diversifying funding sources or employing more agile financial planning techniques to better manage financial risks and opportunities. Given the significant impact of firm size on performance, it is recommended that smaller firms invest in capacity building and skill development programs. This approach could help bridge the performance gap between smaller and larger firms by boosting operational efficiency and competitiveness. The lack of significant findings regarding board structure and ownership suggests that firms might benefit from innovative governance reforms. Introducing dynamic, adaptable governance models that reflect the unique challenges and opportunities of the Nigerian market could potentially unlock new avenues for performance enhancement.