EFFECT OF FIRM TRAITS ON THE OPERATING PERFORMANCE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA: 2012-2024

Abstract

The study examined the effect of firm traits on the operating performance of listed consumer goods firms in nigeria: 2012-2024. The specific objectives were to analyse the effect of firm leverage, firm liquidity, firm size and firm age on operating performance of listed consumer goods firms in Nigeria. Operating performance was measured using asset turnover ratio while the study was underpinned by resource-based view theory. Secondary data for the study were collected from the annual reports. Using an ex-post facto research design, secondary data was extracted from the annual reports and accounts of the sampled firms listed on the Nigerian Exchange Group (NGX) over a thirteen year accounting period which spanned from 2012 to 2024. The data was analyzed using descriptive test, Pearson correlation and panel regression techniques. Findings indicate that firm size and liquidity have a positive and statistically significant effect on operating performance, proxied by asset turnover ratio (ATR). In contrast, firm age demonstrated an insignificant negative relationship with ATR. The study concludes that internal firm traits are significant determinants of performance, even in a challenging macroeconomic environment. Recommendations include that firms should prioritize efficient working capital management to optimize liquidity and pursue strategic growth to achieve economies of scale.