FIRM ATTRIBUTES AND SYSTEMATIC RISK IN LISTED INDUSTRIAL GOODS FIRM IN NIGERIA

Authors

  • Dr. Chimaobi Desmond Obani Department of Accountancy, Faculty of Management Sciences Caritas University, Amorji Nike, Enugu State, Nigeria
  • Chidinma Nwamaka Ozuomba Department of Accounting, University of Agriculture and Environmental Sciences Umuagwo, Imo State, Nigeria

Keywords:

Firm Attributes, Systematic Risks, Industrial Goods Firm

Abstract

The study examined Firm attributes and systematic risk in industrial goods firm in Nigeria. Six specific objectives and hypotheses were formulated. The study adopted ex-post facto research design. Cross sectional panel data secondarily sourced from the annual financial reports and accounts of ten (10) listed industrial goods firm in Nigeria, Central Bank of Nigeria Statistical Bulletin and Central Security Clearing System (CSCS) from 2012 to 2020 were analyzed using descriptive statistics, hausman specification test and ordinary least square regression analyses with the aid of E-view at 5% level of significance. The study proxy firm attributes using profitability, liquidity, financial leverage, firm size, operating efficiency and firm growth as explanatory variables while systematic risk proxy using firm beta as response variable. The study found that profitability, liquidity and financial leverage have negative coefficient and are insignificant firm attributes of systematic risk in industrial goods firm in Nigeria. Firm size maintains positive coefficient and is a significant attribute of systematic risk in industrial goods firm in Nigeria, while operating efficiency and firm growth maintain positive coefficient and significantly, non-attributes of systematic risk in industrial goods firm in Nigeria. The paper recommends that managers of Industrial goods firm in Nigeria should lookout for those operating, investing and financing policies that will improve and sustain the profitability (ROA), liquidity and financial leverage opportunity of the firm to contend with the systematic risk exposure that threatens the positive growth of industrial goods firm’ stock prices performance in Nigeria.

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Published

2024-04-13

How to Cite

Obani, C. D. ., & Ozuomba, C. N. (2024). FIRM ATTRIBUTES AND SYSTEMATIC RISK IN LISTED INDUSTRIAL GOODS FIRM IN NIGERIA. International Journal of Novel Research in Humanities, Social Science and Management, 6(1). Retrieved from http://publications.oasisinternationaljournal.org/index.php/Ijnhssm/article/view/74