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

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.