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The Impact of Firm Size on Firms Performance in Nigeria: A Comparative Study of Selected Firms in the Building Industry in Nigeria

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  • Aduralere Opeyemi, OYELADE

Abstract

The study examined the impact of firm size on firm’s performance in Nigeria: A comparative study of selected firms in the building industry in Nigeria using annual data from 2004 to 2017. The technique used in the research work was panel analysis. Based on the financial measurement of performance using both return on assets (ROA) and return on equity (ROE), two out of the four variables used as an indicators of size were statistically significant in determine return on assets which are total sales and age of firm since incorporated and total sale has positive effect on return on assets while age of firm since incorporated has a negative effect on return on assets. Furthermore, it was observed that only leverage that was significant in determine return on equity. Based on productivity measurement of performance of the selected firms in the building industry in Nigeria using both output per labour and output per capital, also two out of the four variables used as an indicators of size were statistically significant in determine output per labour which are total sales and age of firm since incorporated and both have positive effect output per labour and total number of employee and leverage has a negative significant impact on output per labour. Also, only age of firm since incorporated as a measure of size that was significant in determine output per capital out of the four measurement of size and liquidity ratio has a positive significant effect on output per capital.

Suggested Citation

  • Aduralere Opeyemi, OYELADE, 2019. "The Impact of Firm Size on Firms Performance in Nigeria: A Comparative Study of Selected Firms in the Building Industry in Nigeria," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(1), pages 1-11.
    • Handle: RePEc:asi:adprev:v:7:y:2019:i:1:p:1-11:id:225
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    Citations

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    Cited by:

    1. Sari, Dyah Wulan & Restikasari, Wenny & Ajija, Shochrul Rohmatul & Tarbiyah Islamia, Haura Azzara & Muchtar, Darmawati, 2021. "The Impacts of Foreign Direct Investment and Export Expansion on the Performance of the High-Tech Manufacturing Industry," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(2), pages 91-105.
    2. Kennedy A. M. Gichira & Prof. Isaac M. Nkari & Dr. Catherine K. Kaimenyi, 2023. "Green Human Resource Management Practices and Performance: Testing the Moderating Role of Firm Size Using Evidence from Firms Listed on the Nairobi Securities Exchange, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(11), pages 292-301, November.
    3. Jonathan Mwau Mulwa, 2020. "Firm Size And Performance: An Econometric Analysis Of The Financial Performance Of Deposit Taking Microfinance Institutions In Kenya," Noble International Journal of Economics and Financial Research, Noble Academic Publsiher, vol. 5(5), pages 56-62, May.
    4. Alexandra Horobet & Georgiana Vrinceanu & Lucian Belascu, 2020. "Size And Firm Performance In Extractive Industries: Lessons For Entrepreneurs," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 14(1), pages 202-215.
    5. Arumona. O. Jonah PhD & Orbunde B. Bemshima. PhD & BELLO, Musibau, 2024. "Capital Structure, Dividend Policy and Firm Value of Listed Non-Financial Companies in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(4), pages 1279-1296, April.
    6. Olayiwola Kabirat Abiola & Intan Waheedah Othman, 2022. "Financial Management and Firms' Profitability: Evidence from Nigerian Manufacturing Listed Firms," Business and Economic Research, Macrothink Institute, vol. 12(2), pages 190-201, December.
    7. Ummay Mahima Ima & Nurun Nahar, 2022. "Impact of Firm Specific Factors on Profitability: Evidence from the Engineering Industry of Bangladesh," International Journal of Science and Business, IJSAB International, vol. 13(1), pages 100-106.
    8. Associate Prof. J.O Arumona & Associate Prof. Orbunde B.B & BELLO, Musibau, 2023. "Liquidity and Working Capital Management Practices on Firm Value of Listed Non-Financial Companies in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(11), pages 1049-1066, November.

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