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Effect of Information and Communication Technology (ICT) on Financial Performance of Listed Consumer Goods Firms in Nigeria

Author

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  • Okeke, Clement

Abstract

The impact of Information and Communication Technology (ICT) on firm performance has become the subject of active research in the last four decades. This study’s goal is to review the effect of ICT on the financial performance of firms in the consumer goods sector as measured by their Return on Capital Employed (ROCE) with firm size added as a control variable. For a period of ten (10) years, from 2013 to 2022, the study used thirteen (13) listed consumer goods companies in Nigeria. An ex-post facto research approach was used, and secondary data were gathered from the companies’ annual reports for the period under review. EViews version 12 was used to do correlation and regression analysis. The findings show that Funding for ICT Hardware (FICTH)and Funding for ICT Software (FICTS) have a negative and insignificant effect on the financial performance of listed consumer goods firms in Nigeria. The study suggests that stakeholders, especially managers in the consumer goods sector should always review all options carefully before venturing into any procurement of additional computer hardware or software bearing in mind the negative impact of their ROCE.

Suggested Citation

  • Okeke, Clement, 2024. "Effect of Information and Communication Technology (ICT) on Financial Performance of Listed Consumer Goods Firms in Nigeria," MPRA Paper 121293, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:121293
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    File URL: https://mpra.ub.uni-muenchen.de/121293/1/MPRA_paper_121293.pdf
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    References listed on IDEAS

    as
    1. R.M. Mahboub, 2018. "The Impact of Information and Communication Technology Investments on the Performance of Lebanese Banks," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 435-458.
    2. repec:ers:journl:v:volumexxi:y:2018:i:issue4:p:435-458 is not listed on IDEAS
    3. Evans Agala Mutende & M. Mwangi & J.M. Njihia & D.E. Ochieng, 2017. "The moderating role of firm characteristics on the relationship between free cash flows and financial performance of firms listed at the Nairobi securities exchange," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 6(4), pages 1-3.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Information and Communication Technology (ICT); Return on Capital Employed;

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L8 - Industrial Organization - - Industry Studies: Services
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L89 - Industrial Organization - - Industry Studies: Services - - - Other
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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