IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/121293.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/121293/1/MPRA_paper_121293.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    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)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Le Hoang Vinh & Ngo Van Toan & Pham Le Quang, 2023. "Non-Linear Impact of ICT on Profitability of Commercial Banks in Vietnam," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 42-53.
    2. Madaleno Mara & Bărbuţă-Mişu Nicoleta, 2019. "The Financial Performance of European Companies: Explanatory Factors in the Context of Economic Crisis," Ekonomika (Economics), Sciendo, vol. 98(2), pages 6-18, December.
    3. Kuldeep Singh & Sam Goundar & Preetha Chandran & Amit Kumar Agrawal & Nimisha Singh & Prasanna Kolar, 2023. "Digital Banking through the Uncertain COVID Period: A Panel Data Study," JRFM, MDPI, vol. 16(5), pages 1-18, April.
    4. AKINTUNDE, Adewale John. & LAMBE, Isaac, Ph.D. & DANIEL, Emmanuel Kayode, Ph.D., 2024. "Effect of Management Techniques and Financial Performance of Listed Manufacturing Firms in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(2), pages 1912-1937, February.
    5. Kahihu Peter Karugu & Wachira D. Muturi & Stephen M. A. Muathe, 2020. "Market Risks, Firms’ Size and Financial Performance: Reality or Illusion in Microfinance Institutions in Kenya," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(11), pages 118-118, November.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:121293. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.