Effect of Firms’ Growth Indices on Profitability of Food & Beverage Firms in Nigeria

Abstract

The study appraised the effect of firms’ growth indices on profitability of firms in Nigeria. The research adopted ex- post facto research design covering the period of sixteen years, 2001-2016. Secondary data was extracted from annual report and accounts of selected brewery firms quoted in the Nigeria Stock Exchange. The data were analyzed using multiple linear regression technique. Findings show that Total assets have significant effect on firm performance in Nigeria; Market value has significant effect on firm performance in Nigeria; and Firm size has significant effect on firm performance in Nigeria. The study recommends that Firms should endeavour to maintain increased assets to boost their performance, carry out necessary market capitalization in order to increase firm market value that would in turn lead to more performance rating. Firms should consolidate on attracting higher share sizes as a means of sustaining the performance of firms in Nigeria.

Keywords: Growth Indicators, Market Value, Firm Size, Profits after Tax