FIRMS CHARACTERISTICS AND PERFORMANCE OF LISTED CONGLOMERATES FIRMS IN NIGERIA: AN EMPIRICAL ANALYSIS

Abstract

The main aim of this study is to assess the effect of firm’s characteristics on the performance of listed conglomerates firms in Nigeria. This research adopts correlational and ex-post facto designs. The population of this study consists of the six (6) conglomerate firms listed on the floor of the Nigeria Exchange Group (NSE) as at December, 2020. The study adopts census approach and data were collected from the published annual reports and accounts of the sampled conglomerate firms covering the period of five (5) years (2016-2020). Descriptive statistics, correlation analysis and multiple regressions analysis were used as techniques of data analysis. Diagnostic tests such as multicollinearity, heteroskedasticity, normality and hausman specification were performed in support of the application of the Random Effects Models used to analyze the nature and the degree of the relationships. The study found that leverage has a positive and significant effect on performance of listed conglomerate firms in Nigeria; there is significant relationship between institutional ownership and performance of listed conglomerate firms in Nigeria; there is significant relationship between women directors and performance of listed conglomerate firms in Nigeria. The study recommended that the management of listed conglomerates firms in Nigeria should ensure they hold adequate level of financial leverage to ensure that they do not affect other functions of the firm.