ASSET MANAGEMENT AND FIRM PERFORMANCE IN NIGERIA

ABSTRACT

This study investigates the asset management and firm performance within the consumer goods manufacturing sector in Nigeria. It adopted a quantitative research approach and employing various panel data analysis techniques, including fixed and random effect models, the research explores the relationships between key variables such as Current Assets (CAS), Non-current Assets (NCAS), Debt-Equity Ratio (DER), and Profit After Tax (PAT). The findings reveal positiuve correlations, highlighting direct relationship between the variables. While both fixed and random effect models indicate positive impacts of assets on PAT, the impact of Current Asset on the profitability of the firms were significant (p<0.05). Though, NCAS and DER were not significant, (P>0.05) The study emphasizes the necessity for firms to increase their assets and also diversify the asset portfolios judiciously, balance debt levels, and continuously monitor asset performance. Additionally, researchers are encouraged to conduct in-depth, longitudinal studies, while policy makers should consider sector-specific guidelines to promote prudent asset management practices. Investors are advised to adopt a comprehensive approach, integrating both financial and asset management metrics for well-informed investment decisions.