You have no items in your shopping cart.
The study examines the effect of micro-economic factors and firm performance in the manufacturing industry in Nigeria between 2010 and 2023. A quantitative research approach was adopted in the study utilising an ex-post facto design. The population consisted of all registered manufacturing companies operating in Nigeria.The sample was restrained to 5 target variables within the period of 2010-2023 (14 years): Profitability, Inflation Rate, Interest Rate, Exchange Rate and Government Spending. The ARDL (Autoregressive Distributed Lag) model was used for its estimates in order to establish a relationship between variables. The findings revealed that the performance of Nigerian manufacturing companies is negatively correlated with the country's inflation rate,while they are positively correlated with interest rate and negatively correlated with exchange rate.Hence, the study concludes that some of the variables shows a positive relationship on the performance of manufacturing firms and managers should focus their attention on these factors to reduce costs associated with capital and ultimately enhance the well-being of stakeholders and shareholders. The study recommends among others that the firms should strike a balance between their choice of capital structure and the effect on its performance as it affects the shareholder’s risks, returns and the cost of capital.This study also suggested that future research studies should examine businesses' success from several angles, such as accounting and marketing metrics, because the short term and long term integration may help to maximize the wealth of shareholders.
