IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF ECONOMICS AND BUSINESS MANAGEMENT (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 11 NO. 5 2025
DOI: 10.56201/ijebm.vol.11.no5.2025.pg134.152

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Corporate Financial Indicators and Operational Performance of Listed Manufacturing Companies in Nigeria

Okonewa Onyinyechukwu & Onyeaka, Mmesoma Favour

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Abstract

The study examined the relationship between corporate financial indicators and operational performance of firms. The study specifically covered manufacturing firms that are listed on the Nigerian Exchange Group. The proxies of corporate financial indicators are liquidity ratio, leverage ratio and activity ratio. The time period that was covered in the study was a ten-year period that spans from 2010 to 2019 financial years. The sample size of the study is seven (7) Industrial Goods Firms which were obtained using purposive sampling technique from a population of thirteen (13) listed Industrial Goods Firms in Nigeria. The test of hypotheses was conducted using Ordinary Least Square technique at 5% level of significance. The findings revealed that there was no significant relationship between activity ratio and return on equity of listed manufacturing firms in Nigeria at 5% level of significance; there was a statistically significant negative relationship between leverage ratio and return on equity of listed manufacturing firms in Nigeria at 5% level of significance level; liquidity ratio has no significant relationship with return on equity of listed manufacturing firms in Nigeria at 5% level of significance level. The study recommended that firms in the manufacturing sector should pay much attention to their level of asset management so that the assets used in production and distribution of goods will be optimised for an improved financial result.

keywords:

Corporate financial indicators, operational performance, listed manufacturing

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