Title: Firm Attributes and Financial Performance of Service Industries in Nigeria
Authors: Ugwu, Ikechukwu Virginus, Ph.D; Edwin Chukwu Okoro, Ph.D; Obi Juliet Chinyere, Ph.D; Uzodinma Nwakego, Ph.D
Volume: 9
Issue: 8
Pages: 141-153
Publication Date: 2025/08/28
Abstract:
This study determined the effect of firm attributes on Financial Performance of service industries in Nigeria. The study was propelled by "resource based theory" (RBT) by (Wernerfelt, 1984) which propagates that proper combination of tangible, intangibles assets and other internal firm attributes increase financial performance. Our study argued along with the theory that proper firms' attributes especially internal attributes increase financial performance (firm value) to average profitability. To achieve the objectives, the study applied firm internal attributes of longevity, liquidity and leverage on financial performance measured with Tobin Q. Further, the study applied ex-post facto research methods and collected secondary data from six (6) firms using purposive sampling techniques on a population of twenty eight firms (28) listed in Nigeria Stock Exchange Group from (2014-2023). Research analyses applied: Descriptive Statistic, Pearson Correlation, Tests of Multicollinearity Variance Inflation Factor VIF and Panel Regression. After the analyses, the results showed F-statistics value and its corresponding probability value to be statistically significant at 1% level; while the empirical findings remain inconsistent with the theory. Other findings indicated that firm attributes of Longevity and Leverage were positive and non-significant; while Liquidity was negative and significant on financial performance of the selected service firms. The study recommended that firms should adapt proper debt and liquidity management that can improve firm performance. The study contributes to the existing body of knowledge with the specific findings as they affect financial performance. Implications of the results finding suggested that firm attributes of (longevity, liquidity and leverage) alone do not improve financial performance of service industries in Nigeria, although this should not be generalized in all industries in Nigeria and elsewhere; unless further studies' finding supported it.