Title: 1Do older consumer goods firms in Nigeria deliver bigger or lesser payoffs for shareholders?
Authors: Kelechi Margaret Amasiatu, Ph.D., Gilbert Ogechukwu Nworie, Prof. Friday E. Nkwede
Volume: 10
Issue: 6
Pages: 17-24
Publication Date: 2026/06/28
Abstract:
) Older firms tend to face outdated processes, high costs, and slow responses to market changes, reducing their competitiveness and ability to generate shareholders returns. Hence, this study investigated whether an increase in the age of Nigerian consumer goods firms affect total shareholders return. The specific objective was to examine the relationship between firm age and shareholder wealth while controlling for firm size and leverage. An ex-post facto research design was adopted, using secondary data from audited annual reports. The population comprised twenty listed consumer goods firms on the Nigerian Exchange Group, with a sample of fifteen firms that consistently reported complete financial data from 2015 to 2024. Data were analyzed using panel estimated Generalized Least Squares (GLS) regression to test the hypothesis. The findings reveal that firm age has a significant negative effect on total shareholders return, indicating that older firms deliver lower payoffs. Thus, the older Nigerian consumer goods firms get, the less payoffs they deliver to shareholders. The study concludes that aging consumer goods firms in Nigeria may face reduced efficiency and market responsiveness, which adversely impacts shareholder wealth. Hence, management of older consumer goods firms should regularly review and update operational processes to maintain efficiency and responsiveness, ensuring that aging structures do not hinder the ability to deliver shareholder returns.