Universal Journal of Accounting and Finance Vol. 9(6), pp. 1235 - 1246
DOI: 10.13189/ujaf.2021.090603
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Effect of Economic Variables on the Financial Performance of Listed Firms Manufacturing Consumers Goods in Nigeria


Idaka Sunday Egbe 1,*, Ugwoke Robinson Onuora 2, Ajuh Ali Iteh 2, Edith O. Onyeanu 2
1 Department of Accounting, University of Calabar, Calabar, Nigeria
2 Department of Accountancy, University of Nigeria Nsukka, Enugu Campus, Nigeria

ABSTRACT

The study analyzes the effect of economic variables on the financial performance of listed firms manufacturing consumer goods in Nigeria. The researchers adopted the Ex-post facto research design and Ordinary Least Square multiple regression analysis for estimation of the equations. The population comprises 20 listed consumer goods manufacturing companies, and total sample of 13 firms, the data covered 17 years' financial reports. The sample was determined using the elimination method and purposive sampling techniques. We found strong correlation between CPI, interest, exchange rates and net asset per share. CPI has significant effect on NAPS and there is short run relationship based on the coefficients ARDL, exchange and interest rates showed no significant effect on NAPS. The economic implication of the result based on the CPI is that consumers are paying more due to the rise in the level of inflation, firms adjust their profit margin to cushion the effect, and 1% rise in interest and exchange rates result to decline in NAPS. The researchers recommended that government should provide enabling environment for business to thrive by providing moderate interest rate to manufacturing firms, and encourage the demand for made-in-Nigeria to strengthen the value of the Naira to compete well with foreign currencies in the international market.

KEYWORDS
Consumer Price Index, Interest Rate, Exchange Rate, Net Asset Per Share, Consumer Goods, Financial Performance

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Idaka Sunday Egbe , Ugwoke Robinson Onuora , Ajuh Ali Iteh , Edith O. Onyeanu , "Effect of Economic Variables on the Financial Performance of Listed Firms Manufacturing Consumers Goods in Nigeria," Universal Journal of Accounting and Finance, Vol. 9, No. 6, pp. 1235 - 1246, 2021. DOI: 10.13189/ujaf.2021.090603.

(b). APA Format:
Idaka Sunday Egbe , Ugwoke Robinson Onuora , Ajuh Ali Iteh , Edith O. Onyeanu (2021). Effect of Economic Variables on the Financial Performance of Listed Firms Manufacturing Consumers Goods in Nigeria. Universal Journal of Accounting and Finance, 9(6), 1235 - 1246. DOI: 10.13189/ujaf.2021.090603.