EXAMINING THE CHARACTERISTICS AND FINANCIAL ACHIEVEMENT OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Background To The Study: The performance of each firm not only contributes to its own market value, but also to the growth of the whole industry, which in turn contributes to the economy's economic success. Scholars in numerous fields of business and strategic management have paid close attention to the topic of financial performance. Financial performance has ramifications for an organization's health and, eventually, its survival, and it has been a main concern of business practitioners in all sorts of companies. High performance demonstrates managerial effectiveness and efficiency in utilizing a company's resources, which benefits the whole economy of the country. Naser K, Naser K, Naser K (2004).

Profitability thus, is a life wire gauge for evaluating, monitoring managerial and measuring performance of those charged with the responsibility of corporate management, including the overall roles of the board in maintaining the wheel of the entity. Glautier, Underdown and Morris (2011), see profitability as an index that expresses the gain over the cost involved. The uncertainty attached to the possibility of realizing gains in competitive markets heightens the need for the knowledge of costs and the system of Corporate attribute practice that may give rise to profitability.

Corporate attribute arrangements not only the internal administration of the firms, it also connected with a firm’s relationship with its suppliers, customers, and other stakeholders. The developing need for stocks and other assets from organizations expanded the vitality of Corporate attribute around the planet. Raising investment fund, liquidity with the view of profitability is highly competitive for the organizations.

Corporate attribute turned a well known finance exchange platform in the modern world. Generally, Corporate attribute determines firm establishment that defend and flourish the expectations of stakeholders which expanding worldwide considerations. However, those possibilities of Corporate attribute varies between countries, relying upon the economic, radical and furthermore social contexts. Organizations in rich economic countries divide shareholders jurisdictions that works in stable political, budgetary financial structures and developed legislative frameworks of Corporate attribute.

Corporate attribute varies from entity to entity and geographical region of countries. Its ultimate goal is to standardize, gain high rate of return and to prevent financial structure in attaining their targets at the expense of the investors (Luo, 2007). It must be acknowledged that feeble Corporate attribute or non-compliance of its doctrine could prompt financial abuses, corporate frauds and generate heavy losses for the companies (Jill, 2008).

Corporate attribute can be defined as the process and structure that is used for directing and managing business’ affairs in order to enhance business prosperity and corporate accountability with the ultimate objective (Mohamed, Ahmad, &Khai, 2016). Practicing Corporate attribute for many Asian countries is considered as a crucial issue, especially after the financial crisis in 1997 (Mohamed et al., 2016).

The problem now is whether the firm Attribute influence financial performance. Studies have shown that Corporate attribute can be measured through board size, board women, CEO duality, and board education, working experience, outside directors, compensation and block holders, Phan T.G Et’al (2013). Several studies have examined the impact of CEO duality, board composition, board size, board independence on firm performance. In Nigeria, studies like Sanda, Mukailu, and Garba (2007), Ehikioya (2009), Babatunde and Olaniran (2009), Kajola (2010), and Akhalumeh and Ohiokho (2011), have studied Corporate attribute and firm performance, but did not consider the elements of gender, age and educational qualification. Therefore, this study aims to examine the influence of Corporate attribute on financial performance in Nigeria. The study intends to use firm size, firm age and leverage as measures of corporate attribute on return on equity as measure of financial performance

1.2 statement of the research problem

Theoretical basis for arguing that Corporate attribute are related to financial performance can be found in the traditional neoclassical view of the firm and the concept of economies of scale. Economies of scale may occur for various reasons such as financial; better interest rates and better discount rate to larger firms, organizational; specialization and division of labor, and technical; division of high fixed costs across large number of units. Thus, a positive relationship between firm size and profitability is expected. A negative relationship between firm size and profitability is noted in the alternative theories of the firm, which suggest that large firms come under the control of managers pursuing self-interested goals and therefore profit maximization as the firm‟s objective function may be replaced by managerial utility maximization function. While, Ajagbe (2007), put forward that in poor corporate management, fraud and insider abuse of power by management and board of directors is common place. There is however, a unanimous agreement that the key outcome of poor Corporate attributes is earnings smoothing. However, poor Corporate attributes practices invariably result to failure of firms, Enofe, A.(2012). Such significant failures have brought to the fore the need for a deeper understanding of the impact of Corporate attributes on corporate performance. Despite that regulatory agencies emphasize on Corporate attributes and performance, it is surprising given that many academic investigations did not report statistical relationships between the variables, Weisbach, M. S. (1998) and, in some studies, they reported negative relationship between Corporate attributes and firm performance. Several explanations have been suggested to be responsible for the inconsistencies. Some argued that the challenge results from the adoption of either publicly available information or survey results as these sources are restricted in scope Long, M. D. (2013). Majority of these works, however, focused on either only financial institutions or non-financial institutions.

Studies on the effect of Corporate attribute on firm performance have generated mixed results ranging from those supporting a positive relationship to those opposing it. A positive relationship between firm size and performance was found by Vijayakumar and Tamizhselvan (2010). In their study, they used different measures of size (sales and total assets) and performance (profit margin and profit on total assets). Majumdar (1997), investigated the impact that firm size has on profitability and productivity of a firm. While controlling for other variables that can influence firm performance, he found evidence that larger firms are less productive but more profitable.

The problem now is whether the Corporate attribute influence financial performance. Studies have shown that Corporate attributes can be measured through board size, board women, CEO duality, and board education, working experience, outside directors, compensation and block holders Phan T.G (2013). Several studies have examined the impact of CEO duality, board composition, board size, board independence on firm performance. In Nigeria, studies like Sanda, Mukailu, and Garba (2007), Ehikioya (2009), Babatunde and Olaniran (2009), Kajola (2010), and Akhalumeh, Ohiokho, Ohiokha (2011), have studied Corporate attributes and firm performance, but did not consider the elements of firm size, age and leverage. Therefore, this study aims to examine the influence of Corporate attributes on financial performance OF Listed Consumer Goods Companies In Nigeria.