THE RELATIONSHIP BETWEEN ASSET STRUCTURE AND FINANCIAL PERFORMANCE OF COMPANIES IN NIGERIA

ABSTRACT

The purpose of this study is to examine the relationship between asset structure and financial performance of companiesrin Nigeria. Specifically, the study examined the effect of current assets, non current assets (fixed assets), intangible asset, total asset (company size) affect on financial performance of quoted pharmaceutical companies in Nigeria. A multiple regression estimation approach was employed on information extracted fromrra sample consisting of six(6) pharmaceutical companies quoted in Nigerian Stock Exchange between the years 2014 to 2022. Panel Least Square (PLS) regression technique was employed in estimating the data and testing the formulated hypotheses. The findings revealed that there is a significant relationship between current asset and financial performance of quoted companiesrrin Nigeria, while there is no significant relationship between noncurrent assets (fixed assets), intangible asset, total asset (company size)and financial performance ofrrquoted companies in Nigeria. In line with the findings, the study recommends that the management of quoted pharmaceutical companies shouldrrpay proper attention to current asset of their companies to further enhance the significant relationship between current asset and financial performance.