Asset Structure and Financial Performance of Listed Companies in Nigeria

Abstract

This study provided empirical evidence of the effect of asset structure on financial performance of listed companies in Nigeria. Data were collected from eight listed companies over the period 2015 to 2024. Descriptive statistics was used to summarize the collected data while hypotheses were analyzed and tested with panel regression. The findings of this study revealed that non-current asset has positive and insignificant impact on return on asset of listed company in Nigeria, current asset has negative and insignificant impact on return on asset, while intangible asset has positive but insignificant impact on return on asset of listed company in Nigeria. In conclusion, companies with a greater focus on current assets, particularly cash and receivables, might enjoy higher liquidity but could potentially miss out on long-term value creation from investments in fixed or intangible assets. It was recommended that management of listed companies should adopt efficient working capital management practices to avoid excessive investment in current assets such as cash, inventory, and accounts receivable