Determinants of firm Profitability in Nigeria: Evidence from dynamic panel models

Artikel

This study examines the determinants of firm profitability for 114 firms listed on the Nigerian Stock Exchange (NSE) from 1998 to 2012, using the system Generalized Method of Moments (GMM). The results show that lagged profitability exerts significant positive effect on contemporaneous firm profitability. However, short-term leverage, inflation rate, interest rate and financial risk have significant negative effects on firm profitability. The study therefore suggests, among other recommendations, that the cost of borrowing to the real sector of the economy should be reduced in order to minimize costs of production, enhance productivity and profitability while necessary macroeconomic policies should be put in place by the government to curb inflationary pressure in the economy.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: SPOUDAI - Journal of Economics and Business ; ISSN: 2241-424X ; Volume: 68 ; Year: 2018 ; Issue: 1 ; Pages: 43-58 ; Piraeus: University of Piraeus

Classification and Topics

• Classification: Wirtschaft ; History of Economic Thought: Microeconomics ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Firm Performance: Size, Diversification, and Scope
• Subject: Firm ; Non-financial ; Profitability ; Leverage ; Generalized Method of Moments ; Nigeria

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Odusanya, Ibrahim Abidemi ; Yinusa, Olumuyiwa Ganiyu ; Ilo, Bamidele M.
• Event: Veröffentlichung
• (who): University of Piraeus
• (where): Piraeus
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/195210
• Last update: 10.03.2025, 11:41 AM CET