1Abdul-Khadir Musa Ismail 2.Ahmadu Noel Donald 3.KabiruBashiru Ibrahim
1 & 3 Business Admin., & Mgt. Dept., Federal Polytechnic, Nasarawa
2 Humanities Social Sciences Dept., Federal Polytechnic, Nasarawa,
Corresponding email: abdulkhadirismail257@gmail.com, 09035221972
Abstract
The profitability of firms plays a crucial role in determining their financial success and sustainability in the marketplace. Within the context of industrial goods firms in Nigeria, there is a need to investigate how firm size (FSZ) and firm age (AGE) influence profitability (ROA). Thus, the study was specifically designed to establish the effect of firm age and firm size on the profitability of listed industrial goods in Nigeria. The study used an ex-post facto research design to analyze 13 listed industrial goods firms on the Nigerian Exchange Group. Purposive sampling was used to select firms with complete financial statements and relevant research variables. Time series data was obtained from the firms’ financial statements and the NGX Group fact book for the period 2013 through 2022. Using regression analysis to test the effect of FSZ and AGE on ROA, the findings showed that FSZ (size) does not have a statistically significant effect on ROA, but the age of the companies (AGE) shows a significant positive relationship with ROA. It is recommended that the management of listed industrial goods firms recognize the value of experience and longevity in the industry and leverage it to enhance ROA and redirect their focus towards improving efficiency and productivity by embracing initiatives aimed at optimizing operations, streamlining processes, and maximizing resource utilization.
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