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Saudi Journal of Business and Management Studies (SJBMS)
Volume-3 | Issue-03 | 299-310
Original Research Article
Firm Growth and Profitability: An Empirical Study of Listed Agricultural and Agro Allied Companies in Nigeria
IsiakaOlalekan Lasisi, Lateef Olumide Mustapha, Joshua Okpanachi
Published : March 30, 2018
DOI : 10.21276/sjbms.2018.3.3.13
Abstract
This study empirically examines the effects of firm growth on the profitability of listed agricultural and agro allied firms in Nigeria. The population of the study consists of twenty four (24) listed agricultural and agro allied firms in Nigeria as at 31st December 2016. The sample size of the study is (20) twenty for the period of nine years (2008-2016). The judgmental sample technique was applied. The panel data was extracted from the annual report and accounts of the study firms. A multiple regression was used to analysis the data through STATA13 to test the null hypotheses of the study. The Hausman test conducted indicated that the model is fixed effect. The result of findings showed that sales growth has a positive and significant effect on return on asset, also asset growth shows a insignificant negative effect on return on asset, while firm age revealed a significant negative effect on return on asset of the listed agricultural and agro allied firms in Nigeria. It is recommended among others that the management of agricultural and agro allied firms in Nigeria should maintained a level of sales level through market strategies. The firm managers should strike a balance between asset investment and profitability and always maintain reasonable level of profitability has company grow older to prevent liquidation of companies.
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