Asset Structure relevance and Corporate Firm performance: Evidence from
Nigerian Manufacturing firms
Abstract
This paper examines asset structure relevance for corporate performance
of Levered Firms in Nigeria. The data were collected from annual reports
of firms listed on Nigerian Exchange Group (NGX) from 2011 to 2020.
Descriptive statistics, correlation, pooled OLS regression analysis
including multicollinearity and heteroscedasticity tests were employed.
The study findings reveal: that contrary to low levered firms, fixed
asset ratio and customer asset ratio have passive influence on internal
and external corporate performance of high levered firms; unlike the low
levered firms, current asset ratio has significant impact on internal
corporate performance of high levered firms but tends to decrease in
external performance; Non-current asset ratio and intangible asset
ratio have passive influence on internal and external corporate
performance of both Low and high levered firms. These findings are
pointers to policymakers and investors on the possible effect of an
additional increase in asset mix. Beyond this, it also reveals how
assets are encumbered in debt financing, which is of serious concern to
managers. An implication of this, is that an understanding of a
company’s asset structure improves understanding of the rigorous process
assets investment managers undergo daily, especially as it portends to
assets acquisition patterns or the components of the equity or debt.