Effect of Financial Risk on Performance of Selected Manufacturing Firms in Nigeria

Isamade, Burabari Andrea and UDEH, Sergius Nwannebuike and ODO, John Onyemaechi (2022) Effect of Financial Risk on Performance of Selected Manufacturing Firms in Nigeria. European Journal of Finance and Management Sciences, 6 (5). pp. 86-99. ISSN 2754-4109

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Abstract

The aim of this study is to investigate the effect of financial risk on performance of selected manufacturing firms in Nigeria. Specifically, the study is set to determine the effect of operational risk, credit risk and liquidity risk on profit for the year of manufacturing firms in Nigeria. The study adopts ex-post facto research design. The population comprises of all the 17 quoted food and beverage companies in Nigeria, while the sample size comprised of 5 food and beverage firm namely: Nigerian breweries Plc, Champion breweries Plc, Nestle Nigeria, Guinness Nigeria Plc and Cadbury Nigerian Plc. Judgmental sampling technique is used in selection of the sample. Panel regression technique based on random effect model is used to establish the effect of operational risk, credit risk and liquidity risk on profit for the year. Unit root test and descriptive statistics are used as preliminary test. The study reveals that operational risk, credit risk and liquidity risk have a positive significant effect on profit for the year of selected manufacturing firms in Nigeria. Operational risk have positive significant effect on the profit for the year of selected manufacturing firms. The study recommends manufacturing firms in Nigeria to make cost benefit analysis before committing the firm’s resources towards a specific decision.

Item Type:	Article
Subjects:	H Social Sciences > HJ Public Finance
Divisions:	Faculty of Management and Social Sciences
Depositing User:	MRS KELECHI OBI
Date Deposited:	07 May 2024 12:37
Last Modified:	07 May 2024 12:37
URI:	http://eprints.gouni.edu.ng/id/eprint/4300

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