The Analysis of Firm Size, Asset Tangibility, and Financial‎Performance of Non-Financial Firms Listed on TheNigerian ‎Exchange Limited

  • Authors

    • Odeh O Sunday Department of Accounting and Finance, Ahmadu Bello University, Zaria, Nigeria
    • Habibu Sabari M Department of Accounting and Finance, Ahmadu Bello University, Zaria, Nigeria
    • Popoola Abiodun Department of Accounting and Finance, Ahmadu Bello University, Zaria, Nigeria
    • Isah Shitu Department of Accounting and Finance, Ahmadu Bello University, Zaria, Nigeria
    • Abraham Vincent Atayi Department of Economics, Plateau State University, Bokkos, Plateau State, Nigeria
    • Elijah Adeiza Evinemi Department of Accounting, University of Nigeria, Nsukka, Nigeria
    https://doi.org/10.14419/kfc48e05

    Received date: October 20, 2025

    Accepted date: January 3, 2026

    Published date: January 12, 2026

  • Firm-Specific Factors; Financial Performance; Nigerian Exchange Group; Asset Tangibility; Firm ‎Size; Panel-Corrected Standard Errors‎.

  • Abstract

    This study examined the effect of asset tangibility, a firm-specific factor, on the financial ‎performance of non-financial firms listed on the Nigerian Exchange Group and assessed the ‎moderating role of firm size. Covering 78 firms across nine industries, including oil and gas, ‎communication, real estate, healthcare, industrial goods, consumer goods, services, and ‎conglomerates, the study spanned the period from 2012 to 2024. Descriptive statistics were ‎employed to summarize the data characteristics, while the cross-sectional dependence ‎augmented IPS (CIPS) test was used to assess stationarity. Additional diagnostic tests, ‎including correlation analysis, slope heterogeneity, heteroscedasticity, and serial correlation, ‎ensured model robustness. The Prais-Winsten regression with panel-corrected standard errors ‎‎(PCSEs) was applied to estimate the long-run effects of the explanatory variables on financial ‎performance. Empirical findings showed that asset tangibility exerted a negative and ‎statistically significant effect on financial performance, suggesting that higher fixed asset ‎intensity reduces profitability. The moderating analysis further revealed that firm size ‎strengthened the relationship between asset tangibility and financial performance, indicating ‎that larger firms can better leverage tangible assets to enhance efficiency and returns. These ‎results highlight the importance of strategic asset allocation and scale efficiency in improving ‎firm performance. The study recommends that firm managers optimize asset structures and ‎pursue growth strategies that exploit size advantages to mitigate inefficiencies linked to ‎excessive asset tangibility and sustain long-term financial performance in Nigeria’s non-‎financial sector‎.

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  • How to Cite

    Sunday, O. O., M, H. S. ., Abiodun , P. ., Shitu, I. ., Atayi, A. V., & Evinemi , E. A. . (2026). The Analysis of Firm Size, Asset Tangibility, and Financial‎Performance of Non-Financial Firms Listed on TheNigerian ‎Exchange Limited. International Journal of Accounting and Economics Studies, 13(1), 141-147. https://doi.org/10.14419/kfc48e05