The Effect of Firm Size on Firms Profitability in Nigeria
By Y. A. Babalola. 2013
154 citations recorded by the source corpus.
Firms in a market economy vary widely in size, profitability, and survival. What are the factors determining these observed variables and how they operate has been active topic of research in industrial organization and more generally in developing country where Nigeria is one of them. Firm size has been considered as an important determinant of firm profitability. In this study, the effect of firm size on the profitability of manufacturing companies listed in the Nigerian Stock Exchange was analyzed by using a panel data set over the period 2000-2009. Profitability was measured by using Return on Assets, while both total assets and total sales were used as the proxies of firm size. According to the results of the study, firm size, both in terms of total assets and in terms of total sales, has a positive impact on the profitability of manufacturing companies in Nigeria. Keywords: Firm Size, Profitability, Manufacturing Companies, Nigeria Stock Exchange.
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Citations in the corpus
- The Determinants of Profitability in Listed Enterprises: A Study from Vietnamese Stock Exchange (2020, background): “Similarly, Babalola (2013), Baumol (1985), Blundell, Griffith, and Reenen (1999), Doğan (2013) agree with this hypothesis since they believe that an increase and upgrade in the financial capital can help the enterprise with capacity improvement, then market share extension before taking the…”
- The Moderating Effect of Firm Size on the Relationship Between Capital Structure and Financial Distress of Non-Financial Companies Listed in Kenya (2017, result): “These results were in agreement with those by Babalola (2013) whose study of 80 Nigerian manufacturing firms listed in the Nigerian stocks exchange showed a positive and significant relationship between firm size and profitability (ROA).”