The Impact of Firm Performance on Share Price of Listed Consumer Goods in Nigeria

This study investigates how firm characteristics affect the share price of listed consumer goods companies in Nigeria. Firm characteristics refer to the diverse attributes that define a company’s nature, structure, and performance across industries. The Nigerian consumer goods sector faces distinct challenges such as infrastructure limitations, supply chain disruptions, currency fluctuations, regulatory uncertainties, and shifting consumer preferences factors often overlooked in prior generalized studies. To address this gap, the study adopts an ex-post facto research design using secondary data from audited annual financial reports of listed consumer goods firms on the Nigerian Exchange Group (NGX) covering thirteen years (2011–2023). The study population comprised 21 consumer goods firms listed as of December 2023, from which a purposive sample of 10 firms was selected. Data were analyzed using descriptive and inferential statistics, including measures such as mean, standard deviation, and panel regression analysis to test hypotheses. The regression results showed that two out of four explanatory variables—Profit after Tax (p = 0.0495) and Return on Assets (p = 0.0002) significantly influenced share prices. The findings demonstrate a significant relationship between firm performance characteristics and share price in the Nigerian consumer goods sector. The findings indicate that Return on Assets (ROA) is the most significant positive determinant of share price, while PAT exhibits a counterintuitive negative effect, highlighting the importance of asset efficiency and sustainable profit utilization in influencing investor valuation. The study concludes that firms should enhance innovation and competitiveness through research and development to improve financial performance and market value. By aligning strategic operations with market trends, firms can strengthen investor confidence, increase profitability, and sustain share price growth in a dynamic economic environment.