Assets Tangibility and Firms' Financial Performance: Evidence from Nigeria

Abstract

The study examined assets tangibility and stock returns in Nigeria. The ex-post facto research design was adopted in the methodology of the study. A sample of 43 companies was examined for 2008-2015 financial year. Secondary data from annual reports and accounts of the sampled firms were used for the study. The data analysis technique used is panel Estimated Generalized Least Squares (EGLS) regression with fixed effect after the regression assumption test as well as preliminary analyses. The study finding indicates that asset tangibility is significant and positive on the firms' financial performance. Size was ascertained was not statistically significant at engendering the financial performance of the quoted firms. Long term debts positive and significant on the firms' financial performance. The recommendation flowing from this study is that firms are encouraged to occasionally employ a model to examine how the level of fixed non- current assets in relation to the total noncurrent assets is yielding financial returns as this will guide them at taking very wise investment assets. This is because it is a common knowledge in literature that excess investment in assets may mean the capital is being tied down, thus resulting to a waste of resources.