IDEAS home Printed from https://ideas.repec.org/a/asi/ajemod/v10y2022i4p236-244id4663.html
   My bibliography  Save this article

Effect of Firm Characteristics and Some Key Monetary Variables on the Financial Performance of Unilever Nigeria Plc

Author

Listed:
  • Zubairu Ahmad
  • Adamu Hassan
  • Usman Muhammad Dakingari

Abstract

The purpose of this paper is to examine the influence of firm characteristics and some key monetary variables on the financial performance of Unilever Nigeria Plc. The variables used are financial performance, capital structure, dividend policy, managerial efficiency, inflation rate, interest rate and exchange rate. The autoregressive distributive lag (ARDL) model was used for the study. The findings show that capital structure and managerial efficiency have a significant positive effect on the financial performance of the sampled company; however, dividend policy has no significant influence on the financial performance of the company. Similarly, from the key monetary variables aspect, the study discovered that inflation rate and exchange rate have a significant positive influence on the financial performance of the company, while interest rate has a significant negative effect on the company’s financial performance. Based on these, this study suggests the need for the company to increase its effort to improve its capital structure and managerial efficiency. In addition, the study suggests the need for the company to consider the volatility of inflation and exchange rate when making investment decisions. Finally, the lending rate should be reduced by the deposit money banks for the company to gain easy access to capital to increase its investments and financial performance.

Suggested Citation

  • Zubairu Ahmad & Adamu Hassan & Usman Muhammad Dakingari, 2022. "Effect of Firm Characteristics and Some Key Monetary Variables on the Financial Performance of Unilever Nigeria Plc," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 10(4), pages 236-244.
    • Handle: RePEc:asi:ajemod:v:10:y:2022:i:4:p:236-244:id:4663
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5009/article/view/4663/7344
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Citra Sukmadilaga & Srihadi Winarningsih & Ivan Yudianto & Tri Utami Lestari & Erlane K. Ghani, 2023. "Does Green Accounting Affect Firm Value? Evidence from ASEAN Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 509-515, March.
    2. Dinh Cong Hoang & Dinh Cong Tuan, 2023. "Evaluating the Role of Green Financing, International Trade and Alternative Energies on Environmental Performance in Case of Chinese Provinces: Application of Quantile Regression Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 500-508, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:ajemod:v:10:y:2022:i:4:p:236-244:id:4663. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5009/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.