THE EFFECT OF FIRM ATTRIBUTE ON THE FINANCIAL PERFORMANCE ON CONGLOMERATE FIRMS IN NIGERIA

This study examines the effect of firm attributes on the financial performance of listed conglomerate firms in Nigeria from 2018 to 2022. Focusing on firm size, growth, asset tangibility, and liquidity as key determinants, the research employs a panel data analysis of all seven conglomerates listed on the Nigerian Exchange Group (NGX). The study is anchored in Agency Theory, which elucidates how managerial decisions and firm characteristics influence financial outcomes. Methodologically, the study adopts a census sampling approach and analyzes secondary data from annual reports using descriptive statistics, correlation analysis, and random effects regression. Diagnostic tests, including Breusch-Pagan and Hausman tests, confirm the robustness of the model. Key findings reveal that firm size (β = 40.25, p < 0.01) and firm growth (β = 29.70, p < 0.10) significantly enhance financial performance, while asset tangibility and liquidity show statistically insignificant effects. The model explains 52.18% of the variation in financial performance (proxied by ROA), with firm-level attributes accounting for 87.42% of cross-sectional differences. The study concludes that optimal firm attributes—particularly size and growth—are critical drivers of financial success in Nigerian conglomerates. Recommendations include: (1) strategic capital structure optimization to leverage size advantages, (2) sustained asset development to harness economies of scale, and (3) maintaining liquidity ratios at 2.1:1 to balance risk and operational efficiency. These insights contribute to corporate finance literature by validating Agency Theory in emerging markets and offering practical guidance for managers