FIRM CHARACTERISTICS AND FINANCIAL PERFORMANCE OF QUOTED PHARMACEUTICAL COMPANIES IN NIGERIA

Abstract This study investigates the relationship between firm characteristics and financial performance of quoted pharmaceutical companies in Nigeria. Despite the sector’s pivotal role in healthcare delivery and economic development, many listed firms continue to experience suboptimal performance, raising concerns about underlying determinants. Drawing on theories such as the Resource-Based View, Agency Theory, and Pecking Order Theory, the study examines the effects of firm size, firm age, leverage, and ownership structure on financial outcomes measured by return on assets (ROA), return on equity (ROE), and earnings per share (EPS). An ex-post facto research design was employed, utilizing panel data from 2012 to 2022 across selected pharmaceutical firms listed on the Nigerian Exchange Group. Data were analyzed using descriptive statistics, correlation analysis, and panel regression techniques. Findings reveal that firm size and firm age exert significant positive effects on financial performance, underscoring the advantages of resource accumulation and organizational experience. Conversely, leverage demonstrates a significant negative effect, indicating that excessive debt undermines profitability and stability. Ownership structure exerts only a marginal effect, with outcomes highly dependent on governance mechanisms and institutional context. The study concludes that firm-specific attributes critically shape performance, and recommends that firms pursue growth strategies, leverage accumulated experience, adopt prudent financing policies, and strengthen governance systems to enhance competitiveness. The findings contribute to literature by providing context-specific insights into the Nigerian pharmaceutical sector, and offer practical implications for managers, investors, and policymakers.