FIRM CHARACTERISTICS AND FINANCIAL PERFORMANCE OF LISTED COMMERCIAL BANKS IN NIGERIA.
Abstract
This study investigates firm characteristics and financial performance of listed commercial banks in Nigeria. Financial performance is measured by Return on Asset (ROA), Return on Equity (ROE), and Return on Capital Employed (ROCE), while the independent variables include liquidity, leverage, firm size, and firm age. The study aims to determine how these firm-specific characteristics influence the financial performance of commercial banks in Nigeria. The study population comprises fourteen (14) listed commercial banks as of December 31, 2019, they are all selected as the sample for the period 2012–2019. Secondary data were obtained from annual reports of the listed banks and analyzed using panel regression models. The Hausman specification test indicated that the random effects model was more appropriate. Findings reveal that liquidity has a positive and significant effect on financial performance, while leverage and firm size show negative but significant effects. Firm age exhibited a negative and insignificant relationship. The study concludes that firm characteristics significantly influence the financial performance of listed commercial banks in Nigeria. It recommends that banks maintain an optimal liquidity level and manage leverage efficiently to enhance profitability and sustainability.
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