Assets Tangibility And Market Performance Of Listed Firms In Nigeria
Nangih, Efeeloo Ph.D, FCA, FCTI
Department of Accountancy, Kensarowiwa Polytechnic, Bori.
Turakpe, M.J Ph.D
Department of Banking and Finance, Kensarowiwa Polytechnic, Bori
Effe-Nnamdi Ann C.
Department of Banking and Finance, Abia State University, Uturu
Keywords: Assets tangibility, Market Performance, Earnings per share, Market price per share
Abstract
Abstract: This study was carried out to investigate the effect of assets tangibility on market performance of listed firms in Nigeria. The population of the study was Consumer and Industrial goods sectors. Ex post facto method was employed as the study design; and was anchored on the Resource based theory. It proxy assets tangibility (the independent variable) using tangible and intangible non-current assets ratios; while market based performance (the dependent variable) was measured using earnings per share and market price per share. The study purposively selected 13 listed consumer and industrial goods sector firms quoted on the floor of the Nigeria Exchange Group, which were used as the study sample. The data collected were for the period of 2013 to 2022 and were analyzed using descriptive statistics, correlation and regression techniques. Findings showed that assets tangibility was significant in predicting market performance of firms at 5% significant level. Specifically, the results showed that tangible non-current assets had negative and insignificant effect on market performance indicators of the sampled firms; while intangible non-current assets had positive and significant effect on performance. Accordingly, the study recommended that entities should invest minimally in tangible non-current assets since it had insignificant effect on both earnings per share and their market price per share; but should rather invest more in intangible resources in order to grow their market performance indicators.