Firm Characteristics and Financial Performance of Firms in Nigeria. The Case of Uba Nigeria Plc

Abstract

Firm characteristics and their impact on financial performance of Nigerian companies are the focus of this study. As it pertains to UBA Nigeria Plc: The study adopted an ex post facto research design. The Bank's publicly accessible financial records for 2013–2022 provide the study's data. Using E-view 9.0 software, the study ran the data using multiple regression analysis and descriptive statistics. We used market capitalization and firm age as stand-ins for firm characteristics, and return on asset as a proxy for financial performance. ROA was found to be positively and statistically significantly impacted by both FAG and MKC. Finally, the financial performance of UBA Nigeria Plc is influenced by corporate characteristics. Optimal financial performance to attract investors and remain stockholders is more likely to be maintained by older firms, according to the study. Market capitalization is a useful instrument for managers to enhance their companies' financial performance. The study recommends that the longer a company has been around determines its ability to draw in investors and keep them as shareholders. Optimal financial performance is more likely to be maintained by an older firm. Managers should consider market capitalization while seeking methods to increase the firm's bottom line. UBA Nigerian plc should consider diversifying its revenue streams to reduce dependence on interest income. The Bank should focus on reducing its operating expenses to improve its efficiency ratio. UBA Nigerian Plc should strengthen its risk management framework to minimize losses from loan defaulter’s market volatility and operational risk. The bank should invest in technology efficiency to improve its operational efficiency, customer service, and competitiveness.