IMPACT OF FIRM SIZE ON CORPORATE PROFITABILITY OF FIRMS QUOTED ON THE NIGERIA STOCK EXCHANGE (NSE)

ABSTRACT

This study examines the impact of firm size on the

corporate profitability of quoted firms on the Nigerian Stock Exchange. The

study aims to examine the relationship between firm size and corporate profitability

of Nigerian quoted firms and to find out if firm size have impacts on corporate

profitability of Nigerian quoted firms. The study used analytical software

called Statistical Package for the Social Sciences (SPSS version 20) to carry

out correlation and regression analysis on the data obtained from secondary

sources which are Nigerian Stock Exchange factsbook and organisations annual

reports, sourced from 2011-2015. The variables considered for the study are

total assets for firm size and return on assets for corporate profitability.

The study found that firm size has no significant impact on the corporate

profitability of Nigerian firms quoted on NSE. The study therefore recommends

that Nigerian firms should invest in other lines of business for example

product diversification and investments to supplement their income from core

business. This will boost their stability and contribute to profitability.

Also, corporate firms should make maximum use of their available resources for

example assets to boost their profitability and effectively execute their core

functions. It is worth noting that good performance of corporate firms have

positive impact on the economy.