The aim of the study was to evaluate the extent to which Earnings Per Share is influenced by the level of fixed assets maintained by brewery firms in the Nigeria brewery industry. It sought to determine the significance and nature of the interactions between firm size and financial performance in Nigeria brewery industry from 2000 to 2013. The Engle and Granger 2-step cointegration approach, in a simple regression framework, was adopted in the data analysis with a model to estimate the error correction period. The time series data were tested for stationarity to avoid spurious regression, applying the Augmented Dickey Fuller (ADF) procedure. The test revealed that the study variables were integrated of the same order I(2), indicating a possible cointegration. Firm Size has both short and long term positive effect on EPS; with a significant long run influence. There is no causality running from either EPS to Total Assets or otherwise at both periods. The implication is that firm size does not granger cause EPS and vice versa in Nigeria brewery industry. The study further reveals that the distortions affecting EPS, resulting from firm size, in the long run, could be corrected in approximately six (6) months. Consequently, to improve on financial performance, the firms within the industry should strive to fully automate their production lines, thereby increasing their asset base, in order to enhance product quality and packaging, meet the demands of customers at short notice, remain relevant amidst stern competition in the industry and avoid stock out costs.
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