Firm Size and Financial Performance Among Listed Banks of Emerging Economies in Africa

Abstract

The continuous increase in the size of various firms and listed banks, has necessitated the need to empirically examine the effect firm size has on the financial performance of listed banks in Africa. This is because some organisations and institutions have in time past failed to fulfill their going concern objective despite their large firm size balance. This study examined the effect firm size has on the three levels of cash flow of emerging economies in listed banks in Africa. The study employed the use of multiple regression analysis with the aid of the STATA statistical software tool. The result obtained revealed that for the operating level of cash flow, all countries used in this paper, with the exception of Kenya should continue to employ the independent variable as a corporate strategy method as it increases operating cash inflow. The financing level of cash flow results recommended that all countries except Nigeria should continue to utilize firm size as a significant value was obtained from the regression. The investing level of cash flow results produced a significant P-value for all countries with the exception of Botswana. The study, therefore, recommended that listed banks in Kenya, Nigeria and Botswana should apply caution in employing the firm-size corporate strategy method. This is because it doesn’t guarantee cash inflow in all three levels of cash flows.

Firm Size and Revenue Reserve of Agricultural Firms in Nigeria

“…The study found that all the independent variables (Firm Age, Firm Size, Sales Growth, Liquidity, and Leverage) jointly and strongly affected the financial performance of manufacturing firms in Nigeria, as measured by return on assets. Umukoro et al (2021) examined the effect of firm size on the three levels of cash flow in listed banks in African emerging economies using multiple regression analysis with the STATA statistical software tool. The results revealed that for the operating level of cash flow, all countries used in the study, except Kenya, should continue to employ firm size as a corporate strategy method, as it increases operating cash inflow.…”

“…The few studies that were done were in industries other than consumer goods. The only study that particularly focused on firm size was Umukoro et al (2021). The researchers examined the relationship between firm size and the performance of banks in Nigeria.…”