Liquid Stock and Financial Performance of Non-Financial Quoted Companies in Nigeria

Abstract

There have been several recent concerns about the deteriorating state of Nigerian companies’ performance. Many investors in Nigeria over the years have accused the quoted companies of not doing enough to improve their performances. Researchers are concerned about the factor that affects performance as a result of this. Therefore, this paper examines the influence of stock liquidity on the financial performance of companies in Nigeria. Data used are sourced from the financial statements of selected companies and the fact book of the Nigeria Stock Exchange for the period between 2012 and 2019. Data are analyzed using both descriptive and inferential statistics. The empirical findings of this study confirm that liquid stock, proxied by the turnover ratio (TOR), greatly impacts the performance of companies in Nigeria. Sequel to this, this paper concludes that the degree of operational success of Nigeria’s corporate entities is commensurate with the liquidity status of their stocks.

Board characteristics and tax planning of quoted companies in Nigeria

“…Moreover, tax planning is a strategic approach used within the framework of tax laws to mitigate the financial burden imposed by taxes (Salawu, Ogundipe, & Yeye, 2017). It serves as a method employed by businesses to strategically reallocate income from high-tax regions to jurisdictions with lower tax rates capitalizing on discrepancies in tax regulations across various states (Uniamikogbo, Atu, & Atu, 2018).…”