Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/195210
Authors: 
Odusanya, Ibrahim Abidemi
Yinusa, Olumuyiwa Ganiyu
Ilo, Bamidele M.
Year of Publication: 
2018
Citation: 
[Journal:] SPOUDAI - Journal of Economics and Business [ISSN:] 2241-424X [Volume:] 68 [Year:] 2018 [Issue:] 1 [Pages:] 43-58
Abstract: 
This study examines the determinants of firm profitability for 114 firms listed on the Nigerian Stock Exchange (NSE) from 1998 to 2012, using the system Generalized Method of Moments (GMM). The results show that lagged profitability exerts significant positive effect on contemporaneous firm profitability. However, short-term leverage, inflation rate, interest rate and financial risk have significant negative effects on firm profitability. The study therefore suggests, among other recommendations, that the cost of borrowing to the real sector of the economy should be reduced in order to minimize costs of production, enhance productivity and profitability while necessary macroeconomic policies should be put in place by the government to curb inflationary pressure in the economy.
Subjects: 
Firm
Non-financial
Profitability
Leverage
Generalized Method of Moments
Nigeria
JEL: 
B21
C23
L25
Document Type: 
Article

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