Effect of Firm Size on Performance of Quoted Real Sector Firms in Nigeria: A Panel Analysis

Abstract

This paper examines how firm size influences the performance of quoted real sector companies in Nigeria. Total assets, total sales, and total equity are used to proxy firm size, whereas return on assets (ROA) is used to measure firm performance. The ex-post facto research design was used, and panel data were collected from four firms listed on the Nigerian Exchange Group during the years 2011–2025. Audited annual reports were used to obtain data, and panel regression methods were used to analyze the data. The adoption of the random effects model was made based on the results of the Hausman test. The results show that total assets have a negative but significant influence on ROA, whereas total sales have a positive yet non-significant influence on ROA. Conversely, total equity shows a positive and significant effect on ROA. The research finds that the impact of firm size on the performance of firms is mixed but significant. Accordingly, it recommends increased use of assets, better policies for revenue-generation growth, and effective use of equity as instruments for fortifying firm performance.