NON-CURRENT ASSET INVESTMENT AND FINANCIAL PERFORMANCE OF LISTED AGRICULTURAL FIRMS IN NIGERIA: MODERATED ANALYSIS

Abstract

This study determined the effect of non-current asset investment and financial performance of listed agricultural firms in Nigeria between 2015 and 2024. Three research questions and three hypotheses guided the study. The study was an ex post facto research design. The population of the study was five (5) listed agricultural firms in the Nigeria Exchange Group and the sample size of the study were the same five (5) listed agricultural firms using census sampling technique. The data used in this study were sourced from annual reports and statement of accounts of the selected companies. Plant and Equipment, land and building were employed as the independent variables while net profit margin was employed as the dependent variables whereas firm size was employed as moderating variable. This study employed descriptive statistics and Panel Least Square (PLS) estimate using panel data from 2014 to 2023 covering a period of ten (10) years for ten listed agricultural firms. Findings of the study discovered that there is positive and significant effect of plants and equipment on net profit margin, there is negative and insignificant effect of land and building on net profit margin, there is a positive and significant moderating effect of firm size on the relationship between non-current assets investment and net profit margin of listed agricultural firms in Nigeria. Based on the findings, the study generally concluded that, there is a positive and significant effect of non-current assets investment on financial performance of listed agricultural firms in Nigeria. It was suggested amongst others that, since plant and equipment of the listed agricultural firms is positively and significantly related with net profit margin, this study therefore recommends that listed agricultural firms in Nigeria should increase their investment in plant and equipment when evaluating net profit margin.