Abstract:
This project research is on Comparative Analysis of the Financial Performance of Quoted and Unquoted firms in Nigeria. The research objective of this study is to determine if there is a difference between the financial performance of quoted and unquoted firms in Nigeria. This is based on the under lying principle and belief that quoted firms perform better than unquoted firms. The study is paramount since the main objective of a firm is to maximize its present value of profit. In the course of this research, the researcher got information from secondary source that is the Firms Audited Financial Report and Statement of Accounts for various years and also from the firms’ websites. A sample of twenty firms was selected, ten for quoted firms and ten for unquoted firms. The analysis of the firms covered a period of ten years from 1998 to 2008. A Panel data fixed effect was used to determine the financial performance of quoted and unquoted
firms while a paired sample statistics test was used in comparing the mean
difference of both firms. Notable financial performance indicators such as Asset
Base, Employment, Revenue were used. These indicators are used for performance appraisal, internal control and investment decision. Empirical result showed that Asset Base, Revenue, and Employment has positive impact on the financial performance of quoted firms while only Revenue has a positive relationship with financial performance of unquoted firms. Listing also has positive impact on the financial performance of firms. The study concludes that there is a difference in the financial performance of quoted and unquoted firms in
Nigeria. The difference is as a result of sources of fund. Unquoted firms do not
have access to cheap funds due to constraints mentioned earlier. And that is why unquoted firms have not performed their critical role of driving the country’s
industrial transformation and development as it has done in other developed
countries. Any management that wishes to improve or maintain its firm’s level of
financial performance may pay attention to these variables.
