Influence of Firm Size, Leverage, and External Environments on EPS of Quoted Consumer Goods Firms in Nigeria

This study examines how internal corporate characteristics—specifically firm size and leverage affect earnings per share among listed consumer goods companies in Nigeria, while also assessing the moderating influence of external environmental factors such as inflation and governance quality. Panel data covering 14 consumer goods companies listed in Nigeria from 2006 to 2023 were analyzed using Ordinary Least Squares (OLS) regression techniques. The results show that neither firm size nor leverage significantlyimpacts EPS. However, when considering macroeconomic interactions, leverage combined with inflation was found to significantly reduce EPS, highlighting the heightened risk associated with debt financing in inflationary conditions. Conversely, governance qualitydid not significantly alter the relationship between corporate attributes and firm value. Share price emerged as a robust control variable, demonstrating a strong and positive correlation with EPS. These findings underscore the importance of external macroeconomic and institutional contexts in shaping the profitability of firms and provide practical insights for corporate decision-makers and policymakers aiming to improve firm-level performance in emerging markets.