THE NEXUS BETWEEN CORPORATE FINANCIAL CAPITAL EFFICIENCY AND FIRM GROWTH OF NIGERIA'S LISTED MANUFACTURING FIRMS

There is a divergence of opinion among accounting researchers about the nexus between CFC efficiency and firm growth. Additionally, several manufacturing firms in Nigeria are folding up. This study examined the nexus between corporate financial capital efficiency and firm growth of Nigerian listed manufacturing firms. Using a robust pooled OLS regression model for a sample of 75 firm-year observations from 2019 to 2023, with judgmental sampling, secondary data were used to examine the nexus between inventory turnover efficiency (ITE) asset turnover efficiency (ATE) sales efficiency (SE) and operating expense efficiency (OEE) on firm growth. The results show a significant negative relationship between asset turnover efficiency and firm growth, sales efficiency and firm growth, and operating expense efficiency and firm growth. Conversely, an insignificant negative relationship exists between inventory turnover efficiency and firm growth. This study recommends that firms in the manufacturing sector prioritize asset turnover, sales, and operating expense efficiency through strategic asset deployment to revenue-generating activities, strategic product pricing and asset replacement techniques, cost of sales, and operating expense control measures to initiate, improve, and sustain firm growth.