Effect of additional non-current asset on turnover of Nigerian-listed consumer goods firms

Abstract

This study examines the relationship between additional non-current assets and the turnover of the listed consumer goods firms in Nigeria. This study particularly focuses on the acquisition of additional leasehold land, buildings, plant and machinery, furniture and equipment, and motor vehicles effect on turnover. This study utilized an ex post facto research design and collected data from annual reports of 17 firms purposively selected based on available data from a population of 28 firms from 2011 to 2020. This utilized multiple regression through STATA 13 software. The results show that the acquisition of other leasehold land, buildings,
plant and machinery, and furniture and equipment have insignificant relationships with turnover, meaning that these assets cannot impact the firms’ turnover within the period of the study. However, further investments in motor vehicles were realized to increase turnover, thereby reaffirming the significance of motor vehicles as an asset in enhancing turnover. This study  recommends that consumer goods firms should undertake critical analyses of their investment decisions on non-current assets. Though investments in motor vehicles are desirable and have a positive effect on turnover, caution should be taken when investing in other non current assets like leasehold land, buildings, plants, and machinery to generate the necessary returns that can improve the operational goals of the firm. Furthermore, other considerations that firms should make while deciding on non-current assets to invest in include asset intensity and activity level.