Shareholders' Fund and Financial Performance of Listed Consumer Goods Companies in Nigeria

Despite a substantial increase in equity financing and the aggressive accumulation of shareholders' funds by listed firms, many organizations continue to report declining financial performance. This study examined the effect of shareholders’ funds on the financial performance of listed consumer goods companies in Nigeria. The study adopted an ex-post facto research design and used secondary panel data obtained from the annual reports of fifteen (15) listed consumer goods companies over the ten years from 2016 to 2025. Data were analyzed using a panel regression technique, and the statistical package employed was EViews version 10. The findings revealed that ordinary share capital had a positive and significant effect on return on assets; retained earnings had a positive and significant effect on return on assets, and share premium had a positive and significant effect on return on assets of listed consumer goods companies in Nigeria. The study concluded that shareholders’ fund composition affects the financial performance of listed consumer goods companies in Nigeria, particularly where ordinary share capital, retained earnings and share premium are proportionately strong within total shareholders’ fund. The study recommended that listed consumer goods firms should deploy ordinary share capital, retained earnings and share premium into productive assets and expansion activities.