- Adeniyi, A. O., Adisa, A. M., Alabi, D. A. & Baanu, O. B.*
- Oyo State College of Agriculture and Technology, Igboora
- DOI: 10.5281/zenodo.19648531
This study investigates the extent to which asset
efficiency explains variations in financial performance among selected soft
drink bottling firms in Nigeria over the period 2010–2019. Specifically, the
study evaluates the influence of asset turnover ratio (ATR), debt-to-total
asset ratio (DTAR), and current ratio (CR) on return on assets (ROA). An
ex-post facto design is employed, using a balanced panel dataset. Estimation
techniques include pooled ordinary least squares (OLS), fixed effects (FE), and
random effects (RE) models. Model selection is guided by the Hausman
specification test, while robustness is ensured through diagnostic tests for
multicollinearity and heteroskedasticity.
Empirical results indicate that although asset
efficiency proxies exhibit positive coefficients, none attain statistical
significance at conventional levels. This suggests that firm performance in the
Nigerian bottling sector is likely driven by broader structural and
macroeconomic factors beyond internal efficiency metrics. The study contributes
to the literature by providing sector-specific evidence from an emerging
economy context and recommends a multidimensional approach to performance
optimization.
