EFFECT OF FINANCIAL INSTRUMENT DISCLOSURE ON FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA.

EFFECT OF FINANCIAL
INSTRUMENT DISCLOSURE ON
FINANCIAL PERFORMANCE OF
LISTED MANUFACTURING FIRMS
IN NIGERIA.
NNAM, HILARY IKECHUKWU
Department of Accounting, College of
Management Sciences,
Michael Okpara University of Agriculture
Umudike. Umuahia, Abia State
ABSTRACT
The study investigated the effect of financial
instrument
disclosure
on
financial
performance of listed manufacturing firms in
Nigeria. The objectives of the study are; to
examine the effect of derivative financial
Assets disclosure on return on asset of listed
manufacturing firms in Nigeria and to
determine the effect of derivative financial
liabilities disclosure on return on asset of
listed manufacturing firms in Nigeria. To
achieve the objective of the study, ex-post
facto research design was adopted. The study
adopted secondary data in generating its
data through the use of annual report and
account of selected banks. In testing the
hypotheses, multiple regression analysis was
used. The findings revealed that derivative
financial asset disclosure has a significant
effect on return on asset of listed
manufacturing firms in Nigeria while
derivative financial liability disclosure has no
significant effect on return on asset of listed
manufacturing firms in Nigeria. The study
recommends that in seeking for financial
performance of the manufacturing firms in
regards to their financial instruments,
investors should not place too much
emphasis on derivative liability it does not
significantly affect the performance of
manufacturing firms. Firms and investors
should focused on derivative asset because
of its positive and significant effect on the
financial
performance
of
listed
manufacturing firms.
Keywords: Financial instruments,
Financial disclosure, Derivative assets,
Return on assets, Derivative liabilities

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