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

NNAM, HILARY IKECHUKWU and NWAORGU, INNOCENT AUGUSTINE
Department of Accounting, College of Management Sciences,
Michael Okpara University of Agriculture Umudike. Umuahia, Abia State.
2 Corresponding author’s E-mail: laryiyke@yahoo.com

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.

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