RISK MANAGEMENT AND FINANCIAL PERFORMANCE OF SELECTED CONSUMER GOODS MANUFACTURING FIRMS IN NIGERIA
This study investigates the effect of risk management on the financial performance of selected consumer goods manufacturing firms in Nigeria, focusing on Research and Development Intensity (RDI) and Interest Coverage Ratio (ICR). Using an ex post facto research design, the study analysed audited annual reports of 17 firms listed on the Nigerian Exchange Group over 2014–2023, yielding 170 balanced firm-year observations. Financial performance was measured by Return on Assets (ROA), while RDI and ICR represented innovation and financial risk-management capabilities, respectively, with firm size as a control variable. Data were analysed using descriptive statistics, Pearson correlation, and the Panel Generalized Method of Moments (GMM) estimator. The findings indicate that RDI has a positive and statistically significant effect on ROA (β = 2.1723, p < 0.001), while ICR also exerts a positive and significant effect (β = 0.004915, p < 0.001). The Wald test confirms that RDI and ICR jointly significantly influence financial performance (F = 181.9194, p < 0.001). The study concluded that sustained investment in innovation and sound debt-servicing capacity are critical strategic capabilities for enhancing firm performance and resilience. It recommends increased R&D investment, prudent leverage management, and the integration of risk management into strategic decision-making among Nigerian consumer goods manufacturers.