Monetary Policy and the Financial Performance of Listed Consumer Goods Firms in Nigeria.

Abstract:

This study assesses the impact of monetary policy on the financial performance of the listed consumer goods firms in Nigeria. The study uses purposive sampling technique and elimination method to determine the considered listed consumer goods firms in Nigeria over a period of 2012-2023 and analyzed the impact of monetary policy variables of interest rates and inflation rate on the financial performance of these firms, measured by earnings per share as the indicator. Regression analysis was used to analyze the data. The results specifically show that changes in interest rate has a positive significant influence on the financial performance of listed consumer good firms while changes in inflation rate have no significant influence on the financial performance of listed consumer goods firms. The study recommends implementation of interest rate policies by the monetary authority that will balance stability and economic growth knowing the positive impact on the financial performance of the consumer goods firms.