Effect of Information and Communication Technology on Financial Performance of Listed Non-Financial Firms in Nigeria

Abstract

The purpose of this study is to examine the effect of information and communication technology (ICT) on financial performance of listed non-financial service firms in Nigeria. To achieve this, a review of the extant literature was made, research questions were raised, and hypotheses were formulated. The theoretical framework adopted in the study is the resource-based theory, which was postulated by Barney (1991). In order to generate the data for the study, a sample of twenty (20) non-financial service companies drawn from foods and beverages, pharmaceuticals, foot wears, chemicals and paints, listed in the Nigeria Stock Exchange for the period of 2016 – 2020, was considered for the study and the ex post facto research design was adopted. The data generated for this study were analysed with both descriptive and inferential statistics using the arithmetic mean, standard deviation, minimum and maximum values, and the Ordinary Least Squares (OLS) regression technique. The findings show that investment in information and communication technology (ICT) infrastructure has a positive effect on the financial performance of listed non-financial firms in Nigeria where as information and communication technology (ICT) personnel has a positive but insignificant effect on financial performance of listed non-financial service firms in Nigeria. Based on the findings of this study, the following recommendations were made: regular training should be given to the ICT Personnel from time to time to keep them abreast of the current innovations in the use of ICT. This will enhance their efficiency and quality of service delivery that will ensure customers retention and productivity, which will translate to the firm profitability, therefore, listed nonfinancial service firms should give emphasis on efficient utilization of the ICT equipment such as credit and electronic cards to pay at retail outlets, points of sales (POS), phone banking, among others.