ABSTRACT

The study made use of ex-post facto research design sourcing data from selected quoted firms in Nigeria spanning from 2009-2018. The study used Panel data and linear regression analysis to analyse the data with the aid of E-views9. The result reveal that RNCATA and RCATA was significant at 5% tolerance level. The coefficient of RNCATA was positive indicating that a unit increase in RNCATA will increase ROA by 2.68units. The coefficient of RCATA is positive implying that 1 unit increase in RCATA will ROA by 2.66units. The results showed that a firm’s increased investment in non-current assets and current assets significantly increases its return on asset. The F-statistics also was rightly specified hence the conclusion that there is statistically significant relationship between the dependent variable and the explanatory variables, therefore, the effect of asset structure on the ROA of the firms understudy is significant. The study concluded that increased investments in viable assets would increase a firm’s value and returns. The study therefore recommended that companies’ asset structure should be monitored and evaluated on a regular basis by the respective company managements to ensure that the composition meets the strategic requirements of the firms. The study also recommends prudent use and management of assets to increase firm’s value.