The effect of pricing policy on the performance of non-financial firms in Nigeria

This study examines the effect of pricing policy on firm performance in Nigeria, using data from 101 non-financial companies listed on the Nigerian Stock Exchange (NSE) in 2013. The cross-sectional data were obtained from the annual reports of the sampled firms and were analysed by means of regression modelling. The results revealed that cost of sales and company objectives both have a significant positive effect on return on assets. As for the control variables, the impact of market demand and availability of a close substitute also have a significant positive effect on return on assets, while the impact of the market segment, the macroeconomic trend and consumer perception are all statistically insignificant. These results suggest that an effort should be made to reduce production costs in order to maximize profit.