EFFECT OF INFORMATION COMMUNICATION TECHNOLOGY (ICT) COSTS ON FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA: THE MODERATING ROLE OF FIRM SIZE

Abstract

This study investigated the effect of Information and Communication Technology (ICT) costs on financial performance, with firm size as a moderating variable, in Nigeria's industrial goods sector. Using secondary data from 11 listed companies, an ex post facto research design and Ordinary Least Squares (OLS) regression analysis were employed. Results show that ICT expenses negatively affect financial performance, while larger firms are better positioned to optimize these investments due to economies of scale. However, ICT infrastructure investments alone do not significantly influence financial performance. The findings highlighted the importance of firm size in determining the effectiveness of ICT expenses and suggest that smaller firms need tailored ICT strategies. The study recommends more strategic ICT management, particularly for smaller firms, and further research to explore industry-specific factors affecting ICT investments and financial outcomes.