Abstract The study examined the firm characteristics and profitability of Nigerian industrial goods industries, with the moderating effect of board independence. Firm size, liquidity, and leverage were used as proxies for firm characteristics, while return on assets was used as a measure of profitability. Ten industrial goods firms were sampled from 2014 to 2023, using annual accounts and an ex post facto research design was adopted. The collected data were analysed using Generalised Least Squares. The finding shows that firm size has a positive and significant effect on profitability. In contrast, liquidity and leverage showed a positive, insignificant effect and a negative, insignificant impact on return on assets, respectively. In assessing the moderating effect of board independence, the study found that it does not moderate the interaction among firm size, liquidity, and leverage on profitability. The study concluded that the moderating effect of board independence does not significantly interact with firm characteristics to affect the profitability of industrial firms in Nigeria. To improve their profitability, the study recommended that industrial goods firms should seek strategic firm size expansion, have a modest total debt-to-total assets ratio, and invest liquid assets wisely.
Idogho et al. (2026) studied this question.