FIRM PERFORMANCE IN A LIBERALIZED ENVIRONMENT - EMPIRICAL-EVIDENCE FROM A DEVELOPING-COUNTRY

This study examines environmental correlates of firms' performance in a developing country that has recently instituted market reforms. Results were based on a survey of the chief executive officers of top manufacturing companies in Nigeria. The findings suggest that not all environmental changes have had a significant impact on firm performance. Specifically, only improved financial infrastructure and production costs had a significant positive effect on firms' performance. However, overall, improved firm performance has resulted from a more liberalized business environment. Thus, the results of improved performance at the firm level support early findings of better macroeconomic performance. It also supports theories purporting the role of liberalized environments in improving business climates.