Author(s): Aliyu Ahmed Alhaji
This study is “corporate failure: are listed firms in Nigeria on the verge of demise? Analyzing selected food and beverages firms using Springate’s model and Grover’s models”. The study adopted a quantitative research design in which Twenty (20) listed Food and Beverage (Consumer Goods) firms on the Nigeria Stock Exchange as of December 2021 serve as the population. Using the purposive sampling technique, eight (8) firms will be selected. The secondary data was used and were extracted from the annual reports on NGX, the website, and publications reflecting the financial statements of the chosen firms for ten years period (2011- 2020). The finding shows that the Springate model (Z score) shows that three out of eight Food and Beverage listed firms in Nigeria were financially healthy while the remaining five were financially distressed. Grover's model (S score) revealed that seven out of eight Food and Beverage listed firms in Nigeria were financially sound and healthy. Therefore, it was concluded that the Grover model is more efficient and accurate in proving the financial soundness of firms. In addition, Food and Beverage listed firms in Nigeria are not on the verge of demise using the Springate Model, while Food and Beverage listed firms in Nigeria are on the verge of demise using the Grover Model. It was recommended that the management of Food and Beverage listed firms in Nigeria should adopt the Grover model to avoid or minimize the risk of being de-listed from Nigeria Exchange Group, among others.