Effect of Debt Financing on the Corporate Performance : A Study of Listed Consumer Goods Firms in Nigeria

Jones , Aniefor Sunday; Edwin , Onatuyeh Aruobogha

doi:10.12816/0053062

Article Details

Effect of Debt Financing on the Corporate Performance : A Study of Listed Consumer Goods Firms in Nigeria

Authors:

Jones , Aniefor Sunday | Edwin , Onatuyeh Aruobogha

Publisher:

Centre for Social Science Research

Main Topics:

Economics and Finance

Journal:

Journal of Policy and Development Studies 2019 Vol.12 Issue 1, pp.12-23

Document Type:

Article

Publication Date:

6/2019

Document Language:

English

Document ID (Org No.):

133671

Frequency:

Quarterly

pISSN:

15979385

DOI:

10.12816/0053062

Descriptors:

Keywords:

Abstract:

 The concept of debt financing has assumed considerable importance in recent years given the fundamental role debts now play in forming the financial structure of corporate firms. Quite evident in the debt finance literature is the juxtaposition between debt financing and corporate performance which suggests that debt financing can influence corporate performance. Against the narrow measures of debt financing which are common with most studies that have been carried out on the debt financeperformance dynamics; we attempted a more robust combination of debt finance choices in modelling for corporate performance. Based on data gleaned from the audited annual reports of fifteen (15) consumer goods firms listed in the Nigerian Stock Exchange (NSE) for the period 2006 to 2017, results of the panel regression technique revealed that total debt, long-term debt and short-term debt to asset ratios positively influence the performance of consumer goods firms in Nigeria. Based on the findings of the study, we recommend, among others, that there is need for the Nigerian firms to rely less on short-term debts, which forms the major part of their leverage, and focus more on developing internal strategies that can help improve their performance.

Article Details

Effect of Debt Financing on the Corporate Performance : A Study of Listed Consumer Goods Firms in Nigeria

Authors:

Jones , Aniefor Sunday | Edwin , Onatuyeh Aruobogha

Publisher:

Centre for Social Science Research

Main Topics:

Economics and Finance

Journal:

Journal of Policy and Development Studies 2019 Vol.12 Issue 1, pp.12-23

Document Type:

Article

Publication Date:

6/2019

Document Language:

English

Document ID (Org No.):

133671

Frequency:

Quarterly

pISSN:

15979385

DOI:

10.12816/0053062

Descriptors:

FINANCING

DEBT

ECONOMIC PERFORMANCE

COMMODITIES

CORPORATIONS

NIGERIA

Short Term Debts

Long Term Debts

Total Debts

Corporate Performance

Consumer Goods

Issues

Article Details

Authors: Jones , Aniefor Sunday | Edwin , Onatuyeh Aruobogha

Publisher: Centre for Social Science Research

Main Topics: Economics and Finance

Journal: Journal of Policy and Development Studies 2019 Vol.12 Issue 1, pp.12-23

Document Type: Article

Publication Date: 6/2019

Document Language: English

Document ID (Org No.): 133671

Frequency: Quarterly

pISSN: 15979385

DOI: 10.12816/0053062

Descriptors:

Issues

Authors:

Jones , Aniefor Sunday | Edwin , Onatuyeh Aruobogha

Publisher:

Centre for Social Science Research

Main Topics:

Economics and Finance

Journal:

Journal of Policy and Development Studies 2019 Vol.12 Issue 1, pp.12-23

Document Type:

Article

Publication Date:

6/2019

Document Language:

English

Document ID (Org No.):

133671

Frequency:

Quarterly

pISSN:

15979385

DOI:

10.12816/0053062