Enhancing Corporate Performance through Debt Financing: Evidence from Nigerian Consumer Goods Firms
Enhancing Corporate Performance through Debt Financing: Evidence from Nigerian Consumer Goods Firms
Author(s): Biliqees Ayoola Abdulmumin, David Kayode Kolawole, Abdulrasheed Bolaji YunusSubject(s): Economy, National Economy, Business Economy / Management, Economic development, Financial Markets, Public Finances, Accounting - Business Administration
Published by: Vysoká škola finanční a správní, a.s.
Keywords: Corporate Performance; Debt Financing; Long-term Debt; Short-term Debt; Consumer goods firms; Nigeria
Summary/Abstract: Background: Consumer goods firms play a significant role in any economy, like other businesses, require a mix of financing methods to amplify their performance. Aim: The study examined enhancement of corporate performance of Nigerian Consumer Goods Firms through debt financing for a period of eleven (11) years from 2011 to 2022. Methods: The data obtained were estimated using descriptive statistics and panel regression model of fixed effect. Results: The study found a positive and significant impacts of long-term debt (β=0.469729, P=0.0311) and firms’ size (β=0.154547, P=0.0251) on the performance of Nigerian consumer goods firms’ but negative and significant impacts of loan quality (β=−0.037431, P=0.0241) and short-term debt (−0.023417, P=0.0124) on their performance. Recommendation: The study recommends financing through Long-term debt for businesses in Nigeria.
Journal: Acta VŠFS - ekonomické studie a analýzy
- Issue Year: 18/2024
- Issue No: 1
- Page Range: 7-20
- Page Count: 14
- Language: English
