Leverage and Liquidity Management: Evidence from Nigerian Consumer Goods Firms
Leverage and Liquidity Management: Evidence from Nigerian Consumer Goods Firms

Summary/Abstract: One of the demanding and challenging corporate decisions that organisations face is the preference of mixture of capital structure while taking into consideration the nexus between profitability and risks. Hence,this paper examined the effect of leverage on the liquidity of Nigerian firms based on the data of seventeen (17)Nigerian consumer goods firms listed on the Nigerian Stock Exchange for the period of 2012 to 2017. The study adopted multiple regression method. The core finding of the study revealed that leverage has significant positive effect on liquidity management among consumer goods firms in Nigeria. Therefore, the study concluded that companies in the consumer goods industry should operate more above break-even point in order to avoid the danger of fluctuations in sales and profits so as to have substantial amount to meet the day-to-day administrative running of the business.

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