Financial leverage and Firm Financial Performance in Nigeria: A Panel Data Analysis Approach

Financial leverage and Firm Financial Performance in Nigeria: A Panel Data Analysis Approach

Kenn-Ndubuisi, Juliet Ifechi

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Kenn-Ndubuisi

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Juliet Ifechi

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Nweke

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Chijioke Joel

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Rivers State University

Financial leverage and Firm Financial Performance in Nigeria: A Panel Data Analysis Approach

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Abstract

This study examined the relationship between financial leverage and firm financial performance in Nigeria using 80 non-financial firms quoted on the Nigerian Stock Exchange from 2000 to 2015. The total debt to capital ratio, debt to equity ratio, cost of debt, debt to asset ratio and long term debt to capital ratios were proxies for financial leverage. Panel data technique in the form of the pooled regression model, fixed effect model, random effect model, and the marginal model had been applied to test hypotheses. The findings of the study revealed earnings per share is significant and negatively related to the debt to equity ratio and the total debt to total asset measures of financial leverage while the return on equity shows an insignificant relationship with the financial leverage measures in Nigeria while the direction of the relationship differs from one variable to the other. It was positive with the total debt to capital ratio and the cost of debt while the total debt to asset ratio, long term debt to capital ratios and the debt to equity ratio was negative.

References

16 Cites in Article

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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How to Cite This Article

Kenn-Ndubuisi, Juliet Ifechi. 2019. \u201cFinancial leverage and Firm Financial Performance in Nigeria: A Panel Data Analysis Approach\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 19 (GJMBR Volume 19 Issue C4).

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GJMBR Volume 19 Issue C4

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

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Classification

GJMBR-C Classification JEL Code: G19

Submission ReceivedDecember 11, 2018
Peer Review Double Blind
Handling Editor
Accepted January 5, 2019
Published January 15, 2019

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v1.2

Issue date

May 31, 2019

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Article Matrices

Total Score: 104

Country: Nigeria

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Kenn-Ndubuisi, Juliet Ifechi, Nweke, Chijioke Joel (PhD/Dr. count: 0)

View Count (all-time): 271

Total Views (Real + Logic): 2908

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Publish Date: 2019 05, Fri

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Total Views: 2908

Total Downloads: 1323

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