Enhancing Corporate Performance through Debt Financing: Evidence from Nigerian Consumer Goods Firms

Biliqees Ayoola Abdulmumin (), David Kayode Kolawole () and Abdulrasheed Bolaji Yunus ()
Additional contact information
Biliqees Ayoola Abdulmumin: University of Ilorin
David Kayode Kolawole: University of Ilorin
Abdulrasheed Bolaji Yunus: University of Ilorin

ACTA VSFS, 2024, vol. 18, issue 1, 7-20

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 (ß=0.469729, P=0.0311) and firms’ size (ß=0.154547, P=0.0251) on the performance of Nigerian consumer goods firms’ but negative and significant impacts of loan quality (ß=-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.

Keywords: Corporate Performance; Debt Financing; Long-term Debt; Short-term Debt; Consumer goods firms; Nigeria (search for similar items in EconPapers)
JEL-codes: F34 G51 H63 (search for similar items in EconPapers)
Date: 2024
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://acta.vsfs.eu/pdf/acta-2024-1-01.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prf:journl:v:18:y:2024:i:1:p:7-20

Access Statistics for this article

More articles in ACTA VSFS from University of Finance and Administration Contact information at EDIRC.
Bibliographic data for series maintained by Magdalena Šebková ().