Debt Financing and Performance; a behavioural view of listed manufacturing firms in Nigeria

  • Clifford Ajemije Tuoyo
  • Adebolanle Adekemisola Debo-Ajagunna
  • Alani Olusegun Efuntade
  • Rotimi OLADELE
Keywords: Debt financing, Performance, finance Mismatch, Listed Firms,


The study investigated the impact of debt financing on performance of listed manufacturing firms. Performance of firms was proxy by debt financing while the dependent variable was proxy by ROA (return on assets). Using quantitative research design; data for the study were sourced from the annual report of five quoted manufacturing firms covering six years from 2016 to 2021. Panel least square regression and Analysis of Variance (ANOVA) were adopted to estimate the data and test the hypotheses developed for the study to validate the performance of the variables, equally to depict the influence of explanatory variables. Findings revealed that debt financing had a positive and significant effect on performance of firms in non-financial sector in Nigeria. The study thereby recommended that the management of listed manufacturing firms in Nigeria should take the issue on capital structure with great concern, in particular special attention should be given to short term debt for meeting working capital deficit as well as long term loans for capital projects to avert finance mismatch. Doing so would improve profit margin and achieve a better performance and resultant wealth maximisation.


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