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

Author

Listed:
  • Biliqees Ayoola Abdulmumin

    (University of Ilorin)

  • David Kayode Kolawole

    (University of Ilorin)

  • Abdulrasheed Bolaji Yunus

    (University of Ilorin)

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.

Suggested Citation

  • Biliqees Ayoola Abdulmumin & David Kayode Kolawole & Abdulrasheed Bolaji Yunus, 2024. "Enhancing Corporate Performance through Debt Financing: Evidence from Nigerian Consumer Goods Firms," ACTA VSFS, University of Finance and Administration, vol. 18(1), pages 7-20.
    • Handle: RePEc:prf:journl:v:18:y:2024:i:1:p:7-20
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    More about this item

    Keywords

    Corporate Performance; Debt Financing; Long-term Debt; Short-term Debt; Consumer goods firms; Nigeria;
    All these keywords.

    JEL classification:

    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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