THE IMPACT OF DEBT FINANCING ON PROFITABILITY OF NON –FINANCIAL FIRMS IN NIGERIA
Abstract
This study compares the impact of debt financing on profitability of non-financial firms in Nigeria.Using a panel regression model to examine the impact of debt financing on profitability of manufacturing firms in Nigeria. The results show that the quoted firms are listed on the Nigeria stock exchange. The results showed that debt financing is statistically significant in determining profitability of manufacturing firms in the quoted firms in Nigeria. The regression results indicate that LTDR, LSTDR, LLTDR and LPROF are important in influencing the profitability of manufacturing firms in Nigeria. A well-managed capital structure in terms of debt financing, leads to an increase in the profitability of the firms as showed in the result.
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