FIRM LEVERAGE AND FINANCIAL PERFORMANCE: A STUDY OF INDUSTRIAL GOODS FIRMS IN NIGERIA
DOI:
https://doi.org/10.5281/zenodo.17252064Keywords:
Firm leverage, Return on assets, Return on equity and Financial performanceAbstract
The study determined the effect of firm leverage on financial performance of Nigerian Industrial goods firm. The study used debt-equity ratio as the independent variable and return on assets and return on equity was used as the dependent variables. The study adopted Ex Post-Facto research design. Data were sources from the eight industrial goods firms in Nigeria used for the study spanning from 2013 to 2024. Regression analysis was employed to test the two hypotheses. From the analysis, the study indicates that debt-equity ratio has positive significant effect on return on assets. Another finding showed that debt-equity ratio has negative significant effect on net profit margin of Nigerian industrial goods firm. Based on the findings, the study recommended among others that there is need to implement cost-saving measures to reduce expenses and increase profitability, as well secure low-interest debt to minimize interest expenses and maximize returns
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