DEBT Financing and Firms’ Financial Performance in Nigeria
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The study examined the effect of debt financing on firm’s financial performance in Nigeria. The study adopted the random sampling techniques to arrive at the sample size of the study. The secondary data was used in the study. Panel econometric tools were used to analyze the panel data of various companies across sectors in the capital market. The results of the analysis revealed that, size of the firm; short term debt and long term debt have positive and significance impact on the financial performance of listed firms in Nigeria capital market. The study concluded that debt financing is very important in firm’s financial performance since there is a positive and a significant relationship between the variables and then recommended that larger firms should increase the debt proportion in financing operations in order to increase its financial performance.
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