MODERATING INFLUENCE OF MANAGERIAL OWNERSHIP ON DEBT FINANCING AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS QUOTED ON NIGERIAN STOCK EXCHANGE
The study considered the influence of managerial ownership and debt financing on financial performance of manufacturing firms listed on the Nigerian Stock Exchange. The panel regression model utilized secondary data for a period of ten (10) years to 2020. The study sampled twelve (12) listed manufa...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Department of Accounting and Finance, Federal University Gusau
2022-04-01
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| Series: | Gusau Journal of Accounting and Finance |
| Subjects: | |
| Online Access: | https://journals.gujaf.com.ng/index.php/gujaf/article/view/147 |
| _version_ | 1811241147895382016 |
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| author | Abdullahi D. Ibrahim Ahmed Hassan Ahmed Ramalan Murtala Muhammed Zainab Abdulsalami Aliyu Ahmed Tanko Aliyu Ahmed Tanko |
| author_facet | Abdullahi D. Ibrahim Ahmed Hassan Ahmed Ramalan Murtala Muhammed Zainab Abdulsalami Aliyu Ahmed Tanko Aliyu Ahmed Tanko |
| author_sort | Abdullahi D. Ibrahim |
| collection | DOAJ |
| description |
The study considered the influence of managerial ownership and debt financing on financial performance of manufacturing firms listed on the Nigerian Stock Exchange. The panel regression model utilized secondary data for a period of ten (10) years to 2020. The study sampled twelve (12) listed manufacturing firms in Nigeria. Findings revealed a negative effect of total debt on financial performance of selected quoted manufacturing firms in the period. The managerial ownership also negatively influences the financial performance of the sampled companies. The results clearly demonstrate that the interaction of debt financing and managerial ownership does not significantly influence the financial performance of listed manufacturing firms in Nigeria implying very weak moderating effect. The study recommends that listed manufacturing firms should consider their retained earnings to finance their operations instead of relying on debt finance, and directors should only own minority shareholding right in their companies as ownership of major shares cannot influence borrowing plans of the business.
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| first_indexed | 2024-04-12T13:31:17Z |
| format | Article |
| id | doaj.art-947c7083bc714a72aee17292b9f74a3a |
| institution | Directory Open Access Journal |
| issn | 2756-665X 2756-6897 |
| language | English |
| last_indexed | 2024-04-12T13:31:17Z |
| publishDate | 2022-04-01 |
| publisher | Department of Accounting and Finance, Federal University Gusau |
| record_format | Article |
| series | Gusau Journal of Accounting and Finance |
| spelling | doaj.art-947c7083bc714a72aee17292b9f74a3a2022-12-22T03:31:10ZengDepartment of Accounting and Finance, Federal University GusauGusau Journal of Accounting and Finance2756-665X2756-68972022-04-0132MODERATING INFLUENCE OF MANAGERIAL OWNERSHIP ON DEBT FINANCING AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS QUOTED ON NIGERIAN STOCK EXCHANGEAbdullahi D. Ibrahim0Ahmed Hassan Ahmed1Ramalan Murtala Muhammed2Zainab Abdulsalami3Aliyu Ahmed Tanko4Aliyu Ahmed Tanko5Federal Polytechnic Nasarawa, Nasarawa stateFederal Polytechnic Nasarawa, Nasarawa stateFederal Polytechnic Nasarawa, Nasarawa stateFederal Polytechnic Nasarawa, Nasarawa stateFederal Polytechnic Nasarawa, Nasarawa stateFederal Polytechnic Nasarawa, Nasarawa state The study considered the influence of managerial ownership and debt financing on financial performance of manufacturing firms listed on the Nigerian Stock Exchange. The panel regression model utilized secondary data for a period of ten (10) years to 2020. The study sampled twelve (12) listed manufacturing firms in Nigeria. Findings revealed a negative effect of total debt on financial performance of selected quoted manufacturing firms in the period. The managerial ownership also negatively influences the financial performance of the sampled companies. The results clearly demonstrate that the interaction of debt financing and managerial ownership does not significantly influence the financial performance of listed manufacturing firms in Nigeria implying very weak moderating effect. The study recommends that listed manufacturing firms should consider their retained earnings to finance their operations instead of relying on debt finance, and directors should only own minority shareholding right in their companies as ownership of major shares cannot influence borrowing plans of the business. https://journals.gujaf.com.ng/index.php/gujaf/article/view/147Managerial ownershipfinancingperformanceequitymoderating influence |
| spellingShingle | Abdullahi D. Ibrahim Ahmed Hassan Ahmed Ramalan Murtala Muhammed Zainab Abdulsalami Aliyu Ahmed Tanko Aliyu Ahmed Tanko MODERATING INFLUENCE OF MANAGERIAL OWNERSHIP ON DEBT FINANCING AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS QUOTED ON NIGERIAN STOCK EXCHANGE Gusau Journal of Accounting and Finance Managerial ownership financing performance equity moderating influence |
| title | MODERATING INFLUENCE OF MANAGERIAL OWNERSHIP ON DEBT FINANCING AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS QUOTED ON NIGERIAN STOCK EXCHANGE |
| title_full | MODERATING INFLUENCE OF MANAGERIAL OWNERSHIP ON DEBT FINANCING AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS QUOTED ON NIGERIAN STOCK EXCHANGE |
| title_fullStr | MODERATING INFLUENCE OF MANAGERIAL OWNERSHIP ON DEBT FINANCING AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS QUOTED ON NIGERIAN STOCK EXCHANGE |
| title_full_unstemmed | MODERATING INFLUENCE OF MANAGERIAL OWNERSHIP ON DEBT FINANCING AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS QUOTED ON NIGERIAN STOCK EXCHANGE |
| title_short | MODERATING INFLUENCE OF MANAGERIAL OWNERSHIP ON DEBT FINANCING AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS QUOTED ON NIGERIAN STOCK EXCHANGE |
| title_sort | moderating influence of managerial ownership on debt financing and financial performance of manufacturing firms quoted on nigerian stock exchange |
| topic | Managerial ownership financing performance equity moderating influence |
| url | https://journals.gujaf.com.ng/index.php/gujaf/article/view/147 |
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