IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 10 NO. 3 2025
DOI: 10.56201/ijefm.v10.no3.2025.pg1.24

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Financing Dynamics and Performance of Quoted Firms: Panel Data Evidence from Nigeria

TRIUMPH, Hachituru, Ogechi Chinenye Onyegbula

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Abstract

This study examined the effect corporate financing strategies on the financial performance of quoted firms in Nigeria. Panel data were sourced from Nigeria Exchange Group factbook. Earnings per share and return on investment were modeled as the function of Total capital to total assets of the quoted food and beverage manufacturing firms, Total capital to total equity of the quoted food and beverage manufacturing firms and Total capital to total Liabilities of the quoted food and beverage manufacturing firms. Ex-post facto research design was employed in obtaining, analyzing and interpreting the relevant data. Panel data method of analysis was employed. From model one the study found that 81.7 percent of the total variations in earnings per share were accounted for by the explanatory variables. The t-statistics showed that total capital to totals assets have negative effect, total capital to total equity have positive effect total capital to total liabilities have negative effect on earnings per share of the quieted firms. From model two, the fixed effect found that 52.3 percent of the total variations in the return on investment were accounted for, by the explanatory variables. The t-statistics shows that total capital to total assets have negative effect while total capital to total equity and total capital to total liabilities have positive effect on return on investment of the quoted firms in Nigeria. From the findings, the study concludes that corporate financing policy significantly determines corporate financial performance. We recommend that Financial managers should institute sound, efficient and coherent financing structure management policies such that will enable them determine the right mix or combination of debt, equity or both that will enhance firms’ value in Nigeria. Firm should expand to a level it does not result to diseconomies of scale and the eventual fall in the value of the firm. Government and policy

keywords:

Financing Dynamics, Performance, Quoted Firms, Panel Data, Nigeria

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