EFFECTS OF DEBT FINANCING ON FIRM VALUE FOR LISTED MANUFACTURING ENTERPRISES IN NIGERIA
Auwalu Sani Ibrahim
Volume 7 Issue 1
Abstract
The study examines the effects of debt financing on value of listed industrial goods companies in Nigeria, using micro panel analysis through ordinary least square (OLS) technique spanning from 2006-2016. Secondary data were adapting through the companies’ individual annual reports of 12 listed manufacturing firms in Nigeria. The outcome of the study revealed that debt financing enhances value of firms in Nigeria. However, firm growth reduces the level of firm value. The capacity of firm size does not influence value of firm. Thus, it is suggests that policies should be toward promoting debt financing by all avenues to reduce cost of borrowing for greater value of firms. In addition, financial institutions should be directed to uplift debt financing through optimistic management that will increase future cash flows
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