Exploring the Effect of Corporate Finance on Financial Performance of Listed Consumer Goods Firms in Nigeria
Chukwudi Segun Afolabi
Department of Accounting, University of Ilesa, Ilesa, Osun State, Nigeria
Joshua Kehinde Ogunleye
Department of Business Education, Osun State College of Education, Ila-Orangun, Osun State, Nigeria
Bilikis Olayemi Akinleye
Department of Accounting, Adeleke University, Ede, Osun State, Nigeria
Isaiah Omotayo Fakunle
Department of Accounting, Kings University, Ode-Omu, Osun State, Nigeria
ABSTRACT:
This study examined the effect of corporate finance on the financial performance of publicly listed consumer goods companies in Nigeria. The investigation utilized documentary data collected from the annual reports of ten consumer goods companies listed on the Nigeria Exchange Group (NGX) for the period from 2014 to 2023. The analysis of the data involved the use of descriptive statistics and a panel data regression methodology, which included pooled ordinary least squares, fixed effects, and random effects models. The results indicated that corporate finance has a positive effect on the financial performance of listed consumer goods companies in Nigeria. The findings established a negative impact of short-term loans and retained earnings on the performance of listed consumer goods firms, while both share capital and long-term loans had a positive effect. The survey indicates that managers of consumer goods companies in Nigeria ought to prioritize financing their business operations with share capital and long-term loans more frequently than relying on short-term loans and retained earnings in order to enhance their long-term financial performance significantly.
Published in: International Journal of Research in Interdisciplinary Studies (Volume 2, Issue 12, December 2024)
Page(s): 23-31
Date of Publication: 24/12/2024
Publisher: IJRIS
Cite as: Chukwudi Segun Afolabi, Joshua Kehinde Ogunleye, Bilikis Olayemi Akinleye, Isaiah Omotayo Fakunle, “Exploring the Effect of Corporate Finance on Financial Performance of Listed Consumer Goods Firms in Nigeria,” in International Journal of Research in Interdisciplinary Studies, vol. 2, no. 12, pp. 23-31, December 2024.