Citation: Meshack, I., Owa F., Nwadialor, E., Chiedu C. O. (2022) Long Term Debt Financing and Firm Financial Performance in Nigerian Listed Firms, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 4, pp.52-62
The study examines long term debt financing and financial performance of listed manufacturing firms in Nigeria. This study employed an ex-post facto research design. The sample used for the research consists of 75 non-financial firms listed on the Nigerian Exchange Group. The time period covering is from 2010-2019. The panel regression is employed for the inferential analysis. On the overall, the study finding reveals that LTDE has significant positive impact on ROE but insignificant in relation to TOBINQ while LTDA has a significant negative impact on ROE as well as with Tobin q. The study recommends the need for firms to engaged long term debt productively and reduce the agency cost that accompanies debt financing such as the opportunity for managerial opportunism and inefficient use of debts due to their long maturity characteristic.
Keywords: Financial Performance, Long Term debt, Panel regression
