ABSTRACT
Every
corporate entity needs finance to operate effectively. It is the sole--
responsibility of a financial manager to determine ways in which the firm
obtains and manages these finance. A capital structure is the specific mix of
fund a firm uses to finance its operations; it is the sole responsibility of
the financial manager to select the best. The financial manager has two
concerns in this area; firstly, how much should the firm borrow? That is, what
mixture of debt and equity is best? The mixture chosen will affect both the
risk and the value of the firm. Secondly, what are the last expensive sources
of funds for tire firm? Some firms opt for external funding in form of loan
capital otherwise known as dept finance. They do so by borrowing money on a long-term
basis by issuing loan stocks (debenture) and exploring other sources but tire
very effect of this kind of fund on the performance of the firm remains a
controversy-there have been several studies in developing and developed
countries generating mixed results, hence it was necessary to study the effect
of long-term debt finance on corporate performance in Nigeria. For the purpose
of this research, Nu-Lyne International LTD was chosen as a case study.
Financial report of the firm for a period of five years were studied to analyze
the relationship between long-term debt finance and corporate performance and
also to compare the effects of the major components of the capital structure
(equity and long-term debt) on corporate performance. The study revealed that
long-term ccbt finance a positive effect on corporate performance but the
effect was not significant. When compared to equity finance, long-term debt
finance showed a better effect on corporate performance. In conclusion, a
recommendation was made, which is financial should treat the choice of capital
structure with indifference.
OFURUM, U (2024). Effect Of Long-Term Debt Financing On Corporate Performance In Nigeria (A Case Study Of Nu-Lyne International Ltd):- Ofurum Chibueze U. Mouau.afribary.org: Retrieved Oct 30, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-long-term-debt-financing-on-corporate-performance-in-nigeria-a-case-study-of-nu-lyne-international-ltd-ofurum-chibueze-u-7-2
UZOMA, OFURUM. "Effect Of Long-Term Debt Financing On Corporate Performance In Nigeria (A Case Study Of Nu-Lyne International Ltd):- Ofurum Chibueze U" Mouau.afribary.org. Mouau.afribary.org, 15 Aug. 2024, https://repository.mouau.edu.ng/work/view/effect-of-long-term-debt-financing-on-corporate-performance-in-nigeria-a-case-study-of-nu-lyne-international-ltd-ofurum-chibueze-u-7-2. Accessed 30 Oct. 2024.
UZOMA, OFURUM. "Effect Of Long-Term Debt Financing On Corporate Performance In Nigeria (A Case Study Of Nu-Lyne International Ltd):- Ofurum Chibueze U". Mouau.afribary.org, Mouau.afribary.org, 15 Aug. 2024. Web. 30 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-long-term-debt-financing-on-corporate-performance-in-nigeria-a-case-study-of-nu-lyne-international-ltd-ofurum-chibueze-u-7-2 >.
UZOMA, OFURUM. "Effect Of Long-Term Debt Financing On Corporate Performance In Nigeria (A Case Study Of Nu-Lyne International Ltd):- Ofurum Chibueze U" Mouau.afribary.org (2024). Accessed 30 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-long-term-debt-financing-on-corporate-performance-in-nigeria-a-case-study-of-nu-lyne-international-ltd-ofurum-chibueze-u-7-2