Effect Of Financial Leverage On The Performance Of Manufacturing Companies (A Case Study Of Selected Firms In Nigeria)

ABSTRACT

This study examines the cleft of financial leverage on the firm's performances using information on selected firms in Nigeria. It is how  that financial leverage is positively related, to firm's performance and that this positive effective is significantly stronger for firms with good management on funds, as well with high growth opportunities than those with low growth opportunities, as verify by using regression models to analyzes the test of the hypothesis. The study further describes the effect of financial leverage on firm's performance in a dynamic general equilibrium economy with debt and equity claims. The effect is studied at both market and firm level where the firm is exposed to successful and market risk. In a benchmark economy, financial leverage generates little changes in the firms arid iii an economy that generates time, it.s contributes more to the return changes for a firm.