MODERATING INFLUENCE OF MANAGERIAL OWNERSHIP ON DEBT FINANCING AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS QUOTED ON NIGERIAN STOCK EXCHANGE

Authors

  • Abdullahi D. Ibrahim, PhD Federal Polytechnic Nasarawa, Nasarawa state
  • Ahmed Hassan Ahmed Federal Polytechnic Nasarawa, Nasarawa state
  • Ramalan Murtala Muhammed Federal Polytechnic Nasarawa, Nasarawa state
  • Zainab Abdulsalami Federal Polytechnic Nasarawa, Nasarawa state
  • Aliyu Ahmed Tanko Federal Polytechnic Nasarawa, Nasarawa state

DOI:

https://doi.org/10.57233/gujaf.v3i2.147

Keywords:

Managerial ownership, financing, performance, equity, moderating influence

Abstract

The study considered the influence of managerial ownership and debt financing on financial performance of manufacturing firms listed on the Nigerian Stock Exchange. The panel regression model utilized secondary data for a period of ten (10) years to 2020. The study sampled twelve (12) listed manufacturing firms in Nigeria. Findings revealed a negative effect of total debt on financial performance of selected quoted manufacturing firms in the period. The managerial ownership also negatively influences the financial performance of the sampled companies. The results clearly demonstrate that the interaction of debt financing and managerial ownership does not significantly influence the financial performance of listed manufacturing firms in Nigeria implying very weak moderating effect. The study recommends that listed manufacturing firms should consider their retained earnings to finance their operations instead of relying on debt finance, and directors should only own minority shareholding right in their companies as ownership of major shares cannot influence borrowing plans of the business.

Author Biographies

Abdullahi D. Ibrahim, PhD, Federal Polytechnic Nasarawa, Nasarawa state

Department of Accountancy
School of Business Studies
Federal Polytechnic Nasarawa.

Ahmed Hassan Ahmed, Federal Polytechnic Nasarawa, Nasarawa state

Department of Accountancy
School of Business Studies
Federal Polytechnic Nasarawa.

Ramalan Murtala Muhammed, Federal Polytechnic Nasarawa, Nasarawa state

Department of Accountancy
School of Business Studies
Federal Polytechnic Nasarawa, +2348035866799

Zainab Abdulsalami, Federal Polytechnic Nasarawa, Nasarawa state

Department of Accountancy,
School of Business Studies,
Federal Polytechnic Nasarawa

Aliyu Ahmed Tanko, Federal Polytechnic Nasarawa, Nasarawa state

Department of Accountancy
School of Business Studies
Federal Polytechnic Nasarawa

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Published

2022-04-30

How to Cite

D. Ibrahim, A., Hassan Ahmed, A., Murtala Muhammed, R., Abdulsalami, Z., & Ahmed Tanko, A. (2022). MODERATING INFLUENCE OF MANAGERIAL OWNERSHIP ON DEBT FINANCING AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS QUOTED ON NIGERIAN STOCK EXCHANGE. Gusau Journal of Accounting and Finance, 3(2), 10. https://doi.org/10.57233/gujaf.v3i2.147