EFFECT OF DEBT FINANCING ON PROFITABILITY OF LISTED AGRICULTURAL COMPANIES IN NIGERIA

Charles Dioha, Aondofa Kamaluga

Abstract


The purpose of this research was to examine the effect of debt financing on the profitability of listed agricultural companies in Nigeria. The study used a sample of 4 listed agric companies in Nigeria.  Secondary data from financial statements of the agric companies were used in the study. The data was analyzed using multivariate regression analysis. The results from the study showed that long-term debt finance had a significant negative effect on profitability of listed agricultural companies in Nigeria. The study concluded that long-term debt in the capital structure of the agric companies should be kept at a moderate level to improve their profitability. The study recommends that agricultural companies should be mindful of the level of debt they incur into their businesses so as to avoid it having a negative effect on profitability.


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ISSN : 2251-1555