Impact of Financial Leverage on the Performance of Listed Firms in Nigeria

Student: JERRY GAMKA HOSEA (Project, 2025)
Department of Banking and Finance
Kaduna Polytechnic, Kaduna

Abstract

This study examines the impact of financial leverage on the performance of
listed firms in Nigeria from the period of (2015-2021) The study made use
of economic methods which entails the examination of the nit root properties of the
data using the PP Fisher Chi Square and PP Choi Statistics Test. The daia was
subjected to unit root test and found to be stationary at levels and are inegrated of
order zero[i (0)]. Fixed effect regression analysis was used after the result from
Hausman test for randomization of panel result indicated that it is the best estimaior
than the random effect regression in estimating the relationship between the variables
of the study. The findings from the study indicates that all the variables of model one
(EOR, DTR & DER) were negatively related to our first measure ofprofitability which
is return on asset (ROA). For model two, a positive relation exist between EQR, DER
and ROE while DTR was negatively related

Keywords
impact financial leverage performance listed firms nigeria
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