Impact of Institutional Financing on the Performance of Conglomerates Manufacturing Industries in Nigeria

ABSTRACT
This study examines the impact of institutional financing on the performance of conglomerate manufacturing industries in Nigeria from 2016 to 2023, focusing on four key financing sources: retained earnings, net income, debenture, and overdraft. The study employs an ex-post facto research design using secondary data collected from the financial reports of six conglomerates listed on the Nigeria Stock Exchange. The performance of these industries is measured using the return on assets (ROA). The findings reveal that net
income has a significant positive effect on ROA, highlighting its critical role in driving profitability. Conversely, overdraft usage shows a significant negative impact on performance, indicating that excessive reliance on short-term debt strains financial stability. Retained earnings and debenture financing, however, exhibit no significant effect on the performance of the studied firms, suggesting these financing sources may not substantially influence their operational efficiency or growth during the period analyzed.
This study underscores the need for Nigerian manufacturing industries to optimize their financing strategies, particularly by reducing dependency on costly short-term debt and leveraging profitability-enhancing mechanisms. Further research is recommended to explore the moderating effects of macroeconomic variables and sector-specific dynamics
on financing-performance relationships.