Work

Profitability and Leverage: Evidence from Nigerian Firms

Year: 2012

Type: article

Abstract: This study examines the profit profile of firms in Nigeria and analyzes the impact of leverage on profitability for the period 1999-2007. The results show that aggregate profit level for the firms decreased by 0.02 percent yearly over the study period. However, when disaggregated into sectors, a few firms actually experienced an increased profit level. The results show that firm size has a significant positive effect on profitability, while leverage has negative effect. The paper suggests that expansion, increased sales and low debt ratios enhance firm profitability.

Source: RePEc: Research Papers in Economics

Authors: Olayinka Olufisayo Akinlo, Taiwo Olufemi Asaolu

Institution: Obafemi Awolowo University

Language: English

Topic: Corporate Finance and Governance

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W2993983554

FWCI:

Cites: 16

Cited by: 42

Related to: 10