LONG TERM DEBTAND RETURN ON EQUITY OF LISTED INDUSTRIAL GOODS MANUFACTURING FIRMS IN NIGERIA

Abstract

The objective was to determine long-term debt and return on equity of listed industrial goods manufacturing firms in Nigeria. The study adopted positivism philosophy and ex-post facto research design. The population of the study consists of twelve (12) industrial goods manufacturing firms listed on the Nigerian Exchange Group were sampled to six using purposive sampling technique. The data used in this study were sourced from annual reports and statement of accounts of the selected companies. This study employ descriptive statistics and Panel Least Square (PLS) estimate using panel data from 2015 to 2024 covering a period of ten (10) years for eight listed industrial goods manufacturing firms. The study result disclosed that the effect of long-term debt on return on equity of listed industrial goods manufacturing firms in Nigeria is significant. It was suggested amongst others that to curb the significant effect of short- term debt on return on assets, the management of the listed industrial goods firms should maximize the functions of the risk committee formed to measure the risks involved in debt financing.