Abstract: We investigated the control variables which are also commonly used as determinants of firm-leverage such as firm-tangibility, firm-size and liquidity to determine the firms financing choice in Nigeria. Nevertheless, from our empirical observation we discovered that some of the modern finance-theories that are currently used in explaining capital structure determinants in developed economies are also appropriate for firms in Nigeria.
However, this research employ the most commonly used determinant of capital structure to examine the firm financing choice in Nigeria by investigating 10 firms quoted on the Nigeria stock market between the period of 2007-2011 using Ordinary Least Square. Specifically, the data analysis revealed, that Firm-Tangibility and Liquidity are negatively correlated to quoted firms examined while; firm-size is found to be positively related to firm leverage.
Keywords: firm-tangibility, firm-size, liquidity, firms financing choice.
Title: Firms Financing Choice in an Emerging Economy: The Nigerian Context
Author: SUNNY O. TEMILE (NIGERIA), DADANG PRASETYO JATMIKO (INDONESIA), OSAMUYIMEN EGBON (NIGERIA)
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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