Determinants of Debt Financing in Nigeria

  • Ayoola Biliqees Abdulmumin University of Ilorin
Keywords: asset tangibility, profitability, non debt tax shield, firm growth and firm size


This study examines the debt financing determinants within corporations based on the annual time series data between 2008 to 2018 using Panel Least Square technique (PLS). The findings show that asset tangibility, profitability, non-debt tax shield, firm growth and firm size are statistically significant in explaining the variation in debt policy. The result also shows that there is a positive relationship between asset tangibility, profitability, non-debt tax shield and debt policy while, the result exhibits a negative relationship between firm growth, firm size and debt policy. It is therefore recommended that management needs to increase efficiency by maximizing the use of debt in the capital structure option.

Author Biography

Ayoola Biliqees Abdulmumin, University of Ilorin

PhD, Department of Finance


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