Financial Policy and Corporate Performance: An Empirical Analysis of Nigerian Listed Companies

International Journal of canadian Center of Science and Education,VOL .4,NO.4,P.175-181

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Main Authors: SALAWU, Rafiu Oyesola, ASAOLU, Taiwo Olufemi, YINUSA, Dauda Olalekan
Format: Tidsskrift
Sprog:engelsk
Udgivet: Canadian Center of Science and Education 2020
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Online adgang:https://ir.oauife.edu.ng/handle/123456789/5058
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author SALAWU, Rafiu Oyesola
ASAOLU, Taiwo Olufemi
YINUSA, Dauda Olalekan
author_facet SALAWU, Rafiu Oyesola
ASAOLU, Taiwo Olufemi
YINUSA, Dauda Olalekan
author_sort SALAWU, Rafiu Oyesola
collection DSpace
description International Journal of canadian Center of Science and Education,VOL .4,NO.4,P.175-181
format Journal
id oai:ir.oauife.edu.ng:123456789-5058
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language English
publishDate 2020
publisher Canadian Center of Science and Education
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spelling oai:ir.oauife.edu.ng:123456789-50582023-05-13T11:13:19Z Financial Policy and Corporate Performance: An Empirical Analysis of Nigerian Listed Companies SALAWU, Rafiu Oyesola ASAOLU, Taiwo Olufemi YINUSA, Dauda Olalekan Firms performance GMM Financial policy International Journal of canadian Center of Science and Education,VOL .4,NO.4,P.175-181 This study investigates the effects of financial policy and firm specific characteristics on corporate performance. Panel data covering a period from 1990 to 2006 for 70 firms were analyzed. Pooled OLS, Fixed Effect Model and Generalized Method of Moment panel model were employed in the estimation and data were sourced from the annual report and financial statement of the sampled firms. The estimation of the dynamic panel-data results show that long-term debts, tangibility, corporate tax rate, dividend policy, financial and stock market development were all positively related with firms’ performance. Furthermore, the positive relationship between stock market development and ROA suggest that as stock market develops, various investment opportunities are opened to firms. Therefore, there is need to monitor the performance of these variables in order to stabilize and enhance performance of listed firms in Nigeria. In addition, the result shows that growth, size and foreign direct investment are negatively related with firms’ performance (ROA). In addition, the result indicates that higher income variability increases the risk that a firm may not be able to cover its interest payment, leading to higher expected costs of financial distress. This may leads to reduce their profitability. The results of the study generally support existing literature on the impact of financial policy on corporate performance. 2020-01-16T10:59:22Z 2020-01-16T10:59:22Z 2012-04-01 Journal 10.5539/ijef.v4n4p175 https://ir.oauife.edu.ng/handle/123456789/5058 en application/pdf Canadian Center of Science and Education
spellingShingle Firms
performance
GMM
Financial policy
SALAWU, Rafiu Oyesola
ASAOLU, Taiwo Olufemi
YINUSA, Dauda Olalekan
Financial Policy and Corporate Performance: An Empirical Analysis of Nigerian Listed Companies
title Financial Policy and Corporate Performance: An Empirical Analysis of Nigerian Listed Companies
title_full Financial Policy and Corporate Performance: An Empirical Analysis of Nigerian Listed Companies
title_fullStr Financial Policy and Corporate Performance: An Empirical Analysis of Nigerian Listed Companies
title_full_unstemmed Financial Policy and Corporate Performance: An Empirical Analysis of Nigerian Listed Companies
title_short Financial Policy and Corporate Performance: An Empirical Analysis of Nigerian Listed Companies
title_sort financial policy and corporate performance an empirical analysis of nigerian listed companies
topic Firms
performance
GMM
Financial policy
url https://ir.oauife.edu.ng/handle/123456789/5058
work_keys_str_mv AT salawurafiuoyesola financialpolicyandcorporateperformanceanempiricalanalysisofnigerianlistedcompanies
AT asaolutaiwoolufemi financialpolicyandcorporateperformanceanempiricalanalysisofnigerianlistedcompanies
AT yinusadaudaolalekan financialpolicyandcorporateperformanceanempiricalanalysisofnigerianlistedcompanies