International Journal of Accounting, Finance and Risk Management

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Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria

Received: 23 September 2019    Accepted: 11 October 2019    Published: 21 October 2019
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Abstract

This study examined the effect of financial mix on profitability of beverage firms in Nigerian quoted beverage companies. The empirical evidence on the effects of financial mix on firms’ profit is, inconsistent and some are contradictory depending upon the statistical tools used and time-period. It is on this light that this study was set out to examine to ascertain the significant effect of short term debt and long term debt on profit of quoted beverage companies in Nigeria. This study employed ex-post facto research design. Regression analysis was used to test the hypotheses. The study observed that short term debt has positive significant influence on profit of quoted beverage companies in Nigeria while long term debt has no significant effect on profit of quoted beverage companies in Nigeria. Based on this, the study recommended among others that companies should prefer internal financing than external financing sources on debt financing also that corporate firms should rely more on equity financing for funds rising for their operation and minimize their borrowing operations in order to avoid bankrupt.

DOI 10.11648/j.ijafrm.20190404.11
Published in International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 4, December 2019)
Page(s) 102-109
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Financial Mix, Long Term Debt, Short Term Debt and Profitability

References
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Cite This Article
  • APA Style

    Okolocha Chizoba Bonaventure, John-Akamelu Racheal Chitom, Ezejiofor Raymond Asika. (2019). Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria. International Journal of Accounting, Finance and Risk Management, 4(4), 102-109. https://doi.org/10.11648/j.ijafrm.20190404.11

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    ACS Style

    Okolocha Chizoba Bonaventure; John-Akamelu Racheal Chitom; Ezejiofor Raymond Asika. Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria. Int. J. Account. Finance Risk Manag. 2019, 4(4), 102-109. doi: 10.11648/j.ijafrm.20190404.11

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    AMA Style

    Okolocha Chizoba Bonaventure, John-Akamelu Racheal Chitom, Ezejiofor Raymond Asika. Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria. Int J Account Finance Risk Manag. 2019;4(4):102-109. doi: 10.11648/j.ijafrm.20190404.11

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  • @article{10.11648/j.ijafrm.20190404.11,
      author = {Okolocha Chizoba Bonaventure and John-Akamelu Racheal Chitom and Ezejiofor Raymond Asika},
      title = {Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria},
      journal = {International Journal of Accounting, Finance and Risk Management},
      volume = {4},
      number = {4},
      pages = {102-109},
      doi = {10.11648/j.ijafrm.20190404.11},
      url = {https://doi.org/10.11648/j.ijafrm.20190404.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190404.11},
      abstract = {This study examined the effect of financial mix on profitability of beverage firms in Nigerian quoted beverage companies. The empirical evidence on the effects of financial mix on firms’ profit is, inconsistent and some are contradictory depending upon the statistical tools used and time-period. It is on this light that this study was set out to examine to ascertain the significant effect of short term debt and long term debt on profit of quoted beverage companies in Nigeria. This study employed ex-post facto research design. Regression analysis was used to test the hypotheses. The study observed that short term debt has positive significant influence on profit of quoted beverage companies in Nigeria while long term debt has no significant effect on profit of quoted beverage companies in Nigeria. Based on this, the study recommended among others that companies should prefer internal financing than external financing sources on debt financing also that corporate firms should rely more on equity financing for funds rising for their operation and minimize their borrowing operations in order to avoid bankrupt.},
     year = {2019}
    }
    

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    T1  - Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria
    AU  - Okolocha Chizoba Bonaventure
    AU  - John-Akamelu Racheal Chitom
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    Y1  - 2019/10/21
    PY  - 2019
    N1  - https://doi.org/10.11648/j.ijafrm.20190404.11
    DO  - 10.11648/j.ijafrm.20190404.11
    T2  - International Journal of Accounting, Finance and Risk Management
    JF  - International Journal of Accounting, Finance and Risk Management
    JO  - International Journal of Accounting, Finance and Risk Management
    SP  - 102
    EP  - 109
    PB  - Science Publishing Group
    SN  - 2578-9376
    UR  - https://doi.org/10.11648/j.ijafrm.20190404.11
    AB  - This study examined the effect of financial mix on profitability of beverage firms in Nigerian quoted beverage companies. The empirical evidence on the effects of financial mix on firms’ profit is, inconsistent and some are contradictory depending upon the statistical tools used and time-period. It is on this light that this study was set out to examine to ascertain the significant effect of short term debt and long term debt on profit of quoted beverage companies in Nigeria. This study employed ex-post facto research design. Regression analysis was used to test the hypotheses. The study observed that short term debt has positive significant influence on profit of quoted beverage companies in Nigeria while long term debt has no significant effect on profit of quoted beverage companies in Nigeria. Based on this, the study recommended among others that companies should prefer internal financing than external financing sources on debt financing also that corporate firms should rely more on equity financing for funds rising for their operation and minimize their borrowing operations in order to avoid bankrupt.
    VL  - 4
    IS  - 4
    ER  - 

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Author Information
  • Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria

  • Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria

  • Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria

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