Volume 4, Issue 4, December 2019, Page: 102-109
Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria
Okolocha Chizoba Bonaventure, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
John-Akamelu Racheal Chitom, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
Ezejiofor Raymond Asika, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
Received: Sep. 23, 2019;       Accepted: Oct. 11, 2019;       Published: Oct. 21, 2019
DOI: 10.11648/j.ijafrm.20190404.11      View  361      Downloads  150
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.
Financial Mix, Long Term Debt, Short Term Debt and Profitability
To cite this article
Okolocha Chizoba Bonaventure, John-Akamelu Racheal Chitom, Ezejiofor Raymond Asika, Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria, International Journal of Accounting, Finance and Risk Management. Vol. 4, No. 4, 2019, pp. 102-109. doi: 10.11648/j.ijafrm.20190404.11
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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