Relationship between macroeconomic factors and debt structure: evidence from non-financial firms in Nigeria

Authors

  • Ahmed Balarabe Musa Department of General Studies, School of Liberal Studies, Nuhu Bamalli Polytechnic Zaria, Nigeria.
  • Mutiu Abdulganiu Department of Economics, Faculty of Social and Management Sciences, Federal University Gusau, Nigeria.
  • Adamu Yahaya Department of Accounting, Faculty of Social and Management Sciences, Federal University Dutsinma, Nigeria.

Keywords:

Debt Structure, non-financial companies, macroeconomic factors, Nigeria.

Abstract

This study investigates how macroeconomic variables affect non-financial enterprises in Nigeria's decision-making regarding their debt structures. The research makes use of secondary information from listed non-financial corporations in Nigeria between 2008 and 2020. A Panel OLS was used in the study to examine the data gathered. The results of the panel regression demonstrate how firm characteristics (firm size, profits, fixed assets, non-debt tax shields), and growth rates of the gross domestic product have an impact on the debt structure of non-financial enterprises in Nigeria. The results indicate that while interest rates have a negative link with debt structure, there is a positive relationship between GDP growth rates, inflation rate and private credit. The study encourages company managers in the sector in Nigeria to take these macroeconomic factors' possible impacts on their funding decisions and their bearing on the sector's overall growth into account when making long-term funding decisions.

Downloads

Published

2023-06-30

How to Cite

Musa, A. B. ., Abdulganiu, M. ., & Yahaya, A. (2023). Relationship between macroeconomic factors and debt structure: evidence from non-financial firms in Nigeria. International Journal of Intellectual Discourse, 6(2), 1–11. Retrieved from https://ijidjournal.org/index.php/ijid/article/view/351

Issue

Section

Articles