Financing Dynamics and Performance of Quoted Firms: Panel Data Evidence from Nigeria (INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT)

Summary

• In model one, 81.7 percent of the total variations in earnings per share were accounted for by the explanatory variables.p.1
• In model two, the fixed effect specification found that 52.3 percent of the total variations in return on investment were explained by the model.p.1
• The empirical study examined cross-sectional data of 21 quoted firms to analyze corporate financing policies and performance.p.21
• Fixed regression results for model one produced an F-statistic of 38.32856 with a Durbin-Watson statistic of 1.788408.p.18
• For model two, the fixed regression analysis yielded an F-statistic of 9.205314 and a Durbin-Watson statistic of 1.845199.p.19

Key insights

1. Total capital to total assets exhibits a negative effect on earnings per share among the quoted firms examined.p.1
2. Total capital to total equity displays a positive relationship with both earnings per share and return on investment.p.1
3. Total capital to total liabilities demonstrates a negative effect on earnings per share but a positive effect on return on investment.p.1
4. The fixed effects model for earnings per share produced an adjusted R-squared of 0.817270.p.18
5. The fixed effects model for return on investment generated an adjusted R-squared of 0.523737.p.19