Long-term debt hurts Nigerian industrial firms, short-term debt boosts share price.
The article examines how the way companies in Nigeria finance their operations affects their overall value. By studying 14 industrial goods companies over 10 years, the researchers found that using more short-term debt than long-term debt can increase a company's value. Long-term debt had a negative impact on return on equity, while short-term debt positively influenced share prices. The study suggests that companies should carefully balance their financing options to maximize their business worth.