High debt hurts Nigerian firms' performance, impacting return on assets.
The article explores whether companies in Nigeria perform better when they use equity or debt for financing. The researchers studied data from 27 Nigerian firms over 17 years and found that having more debt can lower a company's financial performance. Surprisingly, having more tangible assets also seems to reduce performance. The size and growth of a company, however, do positively impact performance. The findings suggest that companies should consider factors beyond debt when aiming to improve their performance.