Research Article

FIRM CHARACTERISTICS AND FINANCIAL LEVERAGE OF QUOTED DIVERSIFIED FIRMS IN NIGERIA.

Muhammad Jamilu SaidU1*, Helen Afang Andow1, Nuruddeen Jimoh1
1 Department of Business Administration, Kaduna State University, Kaduna, Nigeria
* Corresponding author: mjsaidu65@gmail.com
Published: Jun, 2025
DOI: 10.68022/kbmr.2025.zbq2nqy6
Pages: 74-87
Views: 12
Downloads: 3

Abstract

This study examined the relationship between complexity of business and financial leverage of quoted firms diversi fiedfirms in Nigeria. The study employed a correlational research design. The population of the study is limited to quoted diversified firms listed on the Nigerian Exchange Group as at 3Ilst December, 2024. The study population were the six quoted diversified firm in Nigeria. Hence, census sampling was adopted because given the extremely small population size of only six quoted firms in Nigeria. The study utilized secondary data from the annual reports of the sampled firms, and regression analysis was adopted for data analysis. The findings suggest that that increase in complexity of business, result to an increase financial leverage of quoted diversified firms in Nigeria. This implies that, the more diversified a company is, the more likely the company is to borrow, which is an indication that quoted diversified companies in Nigeria are fund growth. That is, as diversification increases, borrowing increases in order to fund such growth. The study recommends the shareholders within diversified companies in Nigeria to focus more attention on regulating expansion by management through borrowing, which is likely to dilute ownership and increase the risk of bankruptcy.

Keywords

Complexity ofBusiness Financial leverage Borrowings Diversified firms

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How to Cite

SaidU, M. J., Andow, H. A., & Jimoh, N. (2025). FIRM CHARACTERISTICS AND FINANCIAL LEVERAGE OF QUOTED DIVERSIFIED FIRMS IN NIGERIA.. Kaduna Business and Management Reviews, 6(1), 74-87. https://doi.org/10.68022/kbmr.2025.zbq2nqy6

M. J. SaidU, H. A. Andow, and N. Jimoh, "FIRM CHARACTERISTICS AND FINANCIAL LEVERAGE OF QUOTED DIVERSIFIED FIRMS IN NIGERIA.," Kaduna Business and Management Reviews, vol. 6, no. 1, pp. 74-87, June 2025. doi: 10.68022/kbmr.2025.zbq2nqy6

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