Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria

Okolocha Chizoba Bonaventure; John-Akamelu Racheal Chitom; Ezejiofor Raymond Asika

doi:doi:10.11648/j.ijafrm.20190404.11

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Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria

Okolocha Chizoba Bonaventure, John-Akamelu Racheal Chitom, Ezejiofor Raymond Asika

Published in International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 4)

Received: 23 September 2019 Accepted: 11 October 2019 Published: 21 October 2019

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Abstract

This study examined the effect of financial mix on profitability of beverage firms in Nigerian quoted beverage companies. The empirical evidence on the effects of financial mix on firms’ profit is, inconsistent and some are contradictory depending upon the statistical tools used and time-period. It is on this light that this study was set out to examine to ascertain the significant effect of short term debt and long term debt on profit of quoted beverage companies in Nigeria. This study employed ex-post facto research design. Regression analysis was used to test the hypotheses. The study observed that short term debt has positive significant influence on profit of quoted beverage companies in Nigeria while long term debt has no significant effect on profit of quoted beverage companies in Nigeria. Based on this, the study recommended among others that companies should prefer internal financing than external financing sources on debt financing also that corporate firms should rely more on equity financing for funds rising for their operation and minimize their borrowing operations in order to avoid bankrupt.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 4)
DOI	10.11648/j.ijafrm.20190404.11
Page(s)	102-109
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Financial Mix, Long Term Debt, Short Term Debt and Profitability

References

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APA Style

Okolocha Chizoba Bonaventure, John-Akamelu Racheal Chitom, Ezejiofor Raymond Asika. (2019). Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria. International Journal of Accounting, Finance and Risk Management, 4(4), 102-109. https://doi.org/10.11648/j.ijafrm.20190404.11

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ACS Style

Okolocha Chizoba Bonaventure; John-Akamelu Racheal Chitom; Ezejiofor Raymond Asika. Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria. Int. J. Account. Finance Risk Manag. 2019, 4(4), 102-109. doi: 10.11648/j.ijafrm.20190404.11

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AMA Style

Okolocha Chizoba Bonaventure, John-Akamelu Racheal Chitom, Ezejiofor Raymond Asika. Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria. Int J Account Finance Risk Manag. 2019;4(4):102-109. doi: 10.11648/j.ijafrm.20190404.11

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@article{10.11648/j.ijafrm.20190404.11,
  author = {Okolocha Chizoba Bonaventure and John-Akamelu Racheal Chitom and Ezejiofor Raymond Asika},
  title = {Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {4},
  number = {4},
  pages = {102-109},
  doi = {10.11648/j.ijafrm.20190404.11},
  url = {https://doi.org/10.11648/j.ijafrm.20190404.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190404.11},
  abstract = {This study examined the effect of financial mix on profitability of beverage firms in Nigerian quoted beverage companies. The empirical evidence on the effects of financial mix on firms’ profit is, inconsistent and some are contradictory depending upon the statistical tools used and time-period. It is on this light that this study was set out to examine to ascertain the significant effect of short term debt and long term debt on profit of quoted beverage companies in Nigeria. This study employed ex-post facto research design. Regression analysis was used to test the hypotheses. The study observed that short term debt has positive significant influence on profit of quoted beverage companies in Nigeria while long term debt has no significant effect on profit of quoted beverage companies in Nigeria. Based on this, the study recommended among others that companies should prefer internal financing than external financing sources on debt financing also that corporate firms should rely more on equity financing for funds rising for their operation and minimize their borrowing operations in order to avoid bankrupt.},
 year = {2019}
}

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TY  - JOUR
T1  - Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria
AU  - Okolocha Chizoba Bonaventure
AU  - John-Akamelu Racheal Chitom
AU  - Ezejiofor Raymond Asika
Y1  - 2019/10/21
PY  - 2019
N1  - https://doi.org/10.11648/j.ijafrm.20190404.11
DO  - 10.11648/j.ijafrm.20190404.11
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 102
EP  - 109
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20190404.11
AB  - This study examined the effect of financial mix on profitability of beverage firms in Nigerian quoted beverage companies. The empirical evidence on the effects of financial mix on firms’ profit is, inconsistent and some are contradictory depending upon the statistical tools used and time-period. It is on this light that this study was set out to examine to ascertain the significant effect of short term debt and long term debt on profit of quoted beverage companies in Nigeria. This study employed ex-post facto research design. Regression analysis was used to test the hypotheses. The study observed that short term debt has positive significant influence on profit of quoted beverage companies in Nigeria while long term debt has no significant effect on profit of quoted beverage companies in Nigeria. Based on this, the study recommended among others that companies should prefer internal financing than external financing sources on debt financing also that corporate firms should rely more on equity financing for funds rising for their operation and minimize their borrowing operations in order to avoid bankrupt.
VL  - 4
IS  - 4
ER  -

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Author Information

Okolocha Chizoba Bonaventure

Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
John-Akamelu Racheal Chitom

Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
Ezejiofor Raymond Asika

Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria

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Plain Text BibTeX RIS

APA Style

Okolocha Chizoba Bonaventure, John-Akamelu Racheal Chitom, Ezejiofor Raymond Asika. (2019). Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria. International Journal of Accounting, Finance and Risk Management, 4(4), 102-109. https://doi.org/10.11648/j.ijafrm.20190404.11

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ACS Style

Okolocha Chizoba Bonaventure; John-Akamelu Racheal Chitom; Ezejiofor Raymond Asika. Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria. Int. J. Account. Finance Risk Manag. 2019, 4(4), 102-109. doi: 10.11648/j.ijafrm.20190404.11

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AMA Style

Okolocha Chizoba Bonaventure, John-Akamelu Racheal Chitom, Ezejiofor Raymond Asika. Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria. Int J Account Finance Risk Manag. 2019;4(4):102-109. doi: 10.11648/j.ijafrm.20190404.11

Copy | Download

@article{10.11648/j.ijafrm.20190404.11,
  author = {Okolocha Chizoba Bonaventure and John-Akamelu Racheal Chitom and Ezejiofor Raymond Asika},
  title = {Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {4},
  number = {4},
  pages = {102-109},
  doi = {10.11648/j.ijafrm.20190404.11},
  url = {https://doi.org/10.11648/j.ijafrm.20190404.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190404.11},
  abstract = {This study examined the effect of financial mix on profitability of beverage firms in Nigerian quoted beverage companies. The empirical evidence on the effects of financial mix on firms’ profit is, inconsistent and some are contradictory depending upon the statistical tools used and time-period. It is on this light that this study was set out to examine to ascertain the significant effect of short term debt and long term debt on profit of quoted beverage companies in Nigeria. This study employed ex-post facto research design. Regression analysis was used to test the hypotheses. The study observed that short term debt has positive significant influence on profit of quoted beverage companies in Nigeria while long term debt has no significant effect on profit of quoted beverage companies in Nigeria. Based on this, the study recommended among others that companies should prefer internal financing than external financing sources on debt financing also that corporate firms should rely more on equity financing for funds rising for their operation and minimize their borrowing operations in order to avoid bankrupt.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Effect of Financial Mix on Profitability of Quoted Beverage Firms in Nigeria
AU  - Okolocha Chizoba Bonaventure
AU  - John-Akamelu Racheal Chitom
AU  - Ezejiofor Raymond Asika
Y1  - 2019/10/21
PY  - 2019
N1  - https://doi.org/10.11648/j.ijafrm.20190404.11
DO  - 10.11648/j.ijafrm.20190404.11
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 102
EP  - 109
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20190404.11
AB  - This study examined the effect of financial mix on profitability of beverage firms in Nigerian quoted beverage companies. The empirical evidence on the effects of financial mix on firms’ profit is, inconsistent and some are contradictory depending upon the statistical tools used and time-period. It is on this light that this study was set out to examine to ascertain the significant effect of short term debt and long term debt on profit of quoted beverage companies in Nigeria. This study employed ex-post facto research design. Regression analysis was used to test the hypotheses. The study observed that short term debt has positive significant influence on profit of quoted beverage companies in Nigeria while long term debt has no significant effect on profit of quoted beverage companies in Nigeria. Based on this, the study recommended among others that companies should prefer internal financing than external financing sources on debt financing also that corporate firms should rely more on equity financing for funds rising for their operation and minimize their borrowing operations in order to avoid bankrupt.
VL  - 4
IS  - 4
ER  -

Copy | Download