THE EFFECT OF FINANCIAL LEVERAGE ON FIRM GROWTH OF LISTED CONGLOMERATE COMPANIES IN NIGERIA
Abstract
ABSTRACT
Financial leverage plays a vital role in determining growth and sustainability in firms, especially in developing economies like Nigeria. It reflects the extent to which firms utilise borrowed funds to finance operations and expansion. Previous studies have produced mixed results regarding the effect of financial leverage on firms’ growth but this has continued to elicit further investigation in the Nigerian context, particularly among listed conglomerate companies. This study investigated the effect of financial leverage on the growth of firm, with a view to examining three variables: Revenue Growth (RG), Asset Growth (AG) and Market Share Growth (MSG). The study adopted ex-post facto design. Data were obtained from audited financial statements of 6 conglomerates companies listed on the Nigeria Exchange Group (NGX) as of August 2025. Data obtained covered a period of ten years (2015-2024); total enumeration was used. Validity and reliability of data were premised on financial statements audited by statutory auditors. Data were analysed using descriptive and inferential statistics. The study indicated that financial leverage had a significant effect on RG (Adj R2 = 0.741, F (3, 51) =22.12, P =0.00
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