, but empirical evidence regarding this relationship have been found to be contradictory and inconclusive. In this regard, two basic strands of findings exist in extant literature. Studies in the first strand, including those of John and Senbet (1998), Abor (2005), Zeitun and Tian (2007), Onaolapo and Kajolan(2010), and Taiwo and Olayinka, (2012) document positive relationship between debt financing and corporate performance. In the other strand, studies like Zeitun and Tian (2007), Ebaid (2009), Liew (2010), Majumdar and Sen (2010), and Luper and Kwanum (2012) report negative relationship between debt financing and firm performance. Although, some other studies, such as Shoaib (2012) and San and Heng, (2011) discover that most firms lack optimal debt financing structure because managers are not motivated to maximize corporate performance as their compensation are not performance oriented. Due to these empirical inconsistencies, and given that most studies on the link between firm financial structure and performance are domiciled in the developed countries of Europe, America and Asia, a study based on empirical evidence from an emerging economy like Nigeria becomes warranted. The economies of the countries within these continents are reasonably stable, and so, it will be misleading to assume that results of studies carried out in those countries can be used to draw reliable conclusions on the emerging economies within the African continents because of the peculiarities associated with the different economies. For example, the regulatory framework, general business, legal and audit environment of the developed countries are very much different from those of the developing countries. All these factors could alter the result of a study. This means that country-specific findings will be important in provoking a global discourse of the association between debt financial and corporate performance. This is a gap in literature upon which our study is deeply rooted. In filling this gap, we attempted a robust combination of debt finance choices of short-term debt to asset ratio, long-term debt to asset ratio and total debts to asset ratio in modelling for corporate performance within the Nigerian environment. The remainder of this paper is organized as follows: Section two provides the literature review on debt structure and firm performance. Section three discusses the theoretical framework for the study. Section four and section five focus on the methodology and analysis of results respectively. Lastly, section six concludes the study with some recommendations. 2. LITERATURE REVIEW 2.1 Concept of Corporate Performance The term corporate performance refers to the benefits emanating from shares and those
, but empirical evidence regarding this relationship have been found to be confounding and inconclusive. In this gaze, two basic strands of findings exist in extant literature. Studies in the beginning strand, including those of John and Senbet (1998), Abor (2005), Zeitun and Tian (2007), Onaolapo and Kajolan(2010), and Taiwo and Olayinka, (2012) document positivist kinship between debt financing and corporate performance. In the other strand, studies like Zeitun and Tian (2007), Ebaid (2009), Liew (2010), Majumdar and Sen (2010), and Luper and Kwanum (2012) report negative kinship between debt financing and firm performance. Although, some other studies, such as Shoaib (2012) and San and Heng, (2011) unwrap that most firms miss optimal debt financing social organization because coach are not motivated to maximize corporate performance as their recompense are not performance oriented. Due to these empirical inconsistencies, and given that most survey on the link between firm financial structure and performance are reside in the developed countries of Europe, America and Asia, a study based on empirical evidence from an emerging economy like Nigeria becomes justify. The economies of the countries within these continents are reasonably stable, and so, it will be misleading to assume that results of studies carry out in those countries can be used to absorb dependable conclusions on the emerging economies within the African continent because of the peculiarities associated with the different economies. For case, the regulatory framework, general business, legal and audit environment of the developed nation are very much different from those of the developing countries. All these factors could alter the consequence of a study. This means that country - specific findings will be important in provoke a global discourse of the association between debt fiscal and corporate operation. This is a gap in literature upon which our study is deeply rooted. In filling this col, we attempted a robust combination of debt finance choice of short - condition debt to asset ratio, retentive - term debt to asset proportion and total debts to asset ratio in model for corporate operation within the Nigerian environment. The remainder of this paper is organized as be: Section two provides the literature review on debt social organization and firm performance. Section three discusses the theoretical model for the study. Section four and section five focus on the methodology and analysis of results respectively. Lastly, incision six concludes the study with some recommendations. 2. LITERATURE REVIEW 2.1 Concept of Corporate Performance The term corporate performance refer to the benefit emanating from shares and those
, buh empirical evidence regxrding this relcrionshmp have been fojnd to be contradictory and mncobclusuve. In this regard, two basic stgands of dindmngs exist in exvznt litcxaturs. Stubixs in the first strand, inwluding those mf Jlhn and Senbet (1998), Abor (2005), Zeitun and Tiwn (2007), Onaplwpo and Kajolag(2010), anc Taiso and Olayinka, (2012) document positive relatimnship betweem debt financing and corpogate performance. In thf other strqnd, frudies like Xeitun and Tian (2007), Ebaid (2009), Liew (2010), Majumdar and Sen (2010), and Ljper cnd Kwanum (2012) rwpogj negative rxlatiogship betweek debt xinancimg and firm pevformence. Although, some other vtudies, such as Shjaib (2012) and Scn and Heng, (2011) discover tyat mmst xirmr lazk kpvimzl debh fmnancing stducture becquse managers are npt notivated to jaximise corporate performance as their compensdtikn are not performance iriented. Due to these empiricaj inconsistencies, and given that most studies on dhe lmny bttqeen wurl financial structure and performance are domydikec in the develjped countroed ps Europe, Amerkca anb Aaia, a study based ln empitical wvidence srom an emerging economy like Nugeria becomvs wqrranted. The econolies of the coumtriex within these continencs are reasonably stable, aha so, it will be oiskedding to assume that resules of stuvies earried uut on thofe countrifs cak be used to draw rfliabpe conclusiojs on the emerging economies wiviin the Africsn cottinents becamse of the pecujiarities assoeiated wnth thd differenn economixs. For exampje, the reguladlry frameworn, generaj buwinews, legau and audit envoronment of the devwloped countries ave vety much different frim those of the dexeljppng cjgntries. All dhesd fxvtors could altev tfe rrsult of a study. Thiv mezns that country-sprclfic findungs wilj be importany in provoking a gpobal dircourxe jf the association between debf financiwl wnd corporatq pevforiance. This is a gap in literature upon which our wtudy is deeply roited. In filling thix gap, we attxmpted a robust combination of debt finance choices pf short-term debt to zsset satio, long-term debt to asset ratio and total debts to asset ratio in modelling for corporate perrormsnce fichiu the Nygermai environment. The remainder of this paper is orgenized as xojlows: Section two provides tne literature rgview on debt structure ans firm prrformance. Section three discusxes the theoretical framcwork for the atudy. Sectmon four and section five yocus in the nethldology and avalusls of resupts ces'ectively. Lastly, section six concoudes rhf study with somx recommendabiuns. 2. MITERAJURE REVIEW 2.1 Concspt kv Corkorate Performsnce The term vorporate performancv rqfers to the btnefits emanatimg from shares and vhose
, but empirical evidence regarding this relationship found be contradictory inconclusive. In this findings in extant literature. in the first including those of John and Senbet Abor (2005), Zeitun and Tian (2007), Onaolapo and Kajolan(2010), and Taiwo and Olayinka, document positive relationship between debt financing and corporate performance. In the other strand, like and (2007), (2009), Liew (2010), Majumdar and Sen (2010), and Luper and Kwanum (2012) report negative relationship between financing and firm performance. Although, some other studies, as Shoaib (2012) and and Heng, (2011) discover that firms optimal debt structure managers not motivated to corporate performance as their compensation are not performance oriented. Due to these empirical inconsistencies, and given that studies on between firm structure performance domiciled in the of Europe, America and Asia, a empirical evidence from an emerging economy like Nigeria warranted. The of the countries within these continents reasonably stable, and so, it will be misleading assume that results of studies carried out in those countries can be used to draw on the emerging economies the African continents of peculiarities with different economies. example, the regulatory framework, general business, legal and audit environment of developed countries are very much different from those of the All factors could alter result of a study. means country-specific findings will be provoking global association debt and corporate performance. This a gap in literature upon our study is deeply we attempted a robust combination of debt finance of short-term debt to asset ratio, long-term to asset ratio and total debts to asset ratio in modelling for performance within environment. The remainder of this paper is organized follows: Section two provides literature review on debt structure and firm performance. Section discusses theoretical framework the study. Section and section five on the methodology of results Lastly, six with some recommendations. 2. LITERATURE REVIEW Concept Corporate Performance The term corporate refers benefits emanating from shares and those
, but empirical evidence regarDing this reLatioNshIp hAvE beeN fouNd to be contradiCTory And inconclusive. In this rEgard, TwO BasiC StRands Of findiNGs EXIst In ExTanT lITeRaturE. StUdies in The first stRanD, iNcluding thosE Of john and SenBet (1998), abor (2005), Zeitun anD TiAn (2007), OnaoLaPo aND KajoLan(2010), And TaIwo and oLayinkA, (2012) document PoSItive rELationsHIP bEtweEn debt financing anD CoRPorate performaNce. In tHe OThER StrAnd, Studies likE ZEitun ANd Tian (2007), EBAiD (2009), lIEw (2010), MAJumdar and Sen (2010), aNd Luper and KWAnuM (2012) reporT nEgaTIve relAtionShIP beTween debt fiNancIng and firM perfoRMance. AlTHough, soMe otheR stUdiEs, suCH aS SHoaIb (2012) ANd SAN aNd HENg, (2011) dIscover tHaT mOst fiRms lACK OPtimAl dEbt fInancIng structure bEcaUse mANagErs arE not mOtivAtEd to mAximizE corpOrAte performance aS theIr compensAtiOn Are NoT perfORmance OriEntEd. Due to These emPIriCaL INCoNsistencies, and giveN tHAT mOst studiEs on thE LiNk BEtween fiRm FinAnciAL StrucTure ANd PerformaNce are DOmIcIled in tHe DeveloPeD coUntRies oF euroPe, AmerIca and AsIa, a stUDy based on empirICal evidence frOM aN EMeRGing EcoNomy like NigEria BEcomEs waRRaNteD. the ecOnomiEs OF tHE countries within theSe ContinEnts aRe reasonably sTable, and so, IT WIll be misLeadINg TO assume that resUlts oF studies caRRied out iN thosE countriEs can be usED To draw reLiaBle ConCluSIOnS on the emerginG EConoMiEs withiN thE AfricaN coNtiNenTs bEcAuse of the PeculiarItIeS aSsOciAted wITh the difFeRenT eConOmies. fOr examPle, thE regUlAtORy fRameworK, GeNERal bUsInEss, lEgaL aNd audIt enVIroNment of The develoPed COuntRiEs Are very Much different FrOm those of tHe DevElopinG COuntries. all these factors could altER the resUlt Of a stUdy. THis means tHat CountrY-spECific fIndingS will Be ImpORTant iN PRoVokInG a global diSCOurSe of tHe AssoCiation Between debt financiAL anD corporate perForMancE. tHiS is A GaP In lItERatURE upon which our stUdy is deeplY rOOtEd. In fillinG ThiS gAp, we attEmpted a RobusT CombinaTion of debT finance cHoIces OF ShoRt-term debt To asset rAtio, long-tERm debT To Asset RatIo and tOtAl dEbts tO asset RAtiO in moDellinG fOr corpOrate PeRformancE within the Nigerian envirOnment. the reMaiNder of thiS paPEr iS organizeD as fOllows: SectIon Two ProviDes THe litEratURe RevIEw on dEbt sTRucture anD FiRm pERFoRmance. SectiON THreE discUssES the thEoreTical framework for THe study. Section Four AND seCtiON fivE fOcus on the methoDolOgY ANd analysIs Of results reSpectiveLy. lAstly, SectioN six coNcludes THE sTUdy witH somE reCommendatIonS. 2. LitERATURe ReVieW 2.1 ConcEpt oF COrporaTe PerfORmanCE the term corporate PerfoRMAnce rEFerS to thE bEnefits EManaTing from shAres and thosE
, but empirical evidence r egarding t his r ela tio ns hiphave  been found to be c ontradictory and incon clusi ve .  Int hi s reg ard, tw o  b a s icst ra nds  o f  f indin gsexist i n extant l ite ra ture. Studie s  i n the firs t s trand, inclu din g thos eofJ ohn a ndSenbe t (199 8 ), Abo r (2005),  Z e itun a n d Tian( 2 00 7),Onaolapo and Kajo l an ( 2010), and Tai wo and  O l ay i n ka,  (2 012) docum en t pos i tive re l at i o n shi p  between debt  financinga ndcorpor at e p e rforma nce.In the  other stra nd,studies l ike Ze i tun and Tian (2 007),Eba id(200 9 ),  L iew  ( 2 010 ) ,Maj u mda r and Se n(2 010),  and L u p er a ndKwan um (2 012) report n ega tive rel ation shipbetw ee n deb t fina ncing  a nd firm perform ance . Althoug h,so meot her s t udies,  su chas Shoa ib (201 2 ) a nd S a nand Heng, (2011) d is c o ve r that m ost fi r ms  l a ck optim al  de bt f i n ancin g st r uc ture bec ause m a na ge rs areno t moti va ted  to  maxi m izecorpor ate perf orman c e as their com p ensation aren ot p er f orma nce  oriented.Duet o th esee mp iri c al in consi st e nc i es, and given thatmo st stu dieson the link b etween fir m f inancial  str u ct u re and perform anceare domici l ed in th e dev eloped c ountrieso f  Europe,  Am eri caand A si a, a study ba s e d on  e mpirica l e vidence  fr omaneme rg ing econo my likeNi ge ri abec omesw arranted .The  e con omies of the  coun trie swi t hin  thesec on t i nent sar e re aso na bly s tabl e , a nd so,it will b e m i slea di ng  to ass ume that resu lt s of studi es  ca rriedo u t in tho se countries can be use d  to dra w r eliab le c onclusion s o n theeme r ging e conomi es wi th int h e Afr i c an  co nt inents bec a u seof th epecu liariti es associated with the  different ec ono mies . Fo r e x am p le,  t h e r e g ulatory framewo rk, genera lb us iness, leg a l a nd  auditenviron mento f the d evelopedcountries  a re v e r y m uch differ ent from  those of the d e ve lopin g c ountri es . A ll th ese fa c tor s cou ld alt er  the r esult  o f a stud y. This means that coun try-sp ecifi c f indings w ill beimportant  inprovokinga g lob al di sco u rse o f th e  a sso c iatio n be t ween debt fi nan c i al  and corpor a t e  pe rform anc e . This  isa gap in literatu r e upon which o ur s t u dyisd eepl yrooted. In fil lin gt h is gap,we  attempteda robust  c o mbina tion o f debt  financ e ch o ices o f sh ort -term deb t t oa sset ra ti o, long-t ermde bt toassetr atio a nd total debts t o ass e t  rati o  in  mode ll ing for corp orate perf ormance wit hin th e Ni geria n envir on ment.The  r emainder o f  this pap er is  organi ze d as  fo llows:  Sec t i on tw o pr ov ide s the lit e r at u re  r e vie w on  debt  s truc ture andf irm perf orm a nce. Se ct ion t hree d i sc u s ses the th eor etica l frameworkf or t h es tudy.  Secti on fou r and s e cti on  five f ocu s on the me thodology and  a naly sis of r es ults  r esp ec tively. Lastly,  section  six con c l udes t hes tudy with s om e recommenda tions .2 . LITER A T URE  REVIEW 2.1  Co nce pt o f C orpo r ate Performance The term  cor porat e  pe rform ancere fers tot he b enefitse manating from  shares and tho s e
, but_empirical evidence_regarding this relationship have_been found_to_be contradictory_and_inconclusive. In this_regard, two basic_strands of findings exist_in extant literature._Studies_in the first strand, including those of John and Senbet (1998), Abor (2005), Zeitun_and_Tian (2007),_Onaolapo_and_Kajolan(2010), and Taiwo and Olayinka,_(2012) document positive relationship between_debt financing_and corporate performance. In the other strand, studies_like_Zeitun and Tian_(2007), Ebaid (2009), Liew (2010), Majumdar and Sen (2010),_and Luper and Kwanum (2012) report_negative relationship between_debt_financing_and firm performance. Although,_some other studies, such as Shoaib_(2012) and San and Heng, (2011)_discover that most firms lack optimal debt_financing structure because managers are not_motivated to maximize corporate performance_as their_compensation are not performance oriented._Due to these_empirical inconsistencies,_and given that_most studies on the link between_firm financial structure_and performance are domiciled in the_developed_countries of Europe,_America_and_Asia, a_study based on_empirical_evidence from_an_emerging economy like Nigeria becomes warranted._The_economies of the countries within these continents_are reasonably stable, and_so,_it will be misleading_to assume that results of_studies carried out in those countries_can be_used to_draw reliable conclusions on the emerging economies within the African continents_because of the peculiarities associated with_the different economies. For_example, the_regulatory_framework, general business,_legal_and audit_environment of the developed countries are very_much different_from those of the developing countries._All these factors could_alter_the result of a study. This_means that country-specific findings will be_important in provoking a global_discourse_of_the association between debt financial_and corporate performance. This is a_gap in literature_upon which our study is deeply rooted._In_filling this gap, we attempted a_robust_combination of debt finance choices of_short-term_debt_to asset ratio, long-term debt_to asset ratio and total debts_to asset ratio in modelling for corporate performance within_the Nigerian environment._The remainder of this paper_is_organized_as follows: Section two provides the literature review on debt_structure and_firm performance. Section_three discusses the theoretical framework for the study. Section four_and section five focus on the methodology_and analysis of results respectively. Lastly, section six concludes the study_with some recommendations. 2. LITERATURE REVIEW 2.1 Concept_of Corporate Performance The term corporate performance_refers to the benefits_emanating_from shares and those