Home » Banking and Finance » IMPACT OF FINANCIAL CONSTRAINTS ON FIRMS INVESTMENT DECISION MAKING IN NIGERIA

IMPACT OF FINANCIAL CONSTRAINTS ON FIRMS INVESTMENT DECISION MAKING IN NIGERIA

Sold By: Joe Project Store | Item Type: Project Material | Report this?  |  Attributes: 50 pages | 1-5 chapters | Amount: ₦5,000 | 1 order. | Marked useful: 6,701 times

INSTANT PROJECT MATERIAL DOWNLOAD

INTRODUCTION

The study is focused in examining financial constraint and investment decision of firms in Nigeria. The study seeks to reveal various financial constraints that are having effect on firms’ investment decision. The data have been taken from the balance sheet of nine (9) manufacturing firms listed in the Nigerian Stock Exchange for the time period 2008 to 2012. Multiple regression analysis has been done to examine the relationship among firm’s size, dividend payout ratio, firm’s age, capital stock, debt and cash flows and investment.

The empirical findings show their investments are much affected by fluctuations in their cash flows or retained earnings as it has a positive influence on investment and that there is positive relationship between the firms’ size and investment as well as debt  while a negative relationship exists between firms’ age, capital stock, and investment. It also reports that there is negative relationship between dividend payout ratio and the investment as well as 

The study, thus, concluded that financial constraints are present in the market, which indicates that the firms are unable to access to external forms of financing. In addition, the presence also signifies the presence of asymmetric information problem, agency cost, tax exhaustion cost e.t.c. between the firm and its financer. 

It thus, recommended that an optimal dividend decision with less effect on the firms’ investment decision should be embraced upon by the firms. In addition, firms should opt for a strategy of using modest levels of debt and overinvesting as a way of increasing debt capacity.


Tags: Financial constraints Impact of financial constraints Decision making in Nigeria Evaluation of decision making Assessment of decision making

This material content is developed to serve as a GUIDE for students to conduct academic research
Find What You Want By Category:
Assignments
Business Plans
e-Books
Journals
Project Materials
Proposals
Seminar Reports
Term Papers

DOWNLOAD THIS PROJECT MATERIAL NOW!

Advertise Here

For advertisement, call 08168958821

Not what you were looking for? Perform a search

What's your project topic?

Comment on Facebook:

See More Banking and Finance Final Year Research Project Topics & Materials In PDF & Doc | iproject

More Project Material Departments