Evaluation of External Financing and Technology Investment Quality of Listed Manufacturing Companies in Nigeria

Authors

  • KOLAWOLE Jospeh Seun Department of Accounting, College of Social and Management Science, Afe Babalola University, Ekiti State, Nigeria
  • ALABI Adeyemi Wasiu Department of Accounting, Babcock Business School, Babcock University, Ogun State, Nigeria
  • IGBEKOYI Olusola Esther Department of Accounting, Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria
  • OLUWAGBADE Oluyinka Isaiah Department of Accounting, College of Social and Management Science, Afe Babalola University, Ekiti State, Nigeria

Keywords:

long-term debt, short-term debt, return on investment, research and development, operational efficiency

Abstract

Purpose: This study examined the effects of external financing on technology investment quality of listed manufacturing firms in Nigeria. Design/Methodology/Approach: The study employed ex-post facto research design. 44 listed manufacturing firms on NGX as at 31st December, 2023 form the study population while 43 firms were selected as the sample using census sampling technique. Data were collected from annual audited financial reports and subjected to multiple regression analysis. Findings: The findings from the analysis revealed that long term debt has positive significant effect on research and development but insignificant negative effect on return on investment and operational efficiency. Also, it was found that short term debt has positive significant effect on return on investment but negative insignificant effect on operational efficiency and research and development. Practical Implication: The study concluded that finance from short term debt is crucial for manufacturing firms to earn optimum returns from their innovative investment. It is therefore recommended that management of manufacturing firms strategically align their external finances with investment in capital technology. Originality/Value: The originality of this study is such that, it may emerge as one of the pioneer studies to investigate the effect of external financing on the quality of technological investment within the Nigerian manufacturing sector.

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Published

2024-10-31

How to Cite

KOLAWOLE Jospeh Seun, ALABI Adeyemi Wasiu, IGBEKOYI Olusola Esther, & OLUWAGBADE Oluyinka Isaiah. (2024). Evaluation of External Financing and Technology Investment Quality of Listed Manufacturing Companies in Nigeria. aw and conomy, 3(10), 39–55. etrieved from https://www.paradigmpress.org/le/article/view/1376

Issue

Vol. 3 No. 10 (2024): October

Section

Articles