AN EMPIRICAL INVESTIGATION OF LEASE FINANCING AND FINANCIAL PERFORMANCE OF CONGLOMERATES FIRMS LISTED IN NIGERIA STOCK EXCHANGE

Abstract

Conglomerates companies in Nigeria has experienced mixed results in
terms of financial performance on leasing despite their significance to
the economic growth and development of the country. The objective of
this study is to investigate the lease financing and financial performance
of 5 lease manufacturing companies in Nigeria Stock Exchange from 31
st

December, 2006 to 31
st
December, 2021. The study employed secondary
data from the annual audited financial statements and reports of five
listed conglomerates lease manufacturing companies (CLCs). Financial
performance is measured using return on asset while total lease, fixed
assets total assets turnover index were used to measure lease financing.
The study uses ex-post facto research design and longitudinal panel
which consists of time series and cross-sectional data. The data were
analyzed using descriptive statistics and regression analysis. The study
found that total lease has significant positive relationship with financial
performance; fixed assets has significant positive relationship with
financial performance. In addition, total assets turnover also has
significant negative relationship with financial performance. Therefore,
the study recommends that the regulatory bodies which comprises
Central Bank of Nigeria (CBN) and Security Exchange Commission
(SEC) to concentrate on more policy reforms that could enhance the
proper utilization of total assets turnover to improve financial
performance of conglomerates lease manufacturing companies in
Nigeria.