The Effect of Financial Leverage on Shareholders Returns of Quoted Companies in Nigeria

This study investigated the effect of financial leverage on returns to shareholders returns on quoted companies in Nigeria. In conducting this relationship study, a samples were used for the first and second analysis, the first analysis was tested using multiple regression while the second analysis was done using a non probability method. The same set of dependent variables were used as measure of leverage, multiple regression analysis, and non parametric techniques were employed for analysis 1 and 2 respectively, while the test statistic was used to test the significance of each regression model, the chi square was utilized in testing the significance of the effect of leverage on returns to shareholders. Whereas the f test statistic was used in determining the overall significance of each regression, findings were presented, It was concluded that financial leverage has significant effect on shareholders returns, it is further discovered that, the need to maximize profit and increase ownership control of the firm led to an increase in the use of leverage as a means of investing finances by firms. It was therefore recommended that leverage be employed by business organizations. Dr. Odogu Laime Isaac "The Effect of Financial Leverage on Shareholders Returns of Quoted Companies in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-8 | Issue-3 , June 2024, URL: https://www.ijtsrd.com/papers/ijtsrd65010.pdf Paper Url: https://www.ijtsrd.com/management/accounting-and-finance/65010/the-effect-of-financial-leverage-on-shareholders-returns-of-quoted-companies-in-nigeria/dr-odogu-laime-isaac