International Journal of Academic Accounting, Finance & Management Research (IJAAFMR)   Year: 2019 | Volume: 3 | Issue: 5 | Page No.: 26-34 Effect of Debt Financing on the Corporate Performance: A Study of Listed Consumer Goods firms in Nigeria Aniefor Sunday Jones, B.sc, M.sc, MBA, ACTI, ACA, CPFA, MCIA, Onatuyeh Aruobogha Edwin, B.sc, M.sc, MA, ACA, ACTI, FCCA, CPFA, MCIA. Abstract: The concept of debt financing has assumed considerable importance in recent years given the fundamental role debts now play in forming the financial structure of corporate firms. Quite evident in the debt finance literature is the juxtaposition between debt financing and corporate performance which suggests that debt financing can influence corporate performance. Against the narrow measures of debt financing which are common with most studies that have been carried out on the debt finance-performance dynamics; we attempted a more robust combination of debt finance choices in modelling for corporate performance. Based on data gleaned from the audited annual reports of fifteen (15) consumer goods firms listed in the Nigerian Stock Exchange (NSE) for the period 2006 to 2017, results of the panel regression technique revealed that total debt, long-term debt and short-term debt to asset ratios positively influence the performance of consumer goods firms in Nigeria. Based on the findings of the study, we recommend, among others, that there is need for the Nigerian firms to rely less on short-term debts, which forms the major part of their leverage, and focus more on developing internal strategies that can help improve their performance.