Abstract:
The paper examined the nexus between financing mix and performance of listed manufacturing firms in Nigeria. Secondary data sourced from the published annual financial statements of the selected firms were utilized. The study covered the period between 2006 and 2021. A theoretical framework was brought in to examinedthe issue of financing mix with a view to establish the theoretical underpinning of this research. The multiple regression method of data analysis was utilized. The expost factor research design method was adopted. Five proxies were adopted to represent the two regressand and three regressors. It was discovered that equity financing had low impact on ROE and high impacts on ROE. Meanwhile,debt financing had high significant effect on both financial performance surrogates-ROE and ROA. However, Debt/equity financing has minimal adverse impacts on the Nigerian manufacturing sector. Hence, the study concludes that, the inability of the Nigerian manufacturing subsector to opt for proper financing mix is likely one of the causes of under-performance of these firms in Nigeria. In view of this, finance managers in the Nigerian manufacturing subsector are advised to trade with caution why making their financing mix decision if they must remain profitable. Lastly, finance managers are advised to use less of debt to finance its operations and even if they must opt for more debts, they must ensure that the cost of debt is within a bearable limit.
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