Title: Comparative Analysis Of Middle-Term Financing Alternatives On Firm Profitability
Authors: Efemini, Bridget And Ehiedu, Victor C Ph.D
Volume: 9
Issue: 5
Pages: 141-151
Publication Date: 2025/05/28
Abstract:
This study examined comparative analysis of middle-term financing alternatives on Firm Profitability in Nigerian Telecommunications Sectors. Specifically, the study compared the effects of Term Loans from Banks, Hire Purchase Arrangement and Equipment Leasing on firm Profitability. Three research questions with respective hypotheses were formulated to guide the study. The study adopted descriptive survey design with a sample size of 89 employees of two randomly selected firms in Asaba, Delta State. Questionnaire was used to collect data. Descriptive and inference statistic were used for data analysis. The research questions were answered using simple percentage and mean. The hypotheses were tested using multiple regressions via SPSS 25 at a significant level of 0.05 and the comparism was considered using t-value. The findings showed that there is a significant effect of term loans from banks on firm profitability; there is a significant effect of hire purchase arrangement on firm profitability; and there is a significant effect of equipment leasing on firm profitability in Nigeria. Furthermore, In comparism, Equipment Leasing (t = 3.1175) has a higher positive effect on firm profitability, followed by Hire Purchase Arrangement (2.996) before Term Loans from Banks (2.651). It was recommended among others that managers and business owners should adopt Middle-Term Financing sources to grow firm profitability.