Factors of Financial Lease and Financial Performance of Lease Manufacturing Companies in Nigeria

Authors

  • Hameed R. Adoke Department of Business Administration, Federal University, Gusau
  • Abba U. Waziri Department of Business Administration, University of Maiduguri

Keywords:

Total lease, Fixed assets, Total assets turnover index, Lease income, Return on Asset

Abstract

Lease manufacturing companies in Nigeria have experienced mixed results in terms of financial performance despite their significance to the socio-economic growth, employment offering and development of the country. The objective of this study is to investigate the lease financing and financial performance of manufacturing companies in Nigeria. The study employed panel dataset collected from the annual audited financial statements and reports of seventeen listed manufacturing companies (MCs) in Nigeria that fully practiced lease financing spanning 2007-2022. The study sample size for analysis was 17 listed lease manufacturing companies. STATA Software Version 15 were used to test the relationships for this study. To achieve the objective of the study, the statistical tool use are correlation and regression analysis. Having estimated the parameters of the model numerically, with the use of multiple linear regression on the application of the ordinary least squares (OLS). Upon the completion of the analysis used, it was confirmed that, total lease, fixed assets turnover, total assets turnover index and lease income have positive relationship with financial performance. In addition, the findings provided support for hypothesized relationship between firm size and financial performance. The study recommends that good policies should be put in place to encourage lease manufacturing companies to do well in their various businesses. This will improve their performance thereby, having more equipment to lease out. Thus, this will increase the income of both lessors and lessees, employment creation, improvement on the gross domestic product (GDP) and general well-being of Nigerians.

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Published

2023-12-28

How to Cite

Adoke, H. R. ., & Waziri, A. U. . (2023). Factors of Financial Lease and Financial Performance of Lease Manufacturing Companies in Nigeria. Ife Social Sciences Review, 31(2), 28–37. Retrieved from https://issr.oauife.edu.ng/index.php/issr/article/view/221