Full Project-THE DETERMINANTS OF LEVERAGE IN LISTED SERVICE COMPANIES IN NIGERIA

Click here to Get this Complete Project Chapter 1-5

THE DETERMINANTS OF LEVERAGE IN LISTED SERVICE COMPANIES IN NIGERIA

CHAPTER ONE
INTRODUCTION
1.1 Background To The Study
The leverage or Capital structure of a firm could be a combination of both debt and equity or by debt, or by equity. Consequently the capital structure of the firm has implications for the shareholders earnings and risk, which also affect the cost of capital and the market value of the firm. Capital structure centers on the mix of debt and equity in financing the assets used by firms.
Capital structure influences the financial performance and efficiency of the firm. Ghosh, (2008); Margaritis and Psillaki, (2007). A firm could increase or decrease its leverage by either issuing additional debt to buy back stock or issuing stock to pay debt. The essence of the effective management of the capital structure is to determine appropriate mix of the financial sources used by the firm so as to maximize the shareholders’ wealth and minimize the firm’s cost of capital.
The proper mix of funds sources is referred to as the capital structure. Then how should a firm choose its debt to equity ratio? And, what is the optimal capital structure for a firm? Whether or not such an optimal capital structure exists? What are the potential determinants of such optimal capital structure is an issue in corporate finance Myers, (1984).
The determinants of capital structure among listed firms in Nigeria are tangibility, firm size, profitability, firm growth and firm’s age. The research seek to investigate the Determinants of leverage in listed service companies in Nigeria (using 8 determinants, ten Banks, for 6 years – that translates to 60 samples).
1.2 Statement of the Problem
Capital structure management involves risk if the determinant factors are not appropriately considered. Leverage could produce profit, when the returns from the asset more than offset the costs of borrowing. It may also reflect losses. A firm with huge debt might face bankruptcy or default during a business downturn, while a lessleveraged corporation might survive. A loss in value of collateral assets could also pose as risk to capital structure management. Brokers may require the addition of funds when the values of securities hold declines.
Banks may fail to renew mortgages when the value of real estate declines below the debt’s principal. Even if cash flows and profits are sufficient to maintain the ongoing borrowing costs, loans may be called. The determinants of capital structure among listed firms in Nigeria are tangibility, firm size, profitability, firm growth and firm’s age which if not appropriate considered could plunge the firm into greater crisis. The problem of the research centers on the appraisal of the Determinants of leverage in listed service companies in Nigeria (use 8 determinants, ten Banks, for 6 years – that translates to 60 samples).
1.3  Objectives of the Study
1.   To determine the nature of leverage management.
2.   To examine the determinants of leverage in listed service companies in Nigeria.
1.4  Research Questions
1.   What is the nature of leverage management in Nigeria?
2.   What are the determinants of leverage in listed service companies in Nigeria?
1.5  Research Hypothesis
Ho: There are no effective determinants of leverage in listed service companies in Nigeria.
Hi:  There are effective determinants of leverage in listed service companies in Nigeria.
1.6 Significance of the Study
The study elucidates on the Determinants of leverage in listed service companies in Nigeria. The Capital structure of a firm could be a combination of both debt and equity or by debt, or by equity. Consequently the capital structure of the firm has implications for the shareholders earnings and risk, which also affect the cost of capital and the market value of the firm. Capital structure centers on the mix of debt and equity in financing the assets used by firms. Capital structure influences the financial performance and efficiency of the firm. Ghosh, (2008); Margaritis and Psillaki, (2007).
1.7 Scope of the Study
The study focuses on the appraisal of the determinants of leverage in listed service companies in Nigeria.
1.8 Limitations of the Study
The study was confronted by some constraints including logistics and geographical factors.
1.9 Definition of Terms
LEVERAGE DEFINED
The leverage or Capital structure of a firm could be a combination of both debt and equity or by debt, or by equity. Consequently the capital structure of the firm has implications for the shareholders earnings and risk, which also affect the cost of capital and the market value of the firm. Capital structure centers on the mix of debt and equity in financing the assets used by firms. Capital structure influences the financial performance and efficiency of the firm. Ghosh, (2008); Margaritis and Psillaki, (2007). A firm could increase or decrease its leverage by either issuing additional debt to buy back stock or issuing stock to pay debt. The essence of the effective management of the capital structure is to determine appropriate mix of the financial sources used by the firm so as to maximize the shareholders’ wealth and minimize the firm’s cost of capital.

REFERENCES
Brigham, Eugene F., Fundamentals of Financial Management (1995).
Mock, E. J., R. E. Schultz, R. G. Schultz, and D. H. Shuckett, Basic Financial Management (1968).
Grunewald, Adolph E. and Erwin E. Nemmers, Basic Managerial Finance (1970).
Ghosh, Dilip K. and Robert G. Sherman (June 1993). “Leverage, Resource Allocation and Growth”. Journal of Business Finance & Accounting. pp. 575–582. CS1 maint: Uses authors parameter (link)
Lang, Larry, Eli Ofek, and Rene M. Stulz (January 1996). “Leverage, Investment, and Firm Growth”. Journal of Financial Economics. pp. 3–29. CS1 maint: Uses authors parameter.
Bodie, Zvi, Alex Kane and Alan J. Marcus, Investments, McGraw-Hill/Irwin (June 18, 2008)
Chew, Lillian (July 1996). Managing Derivative Risks: The Use and Abuse of Leverage. John Wiley & Sons.
Van Horne (1971). Financial Management and Policy.
Weston, J. Fred and Eugene F. Brigham, Managerial Finance (1969).
Weston, J. Fred and Eugene F. Brigham, Managerial.

Get the Complete Project

This is a premium project material and the complete research project plus questionnaires and references can be gotten at an affordable rate of N3,000 for Nigerian clients and $8 for International clients.

Click here to Get this Complete Project Chapter 1-5

You can also check other Research Project here:

1, Accounting Research Project

2. Adult Education
3. Agricultural Science
4. Banking & Finance
5. Biblical Theology & CRS
6. Biblical Theology and CRS
7. Biology Education
8. Business Administration
9. Computer Engineering Project
10. Computer Science 2
11. Criminology Research Project
12. Early Childhood Education
13. Economic Education
14. Education Research Project
15. Educational Administration and Planning Research Project
16. English
17. English Education
18. Entrepreneurship
19. Environmental Sciences Research Project
20. Guidance and Counselling Research Project
21. History Education
22. Human Kinetics and Health Education
23. Management
24. Maritime and Transportation
25. Marketing
26. Marketing Research Project 2
27. Mass Communication
28. Mathematics Education
29. Medical Biochemistry Project
30. Organizational Behaviour
31. Other Projects
32. Political Science
33. Psychology
34. Public Administration
35. Public Health Research Project
36. More Research Project
37. Transportation Management
38. Nursing

Need a Project Writer for a Different Topic

• MSC PROJECT WRITING SERVICES
• MBA RESEARCH PROJECT WRITING SERVICES
• Research Project Writing Services in Lagos Nigeria (Professional Writers) -Law, MSc, MBA,PhD, Dissertations, Thesis, Assignment, Speech
• Masters Research Project Writer in Lagos Nigeria
• MBA Research Project Writer in Lagos Nigeria
• LOOKING FOR A WRITING SERVICES FOR AN URGENT ASSIGNMENTS OR PROJECT WORK
• PROFESSIONAL WRITING SERVICES IN LAGOS NIGERIA (TERM PAPER, SPEECH WRITING, ASSIGNMENT, THESES, DISSERTATIONS, RESEARCH PROPOSAL, PROJECT WRITING SERVICES etc)
• BUSINESS ADMINISTRATION RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• CONSULT A RESEARCH PROJECT WRITER IN LAGOS NIGERIA (PH.D, MBA, MSC, M.ED, BSC)
• MANAGEMENT RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• Education Research Project Writer in Lagos Nigeria
• Environmental Sciences Research Project Writer in Lagos Nigeria
• Guidance and Counselling Research Project Writer in Lagos Nigeria
• Human Kinetics and Health Education Project Writer in Lagos Nigeria
• Early Childhood Education Research Project Writer in Lagos Nigeria
• Christian Religious Studies(CRS) Research Project Writer in Lagos Nigeria
• Educational Administration and Planning Research Project Writer in Lagos Nigeria
• Political Science Research Project Writer in Lagos Nigeria
• Accounting Research Project Writer in Lagos Nigeria
• Economics Research Project Writer in Lagos Nigeria
• Management Research Project Writer in Lagos Nigeria
• Marketing Research Project Writer in Lagos Nigeria
• Public Administration Research Project Writer in Lagos Nigeria
• MBA Research Project Analysts
• In Need of MBA Research Project Writer in Nigeria
• MBA Dissertation Research Project Writer
• MBA Project writer
• EDUCATION DEPARTMENT PROJECT WRITING SERVICES
• BACHELOR OF SCIENCE (BSC) DEGREE PROJECT WRITING SERVICES(B.ED,B.A,B.SC)
• MASTER OF BUSINESS ADMINISTRATION (MBA) RESEARCH PROJECT WRITING SERVICES
• MASTER OF SCIENCE (MSC) RESEARCH PROJECT WRITING SERVICES
• POST GRADUATE RESEARCH PROJECT WRITER
• POST GRADUATE DIPLOMA (PGD) RESEARCH PROJECT WRITER
• MASTER RESEARCH PROJECT WRITER
• MASTER DEGREE RESEARCH PROJECT WRITING SERVICES
• POSTGRADUATE RESEARCH PROJECT WRITING SERVICES
• MASTERS RESEARCH PROJECT WRITING SERVICES
• RESEARCH PROJECT WRITER
• EXPERT IN RESEARCH PROJECT/THESIS/DISSERTATION WRITING SERVICES IN LAGOS NIGERIA
• HIRE A PROFESSIONAL BSC/HND RESEARCH PROJECT WRITER
• HIRE A PROFESSIONAL MBA/MSC RESEARCH PROJECT WRITER
• HIRE A PROFESSIONAL THESIS WRITER IN LAGOS NIGERIA
• SC/M.SC/MBA/PGD RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• Master Degree Research Project Specialist/Writer in Lagos, Nigeria
• Hire A Research Project Writer in Lagos Nigeria
• Research Project Specialist in Lagos, Nigeria

• Education