DEBT STRUCTURE AND FIRM VALUE OF CONSUMER GOOD FIRMS IN NIGERIA

The study used an ex-post facto research design to examine the debt structure and firm value of consumer goods firms in Nigeria. Specifically, the study investigated the effect of Short Term, Long Term, and Total Debts on Net Assets of the selected consumer goods firms in Nigeria. The study was based on a sample of nine (9) firms selected from a population of twenty-one (21) consumer goods firms listed on Nigeria Exchange Group during the 2013-2023 periods. The Panel Least Squares Regression Model was used to analyze the data obtained from the annual reports and financial statements of the firms. Results of the analysis suggest that Short Term Debts positively, but do not significantly affect Net Assets of the consumer goods firms in Nigeria, while Long Term Debt negatively, but do not significantly affect Net Assets of the firms. The study also found that Total Debt negatively and significantly affects Net Assets of the firms. In line with these findings, the study recommends that consumer goods firms in Nigeria should maximize their firm value by using short-term debts to finance their working capital.. The firms should also enhance their firm value by using more equity than long term debt to fund their long term investment. The overall recommendation of the study is that the firms should use a combination of debt and equity to fund their operations, provided that the total debt in the capital structure is kept within the optimal capital structure of the firms