CAPITAL STRUCTURE, LIQUIDITY AND INVESTMENT GROWTH OF LISTED CONGLOMERATE FIRMS IN NIGERIA: MODERATING EFFECT OF FIRM SIZE
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Abstract
This study examines the moderating effects of short term, long term and liquidity and on investment growth, using listed conglomerate firms in Nigeria. The main objective of the study is to ascertain the level to which short term, long term and liquidity influences the investment growth of listed conglomerate firms in Nigeria from 2011-2020 and how the effect is moderated by firm size. The methodology employed is the use of secondary data and the ex-post facto research design. The population of the study consists of all six conglomerate firms listed on the Nigerian Stock Exchange as at December, 2020. The study used multiple regression as a tool of analysis. Findings show that Short Term Debt does not have significant effect, while Long Term Debt has a significant positive effect on investment growth of listed conglomerate firms in Nigeria. Also, the study found that firm size has a significant moderating effect on the relationship between short term debts as well as on liquidity on investment growth. The study recommends that conglomerate firms should maintain a minimal level of short term debt and liquidity because tying down too much of its current assets will reduce investment opportunities. Similarly, the management of listed conglomerate firms should increase the level at which the organizations use Long Term Debt to finance their business activities, as this may go a long way in increasing the investment opportunity potentials of the organizations.
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