Debt Heterogeneity, R&D Investment and the Performance of Listed Manufacturing Goods Firms in Nigeria
This paper examines the level at which debt heterogeneity impact performance of the industrial firms listed on the floor of the Nigerian Exchange Group Plc as at December 31st, 2023. Window of observation was from 2014-2023. The scope captures seventeen companies in the production of industrial goods listed firms. To examine the impact of debt heterogeneity, Panel regression analysis utilized to ascertain the degree of relationships that subsist between variables. The findings reveal that the relational debt ratio significantly negatively affects the return on assets, research and development investment disclosure shows an insignificant negative, although there exist a significant moderate relationship between relational debt and return on assets. The study therefore concludes that an increase in relational debt such as bank loans have a significant decreasing impact on the performance of listed industrial goods firms in Nigeria, as greater disclosure of research and development investment has an insignificant impact on firms performance. Additionally, high investment in research and development further exacerbates the negative effect of relational debt on firm performance. The study recommends that firms consider debt heterogeneity, as it significantly impacts research and development investment returns and underscores the importance of selecting the right type of debt.
Keywords: Debt Heterogeneity, Firm Performance, R&D Expenditure Disclosure, Relational Debt, Return on Assets
