FINANCING DECISIONS AND FINANCIAL PERFORMANCE OF LISTED AGRO-ALLIED FIRMS IN NIGERIA

This study examined the effect of financing decisions on the financial performance of agro-allied firms in Nigeria. Specifically, the study investigated the effect of working capital decisions, dividend policy decisions, and investment decisions on the financial performance of selected listed agro-allied firms in Nigeria. The study adopted an ex-post facto research design using secondary data obtained from the audited annual reports and financial statements of selected agro-allied firms listed on the Nigerian Exchange Group for the period 2015 to 2024. Panel Least Squares regression technique was employed for data analysis. Financial performance was proxied by Return on Assets (ROA), while working capital decisions, dividend policy decisions, and investment decisions were measured using Current Ratio, Dividend Payout Ratio, and Capital Expenditure Ratio respectively. The findings of the study revealed that working capital decisions have a positive and statistically significant effect on the financial performance of agro-allied firms in Nigeria. The study also found that dividend policy decisions have a negative but statistically insignificant effect on financial performance. Furthermore, investment decisions were found to have a positive and statistically significant effect on financial performance. The overall regression result showed that financing decisions jointly have significant effects on the financial performance of agro-allied firms in Nigeria. The study concluded that effective financing decisions are critical determinants of profitability, operational efficiency, and sustainability of agro-allied firms in Nigeria. The study therefore recommended that management of agro-allied firms should strengthen working capital management practices, adopt efficient investment financing strategies, and formulate balanced dividend policies capable of improving profitability and long-term organizational sustainability