Hire Purchase Strategy of Physical Capital Investment and Financial Performance of Construction Companies: Illustrating from the Nigerian Stock Exchange

Abstract

The purpose of this paper is to identify the influence of hire purchase strategy of physical capital investment on financial performance of construction companies quoted on the Nigerian Stock Exchange. Data were obtained through questionnaire. Analyses were performed using descriptive statistics and Pearson’s product moment coefficient of correlation. Empirical results indicate that there exist a statistically significant negative association between hire purchase strategy of investing in physical capital and financial performance of construction companies. It was concluded that considering the complexities in service delivery, application of hire purchase as a physical capital investment option, may not provide the quantum of capital assets needed to satisfy expectations of customers.