Abstract
This study examined the effect of lease financing on financial performance of listed pharmaceutical companies in Nigeria. The ex post facto research design was adopted for the study with a population of seven (7) listed pharmaceutical companies in Nigeria as listed by the Nigerian Exchange Group in 2022. Data were retrieved from the annual reports of the selected listed pharmaceutical companies for the period 2015 to 2021. Multiple regression (Ordinary Least Square) analysis was used to analyse the data gathered with the aid of Stata12 statistical software. The study revealed a negative and insignificant effect of lease financing on net profit margin of listed pharmaceutical companies in Nigeria. Also, it revealed a negative and insignificant effect of lease financing on return on assets of listed pharmaceutical companies in Nigeria. Therefore, it was recommended that listed pharmaceutical companies in Nigeria should increase the proportion of lease finance in their operations as evidence suggests it has a negative and insignificant effect on financial performance (net profit margin). Also, that policymakers should increase tax shield for leasing products so as to encourage firms to make use of leasing financing rather than having high credits as it has shown that most pharmaceutical companies are yet to appreciate lease financing as an alternative source of financing.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
