IMPACT OF FINANCIAL CONSTRAINTS ON FIRMS INVESTMENT DECISION MAKING IN NIGERIA
| Format: Ms Word | 1-5 Chapters | Table of Content|
INSTANT PROJECT MATERIAL DOWNLOAD
Study Level: BTech, BSc, BEng, BA, HND, ND or NCE
Amount: ₦3,000.00
CHAPTER ONE
INTRODUCTION
The study is focused in examining financial constraint and investment decision of firms in Nigeria. The study seeks to reveal various financial constraints that are having effect on firms’ investment decision. The data have been taken from the balance sheet of nine (9) manufacturing firms listed in the Nigerian Stock Exchange for the time period 2008 to 2012. Multiple regression analysis has been done to examine the relationship among firm’s size, dividend payout ratio, firm’s age, capital stock, debt and cash flows and investment. The empirical findings show their investments are much affected by fluctuations in their cash flows or retained earnings as it has a positive influence on investment and that there is positive relationship between the firms’ size and investment as well as debt while a negative relationship exists between firms’ age, capital stock, and investment. It also reports that there is negative relationship between dividend payout ratio and the investment as well as
The study, thus, concluded that financial constraints are present in the market, which indicates that the firms are unable to access to external forms of financing. In addition, the presence also signifies the presence of asymmetric information problem, agency cost, tax exhaustion cost e.t.c. between the firm and its financer. It thus, recommended that an optimal dividend decision with less effect on the firms’ investment decision should be embraced upon by the firms. In addition, firms should opt for a strategy of using modest levels of debt and overinvesting as a way of increasing debt capacity.
TABLE OF CONTENT
Title page
Approval page
Dedication
Acknowledgment
Abstract
Table of content
CHAPTER ONE
INTRODUCTION
1.1 Background to the study
1.2 Problem Statement
1.3 Aims/Objectives of study
1.4 The Research questions
1.5 Statement of Research Hypothesis
1.6 Scope of the study
1.7 Basic Assumptions
1.8 Limitation of the Study
1.9 Significance of the Study
1.10 Operational Definition of Terms
1.10.1 Organization of the Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
2.8. Empirical Review
2.9. Theoretical Framework
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design
3.2 Sources of Data
3.3 Multiple Linear Regression
3.4 Vector Auto Regression (VAR)
3.4.1 Impulse Response Function
3.4.2 Variance Decomposition
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Introduction
4.2 Data Presentation
4.3 Explanatory variables