This study investigated the effect of financial leverage on returns to shareholders returns on quoted companies in Nigeria. In conducting this relationship study, a samples were used for the first and second analysis, the first analysis was tested using multiple regression while the second analysis was done using a non-probability method. The same set of dependent variables were used as measure of leverage, multiple regression analysis, and non-parametric techniques were employed for analysis 1 and 2 respectively, while the test statistic was used to test the significance of each regression model, the chi-square was utilized in testing the significance of the effect of leverage on returns to shareholders. Whereas the 'f test statistic was used in determining the overall significance of each regression, findings were presented, It was concluded that financial leverage has significant effect on shareholders returns, it is further discovered that, the need to maximize profit and increase ownership control of the firm led to an increase in the use of leverage as a means of investing finances by firms. It was therefore recommended that leverage be employed by business organizations.
financial leverage, shareholders returns, parametric techniques
International Journal of Trend in Scientific Research and Development - IJTSRD having
online ISSN 2456-6470. IJTSRD is a leading Open Access, Peer-Reviewed International
Journal which provides rapid publication of your research articles and aims to promote
the theory and practice along with knowledge sharing between researchers, developers,
engineers, students, and practitioners working in and around the world in many areas
like Sciences, Technology, Innovation, Engineering, Agriculture, Management and
many more and it is recommended by all Universities, review articles and short communications
in all subjects. IJTSRD running an International Journal who are proving quality
publication of peer reviewed and refereed international journals from diverse fields
that emphasizes new research, development and their applications. IJTSRD provides
an online access to exchange your research work, technical notes & surveying results
among professionals throughout the world in e-journals. IJTSRD is a fastest growing
and dynamic professional organization. The aim of this organization is to provide
access not only to world class research resources, but through its professionals
aim to bring in a significant transformation in the real of open access journals
and online publishing.