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     2026:7/3

International Journal of Multidisciplinary Research and Growth Evaluation

ISSN: (Print) | 2582-7138 (Online) | Impact Factor: 9.54 | Open Access

Transcendent capital leverage horizontal besides return on resources of pullet husbandry firms

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Abstract

Capital market for small business outfits is deficient like any other market, small pullet husbandry business has serious problem in raising adequate outside funding to attain to its needs. This has been a great problem in Nigeria, which requires government involvement in both equity and debt markets to control their operations to survive the small business ventures. Restricted quantity of resources is concentrated on pullet husbandry business and the factors that have an influence on the borrowing decisions of the business. The study was undertaken to determine the transcendent capital leverage horizontal besides return on resources of pullet husbandry firms. Survey and quantitative research methods were adopted to collect relevant data from the financial statements of the investigated firms. The data collected were analyzed using regression method and other appropriate statistical tools. The results revealed that the assets pattern determinants introduced by the scheme of funding are relevant for pullet husbandry firms to maintain the transcendent capital leverage horizontal and also assess its impact on return on resources employed. The study advocated that agency cost and lopsided information cost have an influence on the level of short term and long term debt in firms experiencing a higher level of agency cost and irregular information cost during their lives. Firms with the weak asset formation are sensitive to economic turmoil and will be considered risky by financial establishments for lending funds. It was concluded that relying on lower levels of external funds will increase return on assets of the firms. In addition, return on assets is affected by both groups of debt, but the magnitude is substantially higher for short term debt than long term debt. The huge difference in magnitude might be as a result that firms raise relatively more short term debt than long term debt. It was suggested that an in-depth study be carried out to assess how pullet husbandry businesses finance their long term resources established on the fact that these firms are free to raise short term debt than long term since long term assets had better be financed long term funds.

How to Cite This Article

Glory T Effiong, Nicholas O Dan (2021). Transcendent capital leverage horizontal besides return on resources of pullet husbandry firms. International Journal of Multidisciplinary Research and Growth Evaluation (IJMRGE), 2(3), 61-66.

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