@article{Oranefo_Egbunike_2022, title={Debt Financing and Firm Valuation of Quoted Non-Financial Firms in Nigeria Stock Exchange}, volume={4}, url={https://goodwoodpub.com/index.php/ijfam/article/view/1064}, DOI={10.35912/ijfam.v4i2.1064}, abstractNote={<p><strong>Purpose: </strong>This study examined the effect of debt financing on the firm valuation of quoted non-financial firms on the Nigerian Stock Exchange (NSE). The study specifically evaluated the effect of short-term debt to equity, long-term debt to equity, and total debt to assets on Tobin’s Q for the period 2011 to 2019.</p> <p><strong>Methodology: </strong>The study adopts the ex post facto research design. The sampling technique utilized in the study was non-probability sampling. The final sample comprised seventy-five firms quoted non-financial firms on the Nigerian Stock Exchange (NSE). The secondary data obtained from MachameRATIOS®were analyzed using panel regression techniques. Unlike prior studies, the study also employs the Arellano Bond Dynamic Panel-data Estimation Model for robustness analysis.</p> <p><strong>Results: </strong>There is a negative effect of short-term debt to equity on Tobin’s Q. The effect of long-term debt to equity and total debt to assets was positive and significant.</p> <p><strong>Limitations: </strong>The main limitation is the unbalanced nature of some sectors due to data unavailability.</p> <p><strong>Contribution: </strong>The study contributes to the literature in the context of developing countries, on the effect of long-term debt on firm valuation; consistent with the trade-off theory of the cost of long-term debt financing as an alternative to internal funding.</p>}, number={2}, journal={International Journal of Financial, Accounting, and Management}, author={Oranefo, Patricia and Egbunike, Chinedu}, year={2022}, month={Sep.}, pages={199–218} }